Leading healthcare information technology ("HCIT") solutions
) recently reported that it was chosen by WellPoint Inc. (WLP), a
large health benefits firm, to team up for a project to check for
ICD-10 commercial continuity. Cerner will carry out
complete ICD-10 and ICD-9 checks with WellPoint for chosen
Cerner believes that its role in the project will permit it to
test its composite systems before the transition to ICD-10. The
transition may severely affect the sales of health care entities.
The purpose of this project is to establish that work flows will
function across all systems.
WellPoint is a standalone licensee of Blue Cross and Blue
Shield Association. The company caters to over 36 million
individuals through its affiliated plans and about 67 millions
persons via its subsidiaries.
Cerner remains the trend setter among pure-play, publicly
traded healthcare IT (HCIT) vendors. 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, as it
serves a sizeable installed hospital base that requires composite
clinically-oriented applications complying with "meaningful use"
requirements, reimbursement difficulties and complicated coding
challenges. The company has long-standing, integrated and
seamless solutions for both inpatient and ambulatory
On the negative side, the federal Stimulus program is
gradually winding down. Cerner faces stiff competition from
established HCIT players, such as
We currently have a Zacks Rank #3 (Hold) on Cerner. However,
we are more positive about other stocks such as
Merge Healthcare Incorporated
Becton, Dickinson and Company
) both of which carry a Zacks Rank #2 (Buy) and are expected to
ATHENAHEALTH IN (ATHN): Free Stock Analysis
BECTON DICKINSO (BDX): Free Stock Analysis
CERNER CORP (CERN): Free Stock Analysis
MERGE HEALTHCAR (MRGE): Free Stock Analysis
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