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IT Outsourcing 2015

IT Outsourcing 2015
Strategic Partnering Boosts Operational Benefits

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As providers adapt to changing reimbursement requirements and new models of care, many who outsource part or all of their IT environments are able to focus on and in some cases boost their performance in key operational areas such as gaining efficiencies, improving patient care, and reducing costs. In this age of new healthcare delivery, which firms stand out in providing strategic direction and needed IT services in extensive and partial outsourcing environments?

1. CARETECH MOST CONSISTENT HIGH PERFORMER IN IT OUTSOURCING; CERNER SHOWS MOST GROWTH

CareTech consistently performs at or near the top in both extensive and partial ITO, winning Best in KLAS awards in both categories in two of the last three years. To date, CareTech is the only firm in this report whose business is focused exclusively on both the provider space and ITO services, allowing for dedicated attention and investment in these areas. Since 2013, Cerner has experienced the highest percentage of hospital EITO growth (57%), expanding from 23 to 36 hospitals, and they currently own the largest market share for AMS. With this market growth, Cerner’s EITO performance score has increased slightly, while their PITO performance has improved dramatically. Providers recognize Cerner’s company-wide priority around building outsourcing programs; have seen the benefits of lowering their financial, security, and reliability risks; and report tighter collaboration with Cerner to meet changing needs in an increasingly complex environment.

KLAS Reports 2015: ITO

2. EXTENSIVE ITO: CUSTOMER-CENTRIC CARETECH & STRATEGIC PARTNER CERNER OUTPERFORM OTHER EITO FIRMS; DELL SERVICES SERVES LARGEST CLIENTS

Mainly serving community hospitals, CareTech receives a top rating from clients for very hands-on customer relationships, proactive service, and responsive executive-level communication. Cerner, with a median client bed size of 426, not only supports clients’ IT environments but also helps guide them through strategic initiatives. Because of this, many Cerner customers consider the firm to be a strategic partner. Dell Services has by far the highest percentage of large clients in this study—83% have over 1,000 beds. Leadership turnover has created uncertainty among some clients, while others report that Dell Services has improved in providing a partnership and fulfilling their specific needs.

3. PARTIAL ITO: SMALLER STOLTENBERG LEADS PERFORMANCE WITH FOCUSED HELP DESK & AMS OFFERINGS; CERNER SHOWS MOST PERFORMANCE IMPROVEMENT

Although Stoltenberg Consulting, who specializes in help desk and AMS, is the smallest firm in this research, their focus on building trusting relationships with providers leads to high customer loyalty and performance ratings. Cerner, who is the second highest rated firm and has the most validated clients in this category, is highly regarded for their expertise, ability to share best practices across their customer base, and proactivity in aiding clients and improving performance. Dell Services has the most diverse PITO offerings, but because multiple clients have struggled with turnover and low staffing levels, Dell Services rates the lowest in overall performance among the ranked firms. Xerox’s market presence has decreased noticeably over the past year due to health system consolidation, changes in client leadership, and Xerox’s inability to meet performance expectations.

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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. © 2018 KLAS Enterprises, 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.