Cerner, every mention

Epic Systems (MyChart) · Acquired Apr 21, 2025 · 47 mentions

• ▶ 32:47 David Rosenthal And for folks in the industry, that'll sound very familiar because Meditech is still in business today and is the number three player in the EMR space behind Epic and Cerner.
• ▶ 1:20:38 David Rosenthal So they start the RFP, and it comes down to Epic and their big main rival, Cerner.
• ▶ 1:20:45 David Rosenthal Now, we haven't really talked about Cerner so far in this episode, part of Oracle today, as we will get into later.
• ▶ 1:20:51 David Rosenthal Cerner was a much bigger company.
• ▶ 1:21:03 David Rosenthal Unlike Epic, which took the no venture capital, no acquisitions, single platform, stay private forever route, Cerner took the
• ▶ 1:21:25 David Rosenthal At this point in time, Cerner is almost a billion dollar a year revenue business.
• ▶ 1:21:43 Ben Gilbert Put a nice little wrapper on it and call it Cerner, but a lot of companies along the way.
• ▶ 1:21:57 David Rosenthal The obvious choice for Kaiser here in 2003 would have been go with Cerner.
• ▶ 1:22:02 David Rosenthal And they actually try to go with Cerner.
• ▶ 1:22:03 David Rosenthal So supposedly at one point they come to both companies, to Cerner and Epic, and they say, look, Cerner, we want to go with you for inpatient in the hospital, since that's your bread and butter.
• ▶ 1:22:30 David Rosenthal We want to split the baby here and do one system with Epic for our outpatient clinics and one system with Cerner for our inpatient clinics.
• ▶ 1:23:02 David Rosenthal Now, this was a little self-serving on Judy's part because Cerner was not good at ambulatory.
• ▶ 1:23:27 David Rosenthal I mean, Cerner's a billion in revenue at Epic is, like, somewhere slightly north of fifty million at this point in time.
• ▶ 1:25:57 David Rosenthal Cerner has not done a similar level of modeling and can't actually prove to Kaiser that their system is gonna be able to handle the transaction flow.
• ▶ 1:26:13 Ben Gilbert I think they earned big points there, but my understanding is that Kaiser still went to Cerner and said, we're interested in
• ▶ 1:26:31 Ben Gilbert I think Cerner said yes.
• ▶ 1:26:51 David Rosenthal And apparently Cerner did offer them 10% of the company for this deal.
• ▶ 1:27:50 Ben Gilbert By the way, earlier when I said 24 different companies merged together to create Cerner, I forgot that this chart that I'm looking at predates when Cerner then bought Siemens.
• ▶ 1:28:00 Ben Gilbert So then there's another 12 companies that had merged together to become Siemens that merged also into Cerner.
• ▶ 1:55:41 Ben Gilbert A lot of times when people are setting up Cerner, every implementation looks completely different.
• ▶ 2:06:43 Ben Gilbert EPIC to Cerner.
• ▶ 2:23:26 David Rosenthal Right, I was gonna say, that is a convenient fact that gets left out by a lot of people making that argument, or that all the competitors, Cerner, Allscripts, etc., they were all on those councils, too.
• ▶ 2:35:32 David Rosenthal Cerner buys Siemens Health for 1.3 billion dollars.
• ▶ 2:35:37 Ben Gilbert Which that starts the downward spiral for Cerner.
• ▶ 2:35:43 David Rosenthal Yes, I heard in the research that even today in twenty-twenty-five, customers will still refer to themselves as either Siemens customers or Cerner customers.
• ▶ 2:39:55 David Rosenthal Bids on both of these contracts, and as you would expect, just like with Kaiser, it comes down to Epic and Cerner.
• ▶ 2:40:30 David Rosenthal As we shall see with Cerner, if you win one or both of these contracts, I mean, this will keep your company going for years and years and years.
• ▶ 2:40:37 David Rosenthal So, drama aside, Cerner ends up winning both of these contracts, the DOD and the VA.
• ▶ 2:41:20 Ben Gilbert And Cerner won both of these?
• ▶ 2:41:22 David Rosenthal Cerner won both of these.
• ▶ 2:42:47 David Rosenthal I think it would be unfair to blame Cerner for this.
• ▶ 2:42:50 David Rosenthal I mean, maybe some of the blame lives on them, but they are a subcontractor to big government primes that are the GC here.
• ▶ 2:44:03 Ben Gilbert Cause Cerner just got dragged so into the
• ▶ 2:44:11 David Rosenthal Like Cerner, like we've talked about already was now post Siemens.
• ▶ 2:44:15 David Rosenthal 36 companies that had been acquired to get pulled together to make Cerner.
• ▶ 2:44:35 David Rosenthal After that, Cerner cycles through a whole bunch of different leaders over the next few years.
• ▶ 2:46:37 David Rosenthal And then finally, December, 2021, as we've been alluding to, Cerner gets bought by Oracle for twenty eight billion dollars.
• ▶ 2:46:45 David Rosenthal So Cerner, as we talked about, was and still is a big company.
• ▶ 2:47:12 David Rosenthal Oracle now no longer reports Cerner's financials as a separate segment within the company.
• ▶ 2:47:19 David Rosenthal And they talk about Cerner and Oracle Health being a quote-unquote headwind to overall growth and profitability for the company.
• ▶ 3:06:43 Ben Gilbert If you do the very conservative thing of looking at Cerner's EBITDA multiple of 30 times when Oracle bought them, and you assume conservatively, again, a 30% EBITDA margin at Epic, that would give you
• ▶ 3:07:01 Ben Gilbert But come on, Epic's revenue streams are way more durable than Cerner's.
• ▶ 3:07:05 Ben Gilbert And Epic is growing, while Cerner was going through a hard time.
• ▶ 3:17:08 Ben Gilbert They're on Cerner.
• ▶ 3:17:16 Ben Gilbert I don't know why that one hospital is still on Cerner.
• ▶ 3:17:41 Ben Gilbert If that one holdout hospital that for some reason is on Cerner just switches to Epic.
• ▶ 3:18:58 David Rosenthal You know, it's not like you can easily then go work at Cerner.