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Good News for Cerner with VA Contract

June 2018

North Kansas City-based Cerner Corporation has officially received a contract to overhaul the aging health record system of the federal Department of Veterans Affairs (VA).

After months of delays, the VA signed a $10 billion contract with Cerner in mid-May. The document sets the $10 billion ceiling for work over 10 years.

As part of the work, Cerner will replace the VA's 40-year-old health records system with the same record system they are implementing for the Department of Defense, MHS Genesis. Although the DoD contract was a major landmark for Cerner, the VA contract is far larger, with 144 hospitals and a staggering 1,221 outpatient sites.

Cerner was initially selected for the VA work last year, but personnel changes within the federal department left the contract in limbo until May 17.

Other Positive Reports

Cerner has received good news in other quarters. In a recent report, the company announced it has hired at least 200 employees in the Kansas City area during the first quarter of 2018. Cerner had announced plans to hire up to 600 employees for a program providing managed IT and other services to existing clients. As of last year, Cerner employs a total of nearly 13,000 people in Greater Kansas City, with plans for 16,000 more in a long-term campus project near I-435 and Bannister Road.

All of this comes on the heels of a recent report that Cerner is not only No. 1 in market share for its industry, but has a share that’s more than double its nearest competitor, Epic Systems Corp. According to Kilogram Information’s annual market report, Cerner held the top spot with 17.3 percent of market share while Epic Systems trailed with 8.8 percent.

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