US healthcare industry is in the midst of a perfect storm. Healthcare expenditures have risen to a whopping $3 trillion, about 17 percent of the entire gross domestic product (GDP) and are expected to increase further. Healthcare organizations are under tremendous pressure to improve health outcomes and lower costs amidst rapid consumerization in an active regulatory environment.
How can healthcare organizations re-focus on their core business or mission of healthcare? By re-thinking the approach to healthcare IT.
I recently sat down with Donald Trump Jr. for a lively video conversation on the state of healthcare IT in America -- why it is ineffective, and more importantly, how we can fix it.
Healthcare organizations increasingly rely on technology, spending $35 billion a year on healthcare IT to build key capabilities and support complex requirements. However, almost 80% of this spend is on managing technology and only 20% on strategic initiatives that support core mission. Here's the kicker -- 90% of large technology projects fail or don't deliver intended results. While IT is crucial to solve the healthcare problem, it has become a problem in itself and a major risk factor.
'Monolithic IT' approach is the issue. Traditionally, healthcare organizations developed their own technology platform or sourced it entirely from third parties to build key capabilities. Both these approaches affect speed-to-market, reduce flexibility to future needs and agility to address evolving requirements (does anyone think we've seen the last of the Affordable Care Act changes?).
Healthcare organizations need to look beyond the traditional build vs. buy model and adopt a 'platform-oriented' approach to IT instead. Infosys' platform-oriented approach allows healthcare organizations to acquire key capabilities 'as-a-service', without investing in complex and costly IT. It relieves organizations from technology adoption challenges, enabling them to re-focus on their core business or mission. Based on the level of 'configurability' and deployment readiness, organizations can acquire IT capabilities in three ways:
- Ready-to-deploy platforms, which are fully integrated and delivered in a turnkey fashion for organizations to acquire key capabilities quickly and cost-effectively
- Integrate-to-order platforms, which are stitched together from multiple platforms or building-blocks to meet an organization's unique needs
- Platformize or package existing IT capabilities into extensible platforms to support new capabilities or fill gaps
Our commercial and public healthcare clients are starting to explore and embrace this approach and change the way they view healthcare IT. They are witnessing impressive early results: increased speed-to-market, reduced cost of operations, and improved ability to deliver outcomes.Watch this space for details and live examples. You can also tune in to watch discussion with Donald Trump Jr. at on November 1 on Fox Business Network or November 2 on Bloomberg. Check the local listings for Fox and Bloomberg for air times.