Mergers, acquisitions, and expansions are a daily fact of life in today's complex provider environment. The first quarter of 2017 was the 10th in a row with more than 200 major healthcare deals in the U.S., according to a report from consulting firm PricewaterhouseCoopers.
Clinical labs may be the last to know when their parent organization is involved in a deal, and they are expected to throw together a plan to merge or consolidate lab operations after the fact without having been part of the planning or decision-making process. "We've had to put together a package rather quickly after the event has taken place in order to make the lab part of the merger actually work," says Michael Bennett, Professor of Pathology and Lab Medicine at the University of Pennsylvania, chief of lab medicine at Children's Hospital of Philadelphia, and currently the president of the American Association for Clinical Chemistry. "Other forces take over, because we're not part of the initial process."
Duane Fitch, a partner at the accounting firm Plante Moran, concedes that he doesn't give the lab much thought when he advises on healthcare mergers. "These mergers are not being done for that purpose," he says. "Unfortunately, many operating units are left to pick up the pieces. I've put off a lab [IT] conversion because merger talks were under way, and we didn't want to make a decision that would be incompatible, but that was reactive and not proactive."
The lab needs to be part of the planning process to make smooth transitions for patients and the rest of the organization, says Steven Zibrat, Laboratories Manager of Quality for The University of Chicago Medical Center. "We've heard, 'Hey, we're opening up this place on Friday. It's Tuesday—what can you tell me about setting up to collect specimens?'"
How can lab directors make top management understand that it's in everyone's best interest to involve the lab in planning for a merger, acquisition or other major change?Leaders from some of the nation's top labs say it's not easy, but it's worth the trouble. They offer these tips: