Identifying Cost Reduction Targets in Health Care

Health care organizations are under constant pressure to reduce costs and improve patient care services. On top of that, they have the increased scrutiny from oversight agencies and regulations demanding transparency of operations. And yet many of the IT Services within the Health Care industry are consistent across providers. Apptio has experience working with Health Care providers, mapping their cost per service, providing visibility to IT costs to executive management and finding opportunities for real cost savings.

"Through Apptio's Technology Business Management software we've been able to identify and push through a number of cost savings initiatives, providing significant savings to Saint Luke's in a short period of time." Deborah Gash, CIO, Saint Luke's Health System

Automating IT Cost Allocation

Health Care organizations carry a unique set of IT Services. Understanding the total cost of those IT Services provides the practice leaders and IT management a better framework reducing cost and applying IT resources to the most important services, including new strategic initiatives. By creating a model where all costs in IT are allocated up to their respective IT Services, and appropriately partitioned out to the various departments that consume them, the practice leaders become more informed about how the use of IT translates into business expense. By providing a Bill of IT, IT opens up the dialogue around how the IT budget is being spent and what steps can be taken to reduce cost and provide new services.

Identifying Cost Reduction Targets in Health Care

Because Hospitals, in particular, have rather standardized IT service offerings (compared to other industries) and a unique user profile, they can take advantage of careful analysis of their service offerings for significant cost savings. Whether its back office services or clinic-side services, Apptio has industry experience with customers such as Blue Cross Blue Shield of Kansas City and Saint Luke's Health System providing deep visibility into the IT cost structure, reducing overall spend and budgeting and planning processes.