Amazon and Cerner to Partner on Healthcare Deal

Amazon and Cerner to Partner on Healthcare Deal

Amazon and Cerner to Partner on Healthcare Deal

Amazon Web Services (AWS) is closing a deal that will extend their reach to one of the most important industries in America: Healthcare. AWS will use the upcoming re:Invent conference to reveal a deal with healthcare giant Cerner, who is already a client, but will expand their HealtheIntent product by running it on AWS.

Cerner is a Kansas City-based company that builds electronic records technology for healthcare providers and employers. HealtheIntent is a program developed to provide data from large-scale population-level sets, according to Cerner’s official website.

Cloud services have struggled to comply with the Health Insurance Portability and Accountability Act (HIPAA). But AWS has been working in its support of HIPAA regulations and already have the U.S. Government as a clients, and if the authorities trusts AWS with classified data, it will be easier for them to attract clients from this growing industry.

The healthcare industry will be the single largest industry by 2026, according to a report by the Bureau of Labor Statistics. “Employment in the health care and social assistance sector is projected to add nearly 4.0 million jobs by 2026, about one-third of all new jobs. The share of health care and social assistance employment is projected to increase from 12.2 percent in 2016 to 13.8 percent in 2026, becoming the largest major sector in 2026.” So, the interest of AWS is to prove they are up to the task of providing this booming industry with the services they need.

CNBC reported shares of Cerner gained $3.35, a 5% increase, to close the day at $70.03, last Wednesday. This new partnership could do more for Cerner in the future, as one analyst view early this week. “At first glance, we believe (Amazon) AWS could enhance Cerner’s ability to scale its core business as well,” said Investment analyst David Grossman of Stifel Nicolaus & Co. Inc. in a note to investors.

Re:Invent will be held in Las Vegas from November 27 to December 1st. The keynote will be on Tuesday, November 28 at 8:00PM PST.

Marco Islas
Marco Islas
Journalist with 15 years of experience covering the verge between culture, tech and business lives in the Mexico Silicon Valley witnessing his bloom.

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