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Cerner Corporation
Type
Public
Traded as NASDAQ: CERN
NASDAQ-100 Component
S&P 500 Component
Industry Health Care
Founded 1979
Founder Neal Patterson
Paul Gorup
Cliff Illig
Headquarters Kansas City, Missouri, U.S.
Key people
Zane Burke (President)
Cliff Illig (chairman and interim CEO)
Products Health informatics software
Revenue Increase US$ 3.402 billion (2014)
Operating income
Increase US$ 763 million (2014)
Net income
Increase US$ 524.4 million (2014)
Total assets Increase US$ 4.530 billion (2014)
Total equity Increase US$ 3.565 billion (2014)
Number of employees
22,000 (April 2015)
Website www.cerner.com

Cerner Corporation is an American supplier of health information technology (HIT) solutions, services, devices and hardware. As of April 2015 its products were in use in approximately 18,000 facilities around the world and the company had about 25,000 employees globally.

Cerner was founded in 1979 by Neal Patterson, Paul Gorup, and Cliff Illig, who were colleagues at Arthur Andersen. Its original name was PGI & Associates but was renamed Cerner in 1984 when it rolled out its first system, PathNet. It went public in 1986. Cerner's client base grew steadily in the late 1980s, reaching 70 sites in 1987, 120 sites in 1988, 170 sites in 1989, and reaching 250 sites in 1990. Installations were primarily of PathNet systems.

During this time, Cerner was developing components of a Health Network Architecture (HNA), an integrated IT system designed to automate health care processes. Clients could purchase individual components or the whole system at one time. By 1994, more than 30 clients had purchased the full HNA system, while 100 clients had purchased multiple components of the system.

In 1997, the company introduced Cerner Millennium, an upgrade to its HNA system which incorporated all of the company’s software offerings into one unified architecture. The introduction of Millennium contributed to significant growth for the company, with revenue increasing to $1.1 billion in 2005 from $245.1 million in 1997.

Cerner acquired IMC Health Care, Inc. in early 2010 to continue expanding its wellness services to outside commercial employers, pharmacies and wellness programs.

In July 2010, president Trace Devanny left the company and Patterson became the company’s president, in addition to his roles as chairman and chief executive officer. In September 2013, Zane Burke was named president, assuming the title from Patterson.

On August 5, 2014, Cerner announced its intent to purchase Siemens Health Services, the health information technology business of Germany’s Siemens AG, for $1.3 billion. The acquisition was completed on February 2, 2015.

On July 29, 2015, Leidos Partnership for Defense Health, which includes Cerner, Accenture, and Leidos, was awarded a 10-year, $4.3 billion contract to overhaul and manage the electronic health records for the Department of Defense.

CEO and co-founder Neal Patterson died July 9, 2017.

In 2001, a memo authored by CEO Patterson and sent to about 400 managers was leaked online. The memo, written in harsh language, was meant to motivate the managers to get more productivity out of employees and promised layoffs, a hiring freeze, closing of an "Associate Center", and the implementation of a punch-card system if Patterson did not see evidence of changes. Patterson's metric was the fullness of the company's Kansas City office lot at the hours of 8 a.m. and 5 p.m. The memo was widely seen as inflammatory and poor management, and Cerner's stock price fell 22% over three days.

In 2002, the installation of a computerized health system by Cerner in the Children's Hospital of Pittsburgh of UPMC made it harder for the doctors and nurses to do their jobs in emergency situations and resulted in a "disaster", according to Phillip Longman, a senior fellow at the New America Foundation. Longman wrote, "According to a study conducted by the hospital and published in the journal Pediatrics, mortality rates for one vulnerable patient population—those brought by emergency transport from other facilities—more than doubled, from 2.8 percent before the installation to almost 6.6 percent afterward." Defenders of Cerner in the study charged that the Pittsburgh hospital did not adequately prepare for the transition to the CPOE system in that it had at the same time significantly changed its pharmacy process, did not provide adequate wireless bandwidth, and did not have order sets pre-programmed on day one. They noted that other hospitals that more carefully planned the implementation did not experience the same problems.

In 2005, Cerner and other companies paid for a report by the RAND Corporation which predicted great efficiencies from electronic health records, including savings of $81 billion a year or more, which RAND now says is overstated. This report helped drive growth in the electronic health record and billions of dollars in federal incentives to hospitals and doctors. Cerner's revenue tripled from $1 billion in 2005 to a projected $3 billion in 2013. The study was criticized by the Congressional Budget Office for overstating potential savings. A 2013 reassessment of the 2005 report by the RAND Corporation said that the conversion had failed to produce savings and had mixed results in efficiency and patient care.

