Health IT budgets playing catch-up amid pressure for value

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Healthcare entities are more likely to increase IT spending over the next year than other industry sectors, according to a Harvey Nash/KPMG CIO Survey.

The survey of 3,352 CIOs and technology leaders included 190 respondents from the healthcare industry. Of the healthcare CIOs, 52 said they expect a boost in IT budget over the next 12 months, compared with 45 from other industries. IT spending in healthcare traditionally has lagged behind that of other industries, but now it’s under pressure to catch up, KPMG’s Vince Vickers notes in an announcement.

The survey also found healthcare companies:

  • Place a higher priority on increasing operational efficiencies, improving business processes and delivering business intelligence/analytics than the averages across other industries.
  • Are less likely, however, to have a "clear digital business vision and strategy" than other industries. Thirty-nine percent of healthcare CIOs said they’re in the midst of developing a digital strategy.
  • Are more likely to turn to outside resources, such as strategic partnerships or contracting, to cope with digital disruption. They’re less likely than other industries to implement DevOps in their quest for agility.
  • Face digital disruption from many of the same source as other industries, but are more likely to face disruption from new operating models.

Healthcare CIOs see their role as becoming more strategic than in all industries (80 percent vs. 67 percent for all industries). What's more, respondents believe, healthcare companies face greater IT skills shortages than other industries, with the most pressing shortages in big data/analytics, project management, change management and security and resilience.

An IDC Health Insights report published earlier this year also found growing IT budgets, with many organizations investing to expand mobile and analytics use in the cloud.