- KLAS: Health Orgs Report Better Care Coordination with Microsoft Cloud
These trends reflect a shift in strategic priorities, with 56 percent of respondents indicating that software and technology is one of their top three priorities. In 2022, approximately 34 percent of leadership provided the same response.
Investment varies depending on provider type. Large health systems and academic medical centers report that they anticipate a greater increase in their own software and technology spending than their smaller counterparts, largely because of a differing emphasis on innovation or levels of financial flexibility.
Top areas of investment continue to be clinical workflow optimization and revenue cycle management. These areas are perceived to have clear, near-term return on investment, leading health systems to keep prioritizing them as margins shrink and financial challenges continue.
However, patient engagement is becoming a higher priority, particularly among more digitally advanced healthcare providers looking to improve patient experience. These health systems are also focused on exploring data platforms to take advantage of long-term opportunities, such as data monetization and value-based care.
Technical advances and the availability of new solutions—specifically those centered on cybersecurity and patient engagement—are the top drivers of new investments. Cost pressures and labor shortages are also driving spending, the report notes.
One specific advancement, generative artificial intelligence (AI), is capturing health systems’ attention.
Approximately 70 percent of respondents stated that they believe AI will have a greater impact on their organization than it did last year.
Nearly six percent of respondents indicated that their organizations have a generative AI strategy today, while 50 percent report that they are either actively developing one or have plans to do so in the future.
Respondents further noted that they prefer to rely on fewer vendors to help meet their software and technology needs, citing EHR integration, interoperability, and cost as current pain points within their current tech stacks.
Almost two-thirds of respondents reported that they would first look to existing vendors for new IT functionalities prior to assessing new vendors or offerings. While respondents indicated that they were willing to look elsewhere if existing vendors lacked solutions to close major functionality gaps, tight EHR integration was the key purchasing criterion for leaders looking into IT solutions.
Overall, all respondents indicated that they will continue to accelerate their spending on health IT and AI solutions. However, as challenges like workforce shortages and financial considerations mount, most organizations will start or continue to prioritize solutions that streamline tech stacks and generate tangible returns on investment.
Editor’s Note [09/12/2023]: A previous version of this article did not include a link to the Bain and KLAS 2023 Healthcare Provider IT Report, and incorrectly attributed the report only to KLAS in the headline. This article has been updated to include a link to the report and to correct the headline.
By 