Strategies for IT Units in Healthcare Sectors when Dealing with Mergers and Acquisitions
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In the dynamic world of healthcare, mergers and acquisitions (M&As) are becoming increasingly common. For IT leaders, these events require careful planning and strategic alignment to ensure a smooth transition. This article is part of HealthTech's MonITor blog series, and we invite readers to join the discussion on Twitter using #WellnessIT.
Healthcare M&As present complex decision-making, particularly for IT leaders. To navigate these challenges, it's crucial to align all security controls with established frameworks such as ISO/IEC 27001, Center for Internet Security, National Institute of Standards and Technology, IASME Consortium, or the Committee of Sponsoring Organizations of the Treadway Commission.
A complete visibility into all change management functions is essential. This includes testing, training, conflict resolution, scheduling, communication, and final approval stages. IT leaders should establish a governance process for change sponsors and key personnel to set integration priorities and a disaster recovery strategy.
Every change task should have a workable back-out plan to restore the system to its prior state in case of implementation issues. IT leaders should consider the infrastructure supporting these systems, including cloud usage, cloud provider, offsite storage, and potential downtime.
The CIO typically has the final say in how integration is handled, but collaboration is key between operations, human resources, clinicians, and supply chain interfaces. IT leaders should determine the compatibility of the other organization's IT systems. If they're not compatible, the larger organization's systems are usually adopted.
IT leaders should begin planning for integration as soon as a merger or acquisition is known. They should ensure that personnel performing the integration are trained and qualified, and affected end users are properly trained on the new technology. Emergency changes may occur outside of an established change management advisory board, but they must be reviewed and approved at the next opportunity.
A white paper for a smoother path toward IT success in mergers and acquisitions is available. The last major successful M&A deal in the healthcare sector with notable IT integration was Optum’s $3.4 billion acquisition of Amedisys, which strengthened UnitedHealth’s presence in home health services and promoted vertical integration in healthcare. However, specific IT systems and security measures used in the integration were not detailed in the available information.
In conclusion, navigating IT integration in healthcare M&As requires careful planning, strategic alignment, and a collaborative approach. IT leaders should be prepared to make complex decisions, ensure compatibility, and prioritize training and disaster recovery strategies. By following these guidelines, healthcare organizations can successfully integrate their IT systems and ensure a smooth transition during M&As.
