Thursday, March 22, 2012

 Rural Hospitals ... Untapped Opportunity

In 2012 and beyond, the best hospital opportunity for VARs are rural and smaller hospitals.
In understanding why this marketing is so valuable, it's important to understand what the market looks like.
• There are over 3,200 hospitals in the United States with under 150 beds. The vast majority of these hospitals reside outside of major metro areas.
As predominately smaller hospitals, these customers have not made the same critical investments in Health IT as many of their larger competitors. As you may also expect, with fewer legacy IT purchases these hospital customers also come with less sophisticated internal IT departments. Lastly, because they are small they are not called on by competing resellers or technology vendors nearly as much as larger organizations.
However, it's critical to understand that although these customers are smaller they have significant advantages in terms of federal incentive payments.
• The average small hospital will receive between $1-3m between Medicaid and Medicare incentive payments. While that may not be a large figure to a 500 bed IDN, it's an operational game changer for your average 75-bed hospitals.
Why does this add up to opportunity for our reseller partners? First, the lack of internal IT resources combined with the requirements for Health IT adoption means these hospitals know they must buy but don't know how to do so effectively. This provides the reseller with a perfect opportunity to build a trusted vendor relationship with the customer.
These hospitals are not shown the same attention as other customers, showing the proper investment and helping them through this time of challenge can garner the loyalty that leads to long-term customer engagements.  With that in mind, let's look at a few primary opportunities where a reseller can make an immediate impact?
• Electronic health records: These customers are largely ignored by the top hospital EHR vendors. However, every hospital MUST invest in a certified EHR system. If you have an EHR to offer or can help navigate the waters of system selection and implementation then you have an advantage. A cloud solution for EHR is even more desirable due to the lack of data center build out and internal IT staff.
• Wireless and mobility: Don't be surprised to walk into a 75-bed hospital and find they're running DSL. Seriously. Wireless infrastructure, network security are all areas that most of these hospitals have not even considered up until now.
• Security: Aside from the wireless security example provided above there are a host of security issues these hospitals must deal with but have gone largely ignored. General privacy & security efforts, HIPAA compliance, and risk assessments to meet Meaningful Use requirements are all in high demand.
• Managed services: Without strong datacenter experience and internal IT resources, these customers need managed service providers more than ever to support their ongoing investments in HealthIT. The more services that can be delivered through the cloud, the more of a burden the reseller can relieve for the customer.

Every hospital has the need to share health information with other trading partners (clinics, physician practices, labs, etc.). With the recent announcement of Stage 2 for Meaningful Use this requirement to actively demonstrate the ability to exchange data is front and center. By aligning with the small/rural hospital, a reseller is also likely to gain leverage into other customers with similar needs.

Be sure to check out our products for hospitals and services for local New Mexico practices here:

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