Cerner revenue up 8%, cites revenue cycle, population health progress for offsetting lower bookings
Cerner announced that its revenue for the third quarter of 2017 was $1.3 billion, up from $1.2 billion in the same time last year. President Zane Burke specifically pointed to revenue cycle software and services as well as population health as areas where the EHR giant made progress.
Overall, the company posted earnings of $177.4 million, a 4 percent jump compared to the prior year.
Despite the 8 percent revenue increase, however, Cerner reported fewer new bookings in the third quarter, which saw $1.1 billion, down from $1.4 billion last year. That figure was below prior guidance because large deals they expected to close were pushed back.
Burke said the company still has a lot of opportunity in the robust EHR market.
“There are still 2,000 hospitals on a legacy EHR platform,” he said. “While many of these opportunities are smaller, there are still some large opportunities.”
EHR customers exist within the federal government as well. In addition to the U.S. Department of Defense and Veterans Affairs, which Cerner CFO Marc Naughton called the biggest health IT project in history, Cerner considers Coast Guard, Indian Health, state Medicaid programs and the Federal Bureau of Prison as possibilities.
Burke also gave a glimpse into future areas where Cerner will invest.
“There are also several related capabilities we're investing in, such as artificial intelligence that we believe will widen our competitive edge while broadening our revenue opportunity,” Burke said.