Becker's Hospital Review

20 20 CIO / HEALTH IT Where C-suite leaders are increasing their IT investments By Naomi Diaz A ccording to a report analysis by Guidehouse, health system executives are giving precedence to cybersecurity investments, aligning with the rising digital and IT budgets projected for their organizations in 2024. e report contains findings from a survey of 144 provider executives, predominantly CFOs, conducted by the Healthcare Financial Management Association. Eight things to know: 1. Between 2019 and 2023, executives observed an average 18.3% increase in digital and IT budgets, with 1 in 5 reporting increases exceeding 30%. 2. More than 85% of health systems are augmenting their 2024 digital and IT budgets, with nearly half anticipating substantial increases. 3. Key areas of investment focus include cybersecurity (55%); EHR modernization (46%); digital care (32%); and advanced analytics, AI and machine learning (31%). 4. According to Guidehouse, more than 50% of healthcare providers said they are increasing their digital and IT budgets to enhance satisfaction among patients and providers through improved operational efficiencies and better consumer experiences. is surge is primarily influenced by feedback from patients and providers who have expressed a desire for these improvements. 5. Seventy percent of respondents said they have revamped their decision-making structures, processes or capabilities in digital and IT since 2019 to facilitate more substantial and strategic investment decisions. 6. A third of respondents said they have initiated new relationships with outsourcing organizations or expanded existing ones. According to the findings, outsourcing non-core functions allows providers to enhance efficiency in tasks not performed at scale, manage risks and access next-generation technology systems without upfront costs. 7. In terms of digital and IT investments, over half of provider executives emphasized the importance of resources and operational implementation. 8. Additionally, 72% of respondents who are either decreasing or maintaining their digital and IT budgets in 2024 cite a lack of resources as the primary reason for doing so. n Can AI save hospitals from the staffing crisis? By Noah Schwartz S ome hospital leaders are optimistic that artificial intelligence could liberate their clinicians from hours of administrative work and return them to the bedside. "These new generative AI tools, the large language models, really have enormous potential," Cedars-Sinai CIO Craig Kwiatkowski told Becker's. "I don't see any silver bullets necessarily, but it does seem that we're on the cusp of being able to build solutions that can begin to bend the burnout curve." Even with healthcare wage inflation showing signs of slowing down, a Fitch report found that the sector's high rate of quitting and continued reliance on contract labor could continue to put stress on the labor market. More than half of nurses are still experiencing symptoms of burnout, with much of that being attributed to "administrative burden." Hospitals with investment arms have been active in providing financing to vendors that are building AI-based tools designed to combat burnout. Even in a faltering digital health market, Abridge, an AI-powered clinical documentation company, raised $30 million. The company received backing from CVS Health Ventures, Kaiser Permanente Ventures, Brentwood, Tenn.-based Lifepoint Health and Mayo Clinic. Pittsburgh-based UPMC was an early adopter of Abridge's technology and other generative AI tools designed to fight burnout. As the health system moves to Epic, UPMC IT leaders are bullish on AI. "AI will reduce many of the administrative burdens that are placed on healthcare workers, addressing not only staffing issues but also aid in reducing clinician burnout, while increasing productivity and documentation accuracy," said UPMC CIO Ed McCallister. Despite the AI optimism shown by some hospital execs, they have also stressed that the tools must be deployed with a clear framework and in a way that isn't too expensive. San Diego-based Scripps Health CFO Brett Tande said that "the economic investment in digital is costly, it needs clinical oversight to ensure it performs as expected." However, the health system is still running pilots on generative AI and looking to "wring cost out of the administrative setting in healthcare." "We are approaching this evolving technology with cautious optimism. Recently, we published an AI policy and standard that governs how our employees can ethically and safely use AI, with a focus on automation and analytics," said Mr. McCallister. "I am extremely excited to see how this will evolve over the coming years." n

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