Cerner Launches $25-Million, 10-Year Initiative to Provide Personal Health Records to Kids with Diabetes.

KANSAS CITY, Mo.& ORLANDO, Fla. -- Healthcare IT leader will securely connect diabetic children with their physicians, enabling better management of chronic condition

Cerner Corp. (Nasdaq:CERN), the leading supplier of healthcare information technology, will announce today its commitment to provide every child in the United States with Type 1 diabetes a personal health record (PHR). Cerner could invest as much as $25 million in this 10-year initiative. There are as many as 1.3 million people in the United States with Type 1 diabetes.

"Over the next five years, Cerner will spend $1 billion on research and development," said Neal Patterson, chief executive officer and chairman of Cerner. "We believe it makes sense to use a percentage of that amount to create a national proof point around the benefits of a PHR and to help improve the health outcomes of kids with diabetes."

Cerner's announcement of the diabetes initiative will be made today at the Cerner Health Conference in Orlando, Fla., where 3,000 Cerner clients will be gathered. The announcement comes the same day Mark McClellan, administrator for the Centers for Medicare and Medicaid Services, will be delivering his keynote address at the event, which will raise the awareness of this important initiative among non-Cerner clients, as well as within the healthcare industry and diabetes community.

"This is a very exciting project using new technology better connecting those with Type 1 diabetes, and their parents, to the healthcare system," said Nathaniel Clark, M.D., national vice president, clinical affairs at the American Diabetes Association. "This connection will allow more efficient and meaningful communication, and has the potential to improve care as well as reduce healthcare costs. The American Diabetes Association supports initiatives such as this, which have the potential to improve the lives of those affected by diabetes."

Every year, 13,000 children are diagnosed with diabetes in the United States. Diabetes accounts for $132 billion(a) in healthcare costs each year and people with diabetes incur medical expenses that are approximately 2.4 times(b) higher than those without diabetes, particularly those people who don't effectively manage the disease.

"Children with diabetes are dependent on a complex daily regimen that if not properly managed, can increase the risk of blindness, amputation, heart disease, stroke and kidney failure," said Children's Hospital Boston's Chief Information Officer Daniel Nigrin, M.D., M.S., who is also a pediatric endocrinologist living with Type 1 diabetes. "Through my own experience, both as patient and as provider, I understand the importance of diligently managing the disease. Cerner's generosity will allow kids with diabetes and their families to electronically communicate directly with their doctor, resulting in more convenient access to care." Nigrin will be participating in today's announcement.

The ability to connect physicians to children with diabetes and their parents is the core element of Cerner's initiative. The PHR will help the physician manage patients more effectively by targeting those having difficulties dealing with Type 1 diabetes. For those patients managing the disease effectively, it's not necessary to consume costly office-visit time with their doctors if they can interact with them electronically. This would create time for physicians to see new patients and those more challenged by the disease.

"Core to the mission of the American Diabetes Association are two tenets -- improve the quality of care, as well as improve the quality of life for people with diabetes," said Lynn B. Nicholas, FACHE, chief executive officer of the American Diabetes Association. "The initiative planned by Cerner has great potential to do both for children with Type 1 diabetes and their families."

Diabetes PHRs in action at the DeVos Children's Hospital

One example of where the PHR is already proving its value in diabetes management is at DeVos Children's Hospital, part of Spectrum Health in Grand Rapids, Mich. DeVos Children's implemented Cerner's diabetes PHR in their outpatient pediatric endocrinology practice in November 2002. Physicians at DeVos Children's Hospital helped Cerner develop and implement this program, serving as the first partner in this project. Officials at DeVos note benefits such as communication between children and their physicians that might not have happened in the office. They also report that the children are much more excited about recording their information on a computer than paper.

In addition to DeVos Children's Hospital, other clients who will participate in the initial rollout are: All Children's Hospital (St. Petersburg, Fla.); Childrens Hospital Los Angeles; Childrens Hospital of Michigan (Detroit); Children's Hospital, New Orleans; Children's Hospital of Orange County (Orange, Calif.); Children's Hospital of Pittsburgh; Children's Hospital & Regional Medical Center (Seattle); Children's Medical Center (Dallas); Children's Mercy Hospitals & Clinics (Kansas City, Mo.); Loma Linda University Children's Hospital (Loma Linda, Calif.); Lucile Packard Children's Hospital (Palo Alto, Calif.); Memorial Hermann Children's Hospital (Houston); Riley Hospital for Children (Indianapolis); University of New Mexico Children's Hospital (Albuquerque, N.M.); and the University of Utah Health Sciences Center (Salt Lake City).

(a) Juvenile Diabetes Research Foundation International, Fact Sheet, March 2004

(b) American Diabetes Association, Cost of Diabetes Study, February 2003

Cerner Corp. is taking the paper chart out of healthcare, eliminating error, variance and waste in the care process. With more than 1,500 clients worldwide, Cerner is the leading supplier of healthcare information technology. The following are trademarks of Cerner: Cerner, Cerner's logo, NASDAQ:CERN, www.cerner.com.

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