Enterprise Data Warehouses (EDW), and their emerging next-generation successor, the Data Operating Systems (DOS™), can play a crucial role in dramatically reducing the cost of IT integration and accelerating the time to value for a merger and acquisition (M&A). While consolidation of IT systems has strategic value over the long term, doing so can take years and hundreds of millions of dollars to achieve for an average sized organization. According to McKinsey, top M&A performers focus first on data integration and have a plan to do so that can be achieved within six months after the M&A. The lack of this data integration strategy is dramatically evident in healthcare M&A where new organizations are frequently incapable of producing basic consolidated financial statements and clinical quality metrics for 3-4 years, post-merger. In healthcare M&A, 40% of the expected synergy is directly tied to IT strategies, but IT is rarely considered in or invited to the due diligence process.
For the 11th straight quarter in 3Q17, the US healthcare industry experienced over 200 mergers and acquisitions, not counting partnerships. Those deal values totaled $49.6 billion, (PwC, August 2017). The underlying theme with many of these transactions is the hope that they will achieve two primary business objectives: (1) Gain operating process efficiencies through economy of scale; and (2) Spread financial risk across larger patient populations. Neither of these business objectives can be met without the integration of data. In short, the new organization is not integrated until the data is integrated. The de facto strategy for integrating data in these deals is to rip and replace electronic medical records and ERP systems but doing so is an extremely costly endeavor, and can take years to achieve. The most important first step in IT integration following an M&A is not the integration of the technology or applications, but rather the integration of the new organization’s data. In healthcare, where financial margins are being squeezed more and more, and enterprise-wide clinical quality is an important factor in a growing number of reimbursement contracts, the ability to quickly integrate, monitor, adjust, and report on financial performance and clinical quality is fundamentally important to the viability of the new organization.
Please join Dale Sanders, President of Health Catalyst Technology, in this webinar as he explains his experiences, observations, and advice about the use of an EDW or DOS to reduce the costs of IT integration in healthcare M&A and rapidly increase the value proposition of the new organization. Dale has a diverse background in complex data environments and decision support, spanning three decades in the US Air Force, National Security Agency, and as a CIO in healthcare.
We look forward to you joining us!
Dale has been one of the most influential leaders in healthcare analytics and data warehousing since his earliest days in the industry, starting at Intermountain Healthcare from 1997-2005, where he was the chief architect for the enterprise data warehouse (EDW) and regional director of medical informatics at LDS Hospital. In 2001, he founded the Healthcare Data Warehousing Association. From 2005-2009, he was the CIO for Northwestern University’s physicians’ group and the chief architect of the Northwestern Medical EDW. From 2009-2012, he served as the CIO for the national health system of the Cayman Islands where he helped lead the implementation of new care delivery processes that are now associated with accountable care in the US. Prior to his healthcare experience, Dale had a diverse 14-year career that included duties as a CIO on Looking Glass airborne command posts in the US Air Force; IT support for the Reagan/Gorbachev summits; nuclear threat assessment for the National Security Agency and START Treaty; chief architect for the Intel Corp’s Integrated Logistics Data Warehouse; and co-founder of Information Technology International. As a systems engineer at TRW, Dale and his team developed the largest Oracle data warehouse in the world at that time (1995), using an innovative design principle now known as a late binding architecture. He holds a BS degree in chemistry and minor in biology from Ft. Lewis College, Durango Colorado, and is a graduate of the US Air Force Information Systems Engineering program.