Skip Navigation HRSA - U.S Department of Health and Human Services, Health Resources and Service Administration U.S. Department of Health & Human Services
Home
Questions
Order Publications
 
Grants Find Help Service Delivery Data Health Care Concerns About HRSA

Due Diligence Guide for Health Centers When Considering A Network Approach to Adopting HIT

 

HRSA recommends that health centers participate in Networks when adopting HIT or other expensive ventures.  However, health centers must determine the best approach for their organizations. Below are some options to consider:

  1. adopt the HIT on their own
  2. join an existing network
  3. form a network on their own
  4. purchase the service from a network

It is important that a health center perform due diligence in terms of which option is best for them.  In considering whether to go it alone or join a network, below are some important factors to consider and weigh:

Factors Going It Alone Joining a Network

Flexibility

More

Less

Time Commitment to Network

Less

More

$ Commitment to Network

None

More

Time Educating Board on Value of Network

None

More

Time Educating Staff on Value of Network

None

More

Level/Depth of IT Expertise

Less

More

Leverage with Vendor

Less

More

Training, Implementation, Help Desk Resources Available

Less

More

Using Data to Improve Quality and Reduce Cost to Correct Errors

Less

More

Reporting Among and Between Member Centers

None

More

Depth of Resources to Deal with Billing/EDI Challenges

Less

More

User Group Dynamic Created

Less

More

Stable and Secure Hosting Facility

Less

More

Disaster Recovery Capacity and Cost

Less

More

HIT Strategic Planning for Obsolescence, Growth, More Clinical IT Capacity

Less

More

Polity/Procedure Development – Systems Documentation

Less

More

If a health center decides to join a network, it is important to choose the right network. 

How do we choose a health center network that is right for us?
Choosing a network that is right for your Health Center involves a number of considerations. Health Centers should assess their environment and infrastructure to determine the type of network that will be most appropriate.  Since networks are at various stages of development, each network will offer different opportunities.  Health Centers should consider such variables as geography, services and fees, and overall leadership compatibility.

  1. Geography may or may not be an important factor in choosing the network that is right for your Health Center.   There are a number of health center networks that operate similar to application service providers (ASPs) where applications and data services are provided from a remote, central location and can be accessed by health care providers anywhere in the country. However, in order to make the most of the collaboration, it is often useful to be able to meet regularly with other consortia members to exchange best practices and work on defining and developing joint functions and customizations. For example, working with others within your State is important for developing billing templates consistent with State Medicaid requirements.
  2. Health center networks employ varying approaches to membership and user fees. While some financial outlay is expected from all members, depending on what your immediate needs are, some networks will be better than others in terms of getting the most for dollars invested.
  3. Health center network services are often a determining factor when choosing a network. Networks offer a range of services which include hosting applications, system implementation and training, project management and technical support functions. Health centers, depending on their existing capabilities, have to consider different options when deciding which network to join.
  4. Overall leadership compatibility is an important variable to consider when choosing a network.  Centralized management is critical to a network's success.  Because a central benefit to working in consortia is being able to benefit from shared leadership, it is important that you make sure that the approach of the network leadership you choose is compatible with your health center's leadership and board of directors.

Overall, prior to making any commitment to join or start a network, it is important to assess your own readiness as an institution to engage with others collaboratively. The more you understand regarding what you want to get out of the collaboration, the better able you will be to make the right decision and make the most of the collaboration you join.

If a Health Center decides to form a network with other centers, it is extremely important to form a strong foundation prior to investing together in a large venture like HIT.  Below are key points to keep in mind when deciding to form a new or join an existing network:

Networks Require Commitment

A network requires strong commitment and involvement from senior leadership: Chief Executive Officers (CEOs), Chief Information Officers (CIOs), and Chief Financial Officers (CFOs).

  • Executive commitment to information systems initiatives is critical to initiative success.
  • Commitment to the network needs to flow downward from senior management.
  • CEOs need to agree in principle on how the business will function before cooperation around the Management Information Systems (MIS) function will have an impact.
  • Commitment should cut across multiple dimensions of the organization, not just information systems. As shown in the Collaboration/Integration Matrix, human resources, billing, clinical processes and decisions may also be integrated and/or centralized.
  1. Commitment also manifests itself in the degree of empowerment invested in key staff. It is critical that the CIO and the Information Systems (IS) staff be empowered to move forward quickly and efficiently.
  2. CIOs must participate in network strategic planning.

