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For Better or Worse
A Report for Providers on Healthcare IT Mergers and Acquisitions

March 30, 2009 | Read Time: 1  minute

When a healthcare provider has made a significant investment in an IT system or consulting service, the prospect of that system's vendor being acquired raises a number of questions, from what will happen to key management relationships to how will the move affect product development plans?

Although there may be distinct technical advantages claimed by both sides of a merger or acquisition, client satisfaction is built on the relationship that the vendor nurtures and on the execution of the vendor’s strategy.

KLAS identifies a number of predictive factors in the report "For Better or Worse: A Report for Providers on Healthcare IT Mergers & Acquisitions" that can serve as a warning sign to healthcare providers wondering whether they should abandon a recently acquired IT system or service in favor of a different solution:

  • Why did the acquisition occur? If the acquiring vendor's intent was to eliminate a competitor or gain market share, the acquired customer base may see a quick decline in support.
  • What happens to the acquired senior management? The most difficult transitions for acquired customers tend to be those where top leadership exits soon after the event.
  • What is the product strategy? If an acquired product is viewed as redundant, providers are generally left to migrate to the new product or survey the market for a replacement solution.

This report identifies a number of common characteristics among recent mergers and acquisitions, as well as which vendors do the best job integrating new technology or services without impacting customer satisfaction.

Vendors included in this research are Accenture, ACS, Agfa, Allscripts, Cerner, CSC, Eclipsys, GE, IBM, McKesson, Nuance, Philips and QuadraMed.

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This material is copyrighted. Any organization gaining unauthorized access to this report will be liable to compensate KLAS for the full retail price. Please see the KLAS DATA USE POLICY for information regarding use of this report. © 2024 KLAS Research, LLC. All Rights Reserved. NOTE: Performance scores may change significantly when including newly interviewed provider organizations, especially when added to a smaller sample size like in emerging markets with a small number of live clients. The findings presented are not meant to be conclusive data for an entire client base.

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