Cerner sets expectations with the market – “DHMSM may be delayed until midsummer”

Cerner reports mixed quarter, awaits Defense Department decision -– May 8, 2015, By Joseph Conn

The Department of Defense decision, on which one group of bidders will get a multibillion-dollar contract to replace a hodgepodge of EHRs across the Military Health System, may be delayed until midsummer. Cerner teamed up for the bid with defense- and national-security contractor Leidos and consultant and systems-integrator Accenture.

“Obviously, it’s in the government’s hands,” Burke said. “Our understanding is they’re looking to make a decision on the first phase of that work at the end of our second quarter.”

Both Epic Systems Corp. (paired with IBM) and Allscripts (joining Hewlett-Packard Co. and Computer Sciences Corp.) are also still in the hunt to supply the military’s 56 hospitals and 360 clinics with a single EHR.

G2X TAKE: I am not sure how much of a delay this really is, but it is likely this publicly traded company just wanted to cover their bases if the decision bleeds into their Q3. This article really touches on broader Cerner financials. There is a general level of optimism that the award will be made in advance of the August DHITS Symposium, but DHA isn’t going to rush this one for anyone or any event.

 

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