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M & A Apprehension

July 21, 2009
by root
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When vendor ownership changes, healthcare executives must figure out if new management means new rules

KLAS says: “What is going to happen to us now that our vendor has been acquired?” That question is tendered over and over by CIOs and other healthcare provider executives approaching KLAS for a reality check on how their organizations and professional lives will be impacted by a change in vendor ownership. These petitions for insights into how vendor performance and client satisfaction have altered due to acquisitions prompted KLAS to mine more than a decade's worth of research, generously given over many years by healthcare providers, to analyze these trends as they pertain to mergers and acquisitions in HIT.


The acquisition of a vendor typically thrusts healthcare decision makers into unknown territory. While the original vendor is a known quantity, new vendor ownership raises a host of questions:

  • What will happen to the relationships we have developed with the executive leadership and support staff?

  • Will the culture we have come to count on be maintained, changed, or outright demolished?

  • Is our product still the go-forward plan, or is it in danger of being supplanted in favor of a product marketed by the new vendor?

  • Are we safe if we sit tight, or should we consider other vendor options right away?

  • What should we watch for to predict whether or not our current relationship will be maintained?

The answers to these questions affect millions of dollars of investments and the quality of patient care, as well as physician and clinician satisfaction.

Healthcare Informatics 2009 August;26(8):12