The CIO’s role in hospital mergers and acquisitions? Change management

The healthcare business is present process a big transformation as bigger hospitals purchase or merge with smaller hospitals and practices. The typical enterprise targets of those mergers or acquisitions are to extend market share and create general financial benefits, akin to higher contracts with managed care organizations, decrease working prices as a result of consolidation of back-office capabilities and enhanced data methods to enhance inhabitants well being management.

The chief data officers of those organizations play a vital role in attaining these targets by bringing collectively the respective data applied sciences and departments. While the CIOs could have the technical expertise and information to deal with the technical points of those mergers and acquisitions, they could not all the time have the change management expertise to deal with the folks facet of those transitions.

The success of an general merger or acquisition could hinge on the work accomplished by the CIOs and the knowledge know-how departments to perform the work of making a “new” single data methods platform to assist the wants of the newly created group, mentioned Lawrence Dux, director of affected person care informatics and course of enchancment at Froedtert Health Community Memorial Hospital in Menomonee Falls, Wisconsin.

“If the change management aspects are not addressed from the very start, there could be delays, increased costs, turnover in critical personnel, and the overall merger or acquisition could be at risk,” he defined.

Change management pertains to how people reply to and undertake/adapt to new folks and processes in their workplaces. There are varied fashions and approaches adopted by totally different organizations – akin to Lewin, Kotter and ADKAR – however the widespread aim of every is to assist the folks overcome a few of their fears and anxieties associated to the “change initiative” that’s being undertaken by the group, Dux defined.

“The use of these change management models and the tools and techniques being used have been increasing across the healthcare industry because of the increase in the implementation and use of electronic health record systems, process changes related to making improvements in how care is being delivered, and new clinical treatment protocols being driven by evidence-based research,” he mentioned.

“The people involved in these transitions will need to learn these new systems and follow practices that are much more structured.”

The modifications associated to healthcare mergers and acquisitions are advanced as a result of these conditions require leaders to let go of the outdated practices and behaviors and create a brand new tradition with new expectations, Dux mentioned.

Change in the IT division “will often involve retiring legacy information systems and adopting new clinical/financial information systems,” he mentioned. “The people involved in these transitions will need to learn these new systems and follow practices that are much more structured.”

“The effective use of change management approaches, strategies and tactics can support the successful consolidation/merger of hospital/healthcare information technology departments,” Dux mentioned. “The recommendation is to formally adopt change management approaches and to embed them into all merger and consolidation plans for information technology departments.”

Dux will share extra insights at HIMSS19 in a session titled “Mergers and Acquisitions: CIO Change Management Strategies.” It’s scheduled for Tuesday, February 12, from 4:15-5:15 p.m. in room W303A.

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