Cerner Corporation
Investment Community Meeting
Dallas, Texas
February 15, 2005
Innovation You Can Trust
Cerner Corporation
Introduction & 2004 Review
Paul Black
Executive Vice President &
Chief Operating Officer
Innovation You Can Trust
Safe Harbor Statement
This presentation may contain forward-looking statements that involve a number of
risks and uncertainties. It is important to note that the Company’s performance, and
actual results, financial condition or business could differ materially from those
expressed in such forward-looking statements. Factors that could cause or contribute
to such differences include, but are not limited to: quarterly operating results may vary,
stock price may be volatile, market risk of investments, potential impairment of
goodwill, changes in the healthcare industry, significant competition, the Company's
proprietary technology may be subjected to infringement claims or may be infringed
upon, regulation of the Company's software by the U.S. Food and Drug Administration
or other government regulation, the possibility of product-related liabilities, possible
system errors or failures or defects in the performance of the Company's software,
risks associated with the Company’s global operations and the recruitment and
retention of key personnel. Additional discussion of these and other factors affecting
the Company's business is contained in the Company's periodic filings with the
Securities and Exchange Commission. The Company undertakes no obligation to
update forward-looking statements to reflect changed assumptions, the occurrence of
unanticipated events or changes in future operating results, financial condition or
business over time.
Innovation You Can Trust
Agenda
Introduction & 2004 Review
Paul Black, EVP and COO
Services Update
Mike Valentine, U.S. Client Organization
Financial Focus
Marc Naughton, SVP & CFO
Cerner Vision & New Initiatives
Bill Dwyer, Senior Vice President
Jeff Townsend, SVP & Chief of Staff
Healthcare Policy
Don Trigg, Chief Marketing Officer
Client Panel
Neal Patterson, Chairman & CEO


Closing thoughts / Q&A
Innovation You Can Trust
Dr. Don Crandall, VP, Clinical Informatics, Trinity Health
Gary Jump, CIO, Our Lady of the Lake Hospital
Neal Patterson, Chairman & CEO / All
Cerner at a Glance
Founded in 1979; founders still actively leading company
Largest company focused on clinical information and
transformational solutions for healthcare



Over 5,800 Associates Worldwide (including recent acquisition of VitalWorks Medical Div.)
1,600 member Services Organization; 1,900 person Intellectual Property
(IP) Organization
2005E Revenues of $1.08B - $1.1B
History of organic growth through investment in IP

10-year Revenue CAGR of 20% driven primarily by organic growth

$1.5 billion revenue backlog, nearly doubled in last three years

A single, comprehensive healthcare architecture (Cerner Millennium)

Over 5,000 live solutions at more than 1,500 client facilities

Includes more than 3,700 live Millennium solutions at nearly 750 client facilities
Innovation You Can Trust
2004 Year in Review
Sales




700
Significant improvement in Professional
services profitability
ASC / Bedrock will allow further
improvements in implementations
Delivering CPOE – nearly doubled live
CPOE sites
Delivering value and getting paid

Record Cash Flow: $168M operating /
$53M free cash flow
Innovation You Can Trust
3,500
Facilities
600
3,000
Solutions
500
2,500
(Cumulative)
400
2,000
300
1,500
200
1,000
100
500
-
2000
2001
2002
2003
2004
Cerner Millennium is Industrial
Strength

3,767 live Millennium Solutions

287 Clients

749 Facilities
Solutions

1,079 Millennium solutions converted –
up 22% from 2003
4,000
Clients
Good market share gains with over 30%
from new clients
Operations

800
Bookings revenue up 13% to $917M
Clients & Facilities

Cerner Millennium: Different Because it's Proven
Delivering CPOE
400
Accelerated delivery of
CPOE in 2004

378 live locations


65 acute care (more than double
2003 levels)
313 physician office/clinic
Live Cerner CPOE Locations
300
200
100
0
2000
KLAS Recognition

Cerner Millennium PowerChart
was highest rated solution in
the CDR, Orders, & Charting
category


