city missouri type public traded as nasdaq cern nasdaq 100 component s & p 500 component industry health care founded 1979 founder neal patterson paul gorup cliff illig headquarters north kansas city missouri u.s. key people neal patterson chairman and ceo cliff illig vice chairman zane burke president products health informatics software revenue us 3.402 billion 2014 1 operating income us 763 million 2014 1 net income us 524.4 million 2014 1 total assets us 4.530 billion 2014 1 total equity us 3.565 billion 2014 1 number of employees 22 000 april 2015 2 website www.cerner.com since 2006 cerner has also occupied space in the former marion laboratories in kansas city cerner s riverport campus complex cerner corporation is a supplier of health information technology hit solutions services devices and hardware . as of april 2015 its products were in use in approximately 18 000 facilities around the world 3 and the company had about 22 000 employees globally . 2 contents 1 history 2 controversy 3 locations 4 awards 5 references 6 external links history edit cerner was founded in 1979 by neal patterson paul gorup and cliff illig who were colleagues at arthur andersen . its original name was pgi & associates but was renamed cerner in 1984 when it rolled out its first system pathnet . 4 it went public in 1986 . 5 cerner s client base grew steadily in the late 1980s reaching 70 sites in 1987 120 sites in 1988 170 sites in 1989 and reaching 250 sites in 1990 . installations were primarily of pathnet systems . 6 during this time cerner was developing components of a health network architecture hna an integrated it system designed to automate health care processes . clients could purchase individual components or the whole system at one time . by 1994 more than 30 clients had purchased the full hna system while 100 clients had purchased multiple components of the system . 6 in 1997 the company introduced cerner millennium an upgrade to its hna system which incorporated all of the company s software offerings into one unified architecture . the introduction of millennium contributed to significant growth for the company with revenue increasing to 1.1 billion in 2005 7 from 245.1 million in 1997 . 8 cerner acquired imc health care inc. in early 2010 to continue expanding its wellness services to outside commercial employers pharmacies and wellness programs . 9 in july 2010 president trace devanny left the company 10 and patterson became the company s president in addition to his roles as chairman and chief executive officer . 11 in september 2013 zane burke was named president assuming the title from patterson . 12 on august 5 2014 cerner announced its intent to purchase siemens health services the health information technology business of germany s siemens ag for 1.3 billion . 13 the acquisition was completed on february 2 2015 . 14 on july 29 2015 leidos partnership for defense health which includes cerner accenture and leidos was awarded a 10 year 4.3 billion contract to overhaul and manage the electronic health records for the department of defense . 15 controversy edit in 2001 a memo authored by ceo patterson and sent to about 400 managers was leaked online . the memo written in harsh language was meant to motivate the managers to get more productivity out of employees and promised layoffs a hiring freeze closing of an associate center and the implementation of a punch card system if patterson did not see evidence of changes . patterson s metric was the fullness of the company s kansas city office lot at the hours of 8 a.m. and 5 p.m. the memo was widely seen as inflammatory and poor management and cerner s stock price fell 22 % over three days . 16 in 2002 the installation of a computerized health system by cerner in the children s hospital of pittsburgh of upmc made it harder for the doctors and nurses to do their jobs in emergency situations and resulted in a disaster according to phillip longman a senior fellow at the new america foundation . longman wrote according to a study conducted by the hospital and published in the journal pediatrics mortality rates for one vulnerable patient population those brought by emergency transport from other facilities more than doubled from 2.8 percent before the installation to almost 6.6 percent afterward . 17 defenders of cerner in the study charged that the pittsburgh hospital did not adequately prepare for the transition to the cpoe system in that it had at the same time significantly changed its pharmacy process did not provide adequate wireless bandwidth and did not have order sets pre programmed on day one . they noted that other hospitals that more carefully planned the implementation did not experience the same problems . 18 in 2005 cerner and other companies paid for a report by the rand corporation which predicted great efficiencies from electronic health records including savings of 81 billion a year or more which rand now says is overstated . this report helped drive growth in the electronic health record and billions of dollars in federal incentives to hospitals and doctors . cerner s revenue has tripled from 1 billion in 2005 to a projected 3 billion in 2013 . the study was criticized by the congressional budget office for overstating potential savings . a 2013 reassessment of the 2005 report by the rand corporation said that the conversion had failed to produce savings and had mixed results in efficiency and patient care . 19 in 2010 girard medical center crawford county kansas hired cerner to install an electronic records system . but after receiving 1.3 million cerner employees failed to get the system running in time to qualify for federal incentive payments and in september 2011 notified the hospital that it was abandoning the project according to a lawsuit girard filed against cerner . cerner and executives at girard agreed that girard did not have adequate staff to manage the acquisition and implementation of the system . 