Cerner, Mission Health Rewrite Partnership Rules - InformationWeek

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7/3/2014
09:06 AM
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Cerner, Mission Health Rewrite Partnership Rules

Ten-year contract rewards EMR vendor Cerner if Mission Health saves money on new cost-saving measures they implement together.

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David F. Carr
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David F. Carr,
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7/3/2014 | 12:01:19 PM
Re: A Bold Move
The way Cerner and Mission Health are working together to align compensation with value delivered reminds me of the relationship government and private payers are trying to establish for paying for healthcare. If Mission Health participates in value-based reimbursement schemes such as Accountable Care Organizations, having the vendor aligned with the same sort of goals ought to make them more successful. Makes sense, hope it works for them.
Alison_Diana
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Alison_Diana,
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7/3/2014 | 10:00:39 AM
A Bold Move
This is, I think, a very bold move by Cerner and Mission Health. In Cerner's case, it is taking a reduction in software income; in Mission Health's case, it is giving Cerner unheard of access to staff, infrastructure, and plans. The benefits, if all goes as planned, will reward both -- and even if the partnership does not deliver savings, there are other pluses. However, I would bet the two organizations will realize some financial savings and quality improvements through this tight partnership. 

As both executives said, this type of arrangement is not for everyone, though. It definitely requires a lot of commitment, flexibility, and foresight, plus a willingness to cede some control (on both sides). It will be very interesting to see how the contract progresses over the next decade. 
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