M and A + Divestitures

M & A + Divestitures Lessons from the Field

The recent Modern Healthcare article, Healthcare executives expect M&A to boost business in 2019, suggests M & A activity is the primary strategic lever for growth, and possibly survival, for many healthcare business entities in the coming year.  Down from 50% to 44%, acquisition remains the preferred growth method for many executives according to recent polling cited in this article. Whether vertical integration, as in the case of CVS and Aetna, or horizontal integration with unique service lines - caution is urged as market size alone is not a predictor of success. 

A dramatic rise in for profit hospital divestitures signals new opportunities and issues that must be considered.  Certainly, a multi factorial phenomenon that is not easily summed up, all healthcare divestitures have at least one critical common element – information technology.  

Industry experts posit successful business strategy is largely driven by investment in a comprehensive information technology strategy. Personally, I am firmly in that camp believing that every aspect of any modern-day healthcare business depends on information technology for its existence - namely internal and external communication, finance, throughput, regulatory requirements, business development, employee satisfaction, clinician and physician alignment, productivity, and customer affinity. 

Poorly devised, funded, and executed IT strategies are likely at the heart of many failed acquisitions and divestitures.  My recent exposure to hospitals divested by large investor-owned, for profit entities illuminates the critical need for comprehensive information technology due diligence by the purchasing entity.  In a new blog series focused on lessons learned from my work with divested hospitals we will discuss areas such as:

  •  More than a list of assets - details please!

  • Assignment of existing versus starting over with new solutions - the impact on the future!Assignment

  • Data stewardship - what to do with all that legacy data?

  • Managing from the rear-view mirror - why can't I get timely and comprehensive reports?

  • We must transition what by when!!

My singular goal in this blog series is to raise awareness of the critical role IT plays in a successful transition - whether you are acquiring or divesting a healthcare entity.

Don’t go it alone!

Becky

IT Talent Done Differently

HealthITq is the first of its kind patent pending offering to source information technology and other healthcare roles without the complications and cost associated with traditional recruiting and consulting firms.  

Employing an "uber-like" model with proprietary matching algorithms, client project submissions are paired with available and qualified freelance talent.  So what does that really mean?  Perhaps the best way to explain who we are and what we do is to tell you who we are not.

HealthITq is not a traditional staff recruiting agency - but we provide a platform for recruiting agencies to source expert talent for short and long term resource needs.

HealthITq is not a traditional consulting firm - but we provide easy access  to expert talent for business to business (B2B) and business to client (B2C) transactions to occur.  If you are a consulting firm looking for expert talent there is no better source for freelance consultants than the direct match you can make on the HealthITq app.  If you are a healthcare organization in need of specific expertise, post your project in the HealthITq app to meet your freelance IT talent match.

HealthITq is not a traditional generic job board - but we do provide precise matching based on a patent-pending proprietary algorithm that ensures you will only be matched with resources that have the precise skill and experience you are seeking

We are looking forward to getting to know you - whether you are a client or supplier looking for expert talent to fill specific project needs or a freelance consultant with specific skills and experiences - we hope you will join our network. Together we can revolutionize healthcare talent acquisition for providers, suppliers, and freelance consultants.

Looking forward to taking this journey with you!

Becky

You Want More for Us...

Understanding Organizational Capacity is Key

Understanding Organizational Capacity is Key

“You want more for us than we want for ourselves.”

These words have remained with me, playing over and over in various client situations, for the past 20 years. Spoken to me by one of my all time favorite healthcare clients who, by the way, runs an impeccable shop on every measurable level. Imagine a moment in which an outside consultant could be told to want or perform less for their client. Twenty years later I shake my head often when I encounter client situations where it appears that once again I want more for them than they want for themselves.

But, let’s be clear as this blog message is not about me. When it comes to healthcare IT I have realized that this sentiment, spoken by my client 20 years ago, resonates as strongly today as it did then because it is a direct reflection of an organization and its capacity. Healthcare organizational capacity is a multi-factorial concept in which IT has become the thread that underpins virtually every business decision and operational function.

How effectively is the IT organization is staffed?

How much change can an organization absorb at a point in time?

How well does the organization understand and embrace technology?

How creative or courageous an organization permits itself to be with technology?

These are significant questions that must be answered before organizations can fully realize the benefit of technology. In every conceivable healthcare media outlet we are reminded daily of how IT has failed the industry in some way — the wrong EHR, a bad implementation, failure to train end users, the high cost of technology, vendor relationships, user experience, workflow and productivity challenges, clinical efficacy, security breaches and the like. While there are many legitimate areas in which to assign blame, organizational capacity remains at the top of the list for me. I have seen it play out in large vs. small, private vs. public, and specialty vs. community health systems — the same technology solution is successful in one place but fails in another.

Organizational capacity is always the common thread.

Agile Talent in Health IT

Independent Consultants

The healthcare IT staffing model must evolve as the need for expert talent increases.  Today's healthcare organization requires the flexibility to staff vertically and horizontally to meet stakeholders' needs quickly and effectively.  With literally hundreds of applications and technologies in place in a typical hospital Information Systems department, it is foolhardy to believe traditional full time equivalent (FTE) hiring models are enough. 

At the core of this discussion is the changing workforce dynamic.  Today's IT experts have control over their work choices in ways that never existed before.  The internet has made it possible for workers of all kinds to promote their skill and experience to a global audience without leaving their living room.  Competition for the best resources has increased dramatically and will continue to do so as online staffing solutions continue to evolve. Combine all of this with the changes presented by a multi-generational workforce with distinctly different mindsets involving work and how it fits into their lives and it is clear traditional staffing methods must evolve to keep up.

With all of these dynamics at play, healthcare organizations are compelled to enlist a multi-prong approach to IT staffing to ensure success and more importantly survival.  Agile use of contracted talent, possessing specific skills and experiences, promotes vertical and horizontal flexibility to meet short and long term needs. Need a little or a lot - but need specific knowledge, skills, and experience - your best solution is likely one that is not on your payroll today.