IT Projects Move Forward Despite Cutbacks | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

IT Projects Move Forward Despite Cutbacks

December 10, 2008
by root
| Reprints

Although one in four hospital executives surveyed by

College of Healthcare Information Management Executives

(CHIME, Ann Arber, Mich.), the

National Alliance for Health Information Technology

(NAHIT, Chicago), and

AHA Solutions Inc.

(Chicago) have laid off workers and/or instituted a hiring freeze, many providers are moving ahead with strategic clinical IT projects

According to results of the survey, for which 144 CIOs and 27 CFOs and vice presidents of finance at health systems across the country were polled, organizations are taking measured steps to cope with the financial crisis, including delaying capital projects and cutting capital and operating budgets. However, investments in EHRs, CPOE, and medication management remain high-priority projects for about half or more of all respondents. Strategic IT projects, they said, are seen as integral to achieving greater operating efficiencies as well as other organizational goals such as increased patient safety, according to the study.

Other key findings from the report are as follows:

· Fifty-five percent of CFOs/VPs Finance are experiencing slight or significant delays in accessing capital and expect the financial crisis to last another 12 to 24 months.
· CFOs/VPs Finance are delaying or lengthening timeframes for completing new facilities or facility upgrades (74 percent) deferring IT equipment purchases (57 percent) and delaying or lengthening timeframes for implementing health IT initiatives (52 percent).
  • CIOs are responding by implementing longer timeframes for application projects (63 percent) and reducing spending on outsourced IT services (34 percent).

· Thirty-three percent of CFOs/VPs Finance have cut budgets while 26 percent has laid off staff and/or instituted a hiring freeze.

· Almost all respondents (94 percent) have cut IT budgets by extending implementation time for existing projects and delaying or reducing the slate of new projects.

To view the full report, with respondent quotes and survey questions, please visit



Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.

AMIA Warns of Tax Bill’s Impact on Graduate School Programs in Informatics

Provisions in the Republican tax bill that would count graduate student tuition waivers as taxable income would have detrimental impacts on the viability of fields such as informatics, according to the American Medical Informatics Association.

Appalachia Project to Study Relationship Between Increased Broadband Access, Improved Cancer Care

The Federal Communications Commission and the National Cancer Institute have joined forces to focus on how increasing broadband access and adoption in rural areas can improve the lives of rural cancer patients.

Survey: By 2019, 60% of Medicare Revenues will be Tied to Risk

Medical groups and health systems that are members of AMGA (the American Medical Group Association) expect that nearly 60 percent of their revenues from Medicare will be from risk-based products by 2019, according to the results from a recent survey.