How the CIO’s role must evolve to lead digital transformation
CIOs must master new realities and redefine their roles to become the innovative architects that organizations need to design their digital futures.
The role of the healthcare CIO is evolving rapidly, driven by technological advancements, changes in healthcare practices and the ongoing challenges posed by distributed care models. As CIOs navigate this dynamic landscape, they must take proactive steps to stay aligned with the changing requirements of their roles and their organization.
The traditional role of a CIO in the healthcare industry has primarily revolved around technology evaluation and implementation, budget management and process optimization. However, the COVID-19 pandemic marked a significant turning point in three unique ways.
First, health systems had to swiftly adapt to new distributed operational and care delivery models. CIOs found themselves responsible for supporting remote teams and virtual patient care technologies and implementations.
Additionally, CIOs faced economic struggles in 2023 as health systems reported worsening cash flows and razor-thin operating margins. Health IT leaders now must do more with less, as budgets continue to be slashed.
Finally, the rapid advancement of AI, cloud technologies and digital transformation is pushing CIOs to re-evaluate their technology stack. Today, CIOs are strategically assessing all technology innovations to ensure their organizations remain competitive and financially sustainable.
These three impacts converge to support important change for healthcare CIOs’ status quo, with soft skills emerging as valuable career assets.
Communication and collaboration are key
A notable statistic from CIO Magazine states that 58 percent of CIOs still act as the traditional CIO would. In a recent presentation at the Georgia state chapter of HIMSS, Ed Marx mentioned that only 20 percent of CIOs are considered innovative.
To bridge this gap, CIOs must work collaboratively with hospital operations, departmental leaders and operational end users to create a more streamlined, efficient and cost-effective technology environment. Communication with both internal teams and key stakeholders across the healthcare ecosystem is essential.
No longer can the CIO be the sole visionary responsible for the direction of the organization’s technology and data strategy. Instead, a collective effort involving multiple groups of stakeholders is the most effective path forward. Multi-stakeholder collaboration identifies areas in which efficiencies can be achieved. Healthcare is a complex environment, and as such, maintaining a siloed operational mindset hinders progress.
Anticipatory planning
EHR and revenue cycle systems are central to healthcare operations, and many health systems are making transitions to new EHR vendors through mergers, acquisitions or replacement of outdated legacy systems.
Best-of-breed health IT strategies involve the layering of specialized solutions that excel in their respective areas. Since technology solutions have become leaner (through cloud capabilities, FHIR, automation and APOs), a best-of-breed approach is certainly more attractive to budget-minded CIOs.
However, to make this approach work effectively, CIOs must ensure these systems seamlessly communicate and integrate with EHRs, revenue cycle systems and other legacy platforms to continually eliminate data silos and inefficiencies. Vendor management expertise also plays a valuable role as system volume grows.
Finally, data accuracy, quality and integrity are foundational factors for future success. Healthcare data is notoriously inaccurate and duplicative. Often, patient duplication rates up to 25 percent can potentially amount to 1.2 million duplicates in one health system alone.
Forward-thinking CIOs provide a clear vision and structure for improved multi-lateral data governance. This includes establishing a dedicated data governance executive team and equipping the organization with tools to manage data effectively during major system transitions.
Key tactics in vendor management
Building strong relationships with technology partners and effectively managing vendor risks in a distributed healthcare ecosystem is paramount. This starts with a clear strategic blueprint and proper alignment with the vendor’s digital health capabilities.
Trust is a cornerstone for these relationships. A symbiotic relationship is more likely to drive success than an antagonistic one. Consider these four best practices for optimal vendor management in health IT.
- • Partner with vendors who share their values and goals.
- • Foster a relationship built on trust and partnership rather than one fraught with finger-pointing.
- • Build and monitor clear key performance indicators (KPIs) for mutual success.
- • Hold vendors accountable to show how they support KPIs and help the organization achieve its goals.
By understanding the evolving landscape, CIOs lead their organizations to navigate developing challenges, seize opportunities and optimize both existing health IT system platforms and new technology capabilities. Ultimately, success depends on CIOs’ ability to embrace change, foster collaboration, and build strong relationships with their stakeholders and technology partners.
The future is promising for those who are willing to adapt, collaborate and remain committed to high-level organizational goals and values. The evolving landscape demands visionary leaders who can efficiently harness the power of technology and teams to enhance patient care and drive operational excellence in healthcare systems.
Rich Amelio is vice president of healthcare information, operations and consulting for e4health. He can be reached at ramelio@e4.health