In most healthcare mergers, the IT line item is where ambitious plans go to die. Executive teams scan a spreadsheet, see seven figures under “integration,” and ask the wrong question: “Can we afford this?” The better question is, “What will it cost us if we don’t?” The reality is that most healthcare organizations fail to model the true financial value of consolidating identity systems and integrating IT infrastructure.
They focus on upfront costs without quantifying long-term savings, risk mitigation, or operational efficiency. That’s not conservative—it’s incomplete.

⦁ Model the Cost of Delay First

Before building a forecast for a new identity or IT integration initiative, start by calculating what inaction is already costing the organization. This sets the baseline for your model and immediately reframes integration as a value unlock, not an expense.

Use real numbers:

• $300K to $500K/month in lost synergy from IT delays post-merger (KPMG, 2021)
• 30–50% of help desk calls tied to identity access issues (Ponemon, 2023)
• $10.93M average cost of a healthcare breach, often caused by fragmented identity systems (IBM, 2023)

These figures can be translated into your organization’s context using:

• Current headcount × estimated IT support hours
• Licensing costs from duplicated systems
• Delays in onboarding and system access for new hires
• Historical costs of past audit prep or noncompliance issues

Pro tip: Assign real costs to soft inefficiencies like “inability to access clinical systems” or “manual user provisioning.” That’s how you turn operational friction into measurable risk.

⦁ Use TCO (Total Cost of Ownership) to Frame the Investment

Too many identity integration proposals are framed solely by capital expenditure. But enterprise identity projects—particularly in complex, regulated environments like healthcare—must be modeled using Total Cost of Ownership (TCO).

Your TCO model should include:

• Initial costs: Software licensing, consulting, migration labor, training
• Ongoing costs: Platform maintenance, managed services, license renewals
• Savings over time: Reduced help desk volume, decommissioned systems, lower audit prep cost
• Risk reduction: Breach cost avoidance, penalty mitigation, identity fraud prevention

For example, Okta’s 2022 report showed that modern IAM deployments reduce support costs by $70 per employee per year. Multiply that by your total workforce over five years to see the full effect.

Also consider infrastructure consolidation. Gartner notes that consolidating identity platforms can reduce IT operations spend by up to 25% within the first 12 months (Gartner, 2022).

⦁ Quantify the Risk Exposure from Fragmented Identity

Identity fragmentation creates exposure—both financial and reputational. But unless it’s modeled clearly, this risk gets buried beneath infrastructure costs and product comparisons.

Build this into your model by estimating the probability and impact of:

• Unauthorized access incidents (e.g., orphaned accounts, excessive privileges)
• Delayed deprovisioning after staff changes
• Audit failures or compliance gaps under HIPAA, HITRUST, or NIST frameworks
• Breach-related costs, including legal, forensic, and brand impact

Ponemon Institute (2023) found that organizations with centralized identity governance frameworks experience 60% fewer identity-related security incidents. That translates into $1M+ savings per breach avoided in the healthcare context.

You don’t need to assume a breach will happen—just show how the integration reduces its likelihood and cost if it does.

⦁ Build for Efficiency Gains: Time, Labor, and Access

Your financial model should reflect the efficiency upside of consolidation—not just the downside of doing nothing.

This includes modeling:

• Time saved per user per week by eliminating redundant logins
• Faster onboarding time for new clinicians and staff
• Automated provisioning vs. manual ticket workflows
• Unified access management reducing time spent switching systems

For example, Single Sign-On (SSO) solutions can reduce login-related delays by 50%, particularly in clinical environments (Ponemon, 2023). Use workforce segmentation to apply these improvements to specific roles—clinicians, billing staff, administrators—and show department-level savings.

Also factor in IT labor optimization. Fewer systems mean fewer support staff and better allocation of high-skill resources toward innovation rather than maintenance.

⦁ Show Scalability and Long-Term Payoff

A strong financial model goes beyond year one and demonstrates how the investment compounds value over time. That’s especially important in M&A scenarios where additional acquisitions, joint ventures, or service line expansions are on the roadmap.
Position your model around:

• Scalability: A consolidated identity foundation supports rapid onboarding in future mergers
• Interoperability: Easier integration with external partners, payers, and research networks
• Innovation enablement: IAM serves as the gatekeeper for secure AI, analytics, and cloud services
• Governance and automation: Reduced manual processes and improved visibility over time IDC reports that healthcare organizations with modern identity infrastructure realize digital

transformation outcomes 40% faster than those with legacy systems (IDC, 2023). That velocity translates directly into competitive advantage and long-term financial resilience.

Conclusion: If You Don’t Model It, You Can’t Fund It

Too many integration initiatives fail not because they’re flawed—but because they’re misunderstood on paper. Executives aren’t skeptical of IT—they’re skeptical of unclear ROI.
A strong financial model turns skepticism into support. It translates complexity into numbers, and risk into rationale. It shifts the question from “Why is this so expensive?” to “How soon can we start?”

The real cost isn’t what you spend on IT integration. It’s what you lose by not doing it fast, securely, and at scale.

Sources:

• KPMG, 2021. “Post-Merger IT Integration in Healthcare.”
• IBM Security, 2023. “Cost of a Data Breach Report.”
• Ponemon Institute, 2023. “IAM in Healthcare: Operational and Security Impact.”
• Okta, 2022. “The Business Value of Modern Identity in Healthcare.”
• Gartner, 2022. “Cost Reductions Through Identity Platform Consolidation.”
• IDC, 2023. “Digital Transformation and Identity in Healthcare Systems.”