Why Data Analytics Is Driving Healthcare’s Shift to the Cloud

At the recent CHIME Fall Forum, healthcare CIOs gathered to discuss the challenges and opportunities shaping their organizations’ cloud strategies. In this Q&A, Dr. Ray Gensinger, Chief Medical Officer at Tegria, and Jay Sultan, Tegria’s Chief Data and Analytics Officer, share key insights and observations from their conversations at the forum.  

Among the many topics explored, one theme stood out: the growing role of data analytics as a driving force behind healthcare’s shift to the cloud. Their reflections shed light on why organizations are prioritizing cloud-based solutions and what it means for the future of healthcare IT. 

The Cloud’s Role in Addressing Industry Pressures 

Q: What are the top challenges healthcare organizations face that make the cloud a viable solution?

A: CIOs feel financial and technological pressures, compounded by the need for innovation. The flexibility and scalability of the cloud are increasingly seen as solutions to these challenges, even as the allure of cost reductions fades. 

Why Data Analytics Takes the Lead 

Q: Why is data analytics often the first strategy moved to the cloud? 

A: Data analytics requires greater scalability for processing large volumes of data and flexibility to manage unpredictable demands. Cloud platforms provide tools and resources that are cost-prohibitive on-premises, enabling faster deployment and more scalable advanced analytics. 

Business Drivers for Data Analytics in the Cloud 

Q: What specific business needs are driving this focus on cloud-based data analytics? 

A: The push includes: 

• Supporting value-based care and population health management. 

• Enabling AI-driven insights, which often require cloud integration. 

• Accelerating operational efficiency and decision-making across organizations. 

Overcoming Common Cloud Transition Challenges 

Q: What are the key challenges healthcare organizations encounter when considering cloud solutions? 

A: Common issues include: 

• Timing existing strategies and contract terminations with the time required to move to the cloud. 

• Governance and cost validation. 

• Concerns about becoming locked into a specific vendor’s solution. 

• Latency concerns, especially for applications like teleradiology in a multi-cloud architecture. 

Cloud Is Not Always Cheaper—So Why Move? 

Q: If cost savings aren’t guaranteed, why should organizations invest in cloud solutions? 

A: While cloud transitions are not always less expensive, they offer alternative ROIs in specific use cases like analytics and disaster recovery. The ability to scale resources up and down reduces waste and improves efficiency. 

Cloud Transition Strategies for Healthcare 

Q: How should healthcare organizations approach their transition to the cloud? 

A: Begin by identifying specific business problems. 

• Evaluate whether cloud-based data analytics would be beneficial, or if existing tools suffice. 

• Consider including application rationalization in the analysis of your entire portfolio. 

• Develop a robust cost-management and governance strategy. 

• Plan for a multi-cloud future to accommodate diverse application needs. 

The Future of EHRs in the Cloud 

Q: How does the cloud fit into the future of EHRs? 

A: While many CIOs see a future where EHRs migrate to the cloud, concerns about costs, vendor resilience, and data access persist. Organizations must carefully evaluate private hosting versus alternatives on publicly available platforms like Azure and AWS. 

The CHIME Fall Forum underscored a key insight: Healthcare’s shift to the cloud is driven by the need for stronger data analytics and returns that aren’t necessarily directly financial. Cloud platforms empower organizations to innovate, enhance efficiency, and achieve strategic goals like improving population health and advancing value-based care. This transition is not about cutting costs but about gaining access to capabilities and scalability that are unattainable with traditional on-premises systems. 

As healthcare organizations embark on their cloud journey, prioritizing data analytics is essential. Start by aligning analytics strategies with pressing business needs and invest in solutions that enable scalability, flexibility, and system integration. By making data analytics a focal point, organizations can set the stage for long-term innovation and success in an increasingly data-driven industry.