In 2010 Girard Medical Center, Crawford County, Kansas, hired Cerner to install an electronic records system. But after receiving $1.3 million, Cerner employees failed to get the system running in time to qualify for federal incentive payments, and in September 2011 notified the hospital that it was abandoning the project, according to a lawsuit Girard filed against Cerner. Cerner and executives at Girard agreed that Girard did not have adequate staff to manage the acquisition and implementation of the system. As of June 2014 the case was still in arbitration.

In 2012 Trinity Health, a small hospital in North Dakota, sued Cerner, claiming that Cerner's patient accounting solution didn't work correctly; the parties settled for $106M in 2014.

In 2014, Cerner was embroiled in litigation with the Girard case still unsettled, a grand jury in California having found that Cerner knew that Ventura County healthcare executives were unprepared to work with Cerner in a $32 million installation, and with a $31 million Cerner implementation at the Athens Regional Health System in Georgia having turned into a disaster, leading to the forced departures of the CEO and the CIO of the health system.

In 2016, the Nanaimo hospital ER began using the system. Physicians have called it a "huge failure" with it increasing some types of errors and slowing down the emergency department.

Cerner's world headquarters campus is at 2800 Rockcreek Parkway, North Kansas City, Missouri. It acquired additional space in Kansas City, Missouri in 2005 and in 2006 it acquired another location in Kansas City. In 2013, Cerner announced plans to redevelop 236-acres in south Kansas City, Missouri into an office park. The site was previously occupied by Bannister Mall, which was demolished in 2009. Cerner broke ground on the new campus on November 11, 2014. The $4.45 billion project intends to employ 16,000 new Cerner workers within the decade.

Cerner has offices in about 25 countries worldwide.

The North tower of Cerner Continuous Campus in Kansas City, KS

Since 2006 Cerner has also occupied space in the former Marion Laboratories in Kansas City

Ground floor of Cerner Innovations Campus in Kansas City, MO

Cerner Health Services building in Malvern, PA

News

Cerner Corporation 2.71% (healthcare)

Q reports

Period Date Adjusted Actuals EPS GAAP EPS
Q4 2020 2021-02-02 Future report Set alerts
Q3 2020 2020-10-22 Future report Set alerts
Q2 2020 2020-07-29 0.63 0.44
Q1 2020 2020-04-28 0.71 0.47
Q4 2019 2020-02-04 0.75 0.49
Q3 2019 2019-10-24 0.66 0.26
Q2 2019 2019-07-24 0.66 0.39
Q1 2019 2019-04-25 0.61 0.51
Q4 2018 2019-02-05 0.63 0.40
Q3 2018 2018-10-25 0.63 0.51

