Maintaining its streak of collaborations, Cerner Corporation (NASDAQ:CERN) recently teamed up for a 10-year agreement with Nebraska-based Lexington Regional Health Center (“LRHC”). Notably, through the alliance, Cerner’s coveted Millennium platform will be transforming LRHC’s electronic health record ("EHR").
Moreover, the Virginia Department of Behavioral Health and Developmental Services recently picked Cerner Millennium to implement a new EHR at its 13 facilities across Virginia.
Following the announcements, Cerner’s shares rose 0.8% to $54.45 at close.
Cerner Millennium in Focus
Cerner Millennium is a health care IT ("HCIT") platform which maintains a digital record that brings together each patient’s health information from different care venues. This provides doctors and nurses with an up-to-date view of a patient’s well-being.
Notably, the Millennium platform will be deployed in LRHC through Cerner CommunityWorks, a cloud-based model, tailored to meet the unique needs of community, critical access and specialty hospitals.
It is encouraging to note that Cerner Millennium has witnessed solid demand in recent times.
Last December, Cerner Millennium platform was selected by Mid-Valley Hospital to establish a one patient-centric EHR. (Read More: Cerner's Millennium Picked by Mid-Valley Hospital)
Last October, Cerner Millennium was integrated with B. Braun Medical’s Infusomat Space Large Volume Pumps at the McLaren Greater Lansing Hospital, Michigan. (Read More: Cerner's Millennium Platform Integrated at McLaren Hospital)
HCIT Market Prospects
MarketsandMarkets predicts that the global HCIT market will reach a worth of $280.25 billion by 2021 at a CAGR of 15.9%.
Factors such as growing need to manage regulatory compliance through HCIT solutions, government support and rising need to curtail healthcare costs drive the market.
Hence, the slew of developments has been well-timed for Cerner.
Price Performance
Over the past six months, the stock slipped 10.7% comparing favorably with the industry’s 14% decline. The current level is however lower than the S&P 500 index’s 8.3% decline.
For investor’s notice, the Missouri-based provider of HCIT solutions faces stiff competition from players like athenahealth (NASDAQ:ATHN) and Allscripts Healthcare Solutions (NASDAQ:MDRX) .
Zacks Rank & A Key Pick
Cerner currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader medical space is Becton, Dickinson and Company (NYSE:BDX) .
Becton, Dickinson’s long-term earnings growth rate is projected at 11.5%. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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