How healthcare leaders are measuring IT vendor performance today
KLAS Research finds that trust, transparency and no-surprise, clear contracts are how they evaluate potential purchases.
KLAS’ new “Executive Voices 2025” report asked more than 3,000 decision-makers a painfully simple question about vendor behavior: Do they avoid charging for every little thing? Some 73 percent said that single habit is now a deal breaker. If leaders need a decoder ring to decipher pricing, a vendor is already in the red zone.
Cost, of course, is never just a number. The KLAS research makes it clear that cost-clarity has become a proxy for credibility. As soon as fees start to creep or contracts feel like “gotcha” games, executives assume similar opacity is hiding in a vendor’s roadmap, patch cadence or support model.
Cost clarity is the new credibility
Chief financial officers pull the rip cord the fastest. Opaque bundles and surprise add-ons top their list of replacement triggers, while transparent total cost of ownership models and modular licensing win loyalty. Chief executive officers echo the sentiment, viewing clear pricing as an indicator of strategic fit and vendor integrity. Even clinical leaders — traditionally shielded from budget minutiae — cite hidden costs as red flags when return on equity projections never materialize.
The takeaway is clear – price is negotiable, but opacity is not.
When projects implode, cost overruns are rarely the lone culprit. Executives ranked their top internal misfires, listing misaligned tech strategy (29 percent of respondents), inconsistent deployments (25 percent) and entrenched silos (15 percent). Even the most elegant technology can stall when only one department’s key performance indicators dominate the agenda.
Chief information officers and chief operating officers praise vendors that arrive with cross-functional playbooks. Chief medical information officers (CMIOs) and chief nursing information officers (CNIOs) plead for earlier clinical input so workflows aren’t “retrofitted” after go-live.
How to win each seat at the table
Here are top takeaways from the KLAS results, by position in the organization.
CEO/president. These enterprise stewards chase growth, clinician retention and reputation. They reward vendors who link IT spend to system-wide performance and simplify bloated portfolios. Overselling and jargon erode trust instantly.
Chief financial officer. “Show me the line items.” Transparent, flexible pricing and multiyear total cost of ownership models earn quick credibility; hidden fees spark immediate vendor swaps. CFOs judge every pitch on cash-flow impacts that they can defend at the next board meeting.
Chief data officer. They are the enterprise unifiers. Win them with data liquidity, open APIs and clear integration playbooks that cut technical debt. Lose them by creating new silos or looping them in after the shortlist is set.
Chief information officer. In today’s organizations, CIOs sit at the crossroads of transformation and risk. They prize portfolio harmony, lifecycle support and a roadmap they can trust, long before contracts are signed. Vendor sprawl or custom one-offs push them toward replacement.
Chief information security officer. CISOs measure vendors by zero-trust posture and patch velocity. Opaque risk documentation or lagging updates are show-stoppers; embedded security advisory and auditable APIs are tie-breakers.
CMIO, CNIO and clinical leaders. These influential leaders judge technology by click-count and burnout curves. Workflow-aligned user experience, rapid iteration on feedback and nurse-friendly design build loyalty; “one-size-fits-none” interfaces and slow fix cycles fast-track a vendor's exit.
Four moves vendors should make now
Lead with line-of-sight pricing. Publish a two-column contract – base vs. optional, upgrade cadence included.
Design for the big tent. Show how one platform bridges finance, ops, clinical and security KPIs on the same dashboard.
Build trust in the first 30 days. Offer sandbox access, board-ready decks and integration roadmaps before the first invoice lands.
Show receipts. Pair every claim with peer benchmarks or quantifiable outcomes — executives value proof over promises.
The C-suite has spelled out the rules of engagement. Vendors that embrace transparency, foster alignment and deliver early proof will help write the next chapter of healthcare’s digital story.