Cerner shows south KC plan -The company hopes the new site's design promotes creativity and teamwork
With a bulked-up payroll and souped-up software, Cern er Corp .
on Tuesday unveiled details of its plan for a creative campus at
part of the former Marion Laboratories site.
North Kansas City-based Cerner, a leading provider of health-care
information technology, said it intends to lease three buildings
comprising about 500,000 square feet at the campus, which is south
of Bannister Road near Interstates 435 and 470.
"Our rapid growth has created additional demands for space,"
said Julie Wilson, Cerner's chief people officer. "This gives
us the opportunity to create a unique environment to bring the best
creative minds from this area and around the world to develop Cerner
solutions for health-care providers and health-care organizations
around the globe."
Wilson said Cerner hoped to sign a lease with drug manufacturer
Sanofi-Aventis, the successor to Marion Laboratories, by the end
of this year. Plans call for moving hundreds of software engineers
and designers there in the first quarter of next year.
Sanofi-Aventis spokesman Marc Greene said Tuesday that talks between
his company and Cerner about the lease are serious and ongoing.
Greene said the "ultimate goal of the negotiations is a sale
of the property, but because of issues with utilities, a lease has
to be considered before a sale can be finalized."
The southward move, which has been in the works for several months,
is another indication of how Cerner has grown in recent years. Cerner
now has nearly 7,500 employees around the world, including about
4,500 in the Kansas City area. In 2005, Cerner added 1,500 new jobs
globally, including 750 here.
Most of the employees moving to the new campus will come from the
North Kansas City headquarters. The headquarters complex has greatly
expanded in recent years, and a new data center is currently under
construction there.
Cerner also will continue to operate from its other area locations,
including the Riverport campus at the site of the old Sam's Town
casino and the Cerner Oaks campus on North Oak Trafficway. Cerner
also leases space in the Summit Technology Campus in Lee's Summit.
Sanofi-Aventis says the space Cerner wants could house about 1,200
employees.
"Cerner seems to be following in the same tradition of Marion
Labs in terms of being a homegrown firm in a health-related field,"
said Frank Lenk, director of research services for the Mid- America
Regional Council. "The field itself is growing, and they're
a key player."
Lenk said that besides the economic impact of adding jobs, Cerner's
growth "gives the region a psychological boost at the same
time that Sprint has moved its (executive) headquarters out of the
region and Hallmark is, at best, stable."
Lenk said a similar role is being played by Olathe-based Garmin
Ltd., "which also is in a technology-based field and growing
successfully. The challenge for the region is to have firms like
this on its bench, ready to play in this new global economy."
Cerner was recently recognized by Business 2.0 magazine as one
of the 100 fastest-growing technology companies for the second year
in a row.
The company's bumper crop of growth is occurring as experts around
the world are advocating for information technology to improve safety,
lower costs and increase efficiency in health care.
Cerner today is releasing Cerner Millennium 2007, the 15th upgrade
to its Millennium software since it was introduced in 1998. Cerner
said the upgrade will make it easier for physicians to interact
with hospitals and different departments of hospitals.
"It's one of our most comprehensive (software) releases,"
said Jeff Townsend, a Cerner executive vice president.
Cerner plans for all future software upgrades to occur at the new
south Kansas City campus, where the atmosphere will be designed
to encourage creativity and teamwork.
"We intend to create design-center kinds of environments,
very team-oriented," Wilson said.
Like Cerner's headquarters complex, the new campus will include
widespread use of natural light. The design-center segment will
feature high-tech depictions of Cerner software solutions at work.
"Since this is an environment where our intellectual property
will be developed, we will be very selective about taking clients
through that environment," Wilson said.
There also will be a cafeteria, a child-care center, a fitness
center, a coffee bar and an area with pool tables and other games,
"where you can go play some games and recharge and get ready
for the next project," Wilson said.
The campus currently is occupied by Sanofi-Aventis, Quintiles Transnational
Corp . and Aptuit Inc . The campus has a large amount of vacant
space resulting from a corporate reorganization by a Sanofi-Aventis
predecessor in the late 1990s. Quintiles plans to leave the campus
in mid- to late December after it completes a new research facility
in Overland Park that will employ 700 people.
The south Kansas City campus was originally developed by Marion
Laboratories when it was headed by legendary entrepreneur Ewing
Kauffman.
Cerner shares closed Tuesday at $49.44, down 18 cents.
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