 

Networks Require Financial Investment

Financial commitment is as important as leadership commitment. Without this "stake" in the enterprise, it is too easy to walk away from network initiatives. By having made an investment in the future of the network, health centers are more willing to support the network in tough times and to work toward a solution rather than taking their money and going elsewhere.

  1. Legal commitment by each network member is also important.
  2. The existence of legal implications for leaving the network or otherwise breaching the network agreement may act as a motivator for working through difficult times.
  3. A Memorandum of Agreement detailing each member's responsibilities and signed by each member of the network formalizes the financial and legal commitment.

 

Networks Require Involvement of Legal Counsel

Legal counsel can be of invaluable assistance in:

  1. MOA drafting
  2. Software/hardware licensing contracts
  3. Formation of joint ventures and fully integrated delivery systems
  4. Advice on tax-related issues and other healthcare regulations
  5. Forming entities such as limited liability corporations to align with business objectives

 

Networks May Not Save Money in the Short Run

  • Benefits of integration may not be quantifiable.
  • Potential intangible benefits include improved information, improved healthcare, ability to access capital, and improved management reporting.
  • Return on investment (ROI) may not be the appropriate measure for information systems success (at least in the short run). The information system must deliver on promises of functionality, schedule, and budget.
  • There may be many hidden costs in forming a network and implementing a shared information systems project. One center paid $12,000 in data conversion costs alone.
  • Ensure that staff is fully educated on network and information system requirements and that they explore all potential costs thoroughly.

Communication is Key

  • Regular meetings are critical, both to keep all participants informed and to gain consensus.
  • Meetings should include  CEOs, the Information Systems Steering Committee (ISSC) (Word/PDF/Wordperfect), and committees to support integration in other areas. 
  • Between meetings, have a quick, easy way to communicate. Explore alternatives to face-to-face communication such as: email, video teleconferencing, extranets, etc.

Both Network & Vendor Staff Should Have Health Center Experience

  • Network staff must understand how health centers operate. They will be making decisions affecting business operations and outcomes at the health center level. Thus, they must understand this business.
  • It is also helpful if vendor staff have health center experience. This will make vendors more effective in developing systems and providing training and ongoing user support.
  • Vendor staff must understand health programs, Uniform Data System requirements, and challenges that health centers face (competitive environment, outdated infrastructures, etc.)

Challenges Are Learning Experiences

  • Failures are inevitable.
  • Shared failures can provide cohesion to a group that was previously disjointed.
  • Look for small, incremental successes.
  • Don't give up!

Incremental Success is Still Success

Incremental successes come in many forms – from a milestone reached in a major project to scheduling a specialist to provide services across the network.

  • Early success is especially important for newly-formed networks. Publicize these successes so that staff can learn that positive results are coming from the network collaboration.
  • Recognize opportunities to achieve small, incremental successes, such as obvious, easy-to-make changes that will get the network off to a good start.

There's No Substitute for Ongoing Training

Training is an important component of the network, especially when a new information system is being introduced. Some centers will naturally implement information systems effectively and others will not reap the potential information systems-related efficiencies. Training can help remove this disparity.

  • Peer-to-peer training can be cost effective and is available free through HRSA.
  • Professionally developed and delivered training is worth the investment.
  • Additionally, it is important that trainers continue to be available for questions once training is completed.

Staff Buy-In Reduces the Us vs. Them Mentality

  • Communication and public relations can help center staff recognize the long term value of the network concept.
  • Participation in decision making in areas of collaboration by health center staff can also give them a voice in the process.

 

Forming a Network is not a Silver Bullet

  • Set and maintain realistic expectations and goals.
  • Understand that everyone will have to compromise in order for the network to be successful.
  • It may take time for economies of scale to be realized.
  • There may some significant up-front investments that will bring benefits over extended periods of time.

Maintain Centralized Control Over Information System Architecture

When implementing a new network-wide information system, it is important to maintain centralized control over standards and infrastructure components.

  • Without centralized control, when centers make information system purchases, there is a risk that they will not integrate effectively with network components.

Use Vendor Support Appropriately

  • Ensure that network staff and vendors clarify who will provide which type of support.