‘Primary/Detail indicators’, January 2005
Top CPOE choice for third
year in a row when
respondents asked first choice
if they could ‘start fresh today’
Innovation You Can Trust
2001
2002
2003
2004
CPOE: Acute Care Market Share
Currently Marketed Platforms*
All Existing Platforms*
(Top 7 Suppliers)
(Includes currently marketed and old platforms)
McKesson
7%
IDX
6%
CPSI Misys
3% 2%
Other
8%
Siemens
5%
Epic
7%
Epic
2%
McKesson
9%
IDX
5%
Eclipsys
13%
Cerner
27%
Siemens
11%
Meditech
11%
Eclipsys
10%
Meditech
19%
Cerner
55%
Cerner has strong market share lead, particularly vs. currently marketed platforms
CPOE Market still has room for growth


HIMSS Analytics estimates only 9% have CPOE installed & another 11% have contracted to do so
KLAS estimates less than 2% penetration of ‘real’ CPOE (over 50% of orders electronic)
*Source: HIMSS Analytics Database, January 2005
(Based on survey of 3,989 acute care hospitals)
Innovation You Can Trust
INet Virtual: Extending Critical Care
Critical Care is 1.5% of US GDP and 24-35% of hospital costs



High demand for expensive, ICU beds
Inappropriate utilization (people in the ICU often don’t need to be there)
Staff shortages linger (nurses, intensivists)
Cerner provides a comprehensive solution




Multi-disciplinary charting/documentation on a unified EMR with Knowledge (Content and
Critical Care Alerts) and Benchmarking/Outcomes solutions
Central monitoring sites enable scarce providers to observe multiple critical care locations

Can be leveraged to PICU, NICU

Can be used to monitor sites outside of organization affiliation
Improves communication between care providers by offering 24/7 on-call assistance
Virtual intensivist proactively monitors and tracks early patterns of impending complications
Innovation You Can Trust
Borgess Medical Center (MI): Live November 2004 with all pieces of
the Critical Care solution: INet, INet MD, Knowledge and Outcomes
for Critical Care, INet Virtual
Global Healthcare IT Market
Global represents large opportunity


Over half of world healthcare IT spending is outside U.S.
Cerner has a presence in 70% of global clinical IT markets

United Kingdom, Germany, Austria, Canada, Australia, Malaysia, Singapore, Saudi
Arabia, UAE, Grand Cayman
United Kingdom



Cerner continues to meet all milestone on England’s Choose and Book project
Delivering value at Newham Healthcare & Homerton University Hospital
Our performance to date could create additional opportunities
Other areas of opportunity

France, Australia, Malaysia, Germany, Ireland, UAE
Innovation You Can Trust
Cerner Corporation
Services Update
Mike Valentine
U.S. Client Organization
Innovation You Can Trust
Professional Services Organization
Strong 2004 Performance

Revenue up 8% to $251M

Contribution margin percent increased from 15% to 23%

Contribution margin dollars up 70% to $58M


Benefiting from experience


Margin per average associate up 80% to $36,000
Average field consulting has 4+
years experience
‘Velocity’ program provides
experience in implementation and
support before going to client sites
Accelerated Solution Center / Bedrock
Over 20% of conversions utilized ASC in 2004

ASC is critical element of Velocity training program

Higher productivity


Bedrock is next step to further productivity



Average of 12 solutions per site (vs. 5 in traditional
implementation)
Im plem entation Hours Com parison*
Hours

Automate design and build
Significantly reduce hours for both Cerner and client
More utilization of ASC and rollout of bedrock will drive
further services productivity / margin expansion
Traditional Project
Accelerated
Solutions Center
Cerner Hours
Bedrock
Client Hours
*Reflects potential optimal level for ASC and Bedrock
Innovation You Can Trust
Cerner Managed Services
Continuum of Solutions
Client Host
 Hardware
 Sublicense SW
 Maintenance
 Resources
 Refreshes
 Facility
OMS
 Remote
Monitoring
 Remote
Management
RHO
 Hardware
 Sublicense SW
 Maintenance
 Resources
 Refreshes
 Facility
 SLA
 System
Availability
Disaster
Recovery
 Hot Site
 Business
Continuity &
Recovery
Services
Application Management Services (AMS)
Innovation You Can Trust
Cerner Managed Services
Increasing level of interest


Lower total cost of ownership
Predictable service levels
Current Initiatives


Improving Scalability
Supporting new initiatives
Physician Services
Payer / RHIO Strategy
Growing Global Business Model



