IS spending to increase; CEOs don’t trust CIOs
Health care systems, notoriously tightfisted when it comes to investing in information systems (IS), will double their spending over the the next few years, according to a new survey of health care executives. Conducted by the executive search firm of Witt/Kieffer in Oak Brook, IL, the survey included 1,000 health care chief executive officers (CEOs), chief information officers (CIOs), and IS directors in hospitals, health systems, and managed care organizations.
Nearly half (44.6%) of respondents to the Information Systems Leadership survey said they will spend 1% to 2% of their total budgets on IS, a level that long has been the industry average. Another third said they will spend 3% to 4%.
But a surprising 39.7% said they would spend between 5% and 10% on IS, while another 12.8% planned to spend more than 11%. Their top priorities include computer-based patient records, development of clinical data repositories, measuring outcomes, and management of multiple managed care contracts.
These chief executive officers and chief information officers also are looking for cost analysis management tools, tools to manage multiple payor contracts, and eligibility and benefits information. This marks a shift away from tra-ditional IS spending for areas such as billing, accounting, payroll, and claims processing. Those areas fell to the bottom of the executives’ shopping lists.
One caveat: CEO respondents apparently don’t have much faith in their chief information officers: Two-thirds (67%) of CEOs said they don’t believe their CIOs are fully prepared to meet the informational challenges facing their organizations. They cited their CIOs for lack of activity and strategic orientation; a bent toward process orientation at the expense of operational goals; lack of understanding of the industry, especially clinical operations and managed care; lack of management and leadership skills; and lack of "big picture" systemwide vision.
Witt/Kieffer’s survey received usable responses from 86 participants for a response rate of 6.4%. Despite the low rate, the survey confirmed previous IS survey results. For a free copy of the results, call (630) 990-1370, Ext. 244.
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