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Health Systems Prioritizing Cybersecurity as 2024 IT Budgets Increase, Guidehouse Analysis Finds
News provided byGuidehouse
Nov 20, 2023, 9:00 AM ET
CFOs aim to improve IT security and operational efficiency, according to Healthcare Financial Management Association survey
WASHINGTON, Nov. 20, 2023 /PRNewswire/ -- Health system executives are prioritizing cybersecurity investments as their organizations' 2024 digital and IT budgets increase, according to a Guidehouse analysis.
Analysis findings were published in Guidehouse's 2024 Health System Digital & IT Investment Trends report, which is based on a survey of 144 provider executives—the majority of them CFOs—conducted by the Healthcare Financial Management Association.
From 2019 to 2023, executives reported digital and IT budget increases by an average of 18.3%, with one in five citing increases of more than 30%. Further, more than 85% of health systems are increasing their 2024 digital and IT budgets, and almost half project moderate to significant increases. Top investment priorities include cybersecurity (55%), electronic health record modernization (46%), digital care (32%), and advanced analytics, AI, and machine learning (31%).
"As health systems continue to face cybersecurity threats and operational complexities, investments that strengthen and harden their cybersecurity posture, and technology capabilities that drive both efficiencies and financial resiliency across service lines, are critical," said Matt Onesko, partner at Guidehouse. "Success in 2024 and beyond demands investment strategies that are rooted in pragmatic goals to generate meaningful and measurable returns."
According to the analysis, more than half of providers are increasing their digital and IT budgets to enhance patient and provider satisfaction via increased operational efficiencies and improved consumer experiences. This is largely driven by patient and provider feedback requesting these enhancements.
Additionally, 70% of providers have updated their digital and IT decision-making structures, processes, or capabilities since 2019 to support larger, more strategic investment decisions. Notably, one third of respondents have initiated new or expanding relationships with outsourcing organizations. Outsourcing non-core functions can help providers improve efficiencies in tasks they do not perform at scale, mitigate risks, and get access to next-generation technology systems without the upfront cost.
To support digital and IT investments, more than half of provider executives cited the need for resources and operational implementation. Moreover, 72% of respondents that are decreasing or not changing their digital and IT budgets in 2024 lack the resources to do so.
Guidehouse is a leading global provider of consulting and managed services to public sector and commercial clients. A four-time Best in KLAS® winner in 2023, Modern Healthcare ranked Guidehouse the third-largest healthcare IT consulting firm in 2023 and the second-largest healthcare consulting firm in 2022. The Guidehouse Health team helps providers, government agencies, life sciences companies, employers, payers, and other organizations modernize and innovate healthcare services, finances, and operations.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 17,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
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