- Well being methods are lacking a possibility to ship on a possible good thing about consolidation by not aligning their acquisitions with their EHRs, based on a brand new Health Affairs analysis.
- Well being Affairs reviewed knowledge on four,720 hospitals from the American Hospital Affiliation survey and IT complement from 2012 to 2016. Of 88 hospitals acquired between 2012 and 2014, simply 31 (35%) switched to the buying methods’ EHR vendor following the transaction.
- Of the remaining 57 hospitals, 18 had been already utilizing the first EHR vendor of their new father or mother firm and 39 continued to make use of a unique vendor following acquisition.
Hospital mergers and acquisitions have come below rising scrutiny to stay as much as guarantees of decrease prices and higher care. A 2017 Deloitte-Healthcare Monetary Administration Affiliation report stated the suitable M&A “can obtain invaluable outcomes” akin to value efficiencies and capital investments. However the Center for American Progress claimed supplier consolidation typically fails to stay as much as that promise.
Well being Affairs discovered that of the 31 hospitals that switched following acquisition, six did so within the yr the deal occurred, 13 switched after two years and one switched after three.
Amongst hospitals that used the first EHR of the well being system buying them, the predominant distributors had been Epic and Cerner. That was true whether or not they had been already utilizing the system earlier than being purchased or switched after the deal.
In all, about three-fourths of hospitals that switched EHR methods post-acquisition switched to Epic or Cerner, suggesting that switching, when it happens, will increase market focus.
The findings have coverage implications, the authors observe. Integrating EHRs following a merger or acquisition might result in value financial savings by way of economies of scale and fewer duplication, as properly greater high quality of care with elevated knowledge sharing.
That this does not routinely occur “might be trigger for continued concern that many acquired hospitals could not ship on their promised advantages,” the authors write. “As coverage makers and regulators think about how a lot extra horizontal consolidation within the hospital business to permit, claims of EHR system integration must be taken with wholesome skepticism.”