Supporting > 100 clients / 215 Facilities
Managed Services Revenue
Financial Highlights


47% revenue growth in 2004
Contribution margin of 20% (up from 18% in
2003)
25 -30% contribution margin attainable by
2007
$50
(Millions)

$40
$30
$20
$10
$2001
Innovation You Can Trust
2002
2003
2004
Cerner Corporation
Financial Focus
Marc Naughton
Senior Vice President and
Chief Financial Officer
Innovation You Can Trust
Financial Snapshot – Income Statement
2004 revenue of $926M; 2005E $1.08B-$1.1B
Long-term history of profitability


Profitable every quarter since going public in 1986
Met or exceeded expectations 20 of last 21 quarters
Sharpened focus on productivity

Driving strong margin expansion (9% OM 2003; 12% OM 2004)
Improving revenue quality and visibility


Backlog up 23% YoY in 2004 to $1.5 billion
Recurring/Visible components 64% of revenue in 2004
compared to 61% in 2003 and 57% in 2002 revenue


Strong Managed Services Business is enhancing visibility
VitalWorks’ Medical Division also adds to visibility
Maintain long-term goal of 20% operating margins
Innovation You Can Trust
Financial Snapshot – Balance Sheet & Cash Flow
$190M Cash & $131M Debt (as of Q404)
Decreasing DSO and Improving Cash Flow



2004 Operating Cash Flow of $168M vs. $134M in 2003 and $68M in 2002
2004 Free Cash Flow of $53M vs. ($8M) in 2003
Full-year 2004 DSO of 105 vs. 110 in 2003
Improvements driven by strong execution delivering solutions to clients

– Industrial strength IP creates more predictable and successful projects and lower
DSOs
Days Sales Outstanding
Cumulative Millennium Conversions
135
4,000
130
3,000
125
2,500
120
2,000
115
1,500
110
1,000
105
500
100
Q404
Q304
Q204
Q104
Q403
Q303
Q203
Q103
Q402
Q302
Q202
Q102
Q401
Q301
Q201
Q101
Q400
Innovation You Can Trust
$150
3,500
$100
$ in Millions
140
$50
$2000
2001
2002
2003
2004
$(50)
Operating Cash Flow
Free Cash Flow*
*FCF = Operating CF less Capital Expenditures and Capitalized Software
Margin Expansion Update
2004 Progress

Increased operating margins 310 basis points in 2004 (9.3% to 12.4%)

Ahead of plan on Professional Services Margins in 2004
– 23% contribution margin in 2004 vs. 15% in 2003


Strong leverage in Support & Maintenance (margins 57% in 2004 vs. 53% in 2003)
R&D and SG&A leverage
– R&D leverage expected to accelerate in 2006 and 2007 as amortization of
software capitalization moderates
– SG&A leverage will be limited in 2005 due to non-cash expense related to
Vitalworks acquisition
Still target 20% by 2007



Management Target – 20% for full year 2007
External ‘guidance’ – 20% in at least one quarter during 2007
2005 will have less margin expansion due to Vitalworks’ acquisition


$70M of revenue and minimal GAAP earnings (is Cash earnings accretive)
Still driving >20% EPS growth in 2005
Innovation You Can Trust
Sales Pipeline
Support
Contracts
New Contract Bookings
Contract Backlog
Support Backlog
Total 2004 Revenue = $926M
System Sales
Services, Maintenance & Support
Technology
Resale
$113M
Subscriptions
$26M
Professional
Services
$251M
x88%
x20%
x12%
x23%
x20%
$187M
$23M
$3M
$58M
$10M
Licensed
Software
$213M
Contribution Margin %
Less:
Indirect Costs
Note: Total Revenue includes
$32M of reimbursed travel
Innovation You Can Trust
revenue.
Managed
Services
$50M
Support &
Maintenance
$241M
x57%
$137M
Total 2004 Contribution Margin=
$418M (45% of Revenue)
R&D
19% of revenue
($172M)
Contribution Margin $
SG&A
14% of revenue
($131M)
($303M)
Operating Margin
$115M, 12%
+
D&A
$91M
=
EBITDA
$206M, 22%
Sales Pipeline
Support
Contracts
New Contract Bookings
Contract Backlog
Support Backlog
Total 2004 Revenue = $926M
System Sales
Services, Maintenance & Support
Professional
Managed
Licensed
Technology
Services
Subscriptions
Services
Software
Resale
$213M $188M$113M $129M $26M $16M $251M $233M$50M $34M
x88% 89% x20% 17%
$187M
$23M
Contribution Margin %
x12% 10%
$3M
Support &
Maintenance
$241M$210M
x23% 15% x20% 18%
$58M
$10M
x57% 53%
$137M
2003
Revenue & Contribution Margins
Total 2004 Contribution Margin=
$418M (45% of Revenue)
Less:
Indirect Costs
Note: Total Revenue includes
$32M of reimbursed travel
Innovation You Can Trust
revenue.
R&D
19% of revenue
($172M)
Contribution Margin $
SG&A
14% of revenue
($131M)
($303M)
Operating Margin
$115M, 12%
+
D&A
$91M
=
EBITDA
$206M, 22%
Margin Expansion
Path to 20% operating margins by 2007





