Healthcare providers priorities are somewhat misaligned. If we look at the 2019 Gartner survey of healthcare CIOs, we can see the systematic underlying problems within Healthcare Delivery Organizations (HDOs). 32% of all respondents CIOs said their number one priority was revenue growth, but only 12% said their second top priority was cost optimization or cost reduction, and the joint second was digital investments. If CIOs genuinely want to drive revenue and cut costs, they must place a greater emphasis and investment in their digital infrastructure, as a comprehensive and integrated digital strategy is the critical component to both cost reduction and revenue growth.
But some change is underway, and some HDOs are trying to change their business model due to consumer demands and the need to curb costs. But this is far from easy; most HDOs are at the embryonic stage of their digital maturity and are significantly behind other industries with similar capabilities. CIOs are also not promoting the strength of how IT can help with the business model change from FFS to VBC in a meaningful and impactful way.