My firm is looking to launch a few new IT outsourcing projects in the provider / hospitals space. Trying to understand the most viable areas, current pain points and success measures? TIA!

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It’s mainly all through companies like Cerner and Lawson the McKesson, Cardinal, ABC, etc.

They buy services and pay large markups for high service levels but there is no real sourcing or evaluation occurring. These orgs are mainly reactive.

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Gartner, then look at the company sites that typically list their key clients and references

Hospitals don’t have supply chain functions but purchasing.

Hospitals may be the most incompetent set of orgs I have see. In knowing what they buy, where it is, and how much they have.

The ability to manage PAR levels, selection, and capital on hand could be heavily automated and enabled with basic web based applications that could integrate with EMR.

Then managing their pharmacy tech, automation and tracking where a lot of their inventory value is tied up.

With smaller and regional customers, their DR/BCP plans and uptime are a potential risk as is infosec.

If you can support that and redundancy as well as multi-instance test environments to support systems testing in a more agile manner, thats a play. They’re heavily focused on security, ISO, acquisitions, training, and they need more scalable and integrated solutions. As they acquire urgent care, outpatient care, rehabilitation, orthopedic and other mid/small facilities, this becomes more of a need.

Many still are heavily on-prem and hesitate due to HIPAA and compliance requirements.

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A lot of hospitals have very old tech. I’ve gone into
hospitals that are using Windows 2000 or have just upgraded to XP. Old ERP systems with 0 automation. Providers are about 10-20 years behind anyone else in tech and will stay that way most of the time.

Thanks so much Am1 and Acc1, super helpful.

So, other than DR/BCP, infosec and old tech related needs, would you say that hospitals are good on IT outsourcing in general? EUS / Helpdesk / Apps / Infra outsourcing needs?

Have to expand that. There are hospital systems and huge chains (Mayo/Cleveland etc) that are at the forefront of the healthcare tech space. Rural community hospitals are probably decades behind.

Also any sort of outsourcing is probably happening at the system level not single hospitals.

Agreed and it makes good sense to not talk about individual hospital but health systems and to segment them by size.

Given that, would you say that the basic IT functions ( EUS / Help Desk / App and Infra maint.) are mostly outsourced for the large and medium health systems? Trying to gauge level of penetration.

Unfortunately don’t have an answer for that. I work CFO so lots of ERP work going on through.

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