Where C-suite leaders are increasing their IT investments

According to a report analysis by Guidehouse, health system executives are giving precedence to cybersecurity investments, aligning with the rising digital and IT budgets projected for their organizations in 2024.

The report contains findings from a survey of 144 provider executives, predominantly CFOs, conducted by the Healthcare Financial Management Association. 

Eight things to know:

1. Between 2019 and 2023, executives observed an average 18.3% increase in digital and IT budgets, with 1 in 5 reporting increases exceeding 30%.
   
   
2. More than 85% of health systems are augmenting their 2024 digital and IT budgets, with nearly half anticipating substantial increases.
   
   
3. Key areas of investment focus include cybersecurity (55%); EHR modernization (46%); digital care (32%); and advanced analytics, AI and machine learning (31%).
   
   
4. According to Guidehouse, more than 50% of healthcare providers said they are increasing their digital and IT budgets to enhance satisfaction among patients and providers through improved operational efficiencies and better consumer experiences. This surge is primarily influenced by feedback from patients and providers who have expressed a desire for these improvements.
   
   
5. Seventy percent of respondents said they have revamped their decision-making structures, processes or capabilities in digital and IT since 2019 to facilitate more substantial and strategic investment decisions.
   
   
6. A third of respondents said they have initiated new relationships with outsourcing organizations or expanded existing ones. According to the findings, outsourcing non-core functions allows providers to enhance efficiency in tasks not performed at scale, manage risks and access next-generation technology systems without upfront costs.
   
   
7. In terms of digital and IT investments, over half of provider executives emphasized the importance of resources and operational implementation.
    
8. Additionally, 72% of respondents who are either decreasing or maintaining their digital and IT budgets in 2024 cite a lack of resources as the primary reason for doing so.