Building a Market-Leading IT Strategy for an American Hospital Network
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May 01, 2025
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A hospital network was approaching the halfway point of a 10-year outsourcing agreement with a managed service provider across multiple service areas. In the last few years, the relationship had become tumultuous due to leadership transitions, the COVID-19 pandemic and shifts in financial conditions. FTI Consulting was initially engaged to evaluate the existing contract and value delivered for the revenue cycle and IT service areas. After a successful engagement, the network requested a detailed assessment of the IT service area to improve oversight of the vendor’s service delivery, learn from best practices of effective partnerships and understand a vendor successor plan to explore alternate service providers at the end of the current agreement.
Our Impact
- FTI Consulting developed a detailed view of the current state IT operating model and identified gaps to achieving a best practice target state based on interviews with key stakeholders.
- The network received short- and long-term prioritization recommendations for their IT strategy to improve the current operating model, most notably to hire a chief information officer (“CIO”) to lead IT prioritization, partner with the vendor services provider on strategic initiatives and define and measure success.
- We created a successor vendor transition plan detailing the timeline, activities and risks associated with transitioning to a new service provider at the conclusion of the current contract; including milestones for critical contractual discussions and request-for-proposal (“RFP”) milestones.
- Our experts provided guidance on risk mitigation steps the organization could implement if they choose to transition any of the IT services in-house or to an alternate service provider, while also outlining the financial and operational implications of potential risks.
Our Role
- FTI Consulting performed a review of the contractual agreement and performance dashboards shared by the client and conducted stakeholder interviews with more than 20 individuals on both the client and vendor side.
- Our experts assessed the client’s current IT ticket submission and routing process and identified process enhancement opportunities to improve transparency across business users.
- FTI Consulting provided best practices from their outsourcing expertise to define the target state scenario for effective IT outsourcing agreements.
- The team developed an estimated successor vendor timeline for the client informed by our expertise and market knowledge of alternate IT service providers in healthcare.
Related Insights
Published
May 01, 2025
Key Contacts
Senior Managing Director
Managing Director
Senior Director
Director