Cerner: DoD contract could lead to work with the VA

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Cerner: DoD contract could lead to work with the VA – November 2, 2016, By Elise Reuter, Kansas City Business Journal

Cerner Corp.’s $4.6 billion contract with the U.S. Department of Defense may lead to other significant opportunities, Cerner President Zane Burke said in a Tuesday earnings conference call. One might include the U.S. Department of Veteran Affairs, analysts postulated, because the VA suspended a deal with Cerner competitor Epic Systems and Lockheed Martin to overhaul its appointment software.

In April, the VA announced that it would delay the $624 million contract to test its own scheduling solutions, Politico reported. In October, the administration shuffled medical center leadership after the 2014 controversy involving wait-listed patients.

But for now, Burke said Cerner (NYSE: CERN) would maintain its focus on the DoD contract.

“I don’t think there’s an expectation that’s going to be in the immediate horizon, but there is clearly a dialogue,” he said, noting the potential need to change out of the VA's current system, VistA, in the long term. "Should we be called upon to respond to that and get asked, we'd be excited to perform."

Later on, in 2017 and 2018, Burke said Cerner might be in a good position to think about competing around such an opportunity….

G2X TAKE: For those who missed this news item last week, as part of Cerner’s earnings report, leadership discussed their interest in supporting and pursuing ongoing efforts at VA to modernize and/or replace the current legacy EHR solution, VistA.

No real surprise here as Cerner is a clear front runner based on the ongoing enterprise MHS GENESIS EHR effort with the Department of Defense. 

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