Improving consulting margins from 23% to 32% expected to add 160 basis points
Leveraging R&D expected to add 190 basis points
Leveraging SG&A expected to add 120 basis points
Growth & margin expansion in managed services and subscription business
expected to contribute 100 basis points
Growth and margin expansion in Support expected to contribute 150 basis points
Drivers of Margin Expansion
(Cumulative)
Key Assumptions
800
SG&A
Leverage
700
27%
Basis Points
500
22%
400
17%
300
200
12%
100
-
7%
2003
2004
2005
2006
Innovation You Can Trust
2007
Operating Margin %
600
R&D Leverage
Support
Leverage
Managed Svc /
Subscription
Prof. Services
Margins
EBITDA
Operating
Margin
Organic revenue growth of ~10% per year
Contribution margins for licensed sales and technology
resale flat for duration (similar to historical experience)
Contribution Margins
2003A 2004A 2005E 2006E 2007E
Professional Services
15%
23%
R&D (% of Total Rev.)
(19%)
(19%) (18%) (17%) (16%)
SG&A (% of Total Rev.)
(13%)
(14%) (14%) (13%) (13%)
Managed Services
18%
20%
23%
25%
27%
Content & Subscription
10%
12%
15%
18%
23%
Support & Maintenance
53%
57%
60%
62%
65%
26%
29%
32%
Evolving Business Model
Revenue mix shifting

70% of revenue from highly visible
or recurring sources by 2007
versus 56% in 2001 and 64% in
2004



Industrial strength software and
strong Professional Services driving
Support & Maintenance growth
Strong Managed Services business
creates recurring revenue and
reduces non-recurring hardware
sales
Future business models to be more
visible & recurring
– VitalWorks’ Medical Division adds
>$50M of Recurring Rev.
– Transaction processing
– Employer/payer market

