Prioritize Provider Data for Seamless M&A Success

When it comes to mergers and acquisitions (M&As), they tend to mesh in one of two ways: Oil and water or peanut butter and jelly. When organizing the merger of health systems, more mesh equals less mess. However, M&As can be incredibly complex, with cultural, workflow, financial, and technological factors coming into play. There’s a lot more that goes into determining if an M&A makes sense beyond an agreed-upon price. Will it improve care for patients? Will more patients have better access to care? Will it drive more revenue? These are just a few of the questions that are considered ad nauseam before a CEO signs on the dotted line.

Amid these complexities, one crucial element often gets overlooked — provider data. Health systems preparing for an M&A, or even those not immediately considering one, must prioritize a robust workforce data strategy. This approach is essential for navigating today’s increasingly frequent healthcare consolidations. A recent Kaufman Hall report reveals that healthcare M&As are at a seven-year high, making now the time to assess and refine how provider data is managed.

Workforce data strategy

Health systems have merged before without incorporating a workforce data strategy. Key decision-makers may simply not know or understand the importance of having a comprehensive workforce data strategy — one that enables leaders to make informed decisions about talent allocation, identify gaps in healthcare services provided, understand the supply and demand environment of health systems throughout the country, and maintain and grow market share.

Why a workforce data strategy matters

Patient data often takes a front seat when discussing and creating a data strategy in healthcare (as it should, patients come first). But the data of an organization’s workforce is a close second. It optimizes working conditions for clinicians, improves access to care, and elevates the care a health system provides. Here’s what’s at risk if a health system fails to implement its own workforce data plan, especially during an M&A:

Loss of talent – Without a clear understanding of workforce needs, health systems risk losing key staff to frustrating administrative burdens, miscommunication, role redundancy, or dissatisfaction during transitions.

Missed talent opportunities – Without pristine data, these newly formed systems miss the opportunity to understand market dynamics and align them with their healthcare delivery strategy.

Operational chaos – Merging multiple credentialing systems, onboarding processes, and employment records can result in data inconsistencies and delays.

Compliance risks – Missing or outdated provider credentials can lead to compliance issues, costly regulatory penalties, and compromised patient safety.

Financial losses – Prolonged credentialing delays and inefficiencies in workforce allocation can lead to revenue losses, further straining operating margins.

Putting a plan into action

Knowing the risks of inaction, here’s how a health system can begin to rethink its own workforce data strategy before a merger or acquisition:

Data alignment – Determine how well provider data sets align among all parties. Ensure real-time, verified credentialing and licensure data to expedite onboarding.

Comprehensive provider profiles – The more data, the better. Collect data on practice patterns, specialties, and even personal physician preferences influencing career decisions to create a seamless transition for all involved clinicians.

Referral patterns – Monitor where patients are referred within and outside the health system to identify opportunities for retention and growth.

Performance metrics – Include quality indicators, patient satisfaction scores, and financial performance. Clinicians absorbed during a merger or acquisition didn’t appear from the ether. They have a record and are most likely proud of it.

Integrate organizational systems – Examine EHR, scheduling, and credentialing software. Ensure there is compatibility with all technology that will be a part of this health system’s new provider ecosystem.

Measuring success

To pressure test and measure the success of a workforce data strategy, a health system can assess its plan with several quantifiable metrics:

Time-to-onboard: Reveals how quickly new hires are credentialed and operational. 

Turnover rate – Provides insights into retention across roles and departments. 

Data management costs – Indicates operational efficiency gains.

On the qualitative side, a health system can survey providers to monitor feedback on workforce management efforts. The same can also be done for patient reviews. This can measure the overall effectiveness of delivering high-quality care.

Conclusion

With health system consolidation on the rise, a robust workforce data strategy is essential. By prioritizing data-driven decision-making, health systems can navigate the complexities of M&As, retain top talent, and ensure operational and financial success. When the needs of clinicians are catered to, the goal of any healthcare provider — excellent patient care — is made that much more accessible.

Photo: Kritchanut, Getty Images

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