In this informational age, the importance of information technology has continued to grow with more and more firms turning to invest in IT projects. These projects are aimed at streamlining the firms’ operations and deliver value to the clients in the organization. A well executed IT project has the capacity of improving a firm’s performance, reducing delivery time and responding promptly to the needs of the customers. IT has continued to play an integral part in the operations of the healthcare sector. The essay that follows will discuss the procurement process in the healthcare sector, looking at the present challenges and possible solutions to these challenges.
For some time now, Canadians have been accustomed to receiving all the services they need through a network that records their preferences and delivers the services in a more personalized and friction-free way (Card, 2012). The computing devices and networks used to deliver on the services has afforded all parties involved the convenience that is key to competitive pricing and efficiency (Card, 2012). This has seen most of the services offered to the public becoming scheduled, efficient and tailored to match the taste needs, and preferences of the clients. The same expectation has since been placed on the healthcare system with clients hoping that the practitioners in the industry will also adopt IT as a way of improving service delivery.
The use of IT in the healthcare industry is poised to make the industry become efficient, competitive, and more accessible to the clients. IT can be used in the healthcare industry to handle logistics, propagate better practices, and handle communications, logistics, and scheduling. Additionally, the practitioners in the field can also use ICT to automate referrals, for reporting, for delivery, purchase, scheduling appointments, and tracking events. These benefits of an IT system point out at the need for the implementation or adoption of an IT system in the health sector. However, attempts made to introduce IT systems in hospitals have faced challenges which range from time delays, cost-overruns, and suboptimal service results (Card, 2012).
The failures in IT system implementation in large hospitals can be attributed to factors that include failure to fully utilize project management tools, lack of proper planning and scoping before embarking on the project, lack of a shift in mind set, and project implementation prior to drawing up a proper plan. These It implementations are often capital intensive and as thus proper planning and scoping must be employed to ensure that public funds are not sunk and wasted on projects that will fail to take root. Evidently, all these failures can be traced back to the public procurement process (Whitt, 2012). Luckily, the solutions to the problems bedeviling IT procurement in healthcare lie within the confines of the public procurement process. Simply put, once the failures are addressed, then and only then will the IT system stand strong and stable.
According to Whitt (2012), procurement systems comprise of rules that define the systems specifications and then floats these specifications in the tendering or bidding market to find suppliers that can supply the systems. The bidding process is open, competitive, disciplined, and controlled. Fair and reasonable prices emanate from that competitive bidding process. Misapplication of the rules that govern the procurement process has the capacity of plunging the whole process in disarray. It is improper and counterproductive to apply procurement rules meant for one line of goods or services to a different line without looking at the system requirements. Many projects have failed miserably because of the application of wrong or incompatible procurement rules. It is imperative to apply procurement rules that are compatible with the projects at hand.
There is an outcry among the stakeholders in the health sector who decry how the current procurement rules are applied to hinder the implementation IT systems in healthcare reforms. The healthcare IT participants hold the expectation that a successful implementation of an ICT system would contribute towards the much needed reforms in the healthcare sector. However, the outcry still resounds with most of the stakeholders arguing blaming the draconian procurement rules for the woes facing the IT procurement efforts in the healthcare sector.
Seaton (2012) argues that the public procurement problem is quiet gigantic but it can still be overcome. The government is seen as applying stringent procurement rules in the guise of ensuring openness in the public procurement process. Sadly, these efforts terminate in impeding efforts made by players in the IT sector to venture into the lucrative healthcare sector. Procurement rules are good and they are a welcome relief to the players in the healthcare industry; however, these rules should not be too tight as to impede on any intended advancements in the implementation of IT procurement in healthcare.
The beneficiaries in the healthcare sector, who mainly comprise the vendor community, support the procurement rules meant to ensure fairness, transparency and openness in the procurement process. However, the suppliers are not amused by the way most of the rules and interpretations affect the procurement process. These rules are notorious for decreasing efficiency, increasing process cost, and stifling the intended ICT innovations in healthcare.
