Key Considerations and Strategies for Successful CLMS Integration Amid M&A Discussions

Hospitals considering a merger or acquisition may benefit from the efficiencies that can be realized through integrating each organizations’ contract lifecycle management system. A white paper, penned by Mike Cram, practice leader of CLM, Rob Fellman, senior consultant, and Tony Chen, associate director of government pricing, discussed challenges and recommended strategies for achieving a successful integration of CLMS.

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There are several key CLMS integration issues hospitals should consider amid merger or acquisition activities:

•    Rebuild/Redesign — “Reinventing the wheel” in regard to CLMS integration is the most difficult option, and hospital leaders should build project plans and budgets to create “cushion” for unforeseen challenges.
•    Incorporation/Synthesis — This migration strategy does not involve as much risk as the rebuild/redesign integration option but may require hospitals to compromise on data systems, capture and processes. Hospitals will also be presented with the challenge of validating assumptions and understandings to create the most realistic project plans and budgets.
•    Synergistic — CLMS systems that have high similitude present the best case scenario for systems integration. Here again, hospitals will be challenged in regards to accurate validation of assumptions and understandings regarding the scope of the project.
•    Separateness — In some circumstances, maintaining separate CLMS systems may make the most sense and yield the greatest efficiency.

Other key issues regarding CLMS integration include internal considerations, due diligence, real-time or batched process data updates and employee management. The writers offered several recommended approaches for a successful integration project, including identify IT solutions prior to the effective date of the merger or acquisition and identify software that can be used cross-departmentally for improved coordination.

Related Articles on Mergers and Acquisitions:

Trinity Health Signs Letter of Intent to Acquire Chicago’s Mercy Hospital
Hospital M&A Down by 36% From Last Year
FTC Ruling on Illinois’ OSF HealthCare, Rockford Deal Expected Soon

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