Monday, December 23, 2024

The strategic responsibilities of health systems CIOs are constantly evolving

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The typical healthcare CIO is taking on more responsibility for defining digital strategy and transformation, and 84% of CIOs are now part of an organization’s leadership team.

This is just one recent statistic WittKieffer Survey CIOs and chief digital officers, which also found that the majority (54%) report directly to the CEO.

The report also highlights some changes to IT titles. While classic CIO titles are still common, with 71% of employees retaining the designation, one in five now holds the title of chief digital and information officer, indicating a shift toward emphasizing digital transformation responsibilities.

Two-thirds of these CDIOs were appointed in the last three years, indicating the current trend towards high-level integration of digital functions.

A highly valued role

Nick Giannas, senior partner at WittKieffer, said few senior leaders are as critical to an organization’s future as the CIO.

“Healthcare organizations greatly value the role, partnership and influence of their CIOs at all levels,” he said. “They seek their advice and guidance as they prioritize digital and AI initiatives to drive efficiencies, improve patient and provider experiences, and overall care outcomes.”

Current IT priorities include preparing for the adoption of artificial intelligence and machine learning, which 92% of CIOs anticipate by 2025.

However, the immediate focus appears to be on core activities, with 47% prioritizing the development of safety programs.

Forty percent of respondents said they were involved in immense implementations of systems such as electronic health records and enterprise resource planning systems.

Abu Mirza, global vice president of digital products and engineering at GE HealthCare, said healthcare systems are increasingly prioritizing the implementation of artificial intelligence and cloud-based technologies, especially those that lend a hand escalate scalability and cost efficiency.

“This is a trend that we will continue to see in 2025, especially as we see that such technologies bring tangible benefits in terms of improving patient care and improving operational efficiency,” he said.

Job satisfaction, high turnover

Despite high turnover 53% of CIOs assumed their positions within the last three years job satisfaction is high – 78% described themselves as “very” or “very” satisfied.

Brian Ackley, chief technology officer at UpScriptHealth, said organizations need to think holistically about their tech staff or they will suffer from high turnover rates.

“There is a lot of turnover right now because there are many opportunities available to qualified workers,” he explained. “Generally speaking, if a CIO is happy at his or her current company, feels respected, appreciated, reasonably well-compensated, and believes there is an excellent career path, there is no reason to look elsewhere for a job.”

He added that fundraising for healthcare IT companies has been a challenge in recent years and many companies have been unable to raise another round of capital, making alternatives intriguing from a technology resources standpoint.

“The demand for technology leaders is very high and salaries are rising,” he said.

Appropriate expected CIO remuneration

The survey results suggest that salary trends correspond to an escalate in empowerment, as nearly half (47%) of CIOs appointed in the last three years earn more than $500,000 annually.

WittKieffer consultant Zachary Durst said it’s crucial to emphasize that compensation depends on the size and scope of the organization, geographic location and other factors.

The report indicates that wages are rising overall, especially for executives who move to a recent employer a quarter of CIOs who changed jobs increased their income by more than 20%.

“This means organizations may need to re-evaluate annual compensation adjustments to retain current IT leaders in an increasingly competitive marketplace,” Durst said.

He added that it is crucial for organizations to know what the market expects of CIOs and other key members of IT teams so that they can adapt accordingly rather than lose key personnel.

CIOs plan to escalate the number of IT employees

More than two-thirds (68%) of CIOs surveyed said they plan to retain or grow their IT teams, with a sturdy emphasis on internal talent, as 87% of organizations said they plan to outsource less than a quarter of their IT functions.

Talent development remains a top priority, although challenges in improving team performance (59%) and creating development opportunities (53%) highlight the need for targeted skills development initiatives.

Dr. Harvey Castro, a physician and health care consultant, said upskilling programs are a key part of efforts to retain and strengthen internal talent.

“Continuous learning opportunities in areas such as artificial intelligence/learning, cloud technologies and cybersecurity keep the IT workforce competitive and prepared for the demands of healthcare technology,” he said.

Commitment to skills development should be accompanied by efforts to build a collaborative culture in which interdisciplinary teams combine IT and clinical expertise to develop effective solutions.

To retain top talent, many organizations also create structured career paths.

“Clear opportunities for growth within the organization give employees a reason to stay and advance their careers internally,” Castro explained.

Versatile work models, career development

Additionally, versatile work models, including hybrid and remote options, have become an crucial offering, especially as healthcare IT adapts to post-pandemic expectations.

In addition to proficiency in AI/ML and data analytics, a good understanding of cybersecurity frameworks is crucial to protecting sensitive healthcare data.

“Cybersecurity is a top priority given the importance of protecting patient information,” Castro said.

Hillary Ross, managing partner, information technology practice leader at WittKieffer, recommended that healthcare organizations cast a wider net of talent to other industries, especially for people who may be interested in working in a mission-driven industry like healthcare.

“Create individualized development plans that outline how an individual can grow and advance within the organization and in their career,” she said.

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