Episode 160 •
17th August 2023 • This Week Health: Newsroom • This Week Health
00:00:0000:11:44
Transcripts
ituations family can face. In:
Every time they have the opportunity to sit down at the table without adding additional value, if they are adding additional value, it is not just a price increase. It is additional value that they're creating. If they are adding. Software adding features and those kinds of things. , If it's, if you look at that history over time and it's acceptable, then. That's an acceptable level of vendor. Lock-in. You have an organization that sees themselves as a partner and they're going to work with you and they are going to get paid for the value that they are offering. And I think that speaks to leadership. And this is why I say things like Steve Balmer's, Microsoft and such, and a Dallas. Microsoft. They're different. They're different companies. One was hell bent on growing the, , the, , investor return and those kinds of things. And the other is more measured. And focused in on the clients and what they need and developing new services around what those clients need. And so. I think you have to look at, obviously their price increases over time. You have to look at their leadership. This is why when people say, you know, Hey, we have, we've a lot of vendor lock-in with the HR providers. And I say to them, do you trust the EHR providers? Do you trust those organizations? And I think it matters. I think it matters who the leadership is. I think it matters what their history is. I think it matters if you feel like it's a fair amount of money that they are taking for the services that they're offering. And, , and I would look at the leadership. Because the reality is once you've gone to any HR, you're not swapping it out. Not anytime soon. Anyway. Not unless there's a. , an event that causes you to head in that direction. And so there's a vendor. There's an amount of vendor lock-in that you are. , you are agreeing to, if you're doing these large projects, if you go to a new ERP solution, you're likely not moving out anytime soon. If you go to new EHR, you're not moving at any time soon. If you do a PAC system. , because of the cost, the expense, the complexity, you're probably not moving out any time soon. And so as you look at consolidating on a single packs environment and you can have my gosh, I saw a diagram the other day, where there was a 45 different PAC systems at a health system. And it wasn't even a huge health system. It just, it happened to be an academic medical center. So they had a lot of PAC systems. Within there for all the different specialties, but if you're going to consolidate consider the acceptable amount of vendor, lock-in the organization, the price increases the leadership. , you know, the other thing you can look at is how long of an agreement can you sign? Because if they are only extracting increases, every time they sit down at the table with you, you want to make it so that they're not sitting down at the table with you all that often. And so you saw a signet. When a PJ Moore came in at Providence, he signed, I think a 10-year deal. With with Microsoft. And so he didn't have to worry about, Hey, I'm renegotiating this every year, every three years, every five years. Just something to consider. , I bring up the question so that you bring up the question. Is there an accessible level of vendor lock-in and what can you do? To ensure that it doesn't impact your organization, your providers, your patients. Any more than it has to, , because there are going to be cases where you do have to accept some level of vendor lock-in. So anyway, that's my thought for today. Thought I'd share it with you. Hey, if you have ideas or thoughts, shoot me an email. Love to hear them, bill it this week. health.com. If there's something I'm not considering here, or if there's another way of thinking about it, love to hear it. That's all for today. If you know someone that might benefit from our channel, you know what to do, tell them about it. Tell them about us, tell them where they can find us anywhere. They listen to podcasts or our website. , we want to thank our channel sponsors who are fantastic, and they continue to support our mission of investing in the next generation of health leaders. They are short test artist, site parlance, ad 📍 service. Now check them out at this week. Health. Dot com slash today. Thanks for listening. That's all for now.