Public procurement has found its way into the debate of most of the leading organizations in healthcare ICT. Small and medium sized procurement firms are forced to bow out of many procurement bids as the terms of engagement seem to disfavor them. Major corporations and multinational companies are also reluctant to bid on the procurement projects because of the high risk and small margins that characterize most of the healthcare ICT projects (Federici, 2009). Most jurisdictions apply national and international laws inconsistently causing the procurement process to be more fractured and difficult. In such a setting, vendors find it difficult to achieve economies of scale and would mostly opt to abstain from such markets. This introduces another problem in public procurement. The shortage of suppliers of the system requirements creates a monopolistic market which will have few vendors. Consequently, the cost of procuring the ICT infrastructure ends up sky-rocketing because of these shortages.
Additionally, the inability of the current systems to align with the international standards limits the penetration of Canada ICT products in the export markets. Certain process not only affect the procurement process but also erect barriers to trade. This imposes a challenge to vendors, especially those with innovative products, because they cannot enter the markets with their ICT innovations. The stringent procurement rules and conditions dissuade most vendors from participating in the bidding process. These entail unlimited indemnification and limited ownership of rights in intellectual property. Further, the high risks associated with most eHealth initiatives and the high bidding costs are becoming increasingly prohibitive on small and medium vendors participation in the procurement process (Federici, 2009). Furthermore, the opposition parties, activists, and mainstream media have a habit of interpreting procurement issues out of context and this presents procurement as a system laden or riddled with corruption and malpractices. This has caused the authorities to tighten the already stringent procurement rules.
The long procurement cycles also play a role in increasing the cost of doing business. Informational technology is known to change at a faster rate compared to other infrastructure. Long procurement cycles need to be bridged down to ensure that all benefits are derived from the ICT infrastructure before it is rendered obsolete. Certain procurement rules are literally cast in stone and as thus they inhibit innovation and therefore, most players in the healthcare sector fail to take advantage of the new technology provided. Moore’s law can be applied to understand the complex nature of the procurement process.
Martineau (2012) predicted that the computing power of every machine produced by Intel will double after every two years. Applying this principle in procurement and this means that the complexities experienced in procurement of healthcare IT is likely to double every two years. Of course, this can be curtailed by an introduction of deliberate and robust reforms in the procurement of healthcare IT systems. Accordingly, the transformations that have led to the complexities can be pegged to the complexities involved in buying, the cost of selling, and the autonomy of the team making the purchase or procurement decision. All these factors work together to make it harden the procurement process and make it more complex.
One of the proposed solutions for the problems bedeviling the procurement sector rotates around coming up with procurement processes or procedures that will enable or allow government agencies, healthcare sector included, to adopt new technologies on a rapid pace. By so doing, the blockades that were previously imposed on healthcare IT by draconian procurement laws will be loosed and innovation systems will get access into the marketplace. The major downside of most of the restrictions placed by the procurement rules lies in the fact that the ICT systems are often delivered late and as thus most of them are found to be either obsolescent or already obsolete.
Another solution to the problems and restrictions imposed on the procurement processes lies in co-opting with the current restrictive rules. In other words, it would be wise to introduce contingent measures to address the restrictions imposed by the traditional procurement system. This can act as a temporary reprieve to vendors that are so willing to supply the needed Healthcare IT systems. While this gets underway, stakeholders need to refocus attention towards the development and implementation of a more permanent solution.
In conclusion, all stakeholders in the healthcare sector agree that there is need to enter urgent and rapid reforms in the procurement of healthcare IT systems. A concerted effort among different players will render this dream a reality. In the interim, all concerned parties must work in concert to ensure that they lessen the burdens placed on vendors by the current draconian procurement rules. By so doing, the procurement process will be made fair and competitive and the delays together with high costs will be eliminated.
References
Card, D. (2012). Technology Procurement Success: Avoiding Common Mistakes. Healthcare Information Management & Communication a, 26(3), 36.
Federici, T. (2009). Introducing E-procurement in a local healthcare agency. Hershey, Pa.: IGI Global.
Martineau, M. (2012). Procurement Meets Moore;s Law. Healthcare Information & Communication, 26(3), 53.
Seaton, B. (2012). Public Sector Procurement: A Problem that is Big but not Impossible to Solve. Healthcare Information Management & Communication, 26(3), 12-13.
Whitt, M. (2012). Healthcare IT Procurement in 2012. Healthcare Information Management & Communication, 26(3), 6-8.