3-year Backlog CAGR of 25%
100%
RevenueMixTrend
TechnologyResale
90%
80%
LicensedSoftware
70%
60%
50%
Content and
Subscription
40%
Professional Services
30%
ManagedServices
20%
10%
Support &
Maintenance
0%
2001 2002 2003 2004 2005E 2006E2007E
System Sales
Innovation You Can Trust
Support, Maintenance, & Services
Guidance as of February 5, 2005
Guidance as of February 5, 2005
Q105
Revenue
EPS
Bookings
$250M – $255M
$0.41 – $0.42
$215M – $230M
2005
Revenue
EPS
$1.08B – $1.1B
$2.07 – $2.12
Innovation You Can Trust
Cerner Corporation
Lighthouse
Clinical Process Optimization
Bill Dwyer
Senior Vice President
Innovation You Can Trust
Lighthouse: Clinical Process Optimization
Transform the Clinical Practice of Medicine
- By Condition / Procedure
- Across Venues of Care
- Data Driven
- Through a Collaborative
Lighthouse Includes:
- Process Modeling
- Lighthouse Knowledge Marts
- Metrics & Benchmarking (via PowerInsight & HealthFacts)
- Reengineering Consulting Services
- Monitoring Service
Best
Practices
HealthFacts
(Benchmarks)
Executable Knowledge
PowerInsight
Leverage Millennium Solutions to Drive Benefits
Millennium
Applications
“Implementing Knowledge Driven Care”
Innovation You Can Trust
Concentrated Impact
Total U.S. Hospital Expenditures
Conditions / Procedures
AHRQ, HCUP NIS, 2002
• Targeting Routine Care
• Orthopedics & Cardiology First
• 58-60 Developed through 2008
173
Procedures
(75%)
National Hospital Expenditures
58 Procedures
(25%)
AHRQ, HCUP NIS 2002
$140,000,000,000
100%
High Volume Procedures
90%
$120,000,000,000
$100,000,000,000
70%
60%
$80,000,000,000
50%
$60,000,000,000
40%
30%
$40,000,000,000
20%
$20,000,000,000
10%
Innovation You Can Trust
Dental/ Surgical
Dermatology
Optometry/Audiology
Opthamology
Endocrine
Rehabilitation
Otolaryngology
Pediatrics/Surgical
Psychiatric
Oncology
Physical Therapy
Urology
General
Radiology
Hematology
General Surgical
OB/GYN
Nephrology
Orthopedics
Pulmonology
Gastroenerology
0%
Cardiology
$-
Percent of Total Expenditures
80%
2002 Spending
$101 Billion
20%
$413 Billion
80%
National Bill
Cumulative %
Low Volume Procedures
Digitizing Best Practices
National
Collaborative
Innovators
Develop Best Practice
• Thought Leaders
• Early Adopters
• Bias for Action
Implement Best Practice
Development
Partner #1
Development
Partner #2
Development
Partner #3
Development
Partner #4
Library
Assess
Design
Current
Future
State Continuous State
Data-based
Rapid
Improvement
Cycles
Implement
Development
Partner #5
MM Tech
OR Central
Supply Tech
OR Nurse
OR Supply Replenishment
Document supply
use
intraoperatively
Innovation You Can Trust
Writes down
supplies needed
Go to Central OR
Supply to obtain
supplies
Supplies
available in
Central OR
Supply
Yes
Gather needed
supplies
Return to OR suite
with supplies
Restock OR suites
and OR suite carts
No
Leave list of
needed supplies
Validate
requisition for
needed supplies
Return to OR suite
without supplies
Enter requisition
for supplies
Receives supplies
and does put away
Fill requisition
Deliver supplies to
Central OR Supply
area
Contact OR Nurse
that supplies are
available
TKA Process Modeling and Simulation
Ortho Department
from 2.13
Schedule Prel iminary Surgery Date and
Complete the "Green Sheet" in Workflow
Modeler: Provide Specialty Care
Requested Surgery
Surgery Scheduling
3.3.1
Schedule
Surgery
Surgery Control Desk
Scheduled Surgery
Scheduled Surgery Resources
3.3.52
Open OR Room in
System
Receive Patient
Documents
3.3.4
Generate
Surgery
Schedule
Generated Surgery
Schedule
Instrument Processing
3.3.2
Schedule
Surgery
Resources
Scheduled Surgery
Hospital General Services
Materials Management
Schedul ed Surgery
Scheduled Surgery
Generated
Surgery
Schedul e
Recei ved
Pati ent
Docum ents
3.3.5
Generate Pick
List
3.3.10
Decontaminate
Instrument Trays
3.3.3
Deliver Patient
Documents
Generated
Pi ck Li st
Cl eansed
Instrument
Trays
3.3.11
Prep and Pack
