• by bcarlson@marketresearch.com
  • August 6 2014


Cerner-Siemens AG Deal Shakes Up EMR Market

Cerner-Siemens AG Deal Shakes Up EMR Market

Cerner Corporation and Siemens AG’s announcement that Cerner will acquire the assets of Siemens’ health information technology business unit, Siemens Health Services, for $1.3 billion creates scale for future industry innovation, given the combined $650 million annual R&D investment the deal entails.  As covered in our EMR market report earlier this year, Siemens is one of the companies that has moved away from electronic medical records in favor of other systems.   The move should help Cerner build its place over its rivals McKesson, Epic and Allscripts.

This agreement is more than an acquisition, but rather a strategic alliance of three-year term combining investments in R&D, knowledgeable resources, and complementary client bases. Each company will contribute up to $50 million to fund projects of shared importance, aimed at rapidly achieving the next generation of clinical computing to deliver precision medicine at higher quality and lower costs.

For Siemens, the move is one more indication that Siemens may be backing off some parts of its healthcare portfolio.  Earlier in the year,  the company sold it’s microbiology testing unit to rival Beckman Coulter.

Given these companies’ strategies, as outlined in Kalorama’s EMR Markets 2014, none of these developments is surprising. Cerner has long been committed to an open healthcare ecosystem able to send and receive data in a universal manner, couched within the strong belief that EMRs are not a one-size-fits-all proposition. Siemens Medical Solutions strategy for growth has been based on finding complementary technology that enables Siemens to offer complete solutions.

 

Information on EMR 2014: The Market for Electronic Medical Records can be found at KI: http://www.kaloramainformation.com/EMR-Electronic-Medical-8100400/