Most medical groups know what it’s like to see costs begin to outpace revenue. While inflation and supply chain issues have partly been to blame, the most cited driver of rising costs is labor.
In fact, 98% of healthcare leaders lean on third-party vendors to achieve labor-related cost efficiencies. Cybersecurity is one of the most outsourced capabilities, mainly due to a major shortage of specialized experts; as of 2023, the global cybersecurity workforce gap was nearly 4 million — a 12.6% YOY increase from 2022. This statistic is concerning, especially considering that from 2018 to 2022, healthcare facilities within the U.S. saw a 93% increase in large data breaches. The increase in risk combined with the decrease in available workforce has made it immensely challenging for medical groups to ensure data safety and security.
In this blog post, we discuss three strategies that medical groups and systems can use to reduce IT management costs without sacrificing compliance or control. We also detail which four aspects of IT would be most powerfully impacted by small operational augmentations.
3 Ways to Minimize Costs & Maximize Security
- Hire Across State Lines
Medical groups that offer remote work options for open healthcare IT positions gain immediate access to a wider pool of talent. This wider pool is especially important for small and mid-sized medical groups operating in smaller markets, which have been hardest hit by the IT and cybersecurity workforce gap. Fortunately, remote work allows healthcare practices—no matter how rural—to secure IT capability and knowledge through full-time employees or contracted support.
A secondary benefit of this wider talent pool for any size healthcare group is the opportunity to save money by hiring experts who live in markets with a lower cost of living. For example, the cost of living in San Francisco is currently 20-25% higher than in Chicago; the same is true of Boston vs. Atlanta. Hiring from regions like the Midwest and the South enables medical groups to choose individuals who have comparable expertise and qualifications— but not the same financial burdens or expectations— as candidates from more costly areas.
- Improve IT Employee Retention
Just like employees in industries like insurance, finance, and retail, healthcare IT employees increasingly seek flexible opportunities that embrace virtual work. Medical employers say they’re working to meet this demand—with 59% of nearly 1,000 group practices reporting they had shifted workers to permanent remote or hybrid settings in 2021.
Medical groups that open IT positions to remote candidates can expect to save money and improve retention. Transitioning an on-site employee to remote for just half the year saves a typical U.S. employer an average of $11,000, with much of the savings coming from preventing turnover and reducing absenteeism. Other studies have shown that both productivity and job satisfaction are improved by flexible work-from-home options. Besides compensation, job satisfaction is the key factor in employees’ decision to grow with an organization, rather than taking their skills elsewhere.
- Strategic Outsourcing: Accessing Fractional Skill Sets
Greater access to IT talent and better retention rates can improve a medical group’s performance and efficiency. Yet smaller groups may still not have the appetite—or budget—to hire a new FTE, even from a region with a low cost of living.
Remote work has enabled a range of solutions for this dilemma. Groups that have been hesitant about outsourcing IT might instead consider a hybrid FTE/outsourced IT staffing model. This gives them access to top-tier experts while retaining the flexibility to trim and scale services as needed.
Outsourcing fractional skill sets at a significantly reduced price compared with a full team of on-premise IT security resources may not only be a budget game changer. It can also significantly increase the efficiency and security of healthcare IT operations.
4 Areas for IT Augmentation
To create the most impact without committing to a major investment, consider augmenting your IT staff in the following areas:
- Network Management
Relying on an external expert to handle network management can enhance operational efficiency. It can also help your providers and staff focus on core healthcare functions and ensure optimal patient care. By leveraging the expertise of specialized managed service providers, healthcare organizations can access cutting-edge technology, benefit from economies of scale, and stay abreast of rapidly evolving IT trends. Outsourcing enables the delegation of routine network maintenance tasks, security updates, and troubleshooting to skilled professionals. In turn, your organization’s internal resources will be freed up to concentrate on healthcare delivery and innovation. This approach often results in cost savings, increased system reliability, and the ability to adapt swiftly to emerging challenges.
- Help Desk Support
Outsourcing IT help desk support also offers a myriad of advantages for organizational efficiency and optimal patient care. Externalizing this function allows you to tap into a specialized pool of IT professionals, ensuring swift and expert resolution of technical issues. By entrusting routine support tasks like troubleshooting, software updates, and user assistance to a dedicated service provider, your internal IT teams can refocus on strategic initiatives and patient care. This approach often results in improved response times, enhanced user satisfaction, and a more streamlined IT infrastructure. Additionally, outsourcing provides access to a broader knowledge base, cutting-edge technologies, and scalability, enabling healthcare organizations to adapt seamlessly to evolving IT trends.
- Analyst Services
Augmenting your IT staff with analyst services can help your organization optimize data management, analytics, and decision-making processes. A healthcare-specialized IT analyst can assess, analyze, and interpret your complex information technology systems, data sets, and processes. They can provide actionable insights and recommendations that support your organization’s goals. By leveraging external resources, organizations can access advanced analytical tools, methodologies, and insights without the need for substantial in-house investments. Outsourced IT analysts can contribute to improved data accuracy, enhanced predictive modeling, and more effective utilization of electronic health records (EHRs) for informed decision-making. This strategic move not only facilitates compliance with evolving regulatory requirements but also empowers your practice to derive actionable intelligence from your data.
- EMR/EHR Support Services
Hiring a healthcare IT expert to manage your EMR/EHR systems can help optimize their functionality, security, and efficiency. For example, a managed services provider possesses a deep understanding of EHR systems, ensuring prompt issue resolution, seamless software updates, and robust cybersecurity measures. By entrusting EHR support to external professionals, you can access specialized knowledge without the need for extensive in-house training and infrastructure investments. This approach enhances system reliability and allows internal healthcare teams to focus on core patient care activities. You want to foster a more streamlined and patient-centric healthcare environment while ensuring compliance with evolving regulatory standards.
Consult an Affordable IT Partner to Increase Profitability
PSM is an expert at augmenting IT teams at an affordable cost. Schedule your complimentary consultation to learn how our suite of IT services can help you achieve financial sustainability.