Tag Archives: budget

Beyond Cost Cutting: Health IT’s Role in Financial Health

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Health systems continue to face complex financial challenges. Industry articles highlight the few that have strong operating margins while also noting the many facing continued operating losses. Becker’s Hospital CFO Report published the article, “25 factors that could affect health system performance in 2024”, by Alan Condon on September 8th. It is a comprehensive list and worth reviewing.

What do these financial challenges mean for health IT leaders? I talk to many CIOs who are faced with cost cutting targets and dealing with very limited budgets yet long lists of priority projects. It’s no surprise. Health systems often fall into the trap of relying solely on cost-cutting measures, particularly in the realm of IT and staffing.  While trimming expenses is essential, it’s just the starting point.  Organizations must carefully consider all the impacts on operations and especially morale.

At StarBridge Advisors, we advocate for a comprehensive approach that goes beyond mere savings, encompassing revenue growth, digital transformation, and effective change management. This multi-faceted strategy promises swift improvement to your bottom line, operational efficiency, improved staff morale and progress toward the goals of the Quintuple Aim.  IT enablement is often essential to these activities. You can use these opportunities to leverage the IT investments that have already been made.

In a recent series of four blogs written by Principal, David Muntz, we offer practical and pragmatic guidance on each crucial aspect of this approach.  The benefits are tangible and span from immediate gains to long-term sustainability.  Our expertise empowers your organization to undergo both tactical and strategic transformations, ensuring uninterrupted top-tier patient care without compromising on IT performance or security.

We can help your organization hardwire the Quintuple Aim. Partner with us to revitalize your health system’s trajectory, creating growth opportunities despite financial constraints.  I hope you’ll take time to review the series and let me know if we can help you and your organization.

StarBridge Advisors blog series:

 

IT requests increase while budgets decrease

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As hospital systems develop their COVID-19 recovery plans, the financial impact of this pandemic is deep and far reaching. IT budgets are no exception. IT leaders are being asked to take salary cuts, furlough staff, and deal with a capital freeze for the rest of the year. This comes at a time when the demand for technology solutions is only increasing. And at a time when IT teams have performed at their peak in providing and supporting new solutions with agility and in record time.

In a recent Becker’s Hospital Review article, Hospital IT Spend Pivots to Mission Critical Projects: 7 Leaders on the Key Focus for the Next 12 Months, IT leaders covered telehealth, digital transformation, analytics, informatics, and of course the reality of cost reduction facing them and their organizations.

IT leaders have long faced the supply vs demand challenge. And they have long faced the need to reduce their budgets while meeting a growing user base and increased demand for technology solutions. The days of significant year to year budget and staff growth in IT are a distant memory.

As we look to the future after the COVID-19 recovery, some people talk about the “new normal” phase and others refer to it as the “re-imagine” phase. The latter certainly encourages us to think differently. Regardless, it will be with far less resources. So how does IT manage and ensure success in this ever more constrained environment? Continue reading →