It’s becoming increasingly important for healthcare organizations to establish a comprehensive and well-planned IT budget to stay competitive, efficient, and compliant. According to a survey in June 2023 by Bain & Company and KLAS Research, nearly 80% of hospitals and health systems materially increased IT and software spending from 2022 to 2023. About 75% expect to make “more” or “far more” investments in 2024.1
As technology continues to play a vital role in patient care and operational efficiency, healthcare leaders must carefully consider their IT investments. Explore the primary costs to include in your healthcare IT budget to make more informed decisions and optimize your technology investments.
Electronic Health Record (EHR) Implementation
EHR systems are the backbone of modern healthcare IT infrastructure. When budgeting for EHR planning and execution, it’s essential to consider several factors. Software costs, including subscriptions and licensing fees, can vary significantly depending on the size of your organization and the complexity of the system. Many EHR providers offer cloud-based solutions with subscription models. While these can help spread costs over time, they may result in higher long-term expenses than one-time licensing fees.
Hardware costs associated with EHR implementation can also be substantial. These can cover servers, workstations, and mobile devices for accessing and inputting patient data. The shift towards mobile-friendly EHR solutions means that organizations should also budget for mobile devices so staff can access patient information on the go.
Many organizations underestimate the costs of training and building an EHR team. However, these costs are necessary for successful adoption and can include expenses for customization, data migration, and comprehensive training programs. Therefore, budgeting for training can significantly impact the success of your EHR implementation.2
IT Infrastructure and Equipment
A robust IT infrastructure is essential for supporting EHR systems and other healthcare applications. Networking equipment, such as routers, switching, and cabling, forms the foundation of this infrastructure. Healthcare organizations are relying more on high-speed data transmission for operational efficiency, which makes investing in modern networking equipment a necessary cost to budget for.
Data storage is another factor to consider when establishing a healthcare IT budget. You’ll need to review on-premises and cloud-based data storage solutions to maximize your investment. While on-premises solutions offer greater control over data, they often require higher upfront costs and ongoing maintenance. Cloud storage may come with higher long-term costs but can provide scalability and reduced maintenance needs.
Regular maintenance and upgrades will also impact your total IT cost. This includes budgeting for hardware replacement, software updates, and routine system checks to ensure optimal performance and security.
Security and Compliance
Cybersecurity and compliance costs are non-negotiable components of a healthcare IT budget. Solutions such as firewalls, antivirus software, and encryption tools protect sensitive patient data and maintain the integrity of healthcare systems. Include expenses for security audits, data protection training, and systems that monitor and report on compliance. To maintain assurance standards under HIPAA and other regulations, consider the costs associated with compliance.3
Staffing and Recruitment
The success of any healthcare IT initiative depends on the skills and expertise of the staff managing and using these systems. Budgeting for IT staffing should include costs for filling healthcare technology roles such as systems administrators, network engineers, and data analysts. However, recruiting and retaining top IT talent can be challenging and expensive in today’s competitive healthcare market.
This is where working with specialized recruitment partners such as Medix Technology can help. Medix Technology offers cost-effective strategies for quickly building your team of highly qualified and vetted IT and EHR professionals. With our flexible staffing solutions, you have access to consultants as well as candidates who can fill temporary, temp-to-perm, or permanent roles.
Additionally, consider factoring in ongoing training for IT staff. Ensuring your team’s skills are up to date will be critical as technology advances to maintain an efficient and secure IT environment.
Software Development and Maintenance
Software needs differ between organizations and often require customized systems to fulfill diverse goals. Start preparing for initial development costs, ongoing maintenance, and continued support. Look beyond the immediate development expenses and include long-term costs for updates, bug fixes, and feature enhancements.
Estimating the expenses for future upgrades is challenging but necessary. Technology is constantly advancing, and healthcare organizations must be prepared to adapt their systems to new requirements. Setting aside a portion of the IT cost for future opportunities can help ensure your organization remains technologically competitive and compliant with evolving standards.
Operational Costs
The day-to-day operational costs of running IT services can add up quickly. These include expenses for cloud services, data center operations, help desk support, and routine system maintenance. Get a clear understanding of these ongoing costs to avoid budget overruns.
Additionally, healthcare organizations should budget for unexpected expenses and contingencies. Technology failures, cyberattacks, or sudden regulatory changes can initiate unplanned expenditures. Having a financial buffer for these situations can mitigate risks and help maintain operational consistency.
Let Medix Technology Help Support Your Healthcare IT Goals
Creating a comprehensive healthcare IT budget requires careful consideration of various factors, from EHR implementation and infrastructure to staffing and operational expenses. Accounting for these costs can help healthcare organizations better position themselves to leverage technology effectively, improve patient care, and maintain operational efficiency.
Medix Technology stands ready to support your healthcare IT goals. Our expertise in healthcare IT staffing can help you optimize your budget, providing cost-effective hiring solutions for less than the costs of traditional consultants and full-time hires. This approach helps you stay under budget and provides access to the skilled professionals necessary to support your healthcare IT initiatives. Connect with Medix Technology to learn how we can help you navigate the complexities of healthcare IT budgeting and staffing.