Ratings

2016-07-05 Downgrade Raymond James Financial Inc. Outperform to Market Perform $64.57 to $64.57
2016-06-26 Reiterated Rating Wells Fargo Buy
2016-06-26 Reiterated Rating Wells Fargo & Co. Buy
2016-06-23 Upgrade SunTrust Neutral to Buy $55.28 to $65.00
2016-06-23 Upgrade SunTrust Banks Inc. Neutral to Buy $55.28 to $65.00
2016-06-10 Reiterated Rating Jefferies Group Buy
2016-06-03 Reiterated Rating FBR & Co. Outperform $73.00
2016-06-03 Reiterated Rating FBR & Co Outperform $73.00
2016-05-31 Reiterated Rating Leerink Swann Outperform $65.00
2016-05-22 Reiterated Rating KeyBanc Buy
2016-05-22 Reiterated Rating KeyCorp Buy
2016-05-16 Reiterated Rating Robert W. Baird Buy
2016-05-08 Reiterated Rating FBR & Co. Buy
2016-05-08 Reiterated Rating Canaccord Genuity Buy
2016-05-08 Reiterated Rating Robert W. Baird Buy
2016-05-06 Lower Price Target Topeka Capital Markets Buy $65.00 to $64.00
2016-04-27 Reiterated Rating Canaccord Genuity Buy $59.00
2016-04-17 Reiterated Rating Deutsche Bank Buy
2016-04-17 Reiterated Rating Deutsche Bank AG Buy
2016-04-13 Reiterated Rating Piper Jaffray Buy
2016-04-13 Reiterated Rating Piper Jaffray Cos. Buy
2016-04-12 Reiterated Rating FBR & Co. Buy
2016-04-11 Reiterated Rating Morgan Stanley Hold $57.00
2016-04-10 Reiterated Rating Deutsche Bank Buy $59.00
2016-04-07 Reiterated Rating Piper Jaffray Buy $70.00
2016-04-06 Reiterated Rating Canaccord Genuity Buy
2016-04-06 Reiterated Rating FBR & Co. Buy
2016-03-09 Reiterated Rating Canaccord Genuity Buy $59.00
2016-03-04 Reiterated Rating Topeka Capital Markets Buy $68.00 to $65.00
2016-02-23 Downgrade Goldman Sachs Buy to Neutral $62.00 to $54.00
2016-02-23 Downgrade Goldman Sachs Group Inc. Buy to Neutral $62.00 to $54.00
2016-02-17 Downgrade Jefferies Hold to In-Line $76.00 to $68.00
2016-02-17 Lower Price Target RBC Capital Top Pick $75.00 to $70.00
2016-02-17 Reiterated Rating Piper Jaffray Overweight $82.00 to $70.00
2016-02-17 Downgrade Jefferies Group Hold to In-Line $76.00 to $68.00
2016-02-17 Lower Price Target Goldman Sachs Buy $68.00 to $62.00
2016-02-17 Lower Price Target Cowen and Company Outperform $70.00 to $62.00
2016-02-17 Reiterated Rating Barclays Overweight $59.00 to $55.00
2016-02-17 Reiterated Rating Avondale Partners Market Perform $75.00
2016-02-17 Lower Price Target Oppenheimer Outperform $71.00 to $67.00
2016-02-17 Lower Price Target Robert W. Baird Outperform $72.00 to $68.00
2016-02-17 Reiterated Rating Deutsche Bank Buy $70.00 to $59.00
2016-02-17 Lower Price Target Topeka Capital Markets Buy $70.00 to $68.00
2016-02-17 Reiterated Rating FBR & Co. Buy $73.00
2016-02-17 Lower Price Target Leerink Swann Outperform $80.00 to $65.00
2016-02-17 Reiterated Rating Canaccord Genuity Buy $70.00 to $59.00
2016-02-17 Downgrade Evercore ISI Buy to Hold $68.00 to $52.00
2016-02-17 Lower Price Target Royal Bank Of Canada Top Pick $75.00 to $70.00
2016-02-17 Reiterated Rating Barclays PLC Overweight $59.00 to $55.00
2016-02-17 Lower Price Target Oppenheimer Holdings Inc. Outperform $71.00 to $67.00
2016-01-25 Reiterated Rating FBR & Co. Outperform $73.00
2016-01-07 Upgrade RBC Capital Outperform to Top Pick $70.00 to $75.00
2015-12-29 Reiterated Rating FBR & Co. Buy
2015-12-23 Reiterated Rating FBR & Co. Outperform $73.00
2015-12-21 Reiterated Rating Canaccord Genuity Buy $70.00
2015-12-03 Reiterated Rating RBC Capital Buy
2015-12-02 Boost Price Target RBC Capital Outperform $65.00 to $70.00
2015-11-12 Reiterated Rating Canaccord Genuity Buy $70.00
2015-11-10 Lower Price Target Deutsche Bank Buy $71.00 to $70.00
2015-11-04 Lower Price Target Deutsche Bank Buy $82.00 to $71.00
2015-11-04 Lower Price Target Stifel Nicolaus Sell $50.00 to $48.00
2015-11-04 Lower Price Target Robert W. Baird Outperform $80.00 to $72.00
2015-11-04 Lower Price Target Raymond James $75.00 to $69.00
