Healthcare IT Consulting Market Staged to Make 2023 Rebound With Double Digit Revenue Growth, Black Book Research

The healthcare technology consulting sector is estimated to close 2022 at $36.0 billion and anticipating a CAGR of 19.9% from 2023 to 2028, determined by advisory clients' projections in this year's Black Book research. This rebound follows a 14% decline in engagements from the start of the pandemic period through Q4 2021. The Black Book survey of C-suites executives, IT leaders, financial and clinical management, and trustees revealed a significant 2023 uptick in health IT advisory contracts, curtailing the past two years' losses. 

"The rapid digitization in healthcare is again intensifying the growth of the IT consulting sector with providers and payers, engaging experts to combat declining margins, rising costs, shifting regulations, and replace outdated systems," said Brian Locastro, Black Book survey director.

Among all IT engagements currently being vetted, over two-thirds (70%) of providers participating in the Black Book survey will seek advisors to optimize their current Revenue Cycle Management systems, including the possibility of outsourcing in 2023-2024. 

"Health systems cannot always anticipate the changing landscape, so having advisors as readily available resources is critical to creatively handle the technology obstacles," said Locastro. "In this time of economic and political uncertainty, the immediate outlook for IT consulting is very positive."

The past two years have financially squeezed most healthcare consulting firms, as 39% of planned 2020-2022 advisory engagements were put on the back burner while navigating through the impacts of COVID. Health systems confirmed the lowest priority engagements in the coming year will be for EHR optimization (-83%), EHR support and training (-69%), and physician burnout (-65%).

The most pressing 2023 market drivers as reported by consulting firm clients are: 

• Lack of skilled IT professionals in healthcare (85%); particularly analytics (82%) and cybersecurity (81%).
• Adoption of cloud technology in healthcare (79%).
• Increased organization-wide digitalization (74%).
• Increased need for implementation of outsourced and managed services (61%).
• A pending shift in EHR vendor system platforms (22%).

Clients were surveyed from Q4 2021 to Q4 2022 on the performance of 132 qualified healthcare IT advisory firms, which measured 18 advisor-specific key performance indicators in regard to the management and technology consulting sectors. Detailed results are available on the Black Book website.

The Chartis Group was designated the top client-rated healthcare consulting firm for comprehensive and organizational-wide IT and strategic management projects in 2023. The top-rated healthcare IT and management advisory firms in each category were announced today.

ORGANIZATIONAL-WIDE IT CONSULTING & STRATEGIC ADVISORY - THE CHARTIS GROUP

ALLSCRIPTS/ALTERA IMPLEMENTATION - REMEDI HEALTH SOLUTIONS

AWS CLOUD CONSULTING - CLEARSCALE

BLOCKCHAIN - HEALTHCARE TRIANGLE

CLINICAL OPTIMIZATION & WORKFLOW - VIZIENT

CLOUD & IAAS SERVICES & MIGRATION - DELOITTE

COMPLIANCE, HIPAA, RISK MANAGEMENT, REGULATORY - CLEARWATER

COST & CAPITAL FINANCIAL MANAGEMENT - KAUFMAN HALL

CYBERSECURITY - INTRAPRISE HEALTH

EPIC IMPLEMENTATION - TEGRIA, BLUETREE NETWORK

ERP TRANSFORMATION & IMPLEMENTATION - ROI HEALTHCARE

FINANCIAL PLANNING & IMPLEMENTATION - KAUFMAN HALL

FRAUD, WASTE & ABUSE CONSULTING - CGI

GO-LIVE SUPPORT EHR REALIZATION - DELIVERHEALTH

HEALTH CONSUMERISM - BOSTON CONSULTING GROUP

HEALTHCARE EQUITY - TREXIN CONSULTING

HIT STAFFING - TEGRIA 

INTEROPERABILITY & INTEGRATION - ZEN HEALTHCARE IT

IT ASSESSMENT & VENDOR SELECTION - HURON

IT OUTSOURCING & MANAGED SERVICES - MEDSPHERE, PHOENIX

IT STRATEGY & DIGITAL INNOVATION - THE CHARTIS GROUP

MEDITECH IMPLEMENTATION - CORNERSTONE ADVISORS

MERGERS & ACQUISITIONS/PARTNERSHIPS - THE CHARTIS GROUP

MICROSOFT AZURE CLOUD CONSULTING - PWC

MOBILE IT & TELEHEALTH - ATHREON

ORACLE CERNER IMPLEMENTATION - S&P CONSULTANTS

PAYER COST & PERFORMANCE TRANSFORMATION - BOSTON CONSULTING GROUP

PAYER IT CONSULTING - DELOITTE

PHYSICIAN ENTERPRISE SERVICES CONSULTING - THE CHARTIS GROUP

POST-ACUTE CARE CONSULTING - SIMITREE

PREDICTIVE ANALYTICS, AI & INTERNET OF MEDICAL THINGS - SCIENCESOFT

REVENUE CYCLE MANAGEMENT - HEALTHRISE

RURAL HEALTHCARE CONSULTING - STROUDWATER ASSOCIATES

SOFTWARE DEVELOPMENT & TESTING - SCIENCESOFT

VALUE-BASED CARE HOSPITALS - PREMIER INC

VALUE-BASED CARE PAYERS - PWC

VALUE-BASED CARE PHYSICIANS - CAREALLIES, A CIGNA COMPANY

About Black Book

Black Book Research, a five-time Inc. 5000 list awardee for America's fastest-growing private companies, is a full-service healthcare-centric market research and public opinion research firm and premier provider of competitive intelligence, market research, opinion mining, sentiment analysis, services evaluation, and strategic consulting services worldwide. We offer complete quantitative and qualitative research services, excelling in the design of customized surveys and research approaches to meet specific principal conditions in healthcare IT, medical equipment, insurance IT, outsourced and managed services, and advisory practices. Black Book Market Research LLC, its founder, management and staff do not own or hold any financial interest in any of the cybersecurity vendors covered and encompassed in the surveys it conducts. Black Book reports the results of the collected satisfaction and client experience rankings in publication and to media prior to vendor notification of rating results and does not solicit vendor participation fees, review fees, inclusion or briefing charges, and/or vendor collaboration as Black Book polls vendors' clients.

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