Cerner Corporation (CERN – Free Report) recently extended its two-decade partnership with Baystate Health by introducing a digital health platform, which combines healthcare delivery and funding systems to create a more consumer-centric approach. patient care. With this digital innovation, patients are likely to have better access to personalized care, while clinicians could gain more clarity in patient pools and use the data to improve effective disease management and virtual health experiences.
For investors, Baystate Health is an integrated, not-for-profit health care system that serves more than 800,000 people in Western Massachusetts. Five hospitals and more than 80 medical practices with approximately 12,000 employees fall under the jurisdiction of Baystate Health, one of Massachusetts’ largest employers.
Cerner is one of the largest healthcare information technology (HCIT) companies and its large footprint, large referenced customer base and composite portfolio of solutions make it an ideal candidate for investors to seeking exposure to the HCIT sector.
This expansion is likely to strengthen the company’s already strong HCIT presence.
Benefits of extended partnership
As consumers become more involved in their healthcare, their demands for digital and virtual technologies are on the rise.
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The expansion of this partnership is likely to result in a pivotal industry collaboration that will provide the products and technology platform needed to accelerate these strategic goals.
The new digital health platform will bring together new applications and tools from Cerner and third-party developers under a unified view for better management by the health system.
Cerner has access to innovation and product development support from TechSpring, Baystate Health’s digital innovation team.
According to a report by Grand View Research, the global healthcare information technology market was worth $ 74.2 billion in 2020 and is expected to experience a CAGR of 10.7% during the forecast period ( 2021-2028). Growing demand and adoption of preventative care along with growing funding from various mobile health startups are driving the market growth. Therefore, this expansion comes at an opportune time for Cerner.
In April, Cerner finalized the takeover of Kantar Health (in December 2020, the company signed an agreement to acquire Kantar Health – a division of the Kantar Group) for $ 375 million in cash, which is subject to adjustment. The buyout will allow Cerner’s group of Learning Health Network clients to engage more directly with life sciences for funded research studies.
Shares of Zacks Rank # 3 (Hold) were up 7.4% year-on-year, compared to an industry drop of 8.3%.
Actions to consider
Some better classified titles of the medical space in the broad sense are Henry Schein, Inc. (HSIC – Free report), Envista Holding Company (NVST – Free report) and Align Technology, Inc. (ALGN – Free Report), each currently wearing a Zacks Rank # 2 (Buy). You can see The full list of today’s Zacks # 1 Rank (Fort Buy) stocks here.
Henry Schein’s long-term earnings growth rate is estimated at 11.2%.
Envista Holdings’ long-term earnings growth rate is estimated at 26.4%.
Align Technology’s long-term profit growth rate is projected at 23.2%.