Healthcare IT acquisitions combine technical assessment with clinical, regulatory, and interoperability considerations. The complexity creates both risk and opportunity for informed buyers.
Healthcare IT Due Diligence Framework
Beyond standard technical assessment, healthcare requires:
- HIPAA compliance: Protected health information handling
- Clinical workflow: Integration with care delivery processes
- Interoperability: EHR integration, HL7, FHIR capabilities
- FDA considerations: Software as a medical device classification
HIPAA Compliance Deep Dive
Administrative Safeguards
- Designated security and privacy officers
- Workforce training and awareness
- Incident response procedures
- Business associate management
Technical Safeguards
- Access controls and audit logging
- Encryption at rest and in transit
- Automatic session termination
- Integrity controls
Physical Safeguards
- Facility access controls
- Workstation security
- Device and media controls
Interoperability Assessment
Healthcare data exchange capabilities are critical:
Standards Support
- HL7 v2 message support and mappings
- FHIR API implementation
- CDA document generation and consumption
- ICD, CPT, SNOMED terminology support
EHR Integration
- Which EHRs are currently integrated?
- What integration patterns are used?
- What's the effort to add new EHR integrations?
- Are integrations certified or custom?
Clinical Workflow Considerations
- How does the technology fit clinical workflows?
- What clinical user training is required?
- How does the system handle clinical edge cases?
- What's the clinical support model?
Case Study: The EHR Integration Gap
A health system acquired a clinical decision support tool for $25M. The tool "integrated with all major EHRs."
Post-close reality:
- Integrations were point-to-point, not standards-based
- Each integration required 3-6 months of custom development
- The acquirer's EHR wasn't yet integrated
- Total integration cost to deploy internally: $2M, 18 months
A thorough interoperability assessment would have revealed the true integration state and costs.
Key Takeaway: Healthcare IT due diligence requires specialized expertise in HIPAA, clinical workflows, and interoperability standards. Technical competence alone is insufficient—understanding the healthcare context is essential for accurate risk and value assessment.