Viable Financial Options: Data Centers or Cloud Computing Services?
Outdated Revenue Cycle Management (RCM) systems are likely to make a big dent in financial viability of small and medium clinics and hospitals across the US. In such a scenario, these healthcare establishments face the bleak prospects of extinction or take over by larger hospital groups and lose their independence.
As a proactive action to preserve their independent healthcare business, these organizations are seriously considering two viable options, namely data centers and cloud computing based services, each with its pros and cons.
Data Center Versus Cloud
The data center is an onsite, high tech physical entity that houses a multitude of server banks. Data centers are experiencing a boom with an increasing demand. However, demand for data centers has outstripped their availability, mainly due to constraints of physical space.
Cloud storage, the virtual model, also utilizes many server banks with thousands of serves, although off-site. Usually, a third-party vendor incorporates an extensive network of servers located anywhere in the world. However, instead of electronic healthcare software or other applications downloaded on each computer, a central server in the cloud is accessed by the entire network.
The Winner !
Hospitals and clinics are evaluating alternative strategies of data management. They are analyzing relative financial and operation merits and demerits of data centers and cloud computing systems for storing and processing electronic health records, diagnostic images, email programs, and other healthcare applications.
The dice is heavily loaded in favour of cloud computing systems. Some of the reasons, out of the many, are :
- 1. Lower cost for computer configuration.
- 2. Decrease maintenance costs while freeing data storage capacity.
- 3. Enable hospitals and clinics to better utilize their resources and focus on their core mission – patient care.
- 4. Ensure fool-proof backup and eliminate break down of hospital RCM services.
Be Cautious in Initial Crowd Approach
Rather than adopt an over-energetic posture and move over all healthcare workflows and processes in bulk on to the cloud, it pays to adopt a step-by-step process.
- 1. Evaluate hospital/clinic-specific needs : Carry out an in-depth analysis of needs specific to the subcategory of the healthcare system.
- 2. Assess existing cloud services vendors in terms of :
- A. Proficiency in providing cloud computing services specific to the healthcare industry.
- B. Financial and professional standing of the vendor.
- C. Reliability of back-up facilities provided by the vendor in the event of major breakdown and disruption.
- D. Ascertain the confidentiality and security of hospital/clinical data.
- E. Willingness and ability of the vendor to scale up or scale down the services depending on increased/decreased fluctuations of healthcare business.
- 3. Start cautiously on a small scale : If healthcare entities find that cloud concepts are enticing, they must be vigilant at the initial phase, to move some of the less complex healthcare systems such as email and payroll to the cloud, while leaving the more critical and complex software in their in-house setting.
- 4. Be familiar with the cloud : The physicians and in-house IT personnel should use this opportunity to familiarize themselves with the cloud with lower risk.
- 5. Conduct pilot trial : Once major applications such as RCM and Enterprise Content Management (ECM) services are moved up into the cloud, a pilot trial should be conducted to ascertain the functioning and performance of these services.
- 6. Fine tune and incorporate enhancements : The pilot trial will highlight refinements to be made in the workflow processes to extract maximum leverage.
- 7. Constantly review the cloud-based services.
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