As Hospitals Cut Costs, Medical IT Expenses Soar; Condusiv Offers Solution

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Improving the performance of existing IT systems can offer relief to administrators struggling with intractable—and unpredictable—budgetary shortfalls.

For the past year, hospitals all over the U.S., faced with budgetary uncertainty and a lack of clear direction from the federal government, have been announcing significant reductions in staff and services. At the same time, the cost of healthcare IT projects continues to skyrocket. “Much of the upward pressure on IT costs,” says James D’Arezzo, CEO, Condusiv Technologies, “in healthcare as in other fields, is due to performance issues traceable to the input/output (I/O) demands of today’s data analytics applications. In many cases, the most stress on IT departments comes from applications running Microsoft SQL server, due to the burgeoning amounts of data being processed in today’s hospital environments. It’s important to remember —especially in light of the cost pressures the healthcare industry is under—that there are highly cost-effective ways to improve I/O performance.”

As an example of the current steep climb in healthcare IT costs, D’Arezzo, whose company is the world leader in I/O reduction solutions for virtual and physical server environments, notes that the University of Illinois last year announced plans to spend $100 million to upgrade and unify information technology systems at its hospital in Chicago. UI Hospital’s goal is to simplify the billing process, give doctors and nurses faster access to patient records, improve patient care, and allow the hospital to be more efficient. At the moment, for example, UI physicians and the hospital use different computer systems, so patients can’t get a single bill for a hospital visit—a situation described as “a source of great dissatisfaction” by hospital administrators.1

This announcement comes at a time when in April 2017 alone, hospitals in ten states made public plans for staff reductions. In the largest such announcement, a prominent Boston hospital—Brigham and Women’s, which is affiliated with Harvard—announced that it would offer voluntary buyouts to 1600 workers.2

“Under these circumstances,” says D’Arezzo, “every dollar invested in IT needs to be well spent. In dealing with I/O-based performance problems in particular, wholesale equipment replacement is often neither the most economical nor the most effective approach from a system performance standpoint. We have seen users of our software solutions more than double the I/O capability of storage and servers, including SQL servers, in their current configurations. Before diverting further funds from core activities like patient care, we recommend that healthcare systems managers look to increase the efficiencies of the resources they already possess.”

About Condusiv Technologies

Condusiv Technologies is the world leader in software-only storage performance solutions for virtual and physical server environments, enabling systems to process more data in less time for faster application performance. Condusiv guarantees to solve the toughest application performance challenges with faster-than-new performance via V-locity®for virtual servers or Diskeeper® for physical servers and PCs. With over 100 million licenses sold, Condusiv solutions are used by 90% of the Fortune 1000 and almost three-quarters of the Forbes Global 100 to increase business productivity and reduce data center costs while extending the life of existing hardware. Condusiv Chief Executive Officer Jim D’Arezzo has had a long and distinguished career in high technology.

Condusiv was founded in 1981 by Craig Jensen as Executive Software. Jensen authored Diskeeper, which became the best-selling defragmentation software of all time. Over 37 years, he has taken the thought leadership in file system management and caching and transformed it into enterprise software. For more information, visit http://www.condusiv.com.

1.    Worth, Julie, “UI set to spend $100 million to upgrade IT systems at Chicago hospital,” Champaign, IL News-Gazette, September 9, 2017.
2.    Ross, Casey, “Facing a financial squeeze, hospitals are cutting jobs,” STAT News, April 30, 2017.

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Karla Jo Helms
JoTo PR
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