2015-11-04 Lower Price Target Piper Jaffray Overweight $87.00 to $82.00
2015-11-04 Lower Price Target Jefferies Group Buy $78.00 to $76.00
2015-11-04 Reiterated Rating Canaccord Genuity Buy $73.00 to $70.00
2015-11-04 Lower Price Target Oppenheimer Outperform $85.00 to $71.00
2015-11-04 Lower Price Target Cowen and Company In-Line $70.00
2015-11-04 Lower Price Target Raymond James Financial Inc. $75.00 to $69.00
2015-11-03 Lower Price Target RBC Capital $75.00 to $70.00
2015-11-02 Boost Price Target RBC Capital Outperform $70.00 to $77.00
2015-11-02 Boost Price Target Oppenheimer Underperform $37.00 to $41.00
2015-11-02 Boost Price Target Leerink Swann Outperform $70.00 to $80.00
2015-11-02 Boost Price Target KeyBanc Buy $70.00 to $77.00
2015-11-02 Boost Price Target Evercore ISI Buy $73.50 to $75.50
2015-11-02 Boost Price Target Cowen and Company Outperform $75.00 to $76.00
2015-11-02 Boost Price Target Barclays Outperform $71.00 to $75.00
2015-10-21 Initiated Coverage Avondale Partners Outperform $82.00
2015-10-18 Reiterated Rating Deutsche Bank Buy
2015-10-17 Reiterated Rating Barclays Buy
2015-10-16 Lower Price Target Barclays Overweight $85.00 to $75.00
2015-10-16 Reiterated Rating Jefferies Group Buy $78.00
2015-10-15 Reiterated Rating Leerink Swann Buy $80.00
2015-10-13 Reiterated Rating FBR & Co. Buy $75.00
2015-09-29 Upgrade RBC Capital Sector Perform to Outperform $68.00 to $70.00
2015-09-16 Initiated Coverage Canaccord Genuity Buy to Buy $73.00
2015-09-15 Reiterated Rating Oppenheimer Buy
2015-09-15 Reiterated Rating Piper Jaffray Buy $87.00
2015-09-15 Lower Price Target Stifel Nicolaus Sell $60.00 to $50.00
2015-09-15 Reiterated Rating Leerink Swann Buy $80.00
2015-09-08 Upgrade Topeka Capital Markets Hold to Buy $71.00
2015-08-24 Reiterated Rating Piper Jaffray Overweight $87.00
2015-08-23 Reiterated Rating Deutsche Bank Buy $82.00
2015-08-05 Reiterated Rating Evercore ISI Buy $84.00 to $80.50
2015-08-05 Reiterated Rating Oppenheimer Outperform $89.00 to $85.00
2015-08-05 Downgrade Stifel Nicolaus Hold to Sell $60.00
2015-08-05 Downgrade RBC Capital Outperform to Sector Perform $77.00 to $68.00
2015-07-31 Reiterated Rating Cowen and Company Outperform $76.00
2015-06-26 Initiated Coverage Oppenheimer Outperform $89.00
2015-06-18 Initiated Coverage Stephens Outperform $89.00
2015-06-17 Initiated Coverage Oppenheimer Outperform $89.00
2015-04-28 Boost Price Target Deutsche Bank Buy $77.00 to $85.00
2015-04-20 Reiterated Rating Barclays Buy $77.00 to $84.00
2015-04-20 Boost Price Target Topeka Capital Markets Hold $70.00 to $71.00
2015-04-20 Downgrade SunTrust Buy to Neutral $78.00
2015-04-06 Initiated Coverage Stifel Nicolaus Hold
2015-04-06 Boost Price Target Barclays Overweight $75.00 to $85.00
2015-03-23 Boost Price Target Argus Buy $73.00 to $80.00
2015-03-18 Upgrade Robert W. Baird Neutral to Outperform $65.00 to $77.00
2015-03-09 Boost Price Target RBC Capital Outperform $70.00 to $77.00
2015-03-03 Downgrade Topeka Capital Markets Buy to Hold $70.00
2015-02-24 Boost Price Target FBR & Co. Outperform $70.00 to $75.00
2015-02-11 Boost Price Target Barclays Overweight $71.00 to $75.00
2015-02-11 Boost Price Target Deutsche Bank Buy $70.00 to $77.00
2015-02-11 Reiterated Rating Piper Jaffray In-Line
2015-02-11 Boost Price Target Leerink Swann Outperform $70.00 to $80.00
2015-02-11 Boost Price Target Oppenheimer Underperform $37.00 to $41.00
2015-02-11 Lower Price Target RBC Capital Outperform $75.00 to $70.00
2015-02-09 Boost Price Target JPMorgan Chase & Co. Overweight $72.00 to $75.00
2015-01-08 Boost Price Target Argus Buy $68.00 to $73.00
2014-12-02 Boost Price Target Topeka Capital Markets Buy $64.00 to $70.00
2014-11-21 Upgrade Cowen and Company Market Perform to Outperform $59.00 to $75.00
2014-11-20 Boost Price Target RBC Capital Outperform $66.00 to $75.00
