IBM and Cerner Expand Strategic Alliance To Create 'e-hospitals' and Transform Healthcare

IBM Global Services Offering Additional Client Services To Accelerate Adoption of Cerner Solutions

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White Plains, NY, & Kansas City, MO - 27 Mar 2002: IBM and Cerner Corp. today announced a significant expansion of their global strategic alliance aimed at helping hospitals and medical centers accelerate the adoption of e-business solutions to become more efficient and deliver higher quality patient care.

The expansion will include additional infrastructure and customized enhancement services through IBM Global Services, the world's largest information technology services provider.

The two companies said healthcare organizations adopting the Cerner MillenniumTM integrated software application suite and using IBM's infrastructure, networking and other e-business implementation services can benefit from eliminating inefficient, labor-intensive and error-prone paper-based clinical and back-office procedures.

Both companies are worldwide leaders in healthcare -- Cerner for developing integrated clinical, financial and managerial information software used at more than 1,500 healthcare organizations; and IBM for its worldwide e-business hardware, storage, middleware, consulting, systems management and implementation services.

The expanded agreement calls for IBM to offer Cerner clients design and implementation services for networking and database management, project management, creation of wireless environments, disaster recovery and several other e-business services that complement and enhance the existing Cerner service portfolio. IBM will team with Cerner to develop client-specified extensions and customized enhancements to Cerner Millennium applications using MillenniumObjects™, Cerner's open architecture toolkit for client and third-party application development.

"Our clients and prospective clients have many different needs," said Trace Devanny, Cerner's president. "By including IBM Global Services, we expand our breadth of integrated offerings to meet those needs. Adding one of the world's foremost IT services organizations to that mix makes working with Cerner an even more compelling proposition as our clients look for the support they need to transform health care."

Russell Ricci, MD and general manager of IBM Global Healthcare, adds: "There is a growing crisis in keeping quality healthcare affordable. In response, IBM and Cerner are expanding their collaboration to offer healthcare providers leading information technology solutions and services that enhance quality of care and the cost- efficiency of clinical and business operations. Today's announcement is another wonderful example of two leading companies taking action that we know will have a huge and positive impact on the healthcare industry."

A 2001 Institute of Medicine report said considerably wider use of information technology by hospitals is vital if they are to become more efficient and eliminate excessive costs and delays. Wider use of e-business technology is also expected to help reduce inadvertent medical errors such as incorrect prescription dosages that injure or kill thousands of people each year.

In September, Cerner and IBM announced a strategic alliance that called for the Cerner Millennium application suite to be fully optimized and integrated with the IBM eServer systems, storage and infrastructure software.

"Our strategic alliance is already paying dividends," said Devanny. "In less than six months, we have doubled the amount of business we do together. Our efforts to take advantage of IBM technologies are moving forward on all fronts."

The two companies said the ultimate goal is to create solutions for every hospital department and function that are integrated and seamless and take advantage of e-business networking technology. Healthcare organizations would no longer have to meld piece parts or isolated solutions from different hardware and software vendors to try to automate their clinical and business operations.

The IBM/Cerner alliance is another example of IBM's commitment to go-to-market with leading independent software vendors through the PartnerWorld for Developers Program. Software application developers receive support from IBM PartnerWorld for Developers (PWD) -- a worldwide program designed to help software developers reach broader markets, lower their cost of doing business and take their products to market faster. Developers can contact IBM via PWD at

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