As the health IT industry eagerly awaits the Trump administration’s information blocking rule, Cerner executives say the company is ‘well-positioned’ for any regulatory changes.
When asked on a Thursday’s earnings call whether the company foresees any risks associated with the pending rules around data blocking and interoperability, Cerner’s Chief Client Officer John Peterzalek boasted that Cerner has been a “leader around interoperability.” One analyst wondered whether Cerner’s “lucrative small submarket” of helping hospital interface with other systems and databases would take a hit with new regulations.
“My first reaction would be [we’re] not really at risk because interoperability and interfacing are kind of two different things,” Peterzalek said. “And we've been on record many times as saying that we view interoperability as a right. That data blocking or not being interoperable cannot be—they have to be interoperable and sharing data between the entities and we'll continue to do that.”
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There are currently two rules under review by the Office of Management and Budget (OMB). One vaguely named “Interoperability and Patient Access,” and another highly anticipated rule mandated by the 21st Century Cures Act that will define exceptions to information blocking.
Peterzalek said there are more interoperability regulations coming, but that Cerner is “well-positioned” for any new rules around and that “there will always be a need for interfaces between systems.”
The EHR vendor reported a soft quarter of bookings as software sales slumped. The company fell slightly short of Wall Street estimates with $1.3 billion in revenue. Net earnings came in at $169 million, down from $177 million during the same quarter last year.
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Cerner executives offered a brief update on the company’s Medicare Advantage partnership with Lumeris and a joint offering called Maestro Advantage. The two companies have visited with “over a dozen perspective clients,” and financial impact will be limited for the next three to four years.
“[It’s] all part of our plan, but it's not a quick impact on the financial statement,” Chief Financial Officer Marc Naughton said. “This is an investment in the future that we think will pay off handsomely once it gets to fruition.”