2014-10-24 Reiterated ISI Group Buy $67.50 to $70
2014-10-24 Reiterated Rating Credit Suisse Neutral $58.00 to $61.00
2014-10-24 Boost Price Target FBR & Co. Outperform $67.00 to $70.00
2014-10-24 Boost Price Target Evercore ISI Buy $67.50 to $70.00
2014-10-24 Reiterated Rating Credit Suisse Group AG Neutral $58.00 to $61.00
2014-09-08 Boost Price Target Topeka Capital Markets Buy $62.00 to $64.00
2014-09-04 Reiterated Rating JPMorgan Chase & Co. Overweight $67.00
2014-08-06 Upgrade Wells Fargo & Co. Market Perform to Outperform
2014-08-06 Upgrade Wells Fargo Market Perform to Outperform
2014-07-25 Reiterated Rating Raymond James Outperform $60.00 to $64.00
2014-07-25 Reiterated Rating Deutsche Bank Buy $68.00 to $70.00
2014-07-25 Boost Price Target Topeka Capital Markets Buy $58.00 to $62.00
2014-06-27 Initiated Coverage Topeka Capital Markets Buy $58.00
2014-04-25 Reiterated ISI Group Neutral $69 to $63
2014-04-25 Lower Price Target Evercore ISI Neutral $69.00 to $63.00
2014-04-15 Reiterated Rating Raymond James Market Perform to Outperform $60.00
2014-03-25 Reiterated ISI Group Strong Buy $65 to $70
2014-03-25 Boost Price Target Evercore ISI Strong-Buy $65.00 to $70.00
2014-03-14 Initiated Coverage SunTrust Overweight to Buy $74.00
2014-03-05 Initiated Coverage Barclays Overweight $71.00
2014-02-18 Initiated Coverage Citigroup Inc. Buy
2014-02-13 Initiated Coverage RBC Capital Strong-Buy to Outperform $66.00
2014-02-05 Lower Price Target Deutsche Bank Buy $71.00 to $68.00
2014-02-05 Boost Price Target Robert W. Baird $55.00 to $58.00
2014-02-05 Boost Price Target Jefferies Group $62.00 to $67.00
2014-01-22 Upgrade Evercore ISI Neutral to Strong-Buy $60.00 to $65.00
2013-11-20 Initiated Coverage Deutsche Bank Sell to Buy $162.00 to $71.00
2013-11-19 Boost Price Target Argus Buy $60.00 to $68.00
2013-10-31 Initiated Coverage FBR & Co. Outperform to Outperform $67.00
2013-10-25 Reiterated ISI Group Neutral $58 to $60
2013-10-25 Boost Price Target Cowen and Company Market Perform $48.00 to $49.00
2013-10-25 Reiterated Rating Goldman Sachs Buy $63.00
2013-10-25 Boost Price Target Evercore ISI Neutral $58.00 to $60.00
2013-10-16 Initiated Coverage Stephens Overweight
2013-10-14 Reiterated Rating Jefferies Group Buy $62.00
2013-10-14 Boost Price Target Evercore ISI Neutral $50.50 to $58.00
2013-10-10 Reiterated Rating KeyBanc Buy $60.00 to $62.00
2013-10-04 Boost Price Target Jefferies Group Buy $57.50 to $62.00
2013-10-01 Reiterated Rating Hilliard Lyons Buy $58.00
2013-10-01 Boost Price Target B. Riley Neutral $52.00
2013-02-06 Reiterated ISI Group Neutral $84.50 to $95
2016-07-05 Downgrade Raymond James Financial Inc. Outperform to Market Perform $64.57 to $64.57
2016-06-26 Reiterated Rating Wells Fargo Buy
2016-06-26 Reiterated Rating Wells Fargo & Co. Buy
2016-06-23 Upgrade SunTrust Neutral to Buy $55.28 to $65.00
2016-06-23 Upgrade SunTrust Banks Inc. Neutral to Buy $55.28 to $65.00

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Major Shareholders

Name Relationship Total Shares Holding stocks
PATTERSON NEAL L Chairman, CEO & President 3.23%  (11000000) CERN /
ILLIG CLIFFORD W Vice Chairman 3.13%  (10671331) CERN /
DANFORTH JOHN C 0.08%  (278220) CERN / GHL /
TOWNSEND JEFFREY A Exec. VP & Chief of Staff 0.04%  (144856) CERN /
NAUGHTON MARC G Exec. VP & CFO 0.03%  (87469) CERN /
NEAVES WILLIAM B 0.02%  (63400) CERN /
BISBEE GERALD E JR 0.01%  (50800) CERN /
Nill Michael Exec VP & COO 0.01%  (44555) CERN /
WILSON JULIE M Sr. VP & Chief People Officer 0.01%  (28306) CERN /
BURKE ZANE M Executive Vice President 0.01%  (28262) CERN /
ZOLLARS WILLIAM D 0.01%  (26772) CERN / CI / PLD /
Cortese Denis A. 0.01%  (25900) CERN / PNW /
Daniels Mitchell E 0.01%  (19000) CERN / ININ / NSC /

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