Dick Flanigan is president of Cerner HS, leading all facets of the global business including strategic client relationships. During his 20 years with Cerner, Flanigan has led the company’s strategies and investments in academic medical centers and pediatric hospitals; the company’s employer initiatives; and has played a key role in defining Cerner’s population health platform. Prior to Cerner, Flanigan spent nearly 14 years at IBM in general management and sales roles.
Q. What’s the status of Cerner’s acquisition of Siemens Health Services?
A. The Health Services (HS) acquisition is complete, and we’ve been operating as one Cerner for the past 60 days. In that time, I’ve had the opportunity to meet many of our new clients and associates, and we’re off to a great start.
Our client family now includes providers in more than 30 countries across more than 18,000 facilities. And, the Cerner team has grown to more than 21,000 knowledgeable and passionate associates – exchanging ideas and best practices across a global network to advance health IT.
A key figure in the successful integration of clients and associates has been John Glaser, the former CEO of HS. Those who’ve had the opportunity to work with Glaser know he’s widely respected and has extensive industry knowledge. He joined Cerner as a senior vice president and has been instrumental in helping HS clients make the transition. In his new post, he’s leveraging his significant health IT background to assess strategic initiatives for Cerner, drive policy and advocate for broader adoption of interoperability, while maintaining several key client relationships.
Now that the transaction is complete and our newest associates are being integrated into Cerner, the top priority is getting to know our new clients. While the two companies have many shared clients in the U.S., we’re getting to meet many new healthcare organizations around the world. We’re working with clients to understand their needs and expectations. For some, that means staying the course. For others, it may mean adjusting the game plan. Either way, we’re committed to the success of all our clients and to helping them succeed in their market.
Q. What’s the plan for Siemens solutions?
A. From the beginning, we’ve been candid with clients about our plans to keep the HS core platforms in place. Current implementations continue, and Cerner will advance and support the Soarian® clinical and financial platform for at least the next decade. The INVISION and MedSeries 4 platforms will be supported through their current lifecycles. We respect the significant investments made by all our clients and we’re working with them to develop a plan that addresses their short- and long-term business goals.
Q. Innovation seems to be a key theme with this deal. What can you tell us about that?
A. Innovation is in the genetic make-up of both Cerner and HS. It’s a key tenet we continue to embrace. We’re committed to helping clients achieve their near-term business objectives with robust solutions. But, we also have an eye toward the future helping clients anticipate what’s next.
With the close of the acquisition, we have combined annual research and development investments of more than $650 million.
We’re focused on a few key areas for R&D, including population health, physician experience, open platforms, revenue cycle and mobility. By concentrating on these areas, we’re enabling our clients to nimbly navigate growing regulatory demands, working to improve the quality of care in their local communities and continue to control costs.
Q. What’s the strategic alliance you’re creating with Siemens AG?
A. One of the unique features of the HS acquisition is the strategic alliance we formed with Siemens AG – the former parent company of HS. The alliance pairs Cerner’s health IT leadership with Siemens AG’s device and imaging expertise. To start, both companies are investing up to $50 million during an initial three-year term, and the initiative will focus on the interoperability of EHRs with medical devices. It’s an investment into the future of health care, which I see benefitting the industry overall.
Q. You’ve hit on the facts of the acquisition. Can you tell us what Cerner’s existing clients have to say about it?
A. One of the privileges of my job is having the opportunity to meet with clients from across the globe. And, I can tell you, the feedback has been quite positive. In most cases, they’re giving Cerner a shot to articulate our vision and strategies, while expecting us to deliver on our commitments. We value their partnership and won’t let them down!
Our current clients understand how the focus on innovation and the strategic alliance can push us all forward, benefitting the entire industry. They realize the impact an additional 5,000 knowledgeable associates joining our team can make. In short, they see the potential and they’re excited for what’s to come.
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About Cerner
Cerner’s health information technologies connect people, information and systems at more than 18,000 facilities worldwide. Recognized for innovation, Cerner solutions assist clinicians in making care decisions and enable organizations to manage the health of populations. The company also offers an integrated clinical and financial system to help health care organizations manage revenue, as well as a wide range of services to support clients’ clinical, financial and operational needs. Cerner’s mission is to contribute to the improvement of healthcare delivery and the health of communities. On February 2, 2015, Cerner Corporation acquired substantially all of the assets, and assumed certain liabilities, of the Siemens Health Services business from Siemens AG. Nasdaq: CERN. For more information about Cerner, visit cerner.com, read our blog at cerner.com/blog, connect with us on Twitter at twitter.com/cerner and on Facebook at facebook.com/cerner.
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