Technology Spending and Accountable Care

By William R. Gorski, MD; Philip A. Wasson, FACHE; and Daniel J. Marino

One of the factors driving growth in healthcare IT is the push for accountable care and clinically integrated care. Hospitals are making significant investments in technology to support clinical information exchanges, clinical integration and performance-based reimbursement models.

The challenge for hospital CEOs is how to gauge return on investment (ROI). Technology budget proposals can typically be evaluated in terms of efficiency gains, cost reductions and service line enhancements. For some IT projects, ROI can justify upfront costs. Unfortunately, accountable care is different. New clinical and reimbursement models are not yet mature enough to support profitability. Accountable care technology support systems are an investment in a long-term strategy, not near-term gains.

Still, IT spending needs to be a sustainable investment, with a realistic financial rationale and manageable current costs. How can hospital CEOs guide a responsible approach to building the IT infrastructure for an accountable care organization (ACO)? The key is focusing on core goals, strategies to improve care and technical solutions required for success.