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12:00 AM - NextGen UGM 2025
TigerConnect + eVideon Unite Healthcare Communications
2025-09-30    
10:00 am
TigerConnect’s acquisition of eVideon represents a significant step forward in our mission to unify healthcare communications. By combining smart room technology with advanced clinical collaboration [...]
Pathology Visions 2025
2025-10-05 - 2025-10-07    
8:00 am - 5:00 pm
Elevate Patient Care: Discover the Power of DP & AI Pathology Visions unites 800+ digital pathology experts and peers tackling today's challenges and shaping tomorrow's [...]
AHIMA25  Conference
2025-10-12 - 2025-10-14    
9:00 am - 10:00 pm
Register for AHIMA25  Conference Today! HI professionals—Minneapolis is calling! Join us October 12-14 for AHIMA25 Conference, the must-attend HI event of the year. In a city known for its booming [...]
HLTH 2025
2025-10-17 - 2025-10-22    
7:30 am - 12:00 pm
One of the top healthcare innovation events that brings together healthcare startups, investors, and other healthcare innovators. This is comparable to say an investor and [...]
Federal EHR Annual Summit
2025-10-21 - 2025-10-23    
9:00 am - 10:00 pm
The Federal Electronic Health Record Modernization (FEHRM) office brings together clinical staff from the Department of Defense, Department of Veterans Affairs, Department of Homeland Security’s [...]
NextGen UGM 2025
2025-11-02 - 2025-11-05    
12:00 am
NextGen UGM 2025 is set to take place in Nashville, TN, from November 2 to 5 at the Gaylord Opryland Resort & Convention Center. This [...]
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AHIMA25  Conference
12 Oct 25
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2 Nov 25
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Articles

Jul 08 : Healthcare IT Spending Needs to Shift Its Focus?

healthcare it

By Brian Eastwood

Large healthcare organizations spend millions annually on IT. Most of it pays for technology that moves or stores data. That’s been especially true in the last five years, as meaningful use has triggered significant investment in electronic health record (EHR) technology.

Little of that capital spending adds value, though. Healthcare IT implementation has occurred where frustration is highest but the benefit is lowest, says Dr. David Levin, chief medical information officer (CMIO) with the Cleveland Clinic Health System. For transformation to occur, the opposite must be true.

Levin and several other speakers at the recent Institute for Health Technology Transformation (iHT2) Health IT Summit Chicago addressed the interconnected issues of healthcare IT spending, evolving business models and the types of innovation that can succeed in such an embattled industry.

ACA, Meaningful Use Aren’t Disrupting Healthcare

Healthcare consumers aren’t afraid of innovation, says Scott Lundstrom, group vice president at IDC Health Insights, citing the increasing numbers of patients who bypass primary care physicians for retailers such as CVS or Walmart when they need to treat minor ailments.

On the other hand, healthcare organizations struggle with disruptive innovation. That means shaking up the status quo, one which has made a lot of money for a lot of hospitals for a long time. What’s more, Lundstrom says, the Affordable Care Act isn’t shaking things up as some had hoped, and meaningful use isn’t fixing anything.

As Lundstrom sees it, six factors drive the real disruptions in healthcare:

  • Industrialization, which tends to hit industries in 20-year cycles. It happened to manufacturing, and it’s happening in healthcare.
  • Changing business models, which will integrate clinical, financial and patient data to focus on wellness – and, in the process, cause a lot of hospitals to fail.
  • Consumer-facing technology, a market that Google, Apple, Samsung and WebMD each aim to conquer. Connecting to and collaborating with patients may frustrate doctors, Lundstrom says, but they must understand that the money they don’t spend on doing so will fall to the bottom line.
  • Organizational changes, which increasingly add IT hires with governance and management skills.
  • New roles in care delivery, which (given that focus on wellness) may involve a “referral” to the gym instead of the doctor. Lundstrom’s warning to skeptical healthcare leaders: If you aren’t willing to adapt to this role, to spend a little to save a lot, rest assured that your new owners will be.
  • New IT architecture options, which mean embracing agility, trusting the cloud and decommissioning all those apps that only a handful of employees still use. Providers must use analytics to turn IT inside out; critically, Lundstrom says, they can’t rely on one single EHR system for this purpose.

Healthcare App Developers Can’t Be Afraid to Fail

Attend enough IT conferences and you’ll hear a version of this phrase: “No one wants to be the first to do something, but everyone wants to be second.”

The phrase rings especially true in healthcare. Private insurers, Medicare, hospitals, integrated care networks, established IT vendors, startups and professional associations start staring contests, waiting for someone to blink first – all while patients wait in the background, wondering why the can book a vacation to Maui from their phones but can’t book an appointment at the clinic down the street without spending 15 minutes on the phone.

That’s why Dr. Luis Saldana, CMIO of Texas Health Resources, says his organization is “dabbling” in initiatives, such as expanded health information exchange and the use of patient-generated data, to build credibility and a “culture of trust” with patients and providers alike. Dr. Lyle Berkowitz, associate CMIO at Northwestern Memorial Hospital, also named a few, including outreach for high-risk patients, population health management and the creation of high-tech, “intensive medical homes.”

Making these work means breaking down barriers. For example, many physicians worry about the ramifications of adding “bad” patient data to the health record, Levin points out. They say it will further muddy the waters and disrupt the status quo.

However, Levin says, “We already have bad data, and most of it is based on what is already telling us anyway.” Plus, letting patients control their data is widely regarded as a key step in improving patient engagement. If nothing else, he adds, “Put the iPads in the patient’s hand.”

Of course, that only works if patients want to use the tablet. Few do. As Levin says, “Most apps are crappy.” They aren’t secure, intuitive or integrated with EHR systems. Above all, they aren’t designed to be part of a patient’s social ecosystem.

Making apps that stick requires an entrepreneurial approach to healthcare IT – one that deemphasizes monolithic systems and massive on-premises data centers in favor of agility, pilot projects and, above all, a willingness to fail.

Healthcare’s reticence to accept failure is deep-seated and sensible. After all, one misdiagnosis or botched procedure can kill a patient. Recent headlines also demonstrate that CIOs and CEOs can lose their jobs over cumbersome, complex and costly EHR implementations.

But there’s no reason for healthcare IT leaders to apply the rigors of an EHR system to, say, a smartphone app that lets ICU patients order dinner. Yes, there are frustrations to developing such apps, but they are small – and the benefits of a more productive workforce and happier patient population can be quite large.

“Fail early, fail often and fail cheap,” Berkowitz says.

Source