20 as of june 2014 the case was still in arbitration . 19 21 in 2012 trinity health a small hospital in north dakota sued cerner claiming that cerner s patient accounting solution didn t work correctly ; the parties settled for 106m in 2014 . 22 in 2014 cerner was embroiled in litigation with the girard case still unsettled a grand jury in california having found that cerner knew that ventura county healthcare executives were unprepared to work with cerner in a 32 million installation and with a 31 million cerner implementation at the athens regional health system in georgia having turned into a disaster leading to the forced departures of the ceo and the cio of the health system . 21 in 2016 the nanaimo hospital er began using the system . physicians have called it a huge failure with it increasing some types of errors and slowing down the emergency department . 23 locations edit cerner is headquartered in kansas city missouri . cerner s world headquarters campus is across the street from north kansas city hospital cerner s second hospital client . 24 it acquired additional space in north kansas city missouri in 2005 25 and in 2006 it acquired another location in kansas city . 26 in 2013 cerner announced plans to redevelop 236 acres in south kansas city missouri into an office park . the site was previously occupied by bannister mall which was demolished in 2009 . 27 cerner broke ground on the new campus on november 11 2014 . the 4.45 billion project intends to employ 16 000 new cerner workers within the decade . 28 cerner has offices in about 25 countries worldwide . 29 awards edit 2015 2016 best in klas global non us patient administration systems and application hosting cis erp his category leader in acute care emr community and anatomic pathology . 30 no. 1 world s most admired company in health care pharmacy and other services category fortune 2015 . 31 no. 22 the world s most innovative companies forbes 2014 . 32 ux award 2013 best clinical health care experience powerchart touch 33 34 references edit a b c d e cerner corp form 10 k annual report filing date feb 11 2015 pdf . secdatabase.com . retrieved apr 1 2015 . a b kaberline brian . acquisition brings biggest single hiring day in cerner history . kansas city business journal . kansas city business journal . retrieved 7 april 2015 . leventhal rajiv 30 december 2014 . cerner siemens mega deal one shared client cio looks ahead to 2015 . healthcare informatics . healthcare informatics . retrieved 7 april 2015 . cerner corporation cerner timeline . cerner.com . retrieved 2010 03 16 . international directory of company histories vol . 16 . st. james press 1997 a b cerner corporation history . richard mcgill murphy april 27 2006 . 49 companies batting a billion . fortune small business magazine . cerner 1994 q4 financials . monegain bernie . cerner acquisition to expand its employer health centers . healthcare it news 18 december 2009 . healthcare it news . retrieved 7 april 2015 . cerner form 8 k current report filing date july 13 2010 pdf . secdatabase.com . retrieved mar 23 2013 . cerner president trace devanny to step down . cerner.com . retrieved 2010 07 14 . stafford diane 4 september 2013 . health care software maker cerner names zane burke its president . the kansas city star . the kansas city star . retrieved 7 april 2015 . conn joseph 2 february 2015 . cerner closes siemens health services purchase boosts overseas revenue 50 % . modern healthcare . modern healthcare . retrieved 7 april 2015 . frank john n. ; tahir darius 9 august 2014 . cerner buys siemens health it unit for 1.3 billion . modern healthcare . modern healthcare . retrieved 7 april 2015 . amy brittain 2015 . cerner wins 4.3 billion dod contract to overhaul electronic health records . the washington post . retrieved 2015 07 29 . wong edward 5 april 2001 . a stinging office memo boomerangs ; chief executive is criticized after upbraiding workers by e mail . new york times . phillip longman code red washington monthly july august 2009 eletters for han et al. 116 6 1506 1512 . pediatrics . retrieved 2010 03 16 . a b reed abelson and julie crewswell in 2nd look few savings from digital health records new york times january 11 2013 . joel schectman for the wsj cio blog . june 26 2012 kansas hospital s failed emr project shows peril of vendor relations gone bad a b shaun sutner for health it pulse . june 20 2014 2014 so far a bumpy stretch for cerner corp. anne zieger for hospital emr & ehr . march 12 2014 cerner agrees to pay 106m over allegedly defective software harnett cindy may 27 2016 . nanaimo doctors say electronic health record system unsafe should be shut down see more at http www.timescolonist.com news local nanaimo doctors say electronic health record system unsafe should be shut down 1.2264497 sthash.hd2ft9qq.dpuf . times colonist . retrieved 28 may 2016 . external link in title help roberts rob 2005 09 16 . rand study helps cerner make its case kansas city business journal . kansascity.bizjournals.com . retrieved 2010 03 16 . emporis gmbh . riverport campus cerner corporation inc. world headquarters in north kansas city mo. kansas city u.s.a. . emporis . retrieved 2010 03 16 . emporis gmbh . cerner corporation south campus bldg i kansas city u.s.a. . emporis.com . retrieved 2010 03 16 . demolition begins on old bannister mall . kmbc tv . 2009 01 21 . diane stafford 2014 11 13 . cerner breaks ground for its trails campus in south kansas city . kansas city star . retrieved 2015