Topping off what Cerner executives detailed during the company’s earnings call Tuesday as a highly successful Quarter 2, in spite of profits falling, was the icing on the cake: the Defense Healthcare Management System Modernization project.
“We are pleased that last week the Department of Defense announced its decision to award the contract to Leidos,” said Cerner President Zane Burke, pointing out that Cerner is the core EHR supplier. “We are honored, humbled and excited to be a part of the team that won what we believe was the most objective and comprehensive evaluation of technology platforms and solutions ever conducted.”
Cerner’s suite will replace the DoD’s legacy health IT system in its 55 hospitals and more than 350 clinics, as well as in ships, submarines and other locations in the theater of military operations.
In addition to Leidos, Cerner also aligned with Accenture, Henry Schein and a number of small business partners to serve the Military Health System and its 9.6 million beneficiaries. Intermountain Healthcare is also a strategic partner providing clinical governance of solutions and workflow.
Intermountain is in the midst of a sweeping rollout of Cerner technology at all 22 of its hospitals and hundreds of clinics in Salt Lake City and the surrounding area.
[See also: DoD EHR modernization to rock marketplace.]
Cerner also announced on Tuesday that Baptist Health in South Florida had selected Cerner to roll out its EHR system across the health systems seven hospitals, physician practices and outpatient locations. Cerner will support Baptist Health’s rapid expansion across its region, including the Caribbean and Latin America.
Burke said during the earnings call Tuesday that Cerner is fully prepared to meet the staffing requirements of the DoD project.
He also addressed questions raised about whether the massive DoD project would mean other projects might be placed on the back burner.
“We believe this is a positive development for our clients, and they should have confidence that Cerner will continue to execute to meet all of our current and future commitments, he said. “We do not expect this to have a material impact on bookings, revenue, or earnings in the near term since the project will have several phases and will start with a small initial rollout.
“The Department of Defense (contract) is big and complex and hard, but it’s not new to Cerner to do big and complex and hard projects,” Burke said in an interview on Tuesday with the Kansas City Star, Cerner’s home-town newspaper.
Finally, Burke referenced the $11 billion figure cited in regard to the contract before it was announced.
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