Selecting an IT partner for health care mergers and acquisitions

Industry trends driving health care mergers and acquisitions were accelerated by the COVID-19 pandemic. Health care organizations are seeking to align or implement strategic plans to evolve their business models to handle increasing mergers and acquisitions (M&A) activities in the market. According to the Healthcare Merger & Acquisition Activity Report: Q1 2021 from KaufmanHall, Q1 2020 saw 29 announced transactions, with an average seller size by revenue of $172 million. Comparatively, it said, the number of transactions was down in Q1 2021, with 13 announced deals, but the average size of those transactions significantly larger, with an average seller size by revenue of $676 million. Healthcare Finance News likened these to “mega mergers.”

“We anticipate that COVID-19’s impact will continue to influence partnership, merger and acquisition activity through the remaining quarters of 2021,” KaufmanHall’s report found.

IT services for a smooth transition

When companies merge, it is important for their IT teams to be engaged in planning and strategy so that they can plan pathways for combining the technology infrastructure of the two organizations. IT involvement is also critical to ensure minimal disruption in patient care and external facing operations.

Timing is the key to move quickly, efficiently and carefully when addressing IT changes during the M&A phase. Decisions have to be made about existing systems, replacements or maintenance of two disparate systems. IT teams play important roles in creating integration plans and meeting targeted timelines. When the IT teams create and implement well-defined plans, the chances of a smooth and successful integration are higher.

A smart IT team also takes into consideration the workflows and methodologies in use by the workforce in each organization, as these define and shape the work culture. M&A may not mean simply combining IT infrastructures; it is important to align and blend the different work cultures to maintain and improve efficiencies. Doing this can make for a smooth transition, minimizing the neophobia of the new culture. IT teams create user-friendly training programs and sessions to support users before, during and after the M&A cycle.

Selecting a partner with proven experience with Installation, Merger, Acquisition, Change and Divestiture (IMACD)

In wake of this growing demand in the industry, one of the nation’s leading long-term acute care providers, serving more than 200 communities across the U.S., developed a plan to acquire new facilities to meet its expansion targets. To accomplish this, company leaders sought a trusted partner to augment its existing IT team.

Hexagon’s IT Services team was selected because of its extensive knowledge and experience in implementing hundreds of projects, including IMACD initiatives. Hexagon worked with the provider to create an acquisition playbook, which provided the necessary IT-related technical details and end user training for completing the on-site acquisition. Using the playbook as a guide, a meticulous project plan was tailored for each location, and made scalable for multiple simultaneous acquisitions. Hexagon’s involvement also ensured that all newly-acquired facilities remained operational to maintain continuity of care.

Learn more

With more than 20 years of experience, Hexagon IT Services is comprised of customer-centric professionals who work closely with organizations of all types and sizes, working to help them to identify and deliver solutions that best fit their IT support needs.

Learn more about Hexagon IT Services here.

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