Six Steps that Turn Health Care CFOs into IT Champions

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Enforce Maintenance Audits

One way the CFO can encourage the IT department to operate as cost efficiently as possible is to challenge the CIO to conduct regular maintenance contract audits. Industry experts say the typical service contract costs between 10 and 12 percent of the overall purchase price of the equipment, and can be as high as 18 percent if the technology has very complex computing requirements. What if that cost could be reduced to between 7 and 9 percent across the board simply by requiring an IT maintenance contract audit at regular intervals? This may be something the IT team doesn't have the bandwidth to do, but there are third-party solution providers skilled in doing these kinds of assessments and audits that both the CFO and CIO can turn to for assistance. Hiring a firm to perform an independent audit can pay for itself.

CIOs aren't the only leaders concerned about rapid changes in health care technology. According to Logicalis Healthcare Solutions, the health care practice of Logicalis US, an international IT solutions and managed services provider, regulatory changes and declining reimbursements have caused health care CFOs to adopt a "survival of the fittest" stance in order to keep their organizations healthy and growing. Mergers, acquisitions, and affiliations are on the rise in today's health care market, and with regulatory and reimbursement uncertainties in the air, experts predict M&A activity will only increase this year.

"All of this has put enormous pressure on hospitals and health care systems to better manage costs, particularly when it comes to capital expenditures like information technology," says Ed Simcox, health care practice leader, Logicalis US. "For health care providers to maintain their status as a competitive provider, they need an IT infrastructure that can quickly adapt to changing administrative and patient care needs, plus increasing regulatory requirements, while offering the interoperability necessary for smooth affiliation integrations as they take place."

Logicalis has identified six ways health care CFOs can facilitate IT cost reductions while protecting and improving service-level expectations. With a little creativity and a few sharp pencils, these steps can help transform the relationship between CFO and CIO into one where both execs are working in tandem, finding ways to make IT, at best, a much higher performing business function and, at least, much less costly.

 

Related Topics : A Big Market for Big Data Jobs, Midmarket CIO, IT Management Automation, SharePoint, Technology Markets

 
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