How a 250 Bed Hospital Saved 20% on Their IT Costs with Profit Advisory Group

In today’s digital era, IT costs can make up a substantial part of any business’s operating expenses, and hospitals are no exception. We at Profit Advisory Group/TechSource Partners have had the privilege of working with numerous healthcare facilities, helping them save substantially on their IT costs. This spotlight features one of our success stories – a 250-bed hospital that managed to save 20% on their IT costs.

The Challenge

Like many healthcare facilities, this 250-bed hospital was grappling with rising IT costs. They had a complex IT infrastructure, including electronic health record (EHR) systems, imaging and diagnostic tools, administrative software, and cybersecurity measures. Despite significant tech spending, the hospital was not seeing an equivalent return on investment. They reached out to us for assistance in streamlining their IT spending without compromising the quality of their patient care.

The Approach

We began with our signature risk-free IT audit, an exhaustive assessment of the hospital’s existing technology. The audit analyzed IT infrastructure, systems, software, contracts, and service level agreements to identify areas of inefficiency, overlap, and waste.

We discovered several opportunities for savings:

1. Legacy System Phasing: We found that the hospital was maintaining outdated legacy systems alongside newer technologies, leading to unnecessary expenses and inefficiencies.
2. Contract Consolidation: The hospital had multiple contracts with various vendors, some of which offered overlapping services.
3. Cybersecurity Optimization: Although cybersecurity is a necessary investment, we identified areas where the hospital was overspending on redundant security measures.
4. Cloud Migration: Some hospital functions were still running on local servers that required constant maintenance and periodic upgrades.

The Solution

Based on the findings of the IT audit, we crafted a comprehensive IT strategy:

1. Legacy System Phasing: We developed a phased plan to transition from legacy systems to modern, cost-effective alternatives.
2. Contract Consolidation: We negotiated with vendors to consolidate contracts and eliminate redundancies, leading to substantial savings.
3. Cybersecurity Optimization: We streamlined the hospital’s cybersecurity measures, focusing on comprehensive, cost-effective solutions that didn’t compromise patient data security.
4. Cloud Migration: We initiated a strategic migration of certain hospital functions to the cloud, reducing maintenance costs and improving scalability and accessibility.

The Result

The implementation of these measures led to a 20% reduction in the hospital’s overall IT costs, all while maintaining, and in many areas improving, operational efficiency and patient care quality. This success story is a testament to the power of a strategic approach to IT spending, coupled with the expertise to implement it.

At Profit Advisory Group and TechSource Partners, we specialize in helping businesses navigate the complexities of IT spending. Our risk-free IT audits and strategic approach to IT management allow our clients to achieve substantial savings and enhanced efficiency. Contact us today to see how we can help your organization optimize your IT costs.