Strategies for Healthcare Payer Information Technology Integration After Mergers and Acquisitions

212 Pages·2017·1.97 MB·English

Walden University
ScholarWorks
Walden Dissertations and Doctoral Studies
Walden Dissertations and Doctoral Studies
Collection
2018
Strategies for Healthcare Payer Information
Technology Integration After Mergers and
Acquisitions
Kishore Maranganti
Walden University
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Walden University

College of Management and Technology

This is to certify that the doctoral study by

Kishore Maranganti

has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.

Review Committee
Dr. Richard Snyder, Committee Chairperson, Doctor of Business Administration Faculty

Dr. Kenneth Gossett, Committee Member, Doctor of Business Administration Faculty

Dr. Scott Burrus, University Reviewer, Doctor of Business Administration Faculty

Chief Academic Officer
Eric Riedel, Ph.D.

Walden University
2018
Abstract
Strategies for Healthcare Payer Information Technology Integration After Mergers and
Acquisitions
by
Kishore S. Maranganti

MS, Kentucky State University, 2006
BS, Vasavi College of Engineering, 1996

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
April 2018
Abstract
Despite the high rate of failure in merger and acquisition (M&A) transactions, many
organizations continue to rely on M&As as their primary growth strategy and to address
market competition. The purpose of this qualitative single case study was to explore
strategies managers from a large healthcare payer in the midwestern United States used to
achieve operational and strategic synergies during the postacquisition information
technology (IT) integration phase. Haspeslagh and Jemison’s acquisition integration
approaches model was the conceptual framework for the study. Methodological
triangulation was established by analyzing the data from the semistructured interviews of
6 senior executives and 6 IT strategists, discussion points produced in a focus group
involving 4 acquisition integration leaders, and information gleaned from M&A
periodicals. Data were analyzed using Saldaña’s thematic analysis method and showed
that the healthcare payer organization managers used the following 4 strategies to achieve
the planned synergies: plan for expected business synergies from the postacquisition IT
integration, make cultural harmonization a key element of change management, align and
continuously evaluate the progress of postacquisition IT integration strategies against
planned synergies, and preserve durability of acquired capabilities by granting autonomy
to the acquired organization. The findings of this study could lead to positive social
change by stimulating a business environment that might allow healthcare payers to
expand their strategic capabilities and serve their local communities with new products
and other choices that improve the quality of care, health outcomes, well-being, and
longevity of the consumer.
Strategies for Healthcare Payer Information Technology Integration After Mergers and
Acquisitions
by
Kishore S. Maranganti

MS, Kentucky State University, 2006
BS, Vasavi College of Engineering, 1996

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
April 2018
Dedication
I dedicate this research study to my dear wife, Mallika Eyunni, and my lovely
daughter, Sindhu Maringanti, whose inspiration, support, and encouragement have helped
me stay the course. This achievement is as much theirs as it is mine. I also dedicate this
study to my beloved parents and brothers for their love, support, and encouragement.
Acknowledgments
I am extremely grateful to my chair, Dr. Richard Snyder, for his steadying hand,
for his direction, and for being my champion at all times during the study. During that
time, he also taught me how to listen. I am also grateful to my committee members, Dr.
Kenneth Gossett and Dr. Scott Burrus, for their review, guidance, and support during my
doctoral journey.
I extend my gratitude to my friend and mentor, Dr. Kumar Subramaniam, for his
guidance and support. Dr. Kumar’s mentorship has been an invaluable gift and a great
asset throughout my career. I sincerely appreciate Dr. Ramu Kannan, for instilling
confidence and extending his moral support throughout this process. Lastly, I am thankful
to the study participants and leaders of the organization who gave so freely of their trust
and time during the study.
Table of Contents
List of Tables .......................................................................................................................v
List of Figures .................................................................................................................... vi
Section 1: Foundation of the Study ......................................................................................1
Background of the Problem ...........................................................................................2
Problem Statement .........................................................................................................3
Purpose Statement ..........................................................................................................3
Nature of the Study ........................................................................................................4
Research Question .........................................................................................................7
Interview Questions .......................................................................................................7
Conceptual Framework ..................................................................................................8
Operational Definitions ..................................................................................................9
Assumptions, Limitations, and Delimitations ..............................................................10
Assumptions .......................................................................................................... 10
Limitations ............................................................................................................ 11
Delimitations ......................................................................................................... 12
Significance of the Study .............................................................................................12
Contribution to Business Practice ......................................................................... 12
Implications for Social Change ............................................................................. 13
A Review of the Professional and Academic Literature ..............................................14
Strategic Lens of M&A ......................................................................................... 20
M&A Typologies .................................................................................................. 23
i
Limitations of Typologies ..................................................................................... 24
Haspeslagh and Jemison’s Postacquisition Integration Framework ..................... 25
Other Postacquisition Integration Typologies ...................................................... 50
M&A Trends and Methods ................................................................................... 58
Human Capital ...................................................................................................... 73
Innovation ............................................................................................................. 78
Transition .....................................................................................................................80
Section 2: The Project ........................................................................................................82
Purpose Statement ........................................................................................................82
Role of the Researcher .................................................................................................83
Researcher’s Role ................................................................................................. 83
Researcher’s Relationship with the Topic ............................................................ 84
Researcher’s Role Related to Ethics ..................................................................... 84
Bias Mitigation...................................................................................................... 85
Interview Rationale ............................................................................................... 86
Participants ...................................................................................................................86
Eligibility Criteria ................................................................................................. 86
Gaining Access ..................................................................................................... 87
Working Relationship ........................................................................................... 88
Research Method and Design ......................................................................................88
Research Method .................................................................................................. 89
Research Design.................................................................................................... 90
ii
Population and Sampling .............................................................................................95
Ethical Research...........................................................................................................98
Data Collection Instruments ........................................................................................99
Data Collection Technique ........................................................................................102
Data Organization Technique ....................................................................................105
Data Analysis .............................................................................................................106
Reliability and Validity ..............................................................................................109
Credibility ........................................................................................................... 110
Dependability ...................................................................................................... 111
Confirmability ..................................................................................................... 112
Transferability ..................................................................................................... 113
Section 3: Application to Professional Practice and Implications for Change ................116
Introduction ................................................................................................................116
Presentation of the Findings.......................................................................................117
Theme 1: Plan for the Expected Business Synergies From the
Postacquisition IT Integration ................................................................. 121
Theme 2: Make Cultural Harmonization a key Element of Change
Management ............................................................................................ 126
Theme 3: Align and Continuously Evaluate Progress of Postacquisition IT
Integration Strategies Against Planned Synergies .................................. 132
Theme 4: Preserve Durability of Acquired Capabilities by Granting
Autonomy to the Acquired Organization ................................................ 139
iii