H.I.S.-tory,

by Vince Ciotti

© 2013 by H.I.S. Professionals, LLC, all rights reserved.

Episode #109:

Cerner Part 6

Neal & Cliff - 1987

Neal & Cliff - 2007

ERP “Gap” Quiz

• So how did you do in last week’s quiz on what other leading HIS vendors besides Cerner did not write their own ERP system, about the only gap in Cerner’s long line of HIS applications? – We mean really integrated systems (written in the same

programming language, data base & OS, and running on the same hardware platform), that have been self-developed inhouse (not acquired, or a “partner” vendor’s system).

• It’s a bit of a trick question as the answer varies greatly by product, with half of today’s vendors offering multiple HIS-es.

• So the next time someone tells you they’re on McKesson, Siemens, Meditech, etc., be sure to ask them exactly which of their many products they’re on – it’s like owning a “GM” car…

• As the table on the next page shows, quelle différence!

Today’s Leading Vendor ERP StatusVENDOR PRODUCTS WITH ERP PRODUCTS WITHOUT ERP

McKesson Star, Series, Paragon Horizon

Cerner Millennium

SiemensMedSeries 4 Unity, Invision, Eagle,

Soarian

Epic EpicCare

Allscripts Sunrise

GE Centricity

Meditech Magic, C/S, Release 6

NextGen Sphere

CPSI CPSI System

HMS General Financials

NTT (Keane) Optimum

Harris (QM) Affinity

Healthland Classic, APS Centriq (EHR only)

C-Suite Longevity• Getting back to Cerner, Neal Paterson has been at their helm for

an amazingly long time, serving as the CEO for many years over their 34 year history, and as Chairman for that entire period. Only a few other HIS vendors can claim such consistency at the top:– Neal Pappalardo has been Meditech’s Chairman for 44 years!– Judy Faulkner has led Epic for its entire 34 year history.– Jim Macaleer was SMS’ Chairman for 30 years (pre Siemens)– Rich Tarrant led IDS/IDX for 30 years (1974 to 2004, pre GE)

• So who else served as Cerner’s CEO besides Neal? Interesting question: remember the LIS search in Episode 107 (you can find them all at hispros.com) that documented how Cerner rose to the top of the LIS market so rapidly in the early nineties? We put vendors through a pretty rigorous selection process that really puts sales reps through their paces. Just who was Cerner’s rep at the Wyoming Valley Health Care System selection in 1993?

Promoting From Within• Actually, we were assigned a brand new rep right in

the middle of the process, who was brand new to Cerner, having just joined their Washington, DC office. We were a little concerned at how well a brand new rep could coordinate all the demands we made on KC regarding client lists, user manuals, site visits, and our “strenuous” contract negotiations…

• As you saw in that selection process, this new guy performed superbly, beating out Sunquest, ALS and SMS in the process.

• His name? Trace Devanny – and he rose rapidly through the ranks at Cerner after 1993, being promoted to CEO in 1999, in just 6 years! Trace had 17 years experience with IBM in the mid-Atlantic region, so knew the sales game well. He also served as CEO and COO at ADAC, so he knew the C-Suite game too. He led Cerner for 10 years until leaving in 2010 to head up The TriZetto Group

This Time An Outside Hire• And just this week (9/4/2013), came news about Cerner’s 3rd CEO:

Growth Charts• Zane Burke is facing an enormous challenge to keep Cerner

growing at its amazing pace, as illustrated in the following charts:– First, Cerner’s annual revenue over the past 34 years:

“Associates”• Reflecting Cerner’s team-building philosophy, employees are

referred to as “Associates” in KC, and their growth has been amazing, from Neal, Cliff and Paul in 1979 to 12,000+ today:

Next Episode• Many thanks again to the folks at Cerner for help with this story,

including Neal himself, who must have been rather busy with the Zane Burke recruiting efforts yet introduced me to his assistant:– Vince .. I bet we can come with some old stuff .. April Martin is

brilliant and will help u .. my travel is taking me afar .. connect in a couple of weeks .. good luck.

• The HIS-tory of today’s vendors concludes with the #1 vendor on everyone’s annual revenue charts McKesson, who started way back in the 70s when another founding trio left McAuto to form HBO:- Walter Huff, Bruce Barrington, and Rich Owens

• If anyone knows their contact info, or that of any other old HBO(C) veterans, please put them in touch with me at: vciotti@hispros.com, 505/466-4958 - they’ll get due credit (or blame!)