Leading healthcare information technology (HCIT) solutions
) recently reported an agreement to take over Anasazi Software, a
vendor of behavioral healthcare technology.
Anasazi was a leading vendor of healthcare technology to the
behavioral health segment. It provided a set of offerings
intended to furnish an all encompassing and fine tuned approach
to behavioral healthcare while cutting expenses and improving
outcomes. The company's set of offerings included elements such
as practice management and an electronic health record.
This acquisition will lead to the most composite product
available in the market. Cerner Anasazi will allow healthcare
providers access to information they may use in a productive
manner while facilitating transitions in health care. The
takeover, which is expected to close in November 2012, is not
forecast to have a material effect on Cerner's 2012 earnings
Cerner remains the trend setter among pure-play, publicly traded
healthcare IT (HCIT) vendors. We believe Cerner has positioned
itself as one of the better placed clinical technology vendors to
benefit from high HCIT spending over the next few years. The
company is diversified not only on a global basis but serves both
hospitals and ambulatory outfits. Its integrated solutions have
captured market share. While greenfield opportunities are
shrinking, the replacement market is growing.
We believe long-term investors may consider Cerner, which serves
a sizeable installed hospital base. It requires composite
clinically-focused applications complying with 'meaningful use'
requirements and tackling complex coding challenges. The company
has long-standing, integrated and seamless solutions for both
inpatient and ambulatory settings.
On the negative side, the federal Stimulus program will gradually
wind down. Cerner faces stiff competition from established HCIT
players, such as
Allscripts Healthcare Solutions
) and many others in a crowded field. The company is developing
multiple growth drivers which will ensure its future growth.
We have a long-term 'Neutral' recommendation on Cerner. The stock
currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
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