Gartner Research

U.S. Healthcare Payer CIOs: Be Prepared for Mergers and Acquisitions

Published: 14 August 2017

ID: G00332695

Analyst(s): Bryan Cole

Summary

Payer CEOs and boards of directors justify acquisitions with IT operational cost savings, but IT needs and constraints are often underestimated in integration planning. CIOs must earn a seat at the planning table and use acquisitions to advance transformational IT goals.

Table Of Contents

Analysis

  • Cost Pressures and Value Proposition Changes Drive Payer Acquisitions
  • End-Consumer Considerations Are Becoming More Common and More Powerful, Making Acquisitions a Tool to Meet Member Needs
  • Government's Role as Purchaser Is Growing, Pushing Payers to Use M&As to Expand in Medicare Advantage and Managed Medicaid
  • Value-Based Payments Continue to Expand, Forcing Payers to Consolidate Their Own Value Chains
  • Make M&A Scenarios an Explicit Part of Your IT Strategic Planning
  • Participate in Due Diligence to Inform Operating Cost Reduction Plans
  • Use Your Organizational Skills to Integrate Innovation, Especially in Complementary Acquisitions of Technology, Services and Providers

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