COST REDUCTION AND COMPLIANCE Healthcare Technology, Optimizing Your IT Investment
Healthcare IT optimization requires IT contract expertise. The healthcare industry is a large, complex network of primary and secondary care facilities, hospitals, medical professionals, emergency care, pharmacies and tertiary organizations; all of which have their own IT requirements for treatment and administration. With all the focus on reducing healthcare costs, it may surprise you to learn that healthcare organizations actually pay more for technology than any other industry. Our analysis shows healthcare organizations pay an average 17% more than that of the other 29 Industries we sampled, and 33% more than the industry with the lowest average costs.
We would expect an information intensive industry like healthcare to demand considerably more technology investment from every dollar spent to power critical patient care as well as manage organizational decisions. But not at this level and not at this scope. Healthcare organizations pay more for all types of technology from Lawson financial applications, to Microsoft desktop productivity licenses, to Cisco networking equipment, to IBM servers, to EMC storage arrays, and so on. The breadth of scope of this “healthcare premium” indicates that this is not an industry-specific difference for one type of technology unique to healthcare, but rather a general all-technology premium. Among the many reasons:
1. Healthcare Organizations Focus on Patient Care
2. Healthcare Organizations Often Lack of a Profit Motive Healthcare
3. Organizations Usually Posses an Institutional Culture of Inefficient Process
4. Healthcare Organizations Don’t Negotiate Diligently
5. Supplier Lock-in
6. Single Purpose Purchasing
7. Industry Specific Supplier Programs
8. Lack of Strategic Sourcing
9. Industry Centricity
10. Increased Government Regulation
With a comprehensive expertise in Healthcare IT, NET(net) can improve the economic and strategic value of critical IT investments. Concurrently, NET(net) helps healthcare organizations build better, more sustainable business partnerships with key technology suppliers, focused on value for the long term.
NET(net) services are customized to meet your specific and unique requirements, yet they are based on our (i) Federated Market Intelligence gathered from serving the unique needs of 1,500 global clients, (ii) the Best Practices refined over the course of professionally managing over 15,000 engagements, and (iii) the proven results of the Proprietary Negotiating Methodology mastered in the pursuit of the more than $50B of captured since 2002.