The Importance of C-Suite Alignment in Health System Technology Transformation
US health systems are increasingly prioritizing multidimensional growth strategies and cost containment, with transformative technologies like AI, cloud, and virtual reality serving as key enablers. A recent joint survey conducted by the Deloitte Center for Health Solutions and the Scottsdale Institute found that when C-suite leaders are aligned, health systems can improve technology transformation.
The survey, which included 43 executive leaders from US-based health systems, revealed that 61% of respondents reported C-suite alignment and collaboration as the top driver of successful technology initiatives. This finding highlights the importance of collective C-suite responsibility in developing strategies to maximize value from technology investments.
Key Drivers of Successful Technology Initiatives
The survey identified several key drivers of success in health systems’ technology initiatives:
- C-suite alignment and collaboration (61% of respondents)
- Involving end users in designing tech initiatives (64%)
- Business functions leading technology initiatives (41%)
Measuring Effectiveness of C-Suite Collaboration
The survey found that greater collaboration in the planning phase is working well, with 91% of respondents reporting that they work together on top opportunities or challenges that technology can solve. However, there is room for improvement in financial incentives and measurement. Only about one in four respondents reported tying their financial incentives and bonuses to the value gained from tech initiatives.
Enhancing Accountability
To enhance accountability, the survey suggests broadening measures beyond financial metrics to include consumer, workforce, and administrative indicators. Examples from health systems that have successfully broadened their metrics include:
- A regional nonprofit health system that launched a digital medicine obstetric program, measuring patient satisfaction, physician experience, and program reach.
- An independent rural access hospital that used AI-based coding to improve revenue cycle management, measuring return on investment, reduction in discharged-not-final-billed cases, and improvement in coder productivity.
Strategic Imperatives for Health Systems
To achieve greater value from technology initiatives, health systems should consider developing strategies that involve greater C-suite collaboration, enhancing technology capabilities, focusing on data modernization, ensuring interoperability, strengthening cybersecurity, and implementing workforce transformation initiatives.
By adopting these strategies and improving C-suite collaboration, health systems can drive greater value from their technology investments, fostering growth and improving margins.