Instrument Trays
Turned Over
Room
Del i vered Pati ent Docum ents
3.3.6
Enter Items into
Materials
Management
System
Entered Pi ck
Li st
Packed
Instrument
Trays
3.3.7
Pick Items f rom
Carousel
Fi ll ed Case Cart
(soft goods)
3.3.8
QA Case Cart
Qual i ty Assured
Case Cart (soft
goods)
3.3.9
Transport Case
Cart
Steri l ized
3.3.12
Pi cked
Instrument
3.3.13
Pick Surgeon & Instrument T rays
Trays
Complete
Case
Sterilization Cycle
SpecificTrays
3.3.14
Transf er to
Another Cart
Fi ll ed
Instrument
Cart
Rebated
Charges &
Restocked
Fi ll ed Case Cart (soft goods)
3.3.54
Receive Supply
Case Cart
3.3.15
Transport
Instrument Trays
(Bulk) to Surgery
from 3.3.53
Receive S oil ed Instrument Case
Recei ved Case
Cart
3.3.53
Receive Soiled
Instrument Case
Cart
3.3.55
Unused Item s
Rebate & Restock
Unused Materials
to 3.3.10
Decontaminate Instrument Trays
Filled Instrument
Cart
Surgery Supply Technician
3.3.16
Store Instruments
in OR
3.3.17
Pick Specialty
Item to Complete
Case Cart
3.3.22
Complete Case
Cart
3.3.21
Obtain Implant
Com pl eted Case Cart
3.3.51
Restock OR
Supply Cabinet
Restocked
Supply
Room
Implant Vendor
3.3.18
Check Surgical
Case Board
Confi rm ed
Surgery
Schedul e
Stocked
Vendor
3.3.19
Instruments
Inventory Vendor
Instrument Trays
3.3.20
Supply OR w /
Prothesis
Inventory
Pharmacy Technician
3.3.39
Render
Assistance to OR
Personnel
Suppli ed Impl ant
Completed Case Cart
Person
Arrival of Patient
Hospital Admissions
Opened
Impl ant
3.3.40
Submit P.O. to OR
Personnel
3.3.50
Restock
Anesthesia /
Meds Cart
Rendered Implant Manamagement
3.3.23
Ensure
Completeness of
Anesthesia /
Meds Cart
Filled Meds Case Cart
3.3.24
Complete
Admissions
Ambulatory Surgery Center (2W)
Admitted Patient
238 TKA activities from ortho clinic visit to patient
return to the community
128 actors participate in the process;
179 handoffs between actors
3.3.25
Conduct Pre-Preoperative
Assessment
3.3.27
Obtain Consents
Si gned
Docum ents
Si gned
Docum ents
3.3.28
Print X-Ray and
Store in Patient
Folder
Pri nted
X-Ray
Cl eared
for
Surgery
3.3.59
Receive Floor
Room
Assignment
3.3.46
Recover Patient
3.3.30
Conduct Nurse
Preoperative
Assessment
Recovered Patient
3.3.29
Conduct
Anesthesia Pre
Operative
Assessment
3.3.38
Monitor Patient
Prepared Pati ent for Recovery
Approval for
Surgery
3.3.45
Transport Patient
to PACU
Requested Room Assignment
3.3.36
Ensure Team
Readiness
3.3.43
Close Incision
Approval for S urgery
3.3.37
Perform Surgery
Com pl eted
Procedure
Readied Room for Turnover Cleaning
Com pel eted
Initi al
Tem pl ate
Provided Surgery Assistance
3.3.35
Develop Initial
Template
3.3.44
Break Dow n
Instrument Tables
Com pl eted P rocedure
3.3.47
Discuss w ith
Patient Family
Consul ted
Fam i l y
3.3.48
Dictate Case
Cleaned Room
Anesthesi zed
Pati ent
Prepared Patient
3.3.33
Administer
Anesthesia
Surgeon Team
Provi ded
Surgery
Assi stance
Removed Contaminated Instruments
Transported Patient to OR
3.3.32
Setup Anesthesia
Work Station
3.3.41
Assist Surgery
3.3.34
Sterile Prep
Patient for
Surgery
Closed Incision
Readied OR
Room
Readied Anesthesi a
Completed
Procedure
3.3.31
Setup OR
Anesthesia Team
Transported Patient
Cl eared for S urgery
Approval for Surgery
Si gned
Docum ents
OR Personnel
Approval for Surgery
3.3.26
Complete
Regulatory
Documents
Approval for Surgery
Cleared for
Preoperative
Assessment
OR Holding
Housekeeping
Cl eaned Room
3.3.49
Cleanup OR
Transported Cl ean Suppl y Case Cart
3.3.56
Request Room
Assignment
Requested Room
Assi gnment
3.3.58
Obtain Floor
Room
Assignment
Assigned Room
Transported Contam i nated Instrum ents Case Cart
Hospital Bed Control
Inpatient Floor
3.3.42
Obtain "The Bed"
for Patient
Innovation You Can Trust
Transported "T he
Bed"
3.3.57
Obtain Room
Assignment
Obtai ned Room
Assi gnment
3.3.60
Communicate
Report to Floor
Accepted T ransfer
Responsi bi l i ty for
Pati ent Care
4
Provide Post
Surgical Care
TKA Model
Expected Results*






