Health systems are increasingly adopting outsourcing as a strategic method for managing their IT functions. This approach not only offers cost savings but also enables organizations to scale rapidly.
During a panel discussion at the Becker's Health IT Digital Health and Revenue Cycle Conference titled "The Pros and Cons of Outsourcing Revenue Cycle and IT Departments," IT leaders shared their insights on this growing trend in the healthcare industry.
"I think that the key opportunities are being able to grow at scale pretty quickly," Karen Habercoss, vice president, and chief information and privacy officer at UChicago Medicine said.
Ms. Habercoss notes that many healthcare providers still rely on outdated legacy systems. Consequently, when organizations seek to adopt new and innovative solutions, the costs of upgrading these systems and implementing supporting technologies can be substantial. Outsourcing, however, allows organizations to expedite these processes more efficiently.
Meanwhile, Adriana Guzman, CIO at Chicago-based Loretto Hospital highlighted the cost savings and access to expertise as benefits. She said when evaluating your team, consider whether you have the necessary expertise in-house or if you need to seek it externally. Smaller organizations, in particular, may struggle to attract top talent in specialized areas.
"In such cases, outsourcing can be essential, not only in technology but also in revenue cycle management," Ms. Guzman said.
In 2024, several health systems, including Allina Health in Minneapolis, Care New England in Providence, R.I., and Owensboro Health in Kentucky, have opted to outsource certain IT services and personnel to external companies.