MU, Cerner to form 10-year alliance
The partnership will create the Tiger Institute of Health Innovation.
Published Sept. 29, 2009
After more than a decade of collaboration, MU and Cerner Corp., a leading health care provider, announced their plans Monday to create the Tiger Institute of Health Innovation.
Through Cerner's investment, the Tiger Institute will provide a $100 million positive impact for MU, the largest capital investment by a corporation in MU history, an MU news release stated.
"It will be transformative because it will create one of the nation's most digitized health systems and in a few years begin to achieve up to $1 billion in annual economic benefit to the state," UM system President Gary Forsee said.
MU Health Care CEO James Ross said combining Cerner and MU resources allows the newly formed Tiger Institute to become a leader in academic health.
"Things are changing so it'll be a little awkward until we find the edges, but we're confident in this partnership and its leadership," Ross said.
Cerner CEO Neal Patterson said the partnership offers his company many benefits.
"From our side, this is a huge opportunity to be aligned with the forefront of patient care," Patterson said.
Patterson said Cerner would benefit from the new generation of doctors studying at MU.
"We have to move to the edge and utilize the talents of the doctors and the nurses here," Patterson said. "We're going to make a fundamental difference in health care."
According to the memorandum of understanding between the UM system Board of Curators and Cerner, the purpose of the Tiger Institute is to create innovations designed to improve patient care and population health.
"Given the troubles our nation is having with health care, we believe this partnership is just what the doctor ordered," Forsee said.
Forsee said now is the right time of year to bring this to MU and the partnership could benefit other hospitals in mid-Missouri.
"We also may be able to share this with other hospitals in the region," Forsee said.
The alliance between MU and Cerner will last an initial term of 10 years, with the possibility of being extended with the mutual agreement of both parties, the memorandum stated.
"I would like to emphasize this is cash neutral," Forsee said. "It's not a cost-cutting move, nor will it cost the university anything more than what we're already spending."
According to the news release, the information technology staff at Cerner and MU will be combined into one team.
MU will pay Cerner to take on employees, Forsee said.
He said there are 123 employees affected by the partnership. Some will remain hospital employees and more than 100 will be reassigned to Cerner.
"We've made it clear to them that their jobs are safe," Forsee said.
Ross said the pension plans for employees will depend on each employee's circumstances, and no jobs will be eliminated in the process of creating the Tiger Institute, according to the news release.
"Health care is 16 percent of our economy," Patterson said. "This $2 trillion industry will double in the next 10 years, which means a lot of jobs will be created."
According to the news release, early Tiger Institute initiatives include Cerner's capital investment in new software, services and personnel.
