Tech Times has an interview with Mike C. Kaufmann, also known as Board Advisor of RKTech, a former Fortune 15 CEO and a prominent figure in the healthcare sector. The discussion revolves around the opportunities of technology service companies in the healthcare industry.
1. In my research, these were a few of the healthcare headlines we saw in 2023, and they will likely continue to be used frequently in 2024. Many healthcare executives are trying to keep pace with a rapidly evolving and consolidating industry that is in the midst of a digital transformation.
In your opinion, what are technological factors that are likely to shape the healthcare industry in 2024?
The effective use of AI will continue to impact healthcare in 2024 and beyond. While I believe at this time, AI will not and should not have "decision rights" on most patient treatment options, its ability to give "second opinions" or provide additional data to healthcare professionals is already proving to be valuable.
There are many areas where it should be accepted and deployed to improve patient outcomes. Also, its use in more back office or administrative areas should and will continue to increase.
Another use of technology will be increasing the connectivity of disparate systems to create efficiencies, improve outcomes and provide more actionable data. As patient data becomes easier to move between Payors, providers, EHRs, etc., healthcare professionals will be able to provide better and more cost-effective care.
2. The cost pressure in healthcare may offer many opportunities for the tech-enabled services companies that include more outsourcing, ramping up digital and automation efforts, and business rationalization.
How do you assess the opportunities and challenges for technology service companies? How can technology service companies position themselves to be at the forefront of these changes?
I think there are significant opportunities for technology service companies to provide value to healthcare companies. Payors and providers, whether they are large integrated hospital systems or individual primary care physicians, are all faced with significant cost pressures.
For years, technology service companies have demonstrated their capability to execute certain administrative functions more cost-effectively through automation and offshoring strategies. This approach has been beneficial across various domains, including accounting, software development and maintenance, customer service, and more.
By leveraging technology to automate routine tasks, healthcare organizations can reallocate their resources to focus on core activities, such as patient care and innovative treatment solutions. Furthermore, outsourcing non-core functions to specialized service providers can lead to improved operational efficiencies and cost savings.
The key for these technology companies will be making these transitions as seamless as possible. They must remember these are tough and risky decisions for their customers so they must provide incredible customer service and attention to details. By prioritizing the needs and concerns of their healthcare clients, technology service companies can build trust and demonstrate the value of their solutions.
3. Considering the critical importance of making transitions seamless, what strategies do technology service companies employ to minimize disruption and risk for healthcare clients during these transitions?
Aligning expectations for and timing of deliverables is extremely important. There should be complete clarity on what is being simplified, automated, eliminated or offshored. Both the customer and the technology partner must see themselves as one team focussed on achieving the stated goals. Communication must be open, honest, fast and direct so that problems can be uncovered and then handled quickly. I have seen and been involved in several transitions that have used technology partners to simplify, automate and offshore functions. As mentioned above, the successful projects had clarity on goals, timing, functions, etc that were being outsourced. The technology provider held themselves accountable for our success and satisfaction. Problems that were encountered were handled as quickly as possible and both sides found fair resolutions after the problems were solved.
4. As the advisor of RKTech in 2024, how do you think the company can capitalize on market opportunities and technology trends in healthcare?
RKTech's key to capitalizing on market opportunities will be providing the outstanding customer service and seamless as possible transition I mentioned before. When there is a problem, and there usually are some, the speed at which it is solved is key. Nothing will kill the momentum of a project and the willingness of a client to do more than taking too long to solve a problem. The technology partner can't waste time on reviewing or changing contractual terms or assessing blame; they must fix the problem. After this is done, then sit down and resolve the potential financial issues or contract changes that are necessary.
Another key area for RKTech will be ensuring they have the breadth of capabilities customers want and need and that they understand the important needs in specific industries. For example, in the healthcare industry, in my discussions with the RKTech team, they focus on developing software that aligns with the practical needs of healthcare providers, encompassing mobile and web applications, and they ensure these systems communicate effectively with existing medical devices. Quality assurance, which is important in all industries but extremely critical in healthcare, is not overlooked, with a balanced approach to testing that underscores commitment to producing dependable software.
As noted, having a broad service offering is also important so they offer managed services, which address cybersecurity and system management which is designed to maintain the integrity and continuity of healthcare operations.
