JP Morgan headquarters in Canary Wharf financial district
Health care finances have been stable in recent months, and the primary focus of many health care providers is getting back to basics and improving basic health service offerings while reducing costs. JPM25 didn’t hold any new surprises, and here are the top three themes for Healthcare CIOs.
Expansion of the Health System
Expansion is still on the radar as organizations expand their market share, have a larger patient pool for value-based care, and expand their reach. Capital investment to build out-of-hospital access is substantial. Expansion may include ASCs, urgent care centers, outpatient imaging centers, and physical therapy clinics to provide community members with quality services on demand. By building a strong outpatient network and physician-owner networks, health systems can reduce patient churn and improve the patient experience.
For example, Sutter Health plans to invest $800 million in two new ambulatory medical campuses, which will allow them to upgrade legacy technology and improve patient experiences with self-service features.
Technology leaders must move away from traditional connectivity by taking advantage of 5G/6G technology in infrastructure. New builds enable healthcare CIOs to get it right from the start, eliminating the constant need to capture and upgrade aging infrastructures.
Streamlining the application
Large health systems are consolidating their technology stacks to create a unified operational standard. Application streamlining is a hot topic. For example, CommonSpirit Health is consolidating various EMRs and ERPs into a single platform. The organization focuses not only on its technology, but also on national programs such as the nursing residency program, a virtually integrated care model, patient connection centers, virtual patient monitoring centers and a digital customer experience platform—by advance these initiatives throughout the system.
Similar to 2024, healthcare CIOs will still be deeply involved in enterprise system implementation. Over the next few years, they will focus on cloud ERP upgrades or system conversions as many health systems face decisions regarding legacy ERP systems. CIOs must choose between upgrading to a modern cloud ERP or switching to a different cloud ERP vendor. Consolidating applications while transitioning to a new enterprise system is a big focus for healthcare CIOs, along with other priorities.
AI Partnership 2.0
We won’t have a healthcare conference in 2025 without bringing in AI solutions and AI integration. Health systems are investing in ambient AI solutions to reduce physician documentation time. A recent report from Rock Health reveals that AI solutions dominated the attention of investors and enterprises in 2024. AI-enabled digital health startups secured 37% of the year’s total sector funding through 191 deals. However, a study from NEJM suggests that the AI environment tool did not make physicians as a group more efficient. As I have shared before, will AI show a positive ROI, or is it a shiny object?
Insights from JPM25 underscore the crucial role of a strong CIO in leading healthcare organizations as they navigate an increasingly technology-driven landscape. With the increasing reliance on innovative solutions, successful healthcare CIOs must focus on adopting new technologies and stay aware of market trends in healthcare. Balancing these responsibilities is key to using technology for a competitive advantage.
