Consulting case studies

A healthcare system ended its third-party contracts and brought its IT home.

Client challenge

When a two-hospital system in the western U.S. decided not to renew a ten-year technology outsourcing agreement and bring most of its technology services in-house, big changes were in store. To oversee the transformation, the hospital system brought in new leaders who could address the challenges and oversee solutions. The leaders assessed the landscape and outlined the necessary changes. The transition would require intense financial analysis to provide an understanding of the financial obligations and risks of the new IT organization. All work had to be done without impacting the day-to-day business of the hospital and the quality of patient care.

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PwC's solution

The hospital’s leaders decided to bring in external help. PwC assembled a team with skills in data center operations, EHR applications, security, and enterprise architecture. The first step: work closely with the hospital’s leaders to assess the hospital’s current state and its goals. The team helped the hospital develop a financial and staffing model and assisted in developing a roadmap to assess the capabilities of the hospital’s existing data centers. The team established a long-term data center strategy that paralleled the hospital’s business plans. PwC also helped develop a total cost of ownership model (TCO) so the hospital could make financial decisions based on current data.

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Impact on client's business

PwC and the hospital worked together for a year on strategy through execution. The hospital was able to prioritize its investments in enterprise architecture, disaster recovery, and business continuity. The holistic approach yielded completely new IT operating and service models. A systematic PMO approach helped the hospital identify risks, create mitigation plans, get a clear understanding of program progress, and ultimately seamlessly transition to the new models. The new TCO financial model was adopted to track its future capital and operating costs. The team found year-over-year cost savings, and the hospital is on track to beat its deadlines for conversion to its new EHR systems.

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Dietmar Serbee
Principal, Financial Services
Tel: +1 (646) 471 7270

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