While speaking with many small to mid-size businesses throughout my career, I have come to find out that many don’t have an updated understanding of where their organization fits within the Healthcare IT arena. Sometimes they rely on their business partners to help educate them but often times these partners may have conflicting business interests and/or sales motivations.
Many of these small/midsize companies have been wildly successful with keeping focused on new sales and customers for decades with their historic product set; yet the world has evolved and continues to evolve around them. Eventually when they do have time to look up, healthcare and the product landscape has changed. The future has changed.
There have been many mergers and acquisitions lately within the industry, particularly around PMS, EMR, clearinghouse and RCM companies. Many have been a surprise to the industry but the common denominator of these transactions is that companies are tweaking their business models in order to stay relevant and increase revenues for the future. If you can’t build it or sell it, buy it.
We have seen it time and time again where a company does not shift strategies and they ultimately become insignificant in the space and sales drop. Part of being a savy business owner or executive is monitoring these changes, knowing where you fit into the landscape and make necessary business adjustments so that your company continues to be successful.
After all, a wise man once said…”If you’re not growing, you’re dying”.
Don’t put off investing in your organization, leveraging industry expertise and becoming knowledgeable on where your company is headed within the industry. After all, there are many reasons all of these companies are buying/selling right now.