Cerner president: Revenue cycle will be major contributor to growth
Cerner officials expect the company's growth in the revenue cycle management sector to negate lower-than-expected third quarter earnings, reports Kansas City Business Journal.
Cerner reported revenue Q3 of fiscal year 2016 was $1.185 billion compared to $1.28 billion in Q3 FY 2015, or a five percent decrease. This was "slightly below" expectations, Cerner President Zane Burke said.
But Mr. Burke said strong projected growth in Cerner's revenue cycle management IT and services arm will keep the company on top.
Caleb Anderson, Cerner's vice president of ambulatory and revenue cycle, previously described RCM as "one of the fastest-growing segments in the industry," and estimated market value to reach $40 billion by 2020.
Looking forward, Mr. Burke expects changes in Medicare reimbursement to drive more clients to Cerner's IT and revenue cycle services.
"Our clients are going to have a need to be able to measure and monitor a number of different metrics and to begin to prepare for that," Mr. Burke told Kansas City Business Journal. "So in the conversations that we're having, they're continuing along. And I feel like those are going to mature in a good way in 2017 that we just didn't see in 2016."
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