Reduction in Mortality rate
(0.17% to 0.10%)
Reduction in Complications due to DVT
(0.2% to 0.05%)
Reduction in Re-admission rate
(1.8% to 0.5%)
Reduce ALOS by 0.5 days
(3.66 to 3.16)
Save ~$1M annually on 408 cases
Treat an additional 20% of patients without increasing
resources
Best
Practices
HealthFacts
(Benchmarks)
Executable Knowledge
PowerInsight
Millennium
Applications
“Implementing Knowledge Driven Care”
* Actual results may vary. These results are anticipated based on current state findings at Mayo Jacksonville.
Innovation You Can Trust
Cerner Corporation
Cerner Vision &
Strategic Initiatives
Jeff Townsend
Senior Vice President &
Chief of Staff
Innovation You Can Trust
Community Health Model
1. Automate the Care Process
Cerner offers a longitudinal, person-centric electronic
medical record, giving clinicians fingertip access to the
right information at the right time and place.
2. Connect the Person
Cerner is dedicated to building a personal health
system. Medical information and care regimens
accessible from home empower consumers to
effectively manage their conditions and adhere to
treatment plans, creating a new medium between
physicians and individuals.
3. Structure the Knowledge
Cerner is dedicated to building systems that bring the
best science to every medical decision by structuring,
storing and studying the content surrounding each care
episode.
4. Close the Loop
Today, the gap between medical discovery and its
incorporation into daily practice can be as long as 10
years. Cerner is dedicated to building systems that
implement evidence-based medicine, dramatically
reducing the average time from the discovery of an
improved method to the change in the standard of care.
Innovation You Can Trust
Community Health Model – Moving the Boundaries
Connect the Community
Cerner Millennium
• 287 Clients
• 749 Facilities
• 3,767 Solutions
• ~100,000 Physicians
Health Sentry
Innovation You Can Trust
Knowledge &
Discovery
Changing Total Cost of Ownership
Shared Knowledge Distribution Environment
99.00% = 87.6 Hours/Year
99.90% = 8.76 Hours/Year
99.99% = 48 Minutes/Year
50 % Effort, 25% Elapsed Time
50 % Effort, 30% Elapsed Time
Innovation You Can Trust
Cerner Vision and ‘Grid Services’
Condition & Disease Grid
Physician & Metro Grid
Transactional
Services
State & Regional Grid
Knowledge & Discovery
Innovation You Can Trust
The Next Layer of Solutions
Clinical Bioinformatics
Ontology
National Disease Management
(Juvenile Diabetes)
Vital Works Acquisition
Country-Wide Solutions
Cerner to Acquire VitalWorks’ Medical Division,
a Leader in Physician Office Technologies
Transaction expands healthcare IT company’s strength in the physician practice market
KANSAS CITY, Mo.—Nov. 16, 2004—Cerner Corp. announced today it has signed an
agreement to acquire VitalWorks’ Medical Division, a division of VitalWorks Inc., a leader in
the private physician office information technology market. This transaction will expand
Cerner's presence in the physician practice market, an area which is expected to increase
considerably as the federal government continues its push to bring medical information to the
point of care.
Clinical Trials
“Agents”
Innovation You Can Trust
Administrative Friction
Cerner Corporation
Healthcare Policy
Don Trigg
Chief Marketing Officer
Innovation You Can Trust
Understanding the Public Policy Process
“…improved
information
technology
“…improved
information
technology
to to
prevent
medical
error
and
needless
costs”
prevent
medical
error
and
needless
costs”
– President
George
W. Bush
February
2, 2005,
State
of the
Address
– President
George
W. Bush
February
2, 2005,
State
of Union
the Union
Address
Innovation You Can Trust
Client Panel
Dr. Donald Crandall
Vice President, Clinical Informatics
Trinity Health, Michigan
Gary Jump
Chief Information Officer
Our Lady of the Lake Hospital, Louisiana
Innovation You Can Trust
Cerner Corporation
Neal Patterson
Chairman and Chief Executive Officer
Innovation You Can Trust