Since Cerner Corp. launched its managed services business, the North Kansas City-based health IT company has developed the segment into a new business opportunity.
Rather than just provide outsourcing as a cost-cutting measure, Cerner built both its IT and revenue cycle management services to create a symbiotic relationship with clients.
“We just become embedded within their organization,” said Farrell Sanders, Cerner’s senior vice president of consulting and application services. “It’s a more transformative service, so it’s a business partnership focused on the value and the objectives of the client — not just a way of transferring staff.”
For the first several months after an organization installs one of its systems, Cerner offers support and training in-house. This is crucial because an electronic health system can’t just be “down for maintenance” — its services are too vital to patients and their caretakers.
“These go-live events have to happen flawlessly so we retain continuity of care and safety,” Sanders said. “We stay engaged as long as necessary.”
Some health systems, however, may want extra support for Cerner’s systems, or even a competitor’s.
Cerner launched its IT service — called CernerWorks — in 2009, in response to demand from rural and community health systems that didn’t have the staff to support it themselves. For example, to monitor and operate Cerner’s Millennium electronic health record system, Cerner brings in associates with 17 specialized skill sets.
In addition to providing clients the needed training to use its services, Cerner also can rebadge employees to offer in-house support.
Naturally, it’s helpful for clients to have on-site support for Cerner’s software. But Cerner sees benefits for itself in building relationships with clients and gaining a better understanding of what works best for their business.
Kent Scheuler, a senior vice president at CernerWorks, said the shift to offering these resources on an outsourced basis was driven by the market.
“Some of our largest clients have decided to turn in the keys to us,” he said. “We’ve kind of flipped the model upside-down.”
For CernerWorks, the company sells health systems on better, cheaper and faster support. The segment saw few new deals last year but still brought in double-digit revenue growth.
Cerner’s RevWorks, which helps hospitals manage everything from coding to billing and insurance claims, has provided Cerner a significant business opportunity.
“Health care is going through a lot of transformation, from fee-for-service to pay-for-performance,” Sanders said. “It’s difficult for clients to do the daily work in the revenue cycle space and transform at the same time. just helps them move through periods of change more efficiently.”
Date: February 17, 2017