Back to Blog

Strategic IT Integration for Healthcare M&A

Healthcare mergers and acquisitions (M&A) necessitate intricate IT decision-making, where leaders weigh the pros and cons of unifying IT systems or opting for selective technology retention or replacement. Key to these decisions is not just the IT department. The Chief Information Officer (CIO) usually leads the integration strategy, yet effective collaboration across various departments — including operations, human resources, clinical staff, and supply chain management — is crucial. 

Strategic planning, interdepartmental cooperation, and thorough evaluation of each entity’s IT infrastructure are essential for successful IT integration in healthcare mergers and acquisitions. 

Essential Planning for Successful Healthcare M&A IT Integration 

Healthcare IT leaders often encounter a critical challenge in mergers and acquisitions (M&A) — inadequate pre-deal planning. While budgets are typically allocated for IT integration in advance, detailed strategies on the execution of this integration are often overlooked. 

It’s crucial for IT leaders to proactively engage in planning as soon as a merger or acquisition is announced. Despite the regulatory processes involved in these deals, early and thorough planning is key to ensuring a seamless and effective integration of IT systems. 

Strategies for Effective Healthcare IT Integration 

In approaching IT integration, healthcare IT professionals must first assess the compatibility of the IT systems between the merging entities. Often, the larger organization’s IT framework becomes the default choice. Yet, it’s vital to evaluate and integrate critical systems like electronic health records (EHR), supply chain management, and pharmacy systems, recognizing that uniformity across all platforms is rare. 

The priority should be on the EHR system, due to its central role in healthcare operations. Following this, the focus shifts to the infrastructure supporting these systems. Decision-makers need to determine cloud usage, cloud service providers, infrastructure requirements, and the management of offsite storage. Planning for the necessary downtime during integration is also a critical factor. 

Typically, the entity with more developed, enforceable IT policies and systems leads the integration process, though collaboration is important. In healthcare, an evidence-based sector, technologies, software, and policies with proven success and adoption rates are more likely to succeed in integration. IT leaders from both organizations should engage in discussions to determine the most effective policies and practices for integration. 

In some instances, full system integration may not be feasible. Nevertheless, achieving scale efficiencies is challenging when there’s a lack of comprehensive software and policy integration. Cost considerations also play a significant role, especially when integrating complex systems, each presenting its own set of challenges. 

Securing Healthcare M&A: Best Practices for IT Security Alignment 

In the context of healthcare mergers and acquisitions (M&A), aligning security controls with established frameworks is crucial. This alignment enables organizations to effectively: 

  • Identify and quantify risks. 
  • Uncover gaps or redundancies in controls. 
  • Prioritize security measures based on business objectives. 
  • Integrate findings into a comprehensive IT security strategy. 

Healthcare entities must develop a governance process that includes change sponsors and essential personnel. This process should prioritize integration activities and formulate a robust disaster recovery strategy. It’s vital to maintain transparency across all change management stages, especially in testing, training, conflict resolution, scheduling, communication, and final approvals. 

It’s imperative to have a contingency plan for every change activity, allowing systems to revert to their previous state if issues arise during implementation. Healthcare IT leaders need to communicate the outcomes of these changes, regardless of their success or failure, to all relevant stakeholders. 

While emergency changes might bypass the standard advisory board protocols, they must be retrospectively reviewed and ratified. IT leaders should ensure that all personnel involved in the integration are adequately trained and qualified. Additionally, end users should receive thorough training on new technologies post-integration to ensure seamless adoption and usage. 

If you are looking for help on your next acquisition, request a free consultation with our experts to create a customized plan for your organization.