IS Staff Realignment Saves $28M Annually
CLIENT
Academic Medical Center (confidential)
SERVICES
IT Planning, Information Technologies & Services Assessment, Technology Roadmap
OUR ROLE
Project Manager, Healthcare IT Strategists, Executive Leadership
One of our clients, a three hospital academic healthcare system, was struggling financially and requested for HealthTech Advisors to identify cost take-out opportunities. We proposed an Information Technologies & Services Assessment that was customized for the organization and discovered substantial annual recurring costs of $28M+ that could be eliminated.
the challenge
The challenges confronting this academic health system were that their financial position had been declining over the past several years. Although there was a “freeze” on hiring, approximately 56% of the Information Services team were contractors in a staff augmentation role. They also had unnecessary long-term discrete outsourcing contracts for Help Desk and other roles.
the solution
To support cost reduction efforts, HealthTech Advisors was selected to assist with:
- Review of long-term outsourced services contracts
- Analysis of the contracted staff roles and responsibilities
- Identification of areas where information services can be restructured and improved
- Develop a five year Technology Roadmap inclusive of new applications and expertise required for support
the results
As a result of our assistance, this academic healthcare system has been able to :
- Guide the executive team to understand the cost impact of multi-year headcount freeze and the Information Services actions to bypass the policy
- Reduce its contracted staff augmentation costs by 93%
- Terminate four contracts that had a $6M annual cost
- Transition a number of the contracted IS staff to employees
- Realize cost savings greater than $100M over a three year period