Healthcare M&A Deals: How They Affect IT Strategy

Mergers and acquisitions in the healthcare space have reached a record high in recent years. A recent survey by Definitive Healthcare cites industry consolidation as the top trend for 2019.

According to a study by Deloitte and the Healthcare Financial Management Association, the primary motivation of acquiring parties is to gain market share. But for those being acquired, greater access to capital — primarily for healthcare IT and facilities improvement — was cited as a top driver.

What’s notable here is that the biggest objectives of each side are not exactly aligned. That can make achieving successful outcomes more challenging.

An often overlooked component of these scenarios is healthcare IT. Now more than ever, this function is at the center of nearly all aspects of medicine, which is why IT leaders representing both parties should be in close contact every step of the way through a merger or acquisition.

Achieving desired outcomes can be difficult at best, and it usually takes about 24 months after a deal is inked to do so, the study notes. Failing to address IT throughout the process could lead to unmet expectations, excess costs or failure to achieve operational efficiencies and strong patient care.