Cerner and LifeOutcomes Annnounce Strategic Relationship to Penetrate Pulmonary Disease Market.

Health & Medical Writers

KANSAS CITY, Mo.--(BW HealthWire)--Aug. 21, 2000

Cerner Corporation (NASDAQ: CERN), the world's leading clinical healthcare information technology company, today announced a strategic relationship with LifeOutcomes, an emerging clinical information management company specializing in care processes for patients with chronic pulmonary diseases such as asthma, chronic obstructive pulmonary disease (COPD) and cystic fibrosis. The agreement between Cerner and LifeOutcomes was signed in the second quarter of 2000. As part of the agreement, Cerner took an equity interest in LifeOutcomes.

LifeOutcomes, a privately held company, uses patented technologies and state-of-the-art electronic devices to provide real-time tracking of medication compliance and monitoring of physiological outcomes. LifeOutcomes also creates patient pathways designed to improve outcomes and enhance quality of life while decreasing healthcare costs. "The goal of LifeOutcomes is to provide tools to physicians and consumers that dramatically improve the efficiency and effectiveness of treatment for pulmonary illnesses," said Robert McKinnon, LifeOutcomes Chairman of the Board. LifeOutcomes will leverage Cerner technology to help reach its goal of becoming the leading provider for pulmonary physician-focused technology solutions.

"The pulmonary disease marketplace is large; Asthma and COPD alone impact more than 33 million American lives," said Neal L. Patterson, Cerner Chairman and Chief Executive Officer. "This strategic relationship between Cerner and LifeOutcomes will facilitate penetration of the pulmonary disease marketplace for our organizations. Further, it will expand Cerner's presence in the physician office space with PowerChart Office(TM) physician office solution. Our Application Service Provider (ASP) business continues to allow us to enter new markets, as LifeOutcomes will offer physicians the PowerChart Office electronic medical record via an ASP structure. In addition, LifeOutcomes will provide its clients IQHealth(TM) (Cerner's eHealth business unit) software services to improve physician-consumer connections and enhance healthcare quality, safety and efficiency."

"We are committed to providing a world-class solution and strongly believe that Cerner's proven electronic medical record technology, eHealth products and services, and ASP infrastructure capabilities are critical to developing technology solutions with industrial-strength support and corporate stability," said McKinnon. LifeOutcomes will leverage PowerChart Office to capture objective patient data associated with the use of its proprietary Medtrac Technologies, Inc. system for medication management.

As an example of benefits that physicians and consumers will derive from this strategic partnership between LifeOutcomes and Cerner, LifeOutcomes will offer physicians equipment and technology as powerful tools for chronic illness management. A physician could provide a college student with asthma equipment and technology to capture healthcare data, allowing the physician to more effectively monitor the student's progress and protocol compliance remotely. The student's healthcare data from the asthma equipment would be automatically captured in PowerChart Office, allowing the physician to monitor the student's disease more closely. LifeOutcomes will also offer Cerner's IQHealth personal health record to patients, allowing them to proactively manage their health status. "This unique combination of healthcare technology empowers the consumer and provides more efficient care for people with chronic illnesses," said Patterson.

LifeOutcomes will utilize Cerner's complimentary technology as it begins pilot projects with six physician practice groups. Production rollout to the broader pulmonary physician market is expected to begin in the first quarter of 2001. The LifeOutcomes solution includes:

-- Electronic monitoring of patient medication compliance and

physiological outcomes, such as lung function measurement, for

comprehensive medical assessment

-- Proprietary, disease-specific software integrated with

Cerner's clinical technology and ASP infrastructure, making

the electronic medical record system very affordable for small

and mid-size physician practices

-- Disease tracking, treatment programs and educational support

to improve patient outcomes and enhance quality of life while

reducing costs of treatment

-- Electronic prescription writing capabilities and online

medication fulfillment services through LifeOutcomes

mail-order pharmacy 

-- Internet and wireless technology services

-- Clinical trial support and participation

"Developing a disease-management system that integrates cutting-edge digital technology with state-of-the-art medical care will significantly change the present nature of clinical medicine," said John Oppenheimer, M.D., a partner of Pulmonary and Allergy Associates, a LifeOutcomes alpha site in Springfield and Morristown, New Jersey. "Improved quality of life, real-time outcomes assessment and reduced costs are just a few of the benefits that will be realized in the very near future," said Oppenheimer.

Cerner Corporation (www.cerner.com) is the leading supplier of clinical and management information and knowledge systems to more than 1,000 healthcare organizations worldwide. Cerner's mission is to connect the appropriate persons, knowledge, and resources at the appropriate time and location to achieve the optimal health outcome. The company's vision is to improve the health of communities through innovation and investments in information technology. Cerner strives to transform the healthcare delivery system by increasing the quality of care, improving efficiencies, eliminating medical error and connecting the individual to the system with innovative information solutions. HNA Millennium is Cerner's comprehensive suite of solutions that promote personal and community health management by connecting consumers, clinicians and healthcare organizations into a streamlined, unified single care process. HNA Millennium applications work on a cohesive platform that is open, intelligent and scalable, allowing vital health information to be accessed and shared throughout the healthcare system. Cerner...we make healthcare smarter. Cerner and PowerChart Office are trademarks of Cerner Corporation.

This release may contain forward-looking statements that involve a number of risks and uncertainties. It is important to note that the Company's performance, financial condition or business could differ materially from those expressed in such forward-looking statements. The words "should," "will be," "intended," "continue," "believe," "may," "expect," "hope," "anticipate," "goal," "forecast" and similar expressions are intended to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: variations in the Company's quarterly operating results, volatility of the Company's stock price, market risk of investments, changes in the healthcare industry, significant competition, the Company's proprietary technology may be subjected to infringement claims or may be infringed upon, regulation of the Company's software by the U.S. Food and Drug Administration or other government regulation, the possibility of product-related liabilities, possible failures or defects in the performance of the Company's software, the possibility that the Company's anti-takeover defenses could delay or prevent an acquisition of the Company, and uncertainties related to the Year 2000. Additional discussion of these and other factors affecting the company's business is contained in the company's periodic filings with the Securities and Exchange Commission. The company undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time.