Cerner to acquire PureWellness

February 26, 2013 in Medical Technology

Analysts pronounced health IT company’s pending acquisition of PureWellness a healthy step for Cerner – one that gives it a $420 million opportunity out of the gate, serves as a driver of new bookings and differentiates the company in the marketplace.

“By our math, $1 pmpm (per member per month) across 35 million patients in the Cerner cloud gets us to $420 million in annual revenue opportunity within the base alone,” Piper Jaffrey analysts Sean Wieland and Mohan Naidu wrote in their February 26 brief.

Cerner announced Feb. 25 it had reached an agreement to acquire PureWellness, a company that develops solutions to enable population health, individual engagement and measurable lifestyle improvements. Financial terms of the deal were not disclosed.

[See also: Cerner 2012 bookings at $3.14B.]

“Acquiring PureWellness will further position Cerner to help organizations manage the health and care of their populations,” company executives said in a statement. “Engaging the individual is critical in a population health strategy and the combination of Cerner Millennium, Cerner HealtheIntent, and PureWellness’ health and wellness platform will create the most comprehensive set of capabilities on the market to support an individual’s health and care needs.”

“By aligning PureWellness and Cerner solutions, Cerner will be uniquely positioned to support clients focusing on population health management, including accountable care organizations, managed care organizations, employers, health plans and providers looking for a differentiated way to engage their patient population,” Cerner Senior Vice President Matthew Swindells said in a news release.

As Wieland and Naidu see it, the gain from the acquisition will grow and accelerate once accountable care organizations become a reality and doctors and hospitals are paid based on outcomes.

“PureWellness expands the data set available to Cerner to include a health risk assessment, diet, exercise, and other patient-reported data,” they note. “Integrating this data into the Cerner cloud will help physicians make better decisions at the point of care, avoid unnecessary care, and enable proactive clinical interventions.”

[See also: Epic, Cerner reap benefits of meaningful use.]

Ron Keen and Ken Kaufman founded South Burlington, Vt.-based PureWellness – tagline: “Wellness Made Easy” – in 2001. With the acquisition, PureWellness will become Cerner Wellness. The offerings include wellness workshops, walking programs, nutrition, incentives, reporting and mobile apps. The market includes providers, health plans, employers and resellers. According to PureWellness executives, the company offers a customizable platform used by thousands of organizations and deployed to more than 4 million individuals.

“Cerner’s dedication to improving the health and wellness of populations combined with PureWellness’ robust wellness solutions will further enable organizations to enhance their population health efforts to deliver better outcomes,” said Kaufman, PureWellness president and co-founder.

The acquisition is anticipated to close in March 2013 and is not expected to have a material impact on Cerner’s 2013 financial results. Cerner shares were trading at $87.11 at midday, February 26.

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