Data Is the New Strategic Asset in M&As: Is Ripping and Replacing EHRs Really Necessary?

Historically, hospital expansion by building a larger footprint was the way to scale and capture market share. Hospitals now focus not only on building a larger footprint, but on developing more consumer-friendly means to deliver care. This focus means care is distributed through both virtual and physical access points. In those entities, enriched data can be used to deliver care outreach that actually makes a difference for patients. And that is where the new margins exist.

Technology and talent have always been primary assets used to weigh the value of M&A activity, but data is an equal pillar. Early and regular due diligence cycles that fairly attribute value to an organization's data are essential to seeing the full value of the M&A. The ultimate goal, of course, is data integration across the organization. Often the approach has been to rip and replace the EHR of at least one of the organizations. But this approach is costly and culturally disruptive. Integrating data through a digital platform like the Health Catalyst^® Data Operating System (DOS™) allows organizations to use their current systems and manage core financial and other KPIs in the first six months of a merger. Organizations can never be fully integrated until the data is integrated, and with a rip-and-replace strategy, that integration will take years and cost tens—if not hundreds—of millions of dollars.

To learn more about data as a driver of M&A value, visit Health Catalyst.