Leading healthcare information technology ("HCIT") solutions
provider
Cerner Corporation
(
CERN
) recently reported that it had arrived at an agreement to take
over PureWellness, a company specializing in wellness and
health.
PureWellness provides offerings that improve lifestyle and
population health. With this takeover, Cerner will develop the
ability to help entities better manage the care of individuals in
a population. By coordinating PureWellness with its own
offerings, Cerner will be well placed to support a variety of
health care entities provide improved population health
management.
PureWellness provides a tailor-made platform used by a few
thousand entities for over 4 million persons. Its overall
wellness and health offering permits better management and
administration of all wellness programs initiated by an
entity.
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, which
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
settings.
On the negative side, the federal Stimulus program is
gradually winding down. Cerner faces stiff competition from
established HCIT players, such as
Athenahealth
(
ATHN
).
We currently have a Zacks Rank #3 (Hold) on Cerner. However,
we are more positive about other stocks such as
Merge Healthcare Incorporated
(
MRGE
) and
Becton, Dickinson and Company
(
BDX
) both of which carry a Zacks Rank #2 (Buy) and are expected to
do well.
ATHENAHEALTH IN (ATHN): Free Stock Analysis
Report
BECTON DICKINSO (BDX): Free Stock Analysis
Report
CERNER CORP (CERN): Free Stock Analysis
Report
MERGE HEALTHCAR (MRGE): Free Stock Analysis
Report
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