Finding the right approach to health IT budgeting is a complex task. A recent HFMA article highlights the intricacies of financial decisions related to health technology investments.
Advanced automation is necessary, but the health system’s bottom line must be protected through a solid return on investment (ROI) and enterprise-wide system adoption.
e4health customer, Jim Kanuch, MBA, CHFP, was interviewed by HFMA for this article and shares his tried-and-true advice as CFO and Vice President of Finance for Atlantic General Hospital, a not-for-profit community hospital located in Berlin, Maryland. One of Kanuch’s most important points: choose the right health IT partner.
Health IT Investments Up
According to a survey cited by HFMA, 75% of health systems plan to increase health IT and software investments in 2024. With the growing reliance on technology in healthcare delivery, tracking such investments oversimplifies the reality of the proper budgeting needed, which involves diverse stakeholders and varying opinions.
The article further specifies healthcare leaders’ objectives and approaches for assessing new technology operations. Here are six insights for leaders to assess when budgeting for the right health IT and making their investments count.
Adopt an objective-based approach
Assess your options
Align finance and IT
Monitor and produce outcomes
Focus investments on cybersecurity
Establish contingency plans
Most important, relying on the right implementation team or health IT partner with seasoned expertise makes the difference in receiving optimal ROI for new technology.
ROI Depends on the Right Teams and Proper Expertise
As Kanuch states, “Technology is interwound as all pieces of equipment interplay in some level of connectivity within their network or EMR.” As specific technology is needed at varying levels throughout departments, leaders must have a thorough understanding of each department, end-user needs within technology or software implementation, and the impact on their workflow.
If you choose to bring in an outside partner during the evaluation, implementation, or continued optimization processes, be sure you make those services dollars count. Investing in the right collaborator with the right expertise for your organization improves revenue, decreases staff burden, and directs departmental energy toward bettering patient care.
Six Criteria for Smart IT Partnerships
To choose a technology partner that will get the job done, Kanuch recommends finding companies or individuals who will:
Identify short-term gaps and accomplish long-term goals
Ensure the secure, complete, and accurate transfer of patient data
Consider time and cost savings of a managed application support service model
Include customized analytics to increase productivity and operational proficiency
Manage the ongoing testing and coordination of system implementations, upgrades, meaningful use attestation, and initiative readiness
Prepare for any additional support needed once the technology is live
As the healthcare industry continues to implement new technologies including mid-revenue cycle AI and digital health solutions, choosing the right investment approach is essential. User adoption and prompt ROI must be achieved.
For more insights from Jim Kanuch, be sure to read the full HFMA article, Budgeting for healthcare technology is not just a numbers game.