Building a Market-Leading IT Strategy for an American Hospital Network
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mayo 01, 2025
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A hospital network was approaching the halfway point of a 10-year outsourcing agreement with a managed service provider across multiple service areas. In the last few years, the relationship had become tumultuous due to leadership transitions, the COVID-19 pandemic and shifts in financial conditions. FTI Consulting was initially engaged to evaluate the existing contract and value delivered for the revenue cycle and IT service areas. After a successful engagement, the network requested a detailed assessment of the IT service area to improve oversight of the vendor’s service delivery, learn from best practices of effective partnerships and understand a vendor successor plan to explore alternate service providers at the end of the current agreement.
Our Impact
- FTI Consulting developed a detailed view of the current state IT operating model and identified gaps to achieving a best practice target state based on interviews with key stakeholders.
- The network received short- and long-term prioritization recommendations for their IT strategy to improve the current operating model, most notably to hire a chief information officer (“CIO”) to lead IT prioritization, partner with the vendor services provider on strategic initiatives and define and measure success.
- We created a successor vendor transition plan detailing the timeline, activities and risks associated with transitioning to a new service provider at the conclusion of the current contract; including milestones for critical contractual discussions and request-for-proposal (“RFP”) milestones.
- Our experts provided guidance on risk mitigation steps the organization could implement if they choose to transition any of the IT services in-house or to an alternate service provider, while also outlining the financial and operational implications of potential risks.
Our Role
- FTI Consulting performed a review of the contractual agreement and performance dashboards shared by the client and conducted stakeholder interviews with more than 20 individuals on both the client and vendor side.
- Our experts assessed the client’s current IT ticket submission and routing process and identified process enhancement opportunities to improve transparency across business users.
- FTI Consulting provided best practices from their outsourcing expertise to define the target state scenario for effective IT outsourcing agreements.
- The team developed an estimated successor vendor timeline for the client informed by our expertise and market knowledge of alternate IT service providers in healthcare.
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Publicado
mayo 01, 2025
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