Dive Brief:

• The mergers and acquisitions binge in the healthcare industry continues as Chicago-based consultant firm Huron set plans to gobble up healthcare consulting leader Studer in a $325-million deal that will see the two create a nearly billion-dollar company, according to a Huron press release.
• Studer Group, based in Pensacola, FL, currently serves more than 750 hospitals, using its 70-plus "coaches" to help hospitals transform their cultures to a more patient-centric and value-based paradigm, with the aim of improving outcomes at the same time that it reduces costs.
• "The healthcare industry is facing immense pressure to enhance the quality of clinical outcomes and reduce the cost of providing patient care," said James H. Roth, chief executive officer and president, Huron Consulting Group, in the release. "Studer Group is the market leader in driving cultural transformation to help hospitals improve performance. The combination of Huron and Studer Group will create the premier professional services firm focused on improving healthcare providers' clinical, operational and financial outcomes."

Dive Insight:

In this deal, the devil is in the details of how each company works.

Huron is a consulting giant, with its healthcare division making up more than 50% of the company's revenues. According to its own website and case studies, Huron is all about managing the balance of risk and reward, using the principles of consumerism as it applies strategies consistent with the current population health revolution. These are core principles that live 10,000 feet above sea level, and have been absent for many years as the healthcare industry has grown and transformed. Huron tends to work with hospital executives, administrators and key medical staff to streamline operations and processes, eliminating duplications of effort and economizing where possible. It's a top-down approach that is standard for management consultants in almost every industry.

Studer's stock and trade has been in engineering cultural transformations, working with the hospital staff in the trenches to adjust the culture of their jobs. Studer focuses on a value-based, patient-centric mode of operations aimed at getting the patient to the right person at the right time. 

Together, Huron and Studer represent two distinct styles of consultation with strikingly similar aims and results. So, more than just creating a consulting megalith with more than $900 million in revenue between them, this is an acquisition that has the potential to change both companies for the better, engaging each others' strengths without diminishing the whole.

As the news of the merger continues to shake out, we expect to see other consulting firms follow the lead set by Huron, which, by candidly acknowledging its weaknesses, was able to find a worthy partner that will complement its offering with an element that will contribute greatly to the clients both companies already serve.