Penn Medicine CEO Kevin Mahoney and Senior Fellow Raina Merchant recently published a case report on the decision-making process between building custom solutions or purchasing off-the-shelf tools for healthcare systems. The report discusses the strategic considerations involved, citing examples from Penn Medicine’s successful projects like COVID Watch and the Virtual Results Clinic. Mahoney and Merchant emphasize the importance of considering scale, agility, integration with existing systems, interoperability, and long-term sustainability when making these decisions.
While off-the-shelf technology offers scalability and speed, custom solutions allow for greater customization and alignment with organizational goals. Additionally, in-house development fosters a culture of innovation and can adapt quickly to emerging needs, as demonstrated during the COVID-19 pandemic. Interoperability and seamless integration within existing systems are crucial factors to consider, as well as balancing long-term investment with flexibility and sustainability.
Ultimately, the decision between building or buying technology goes beyond technical aspects and should also consider how it impacts equity and accessibility of care. Custom solutions may better address specific local needs but require significant investment and critical deliberation. Mahoney and Merchant’s report provides valuable insights for policymakers and health leaders facing this complex decision-making process.
The study, “Build or Buy? Managing the New Technology Decision Tree,” was published in Frontiers of Health Services Management on August 28, 2024, with authors including Kevin B. Mahoney, Raina M. Merchant, and Mitchell D. Schnall. Health systems are urged to make thoughtful choices that serve the present and future needs of patients, clinicians, and hospital staff to enhance care delivery effectively and equitably.
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Photo credit ldi.upenn.edu
