Bradley attorney Amy Leopard was quoted in Bloomberg Law on how information technology systems can affect a healthcare merger or acquisition. Many acquiring entities previously entered into deals with the understanding that they would have to make a significant investment to improve the target’s IT.
That isn’t always the case today, as Medicare and Medicaid regulations kicked in several years ago that require EHR systems to meet “meaningful use” standards, Leopard explained.
Federal payment programs, like Medicare, drove most providers to update their IT systems if they wanted to get incentive payments, she said. As a result, hospitals made “extensive and long-term” IT investments. So long as the professionals at the target hospital are happy with its systems, an acquirer may want to keep them in place, at least for a defined term, Leopard said.
The complete article, “Let’s Make A Health-Care Deal! But First, What About IT?,” appeared in Bloomberg Law on June 28, 2018. (login required)