In the wake of a healthcare merger, most IT teams are tasked with doing more—with less. Two organizations become one, but the systems, directories, and support burdens often double. While leadership looks for cost savings, the identity infrastructure quietly drains resources. Fragmented authentication processes, duplicate licensing, and unmanaged user access drive up overhead long after the deal closes. The solution isn’t another tool—it’s a unified strategy. Centralized Identity Management is one of the fastest ways to reduce IT waste, improve operational efficiency, and protect the bottom line. 

1. License Duplication Is a Budget Killer 

After a merger, it’s common for organizations to run multiple identity environments in parallel—each with its own set of tools, user accounts, and software agreements. Active Directory forests, MFA providers, and SSO platforms are often duplicated, leading to compounding costs. 

According to Forrester, 30–40% of post-merger IT budgets are spent maintaining redundant infrastructure (Forrester Research, 2023). These costs come from: 

• Duplicate identity platform licensing 
• Parallel user provisioning and management tools 
• Unnecessary support contracts 
• Infrastructure to support multiple domains and forests 

Centralized Identity Management consolidates these systems into one streamlined architecture. Organizations that unify their identity environments report up to 25% savings in annual IT operating costs within the first year (Gartner, 2022). 

2. Help Desk Volume Drops With Centralized IAM 

One of the most persistent and costly forms of IT overhead is support for identity-related issues: password resets, account lockouts, and access request tickets. When identity systems are fragmented across the merged organization, those issues multiply—and the help desk becomes overwhelmed. 

The Ponemon Institute found that 30–50% of all IT help desk calls are tied to identity and access issues, particularly in healthcare settings where system sprawl is common (Ponemon, 2023). 

Centralized IAM with self-service password resets, automated provisioning, and unified role-based access control can: 

• Reduce ticket volume by 25–35% 
• Accelerate resolution time for identity-related issues 
• Enable faster onboarding and deprovisioning of users 

Okta reports that IAM modernization saves an average of $70 per employee per year in reduced support costs (Okta, 2022). In a 10,000-person organization, that’s $700,000 in annual savings. 

3. Streamlined Compliance Reduces Audit and Legal Costs 

Disparate identity systems make compliance complex and resource-intensive. Security policies may be inconsistent. Access logs are fragmented across platforms. Provisioning and deprovisioning is often manual—creating gaps in access control and audit readiness. 

This overhead is more than administrative. In a post-merger environment, compliance missteps can lead to regulatory penalties and lost trust. 

Healthcare organizations with centralized IAM: 

• Standardize access controls and policies 
• Enable centralized audit logging and reporting 
• Automate compliance workflows for HIPAA, HITRUST, and NIST standards 

According to IDC, organizations with centralized identity platforms reduce audit prep time by 40% and lower compliance-related costs by 20% over three years (IDC, 2023). That’s more time for strategic initiatives—and less time for scrambling during audits. 

4. Identity Sprawl Increases Security Risk—and Cost 

Security overhead increases dramatically when identity environments are siloed. Without a centralized approach, organizations are vulnerable to: 

• Orphaned accounts 
• Inconsistent MFA and access policies 
• Poor visibility into who has access to what 
• Misaligned user roles and privilege creep 

These aren’t hypothetical risks. IBM’s 2023 breach report found that healthcare remains the most expensive industry for cyberattacks, with an average breach cost of $10.93 million (IBM Security, 2023). 

The cost of managing breaches, responding to regulators, and restoring operations far exceeds the cost of proactive identity integration. 

Centralized IAM helps by: 

• Enforcing least-privilege access across the environment 
• Automating deprovisioning and access reviews 
• Providing a single source of truth for user identity 

Organizations with mature IAM programs experience 60% fewer identity-related security incidents (Ponemon, 2023), reducing the need for reactive support and crisis management. 

5. Scalable Identity Infrastructure Reduces Long-Term IT Complexity 

Overhead isn’t just about cost today—it’s about avoiding complexity tomorrow. In healthcare, where M&A activity is ongoing and future growth is likely, building a scalable identity foundation is a strategic investment. 

Centralized IAM enables: 

• Easier onboarding in future acquisitions 
• Uniform identity governance across locations 
• Faster integration of new business units or clinical systems 
• Improved interoperability with external partners 

This means fewer one-off solutions, less retraining, and faster time to value in every future integration. According to Gartner, healthcare organizations with centralized IAM complete M&A-driven IT integrations 30–40% faster than those with siloed systems (Gartner, 2022). 

That time savings reduces internal project costs, minimizes business disruption, and accelerates revenue capture. 

Conclusion: Less Waste, More Value 

Healthcare organizations are under pressure to do more with less—and mergers only magnify that challenge. IT overhead is often hidden in licensing fees, support calls, audit preparation, and security firefighting. But that doesn’t mean it’s inevitable. 

Centralized Identity Management is one of the most efficient ways to eliminate waste, reduce risk, and create a scalable foundation for growth. 

• It cuts redundant systems 
• Lightens the support load 
• Simplifies compliance 
• Hardens security 
• And prepares the organization for what’s next 

In M&A, every day you delay consolidation is another day of duplicated effort, increased cost, and avoidable risk. The good news? You don’t need another tool. You need a better strategy. 


Sources:

• Forrester Research, 2023. “Post-Merger IT Cost Overruns in Healthcare.” 
• Gartner, 2022. “Cost Reductions Through IAM Consolidation.” 
• Ponemon Institute, 2023. “IAM and Help Desk Burden in Healthcare Organizations.” 
• IBM Security, 2023. “Cost of a Data Breach Report.” 
• IDC, 2023. “Streamlining Compliance with Unified Identity.” 
• Okta, 2022. “Business Value of Modern Identity Solutions.”