Cerner faucets Google, Geisinger vet Feinberg as new CEO. Right here's how a lot he'll receives a commission in his new gig

EDITOR’S NOTE: This story has been up to date to incorporate particulars of Cerner’s compensation package deal for brand spanking new CEO David Feinberg

David Feinberg, M.D., who spent the previous two years at Google main the tech big’s well being efforts, is shifting over to guide Cerner after a three-month CEO search.

The Kansas Metropolis-based well being IT firm introduced Thursday that Feinberg will step into the position of president and CEO beginning Oct. 1. He succeeds Brent Shafer, who beforehand introduced his choice to transition from chairman and CEO.

“I’m honored to affix Cerner and sit up for working intently with Cerner’s gifted associates as we proceed to profitably develop the enterprise by driving world healthcare transformation,” Feinberg mentioned in an announcement.

“All through my profession, I’ve been guided by the objective of bettering affected person well being and decreasing the complexity of the healthcare system. I’m thrilled to affix an organization that’s so uniquely well-positioned to supply expertise options that allow clinicians to take higher care of sufferers whereas driving higher medical, operational, and monetary outcomes for organizations of all sizes,” he mentioned.

Feinberg mentioned he seems to be ahead to increasing alternatives for Cerner purchasers and associates whereas affecting actual change in healthcare and enhancing worth for our shareholders.

Google executives mentioned in an announcement launched by a spokesperson, “Google deeply believes within the energy of expertise to enhance well being and wellness and we now have elevated our well being investments throughout the corporate. We’re grateful for David’s management and steering over the previous few years to assist speed up our well being efforts and need him the very best.” 

The spokesperson declined to supply data on Google Well being’s transition plans.

Feinberg’s projected pay

In line with a submitting with the U.S. Securities and Change Fee (SEC), Cerner’s compensation package deal for Feinberg totals about $34.5 million by way of 2022.

Beneath an government employment settlement permitted by the Cerner board of administrators, Feinberg’s preliminary base wage will probably be $900,000, in line with the 8-Okay kind that Cerner filed. He’ll additionally obtain a one-time money bonus of $375,000 to switch annual incentives he earned at Google.

Feinberg additionally will get a one-time new rent award of $15 million in restricted shares to offset his fairness loss with Google in addition to $13.5 million in restricted inventory items in 2022 and $3.375 million in shares within the fourth quarter. His annual focused money bonus is $1.35 million, in line with the submitting. He additionally will get to make use of Cerner’s company jet.

Cerner introduced in early Might it was beginning its search for a brand new CEO to switch Brent Shafer, who led the well being IT big for 3 years. Shafer was the primary CEO after long-time firm chief Neal Patterson handed in 2017. As a healthcare expertise chief, Shafer joined Cerner with the mission of getting the enterprise operationally rotated and on a trajectory for progress. 

RELATED: Whereas income jumped 10% in Q2, Cerner seems to be to slim down prices by chopping jobs, places of work

Throughout his management at Cerner, the corporate applied a brand new working mannequin to make the corporate extra environment friendly and efficient, Shafer mentioned.

Shafer agreed to function a senior adviser for one yr. In line with an SEC submitting in Might, Cerner will present Shafer together with his current wage, bonus and $2.5 million in restricted inventory items.

The well being IT firm is separating the chairman and CEO roles and named William Zollars as impartial chairman, additionally efficient Oct. 1.

Cerner’s present president, Donald Trigg, additionally will depart the corporate, Cerner mentioned in a press launch.

Feinberg, a doctor and psychiatrist by coaching, jumps to Cerner after spending two years as vice chairman of Google Well being, the place he led Google’s worldwide well being efforts, bringing collectively teams from throughout Google and Alphabet that used synthetic intelligence, product experience and {hardware} to sort out a few of healthcare’s largest challenges. At Google Well being, Feinberg was chargeable for organizing and innovating Google’s numerous healthcare initiatives.

Previous to Google, he served as president and CEO of Geisinger Well being, the place he led an operational turnaround and pushed using new platforms and instruments, together with an IT system referred to as a unified knowledge structure that allowed the corporate to combine massive knowledge into current knowledge analytics and administration techniques, in line with a Cerner press launch.

Throughout his Geisinger tenure, Feinberg additionally launched packages and providers to place a higher deal with precision medication and higher affected person care. Previous to Geisinger, Feinberg labored on the College of California, Los Angeles (UCLA) for greater than 20 years and served in numerous management roles, together with president, CEO and affiliate vice chancellor of UCLA Well being Sciences, vice chancellor and CEO for the UCLA Hospital System and CEO of UCLA’s Ronald Reagan Medical Heart.

“Over the previous few months, our board carried out an intensive seek for a CEO candidate with the experience and talent to successfully capitalize on the alternatives available in the market we serve,” mentioned Mitch Daniels, member of the Cerner board and chair of the nominating, governance and public coverage committee, in an announcement. “Along with his distinctive observe report of main and innovating packages to enhance affected person care, expertise expertise, and business experience, we imagine Dr. Feinberg is the perfect CEO to guide Cerner in its subsequent chapter of progress and success.”

RELATED: Cerner begins seek for new CEO as firm ups 2021 earnings steering buoyed by improved margins

“We’re lucky to have somebody with Dr. Feinberg’s abilities, imaginative and prescient and operational experience to guide Cerner at such a pivotal time in our evolution. We’re thrilled to welcome him to the Cerner household and sit up for benefiting from his insights and management as we proceed evolving and executing our methods,”  Zollars mentioned in an announcement.

Cerner’s evolving enterprise technique

Feinberg comes on board as the corporate is evolving to develop past digital well being report (EHR) expertise to focus on synthetic intelligence and knowledge analytics. In December 2019, Cerner introduced it’s collaborating with Amazon to ramp up its healthcare AI capabilities and predictive expertise instruments. 

In the course of the annual J.P. Morgan healthcare convention this previous January, Cerner executives mentioned the well being IT firm was setting its sights on constructing a $1 billion knowledge enterprise for the healthcare and life sciences industries.

As a part of its federal well being IT enterprise, Cerner is working to implement EHR techniques on the Division of Veterans Affairs (VA), the Division of Protection and the U.S. Coast Guard. Nevertheless, Cerner has run into issues with its VA EHR challenge because the company not too long ago scrapped the rollout schedule for its new EHR for at the very least six months to overtake coaching and repair governance and administration issues.

The corporate additionally has a renewed deal with bettering its working efficiency as a part of a settlement with activist hedge fund Starboard Worth introduced again in April 2019. Cerner agreed to take steps to enhance operations and dedicated to hitting sure working targets.