The market dynamics in healthcare force many hospitals and other healthcare facilities to renew their care propositions. The marketplace allows patients to choose their healthcare provider, and empowers insurance companies to prod healthcare facilities to optimize. Healthcare providers are no longer public organizations, and many of them are struggling with the change into marketdriven companies.
Management aims for cost reduction to keep the organization financially viable, but the forced optimizations cause trouble with the staff. Processes such as diagnosis, treatment, and red tape are now dictated by the insurance company. Employees are uncertain about the future of their organization, and many are worried about their position within the team of care professionals.
Within the field of healthcare, information technology (IT) has a large potential to save costs. IT can transcend the traditional ways of cost-cutting when it is used to develop new capabilities. Managers gain control over the risk that comes with economizing so that they can reduce costs while maintaining the quality of patient care.