Healthcare’s reliance on IT vendors has transformed into strategic alliances due to digital shifts and escalating cyber threats. Over a decade, IT services evolved from routine support to pivotal partnerships. Heightened cyberattacks and digital healthcare advancements necessitated specialized IT guidance. Expertise in regulatory complexities and tailored workflows became paramount. Consolidation of practices amplified the need for scalable IT solutions. This shift addresses challenges like data breaches, telehealth surges, and CMS programs. The rise of virtual CIOs and CISOs enhances operations, optimizing internal resources. Strategic IT collaborations empower healthcare organizations to focus on delivering superior patient care amid technological complexities.
In the current healthcare landscape, IT vendors have shifted from traditional service providers to critical strategic partners. This evolution stems from the digital revolution and a surge in cyber threats. Initially sought for routine technical support, IT vendors now play a pivotal role in healthcare’s digital transformation. The demand for specialized expertise in navigating healthcare’s intricate regulatory frameworks and tailored workflows has surged. Additionally, the consolidation of physician practices emphasizes the need for scalable and standardized IT solutions. This transformation addresses challenges such as cyber threats, telehealth adoption, and the evolving requirements of CMS programs.
Over the past decade, physician practices, hospitals, and health systems have engaged IT vendors to manage their equipment, update business and clinical software, and assist their staff with technical issues. These services were previously the primary expectation, treating IT as a standard vendor in the organization’s financial records.
However, the landscape has evolved. While healthcare’s core goal of managing health remains consistent, the industry’s technological requirements have drastically changed and become crucial for both clinical and financial outcomes. Notable shifts include:
– Healthcare data breaches involving 500 patient records or more, mainly due to cyberattacks, escalated from 199 in 2010 to 707 in 2022, according to the Department of Health and Human Services’ Office for Civil Rights (OCR).
– Ransomware attacks on healthcare organizations more than doubled from 2016 to 2021, as reported by the Journal of the American Medical Association.
– Reimbursable services incorporating telehealth surged from 0.15% of all claims in January 2019 to 5.9% in January 2023 – an astounding 3,370% increase.
– Smartphone ownership in the U.S. soared from 35% in 2010 to 91% in 2023.
Consequently, IT services have adapted to meet these demands. Companies now offer a broader spectrum of services, extending beyond mere technical support. Health IT vendors provide prevention-focused cybersecurity consulting, and long-term IT planning, and even assign staff to serve as chief information or chief information security officers for client organizations.
Frank Forte, CEO of Anatomy IT, a health IT and cybersecurity technologies vendor, discussed these evolving IT services with Healthcare IT News.
Q: You’ve observed considerable changes in healthcare IT services. What are some of these transformations?
A: Healthcare IT services have shifted from being predominantly a standardized service to forming strategic partnerships since the 2000s. Today, healthcare provider organizations scrutinize and depend more on specialized skills offered by partners, beyond software maintenance and user support.
While these fundamental services remain crucial, the ongoing digital transformation necessitates strategic guidance and a proactive approach. Organizations are increasingly turning to specialized IT partners with extensive knowledge of the intricate healthcare regulatory environment and the specific workflows of clinical and administrative staff.
Moreover, the consolidation of specialty physician practices under private equity firms is driving a need for IT partners capable of scaling and supporting multiple practices efficiently, often with standardized processes and top-tier systems.
Q: What factors are driving these changes in healthcare IT services?
A: Several factors contribute to the shift towards selecting IT partners strategically in healthcare. The monumental digital transformation in healthcare delivery and the surge in cyberattacks stand out as primary reasons.
The increasing frequency of cyberattacks, especially during the COVID-19 pandemic, has been staggering. Threat actors, often part of organized cybercriminal groups, exploit vulnerabilities in healthcare systems.
The substantial uptake of telehealth services post-pandemic, with over a 3,300% increase in related claims, also signifies a seismic shift in healthcare delivery. Other trends, such as the transition from paper to electronic health records and the adoption of cloud-based systems, have further underscored the need for specialized IT partners.
Additionally, programs like MIPS and APMs by CMS emphasize the need for healthcare-specific IT partners, requiring extensive data management, reporting, and compliance.
The imminent integration of AI in healthcare holds immense promise but also raises concerns about data privacy and ethical use, necessitating robust regulatory frameworks.
In essence, IT has been the primary driver of healthcare transformation in the past two decades.
Q: You’ve noted the increasing deployment of IT staff as CIOs and CISOs. Do you see this as a significant trend? How does it impact healthcare operations?
A: The emergence of virtual CIOs and CISOs within healthcare organizations of various sizes is a noteworthy trend. Even if an internal CIO is present, these roles proliferate due to the escalating importance of digital transformation in healthcare.
The virtual CIO role allows existing CIOs to focus on critical tasks like strategic planning and technology alignment, while the virtual counterpart handles day-to-day IT initiatives and project management. For smaller organizations without a CIO, a virtual CIO serves as an ideal stepping stone.
Similarly, the rise of the CISO role is critical in the face of escalating cyber threats. Whether embedded as a virtual employee within an IT partner, CISOs focus on enhancing security protocols and training to protect organizations.
Ultimately, these roles streamline operations and elevate project success rates due to their in-depth understanding of healthcare intricacies.
Q: What outcomes result from these shifts in IT services for healthcare organizations?
A: By partnering with proficient healthcare IT experts, provider organizations can redirect internal IT resources to improve care quality and enhance patient experiences. Eliminating unnecessary IT distractions leads to better clinical and financial outcomes.
Additionally, collaborating with specialized IT professionals safeguards organizations from costly data breaches and cyber incidents, preserving finances and maintaining operational continuity. The assurance of robust protection against cyber threats offers peace of mind to healthcare staff and providers.
The metamorphosis of healthcare IT vendors into strategic partners underscores the industry’s response to escalating digital demands and cybersecurity threats. This evolution transcends the conventional role of IT support, catering to healthcare’s intricate needs. Strategic alliances offer solutions to challenges posed by cyber threats, expanding telehealth, and evolving CMS programs. The advent of virtual CIOs and CISOs optimizes operations, liberating internal resources for enhanced patient care. Ultimately, these strategic IT collaborations fortify healthcare organizations, allowing them to navigate technological complexities and focus on their primary goal—delivering superior care to patients.
