Provider organization tech investment is climbing – by some industry predictions, we can expect it to double in the next three years (see Health Care Provider Organizations To Double IT Services Spending By 2020). Analysts forecast a compound annual growth rate of 12% for technology purchases per year during 2014-2020, reaching $68.3 billion in 2020.
What are provider organization executives investing in? According to a recent survey of health care executives in Healthcare IT News, when asked what tech investments were on the drawing board, executives answered analytics (45%), workflow improvement (45%), telehealth (44%), population health (41%), smart medical devices (41%), remote monitoring (34%), and precision medicine (21%). When asked which tech they already have and plan to “upgrade,” executives answered security (52%), analytics (51%), patient engagement (44%), population health (44%), electronic health records (31%), remote monitoring (24%), and revenue cycle management (22%) (see 2017: The Year Ahead in Healthcare Information Technology). That’s a big shopping list.
I’m not surprised to see the increase in tech spending or what tops the shopping list – over half of organizations are planning spending on security and analytics. These are key tech components that will support the move to sophisticated population health management and value-based reimbursement. Successfully integrated care coordination relies on reliable health information exchange, which requires state-of-the-art security to minimize risk (see Recipe For HIE Success: Consumer Trust Through Security and Beyond Collecting Data – How Do You Make Information Exchange Work For Behavioral Health?). Consumers need to trust the safety of their personal health information. And, no executive team wants to show up in the press with news of a data breach – Children’s Medical Center Pays Federal Fine Over Data Breach, Presence Health Agrees To $475,000 Settlement Over Data Breach Report and Delaware Health Data Breach Potentially Impacts 19K.
The investment in analytics is much overdue. Many provider organization executive teams are operating with minimal metrics and need to move to the “next level” in metrics-based performance management (see Performance Measures & Metrics-Based Management and Does Measuring Performance Change Outcomes? Moving To Metrics-Based Management).
Expanding tech budgets will require two changes in executive framework – integration of technology planning with corporate strategy development (see The Strategy Of Tech Investment and From Strategic Planning To Tech Strategy) and renewed attention in the overall return-on-investment (ROI) of tech investments (see More Tools For Tech ROI and Technology ROI: Value-Based Purchasing For Executives). For more, check out these resources in the OPEN MINDS Industry Library:
- Planning Your Treatment Tech Investment
- Using Analytics For A Competitive Edge – Your Checklist For 2016
- How Do You Make Technology “Work” For You?
- On-Line Cognitive Behavioral Therapy: The Return-On-Investment For Health Plans (Executive Web Briefing Recording)
- Making Sure Your Technology Is In Sync With Your Strategy
- Digital Medicine From The Payer Perspective
- Your Insights For Tech Management & Strategy
- The Snags In ‘Speed To Market’ For Health Care Innovations
- We’re Way Past The Jetsons
- Getting Your Clinical Team On Board With Technology
And for a deep dive on the impact of tech on the health and human services field, mark your calendar for September 21 at 1:00 pm (EST), when I will host a webinar exploring best practices for tech in a changing market exclusively for OPEN MINDS Circle Elite members – Forecasting The Future: What’s The Impact Of Health Care Technology For Consumers & The Service Delivery System. Not an Elite member? Upgrade your account now to access OPEN MINDS Market Intelligence Reports, the OPEN MINDS Government RFP & Contract Database, special registrations to all OPEN MINDS institutes, and exclusive online executive education events.