The Trump Administration’s emphasis on deregulation suggests there could be changes ahead in the relationship between health information technology vendors and current and prospective customers.
Many IT purchasing decisions have been focused on complying with regulatory programs such as electronic health records meaningful use, MACRA and MIPs, says Christopher McCord, managing director and partner at Healthcare Growth Partners, an HIT investment and merchant bank that publishes an annual study of the status and future of health IT.
Providers have been buying IT tools they needed to comply with regulatory requirements and checking off the boxes as these tools are acquired. But now, some vendors may face shrinking demand for their products.
Vendors whose sales are highly dependent on supporting regulatory mandates could see a downturn in business.
“The risk for vendors is higher under President Trump because he is moving toward deregulation, and purchasing decisions have been made to satisfy regulatory requirements,” McCord explains.
How much regulation remains and how much goes away isn’t yet known, but vendors will need to focus less on technology and more on bringing added value to providers by helping them drive revenue or cut costs, he adds. “Vendors have to pivot and build a business case based on strong value propositions to the customers they serve.”
The MACRA and MIPS programs likely won’t be as onerous to providers under the new administration as they have been, but McCord doesn’t believe those programs are going away because of bipartisan support from policymakers.