David Chou, CIO, Legacy Community Health
In 2024, healthcare CIOs will proactively tackle diverse priorities shaped by the evolving technological landscapes, cybersecurity challenges, and the drive for operational efficiencies. The industry faces a significant 7 percent year-on-year medical cost trend, outpacing the 5.5 percent and 6 percent trends of 2022 and 2023, respectively. Rising treatment costs, fueled by inflation, escalating wages, and other expenses, exert immense pressure on the healthcare sector. Clinical workforce shortages further intensify this pressure.
Healthcare CIOs must focus on the following priorities to align with the broader technology trends and the expanding role of IT in healthcare operations.
Redefining the CIO Role
The CIO must lead the organization’s digital transformation strategy, adopting new technologies, enhancing customer engagement, advancing data analytics, and designing new business models. They should capitalize on opportunities to improve patient experiences, clinical outcomes, and operational efficiencies. These initiatives require the CIO to create a robust IT infrastructure that seamlessly integrates with the entire technology portfolio.
I firmly believe that CIOs must lead digital to stay relevant. In 2018, I updated my title to reflect digital, a trend gaining traction today. Digital health, increasingly integrated into all healthcare aspects, cannot operate in a silo separate from IT. Consequently, many organizations and CIOs are merging the CDO and CIO roles into a single CDIO position.
Tanya Townsend, Chief Information and Digital Officer at Stanford Children’s Hospital, agrees with the need to redefine digital across the organization. She is “strategically focusing on A/I and RPA, digital front door and access, advancing digital health and telemedicine, health equity and patient experience, workday, rev cycle automation, advancing analytics, clinician efficiency… to name a few,” Townsend said. “And, of course, continuing to stay on top of employee retention and engagement.”
Don’t Leave Out AI
AI will be everywhere in 2024, with advancements from technology companies regularly making new announcements. Healthcare adoption for AI will start with automation, and ambient listening will be a hit to improve efficiencies. An executive order is in the works to set new healthcare AI standards, while major tech companies are making significant healthcare AI advancements.
The healthcare industry is optimistic about AI’s impact, yet it harbors concerns about the technology’s safety and security. Testing and validating AI will require time as the technology learns and measures security requirements.
New IT Structures
Some CIOs are eliminating their IT teams, utilizing outsourcing and managed services. Owensboro Health and ProHealth Care are examples of healthcare providers that have decided to transfer their IT employees to Optum as part of a larger outsourcing deal that includes revenue cycle management and other technical functions.
Other CIOs may only look to outsource core functions like help desk, network infrastructure, and IT security. As part of an agreement, some of Care New England’s employees joined healthcare IT provider Kyndryl’s team to provide technical services to the health system.
In 2024, Healthcare CIOs face the challenging decision of whether to outsource certain IT functions to cut operating costs, as IT is typically among the most expensive departments in an organization. Healthcare CIOs must decide whether outsourcing IT services can provide better quality at a lower cost than in-house options. Their decision centers on evaluating the cost-effectiveness and quality improvement potential of outsourcing.
Solid security measures
In a recent report by SecureWorks, ransomware remains the primary threat to organizations due to its widespread disruption and prevalence. The time between initial access and ransomware payload delivery has reduced to a median of just 24 hours, as 2023 has shown to be an extremely active year for ransomware attacks.
CIOs are responsible for developing and implementing comprehensive cybersecurity strategies to protect sensitive patient data and maintain uninterrupted healthcare services. They balance innovative technology adoption with solid security measures, responding to immediate threats and managing risks proactively. Zafar Chaudry, Chief Digital and Information Officer at Seattle’s Children’s Hospital, agreed, noting that his focus in 2024 is “harnessing the power of AI, analytics, and automation combined with prioritizing cybersecurity and data privacy.”
Healthcare CIOs face a challenging 2024, during which they’ll be tasked with rebranding and aligning IT departments, keeping pace with AI advancements, and securing their organizations.
This piece was written by David Chou, a senior digital healthcare executive with more than two decades of industry experience, including leadership roles with Cleveland Clinic, Children’s Mercy Hospital, Harris Health System, and University of Mississippi Medical Center. To view his blog page, please click here.
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