When Cerner announced on Thursday that it missed projected revenues by 2 percent for the first quarter of 2016, analysts attributed that to fewer hardware sales, and projected the big opportunity moving forward is for revenue cycle, ambulatory and population health management software.
Those areas “can lift the deal size as much as 30 percent relative to a straight EHR deal,” PiperJaffray senior research analyst Sean W. Wieland and research analyst Nina Deka wrote in a brief published on Friday. Investment research firm Zacks, meanwhile, also cited opportunities in the revenue cycle management and ambulatory markets.
Wieland and Deka added, in fact, that Cerner’s software revenue grew 13 percent by PiperJaffray calculations, and Cerner reported first-quarter revenue at $1.14 billion compared to $996 million in the first quarter of 2015.
Cerner President Zane Burke attributed that growth to new customer wins in a robust replacement market.
Wieland and Deka also pointed out that the small hospital market is hot. They noted that bookings of Cerner’s Communityworks solution for small hospitals set a first-quarter record both for net new customers and Siemens migrations.
Twitter: @Bernie_HITN
Email the writer: bernie.monegain@himssmedia.com
