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2024 BEST IN KLAS
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2023
Healthcare IT Spending 2024
Innovation, Integration, and AI
Author
Rebecca Hammond
Author
Emily Paxman
Author
Kevin Huang
In their third annual report, Bain & Company and KLAS Research explore the trends impacting the Healthcare IT market.
Author: Eric Berger, Bain & Company
Author: Caitlin Dowling, Bain & Company
Author: Aaron Feinberg, Bain & Company
At a Glance
- Post-pandemic, providers and payers increased their IT spending to fuel innovation and improve operations, emphasizing return on investment.
- Cybersecurity concerns and rising threats are expected to shape investment choices and vendor selection.
- Vendors should focus on easy integration into providers’ existing systems, and they should direct their offerings to payers that streamline tech stacks and manage complexity.
- Adoption of generative AI has accelerated, though barriers to broader implementation persist, such as regulatory issues and the need for robust governance frameworks.
While healthcare providers and payers experienced the effects of the Covid-19 pandemic and its aftermath differently from a financial perspective, both sectors confronted operational disruption and labor challenges. Providers, given the limited options to meet community care needs during the crisis, turned to technology, spurring critical IT projects and transformation at a pace previously thought unfeasible. Payers, historically conservative and inclined toward more incremental change, embraced innovation, including virtual care, to meet member needs.
Designer
Jess Wallace-Simpson
Project Manager
Joel Sanchez
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.