Premium Reports
Contact KLAS
 Download Report    Zoom in charts

Preferences

   Bookmark

Related Series

 No Related Series

 End chart zoom
2023 Healthcare Provider IT Report 2023 Healthcare Provider IT Report
* A page refresh may be necessary to see the updated image

2023 Healthcare Provider IT Report
Doubling Down on Innovation

author - Rebecca Hammond
Author
Rebecca Hammond
author - Robbie Bullough
Author
Robbie Bullough
 
September 15, 2023 | Read Time: 2  minutes

In their second annual report, Bain & Company and KLAS Research explore the trends impacting the Healthcare IT market.

Author: Aaron Feinberg, Bain & Company

Author: Eric Berger, Bain & Company

At a Glance

  • US healthcare providers continue to accelerate their spending on IT and software, as nearly 80% of healthcare executive respondents in our new survey increased spending materially over the past year, spurred by emerging technologies, labor shortages, and cost pressures.
  • Revenue cycle management and clinical workflow optimization remain top areas of investment, while patient engagement has moved up the list of priorities, particularly among more advanced or digitally mature providers.
  • Providers continue to express a preference for fewer vendors, with nearly two-thirds of respondents saying they look first to existing vendors, especially electronic health record providers, for new functionality before evaluating new vendors and offerings.
  • While almost 6% of health system respondents have a generative artificial intelligence (Al) strategy today, about 50% are actively developing one or are planning to in the near future, highlighting the transformative potential impact of Al.

US healthcare providers are spending heavily on IT, reflecting how technology has become a leading strategic priority. In a survey of 201 US healthcare provider executives conducted in June 2023 by Bain & Company and KLAS Research, 56% of the respondents cited software and technology as one of their top three strategic priorities, compared with 34% in 2022 (see Figure 1). Around 75% of respondents expect growth in software and technology spending to continue over the next 12 months (see Figure 2). Across the different provider types, academic medical centers (AMCs) and large hospitals and health systems expect a stronger increase in their own spending than smaller operators due to a greater focus on innovation and financial flexibility.

author - Joel Sanchez
Project Manager
Joel Sanchez
 Download Report

This material is copyrighted. Any organization gaining unauthorized access to this report will be liable to compensate KLAS for the full retail price. Please see the KLAS DATA USE POLICY for information regarding use of this report. © 2024 KLAS Research, LLC. All Rights Reserved. NOTE: Performance scores may change significantly when including newly interviewed provider organizations, especially when added to a smaller sample size like in emerging markets with a small number of live clients. The findings presented are not meant to be conclusive data for an entire client base.