Why application rationalization is so important, where to start, who to involve

The number of applications that providers interact with in their daily work, as well as the hardware required to support those applications, presents significant management challenges. In healthcare, application inventory is a critical part of the management process, but in most organizations, more work is required to gain greater control of technology and data.

During an April Becker's Hospital Review webinar sponsored by MediQuant, Kel Pults, DHA, chief clinical officer and VP government strategy, and Jason Theunissen, RN, director of clinical solutions — both of MediQuant — discussed how application rationalization efforts can help IT leaders better manage their healthcare technology.

MediQuant is the industry leader in active enterprise data archiving solutions and system transition services for hospitals and health systems, with deep clinical, patient accounting and HIM experience.

Four key takeaways from the webinar were:

  1. Application rationalization for existing and future inventory reduces cost. Application rationalization is a repeatable, strategic and systematic approach for determining which applications should be kept, replaced, retired or consolidated. The goal is to use technologies efficiently and in as cost-effective a manner as possible. Application rationalization applies to softwareand hardware. Since increasing technology adoption requires significant data storage, gaining control of the data landscape makes it easier to effectively manage the organization's application portfolio.

  1. Application rationalization is not application inventory. Understanding the assets in place is a critical step in the application rationalization process. However, application rationalization extends beyond inventory alone. It has three phases:

    • Identify and assess. This phase begins with identifying and engaging stakeholders and establishing governance. "An effective application rationalization program starts with the users and stakeholders within your organization. You must understand their needs and goals to be successful," Dr. Pults said. This phase then proceeds to collecting the data and inventorying systems and applications. Then, systems and applications are graded on fit, function, user sentiment and total cost of ownership.

    • Collect and analyze. Applications are classified and prioritized and there is a data disposition decision point, followed by creating a roadmap and a plan for disposition.

    • Implement and evaluate. The plan is then implemented, evaluated and adjusted.

Well-executed application rationalization helps organizations calculate total cost of ownership and manage data for compliance with security and retention policies, allowing for decision logic to be applied more effectively. "There are a lot of considerations when you're talking about not just the data, but how you end up storing that data," Dr. Pults said.

  1. Application rationalization attributes support M&A decision-making. Application rationalization offers benefits in the mergers & acquisition process by providing a framework to identify critical costs and timelines, such as for system supports, as early as possible in an M&A discussion. Including IT in early-stage discussions, not only for M&A but also for separation and divestment, supports a smoother transition and reduces risk. The opposite is all true in that not including IT in M&A discussions may put patients — and mergers and acquisitions — at risk.

  1. Recognize the benefits of planning to support your data governance strategy. A successful data governance strategy requires a solid foundation. Getting data into a good structure goes a long way. The key is understanding what and where the data are, both from a current and future-state perspective. "It's about aligning that plan with the data that goes with it," Mr. Theunissen said. It is also important to establish a governance committee composed of stakeholders with enough organizational influence to obtain funding to execute on rationalization initiatives.

Regardless of organizational size, application rationalization can help reduce costs, enhance security and accelerate innovation. As a repeatable, continuous-process framework, application rationalization also improves operational efficiency and consistency. "Nobody likes surprises in healthcare," Mr. Theunissen said. "By having that framework together . . . you keep surprises to a minimum."

Also important to keep in mind is that the application rationalization process is a major part of the system intake and system retirement process of an organization. As such, HIM professionals should be involved in those assessments to ensure proper treatment of patient information.

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