Cerner’s acquisition of Siemens: formation of an end-to-end healthcare IT solutions provider

“Cerner's acquisition of Siemens will reinforce the former’s leadership in healthcare IT (HCIT), as the expanded client base, synergies in resources and investment potential will help to expand its addressable market. The highlight of the two HCIT giants’ alliance is the value generated from their synergy: Siemens’ expertise in imaging IT and laboratory management will add value to Cerner’s EHR and PAS portfolio. The Soarian RCM platform from Siemens will also provide Cerner with the opportunity to strengthen its contribution in the revenue cycle management segment. Overall, the alliance will enable the expansion of Cerner’s market footprint and provide opportunities to up-sell, especially in Europe where Siemens has a rich client base.

While the $100 million — 3 year innovation investment by the combined entity in projects for integration of health IT with medical technology looks good on paper, the outcome from its implementation will be keenly watched by an industry that has some pressing needs for an integrated solution. By strengthening its product portfolio, Cerner will be able to take on the competition not only from the established vendors, but also from upcoming vendors vying for a share in emerging areas in HCIT such as population health management, big data and proactive care management. This acquisition is not just an organic business development route for Cerner, but has to be seen as a stepping stone supporting its strategy of positioning itself as an end-to-end player in the evolving HCIT markets globally.”