Cerner lays off 255; Impact on Malvern campus not known
Kansas City-based healthcare systems vendor Cerner confirmed this week it was laying off 255 employees, effective November 5.
Cerner’s financials are not suffering much, but it may be entering a slower growth phase as reliance on one business model (implementing electronic health records) must be replaced by another and the solution is not yet clear.
In April, Cerner entered into an agreement with activist investor fund Starboard Value, which owns more than 1 percent of the company’s stock. The agreement included taking a look at Cerner’s operations. Cerner agreed to implement operating and cost structure changes.
How does this effect Cerner Malvern, the result of Cerner’s 2015 acquisition of Siemens Health Services, formerly Shared Medical Systems?
Its not yet publicly known how many people (if any) at Malvern may have been impacted. But a thread on theLayoff.com suggested the outlook for Malvern wasn’t too good. But remember that a few comments do not equal a good sample.
Cerner has around 30,00 employees. It posted 2018 results of $5.366 billion in revenue and net income of $630 million. According to LinkedIn, Cerner has approximately 1300 Philly area employees.
I’ve asked Cerner for comment. Received the following response:
“As mentioned in our Earnings call earlier this year, we’re looking to identify organizational efficiencies as we implement our new operating model. Part of that strategy includes a realignment of resces focused on key growth areas across the company. We’ve onboarded nearly 3,000 associates this year and will continue to hire hundreds more throughout 2019. Impacted associates are eligible for those opportunities.
In Malvern, Cerner has what we call a “Center of Excellence” built around Revenue Cycle Management (our integrated approach to linking the continuum of care with effective billing and scheduling) as well as other functions including finance, human resources and other corporate and executive roles.“