Key Objectives for a Successful Healthcare M&A
Many organizations engaged in mergers or acquisitions are looking to take advantage of economies of scale or grow their talent pools in specific capabilities, says Matt Varin, a senior services manager with CDW.
“It’s often easier and more cost-effective to go out and acquire talent versus building internally,” Varin says. “Talent is hard to track down, so doing an acquisition gives you a chance to acquire that talent at scale.”
As healthcare organizations engage in M&A activity, Varin advises, they should avoid making technology an afterthought. Instead, they should map out a plan for the transaction. This should include the objectives of the activity and the steps needed to achieve them, with specific but reasonable deadlines that IT teams can work toward as the transaction moves forward.
The Importance of Integration in Healthcare M&As
One of the key objectives of any M&A strategic plan should be to integrate data and technology platforms between the merging organizations. “If you’re not able to get fully integrated and engage in the data sharing and knowledge sharing that this enables, you’re not going to achieve the synergies that are the ultimate value companies are looking for in an M&A,” Varin says. “Merging companies need to make sure there is good collaboration and that they are able to share ideas and data across the new organization.”
Cloud computing solutions have become powerful tools for achieving this objective. Platforms such as Microsoft Azure, Amazon Web Services and Google Cloud make it easier to centralize information that is involved in a merger or acquisition, Bock says. This makes the cloud a more attractive option in many cases than standardizing on an on-premises solution. “Cloud platforms have taken center stage because they’re much more agile and flexible,” he says.
Further, cloud platforms enable employees of a merged company to access enterprise data from anywhere they have an internet connection, which supports clinical mobility initiatives that have gained momentum in recent years.