Healthcare groups shifting to the cloud, but tech investments remain low

Healthcare organizations are increasingly moving to the cloud, but a lack of investment in technology prevents them from fully realizing its potential, according to a report from market researcher Forrester.

Seventy-five percent of healthcare organizations said they were adopting or planning to adopt public cloud platforms in 2021, up from 73 percent in 2020, a survey of nearly 100 of them found.

However, the healthcare sector only invests about 3 percent of its budget in technology, the ninth-most of any industry, Forrester research shows. Professional/business and financial services lead at 17 percent a piece.

"Healthcare technology demands are shifting quickly," the May 24 report's authors wrote. "Cloud and new digital innovations can help tech leaders address new patient needs and transform their [healthcare organization] business model before new entrants eat into their market share." 

The Forrester report recommends organizations find a healthcare- and tech-savvy partner, decide whether Amazon is a friend or a foe, choose an interoperable ecosystem and a hybrid approach between legacy and modern platforms, and engender a culture of transformation.

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