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Healthcare Organizations Prioritizing Cybersecurity Investment, Warming Up to AI

Analysis  |  By Jay Asser  
   September 20, 2024

A new survey reveals technology investment choices and outlooks by providers and payers.

Even with providers and payers focused on getting the most bang for their buck on investments, healthcare organizations are showing a willingness to spend on technology to address pain points and strive for innovation.

In a survey of 150 providers and payers by Bain & Company and KLAS, 75% of respondents reported increased IT investments over the past year, with an emphasis on addressing cybersecurity and labor challenges.

This year has seen several cyberattacks in healthcare that have highlighted the importance of cybersecurity spending. Chief among them is the Change Healthcare attack in February, which 70% of surveyed respondents reported being directly affected by.

In response, many organizations said they’ve audited internal systems and current vendors, while 56% of payers and 38% of providers have increased cybersecurity software spending. Only 11% of providers and 8% of payers stated they’ve not taken action.

Investment in IT infrastructure and services, including cybersecurity, was cited as a top-three priority the most among providers, selected by 38% of respondents. That was followed by clinical workflow optimization (35%) and data platforms and interoperability (33%).

One way to improve clinical workflow optimization is to embrace AI solutions and that’s something surveyed providers have shown a willingness to do. About 15% of providers said they have an AI strategy today, compared to around 5% in 2023.

Both providers and payers reported optimism about implementing generative AI, which the former group is using to assist in areas like clinical documentation. Generative AI solutions have the potential to significantly reduce the administrative burden on clinicians, giving them time back for both their work and personal life, resulting in less burnout.

However, providers and payers alike cited regulatory and legal considerations, cost, and accuracy as the biggest obstacles to implementing AI.

Costs in general were chosen as the top concern to technology investment for providers, selected as a top-three pain point by 49% of respondents. Electronic health records integration was second among the pain points (42%), showing that providers prefer to stick with current vendors instead of pursuing unknown ROI.

Nevertheless, organizations appear more eager overall to take chances and experiment with their technology investments in a post-pandemic world.

Jay Asser is the CEO editor for HealthLeaders. 


KEY TAKEAWAYS

Three out of four organizations have upped their IT investments in the past year, according to a Bain & Company and KLAS survey of 150 providers and payers.

IT infrastructure and services, including cybersecurity, was a top investment priority for providers, with 38% increasing cybersecurity spending in response to the Change Healthcare cyberattack.

AI solutions are gaining more traction with providers and payers, with the former group recognizing the potential for improving operational efficiency and easing administrative burden.


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