Don’t let data get lost in translation during M&A activity

The deployment of CCM® paired with HSCx’s services can help healthcare organizations successfully navigate M&A while ensuring that there are no gaps or blind spots in capital fleet data.

Published on
March 8, 2023

Written by:

Dr. Eugene Schneller Co-Founder of Healthcare Supply Chain eXcellence and Professor, Department of Supply Chain Management, W.P. Carey School of Business, Arizona State University and President of Health Care Sector Advances

Jim Eckler, Co-Founder of Healthcare Supply Chain eXcellence and President of Eckler Associates

David Newton, VP of Product and Customer Success, HANDLE Global

Mergers and acquisitions (M&A) are exciting but complicated endeavors for healthcare organizations. Parties involved in M&A have only grown in size – in 2022, the average annual revenue of the smaller party in transactions in the U.S. rose to an all-time high of more than $850M, $200M more than the previous year. With increasing size comes even more data and, therefore, more opportunities to lose sight of what each organization brings regarding capital assets. Consultancy Kaufman Hall predicts that healthcare M&A activity will continue its upward trajectory in 2023, making it even more critical that organizations involved in transactions strategically track and analyze their capital assets.    

Lost in translation?

It’s no secret that a language barrier is one of the most significant issues facing healthcare supply chain leaders. Within a single organization, there may be dozens or even hundreds of ways to refer to the same capital asset. Furthermore, the language used to describe the health of the organization’s asset fleet may not be standardized across various functional areas, assuming that fleet health information is even complete. These challenges are compounded during M&A activities when healthcare organizations consolidate their data sets with other organizations with different processes and nomenclature.

Get a HANDLE on data

HANDLE’s Capital Cycle Management (CCM®) platform can help organizations before, during, and after M&A activity. By utilizing CCM®, capital leaders can easily visualize assets that their organization will be acquiring and position and manage all other assets with support from HSCx, a healthcare strategic supply chain management advisory firm. In addition, CCM® offers organizations standardized and comprehensive insight into:

  • Fleet nomenclature
  • Fleet health visibility
  • Upcoming replacement needs
  • Forecasted sourcing opportunities
  • Potential revenue generated by selling assets on the HANDLE marketplace or taking advantage of manufacturer rebates

Additionally, CCM® can be leveraged to develop product standardization alignment across your newly formed organization and de-politicize critical capital decisions. Instead of cross-training teams on outdated, disjointed systems and processes, CCM® serves as a one-stop-shop to support efficient and strategic decision-making for budgeting, procurement, management, and disposition of capital.

Managing a wide range of assets requires consideration prior to, during, and following a merger to achieve effective and efficient – if not seamless – merger transitions. HANDLE is aligned with HSCx to assess the M&A implications through a Total Asset Management Program (TAMP©) assessment. Consideration is given to the management and disposition of all other assets related to inventory, human capital, contractual relationships, real estate, and physical/clinical service contracts. This is especially important for assuring value from contractual obligations for capitated populations.  

The deployment of CCM® paired with HSCx’s services can help healthcare organizations successfully navigate M&A while ensuring that there are no gaps or blind spots in capital fleet data. Organizations are empowered to make well-informed decisions about their capital supply chain management by minimizing data disruption.

Reach out today to set up an introductory call with HANDLE and HSCx and learn how you can reinvigorate your supply chain management

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