Vendor CEO: Final Report

Respondents were asked to identify their clients’ top five IT priorities, both currently and in two years. Survey respondents were most likely to identify integrating systems in a multi-vendor environment (53 percent currently; 48 percent in the next two years). Last year, this was the priority ranked second by respondents. Implementing technology to reduce medical errors and promote patient safety emerged as this year’s second most frequently mentioned answer (46 percent currently, 42 percent in the next two years). This was last year’s third most frequently provided response. In third place among clients’ current priorities is implementing privacy modifications to meet HIPAA requirements, identified by 41 percent of respondents. The third place response for future priorities of clients is the deployment of Internet technology, cited by 37 percent of respondents; last year, 39 percent of respondents indicated this type of technology was a future priority for clients.

The priority identified by the most respondents last year, IT security upgrades to meet HIPAA requirements, fell to fourth place among current priorities and to fifth place for future priorities. Other notable changes from last year include a decrease of 12 percentage points for those who indicated that either deploying Internet technology or replacing/upgrading ambulatory care systems was a priority and an increase of 11 percentage points for those who indicated that designing and implementing an IT strategic plan or process/workflow redesign are important. Thirty-two percent of this year’s respondents also indicated that implementing enterprise-wide applications is a priority. While this represents a 22 percentage point increase over last year’s response, part of the increase can be explained by the broadening of the category this year to include a wide array of enterprise-wide applications; last year, the category only mentioned a master patient index (MPI).

With many HIPAA requirements having 2003 deadlines, it’s not surprising that responding vendors indicated that implementing EDI to meet HIPAA requirements and implementing privacy modifications to meet HIPAA requirements would be less of a priority for their clients in the future. Each declined by 15 percentage points as a future priority, compared with clients’ level of concern today.

The top three business issues that vendors indicate will have the greatest impact on healthcare in the next two years remain constant. Vendors, who were able to select among five choices, were most likely to identify HIPAA compliance as the business issue that will have the greatest impact on healthcare in the next two years, cited by 68 percent of respondents. Cost pressures were identified by 61 percent of respondents (up from 55 percent in 2002), and improving operational efficiency was identified by 44 percent of respondents.

Vendors responding to the 2003 survey also were much less likely to identify obtaining capital as a business issue that would affect healthcare than were respondents to the 2002 survey (13 percent vs. 33 percent). According to vendors in this sample, mergers and consolidation also declined in importance, from 17 percent to 5 percent. This year’s respondents also were more likely to identify improving quality of care as a business issue that will affect healthcare. It climbed more than nine percentage points to 33 percent.