Closing the books on a deal that was at least six months in the making, Cerner Corp. announced it has finalized its purchase of Siemens Health Services, an EHR and business unit of Siemens AG.
Cerner made the acquisition for $1.3 billion, and now projects its revenues to sit somewhere in the range of $4.8 to $5 billion in 2015. An official release announcing the move also included details on a health IT alliance between Cerner and Siemens AG. The two companies first plan to work together on “integrating diagnostics and therapeutics into the electronic health record,” with each investing $50 million over the first three years of the agreement.
Cerner will continue support for existing Siemens platforms, including the Soarian EHR system — which the company plans to further develop over the next 10 years. Soarian users that previously spoke to SearchHealthIT about their experiences with the EHR expressed hope that Cerner’s association with the product would benefit both the functions of the system and their organizations.
“Cerner remains focused on . . . population health, physician experience, open platforms, revenue cycle and mobility. We see these as critical areas of investment to ensure providers can meet growing regulatory demands and control cost,” said Neal Patterson, Cerner chairman, CEO and co-founder, in the company’s release.
The buildup of Cerner’s acquisition of Siemens Health Services caught the attention of people from across the health IT spectrum. Analysis from health IT market research firm KLAS Enterprises, LLC showed Cerner was catching up to Epic Systems Corp. by making deals with new hospitals, but its purchase of Siemens Health Services would only nominally place it ahead of Epic. Even Carl Dvorak, president of Epic, weighed in last August when he said the still-in-the-works deal would make Epic an “underdog” in the market.