In a recent case report published in Frontiers of Health Services Management by LDI Senior Fellows Kevin Mahoney and Raina Merchant, the decision-making process between building custom health care solutions versus purchasing off-the-shelf tools is explored. Drawing from their experiences at Penn Medicine, the authors highlight strategic considerations and real-world examples to help policymakers and health leaders navigate this complex choice.
The report showcases how bespoke tools, such as Penn’s COVID Watch and Virtual Results Clinic, developed in-house at Penn Medicine significantly improved patient outcomes and operational efficiency. While about 90% of Penn Medicine’s technology is purchased from outside vendors, the authors emphasize that building custom solutions can be the optimal choice in certain scenarios.
Highlighted strategic considerations include scale, speed, and capacity to meet growing demands, agility, fostering innovation, integration and alignment within existing systems, interoperability, and balancing long-term investment with flexibility and sustainability. The authors stress the importance of thoughtful decision-making that considers equity and accessibility of care, with custom solutions potentially better addressing specific local needs but requiring substantial investment and deliberation.
Ultimately, the decision between building or buying technology goes beyond cost and convenience, impacting the present and future needs of patients, clinicians, and hospital staff. By carefully weighing the strategic considerations outlined in the report, health systems can make informed choices to enhance care delivery thoughtfully and equitably.
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Photo credit ldi.upenn.edu
