Gartner Research

Healthcare Payer Market Consolidation Brings CIOs to the Forefront of the Merger Team

Published: 29 July 2015

ID: G00281085

Analyst(s): Robert H. Booz

Summary

Payer consolidation requires profound changes to IT strategic plans, governance, enterprise architecture and operations. CIOs must be at the planning and execution table to effect the changes that make the consolidation work.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Healthcare payer CIOs who ignore the IT rationalization, standardization and integration opportunities that arise from consolidation will struggle to integrate disparate systems and master the conflicts that arise between applications
  • If healthcare payer CIOs don't take advantage of the support of BPO vendors, they will be unable to find operational efficiencies, address capital and personnel costs and, in some cases, improve service levels.
  • As IT vendor offerings shrink, healthcare payer CIOs who have not assessed their needs carefully and built strong relationships with vendors who demonstrate value may find that some of their critical applications have been jettisoned

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