Buyer scrutiny runs deep right now, and digital health vendors are feeling the burn. If a technology can’t demonstrate positive revenues in 12 months, many health system buyers will move on. As a healthcare CIO said during ViVE, “We’re just too pinched for funds.”
Predictably, more health system CFOs are stepping in to anchor the tech-buying table.
It’s not just razor-thin margins that are compelling CFOs to take a more proactive role in technology purchases. They realize how their convoluted tech stacks—made even more complex in the dash to deliver virtual care—are dragging down their business. Simply put, IT complexity hinders their organizations from operating at the speed of digital health. And when CFOs lead their health systems’ digital transformation (and many do), they become even more keen to untangle the Gordian knot of third-party technologies scattered throughout their organization.
One way CFOs are streamlining their IT infrastructure is to buy or renew only technologies that are offered by their existing vendors (e.g., EHR solution suites). This feels like a heavy strike against third-party solutions. Nevertheless, we see plenty of third-party solutions win a spot on a CFO’s shortlist. It just takes a little maneuvering…and a lot of deliberate thought.
As you hone your product’s positioning and finalize your CFO sales pitch, here are a few things to keep in mind.
The CFO’s buying mindset is broader. Even if you’ve pitched to CFOs previously, it’s smart to reconsider (and update) your assumptions about their roles and goals now. Most likely, the CFOs you’re targeting are stewards for more than just finance. How does your technology accelerate progress on organization-wide initiatives (e.g., digital transformation)?
Today’s ROI has a shorter runway. We’re hearing that healthcare CFOs expect tech company partnerships to pay off fairly quickly. If you can’t demonstrate positive gains within a year or less, CFOs may respond to your solution with a hard “no.”
Be integration-ready at go. If a third-party solution isn’t compatible with the EHR and other enterprise systems, many health systems executives tell us they won’t entertain a sales conversation.
What your pitch says is not the final word. Many digital tech vendors invest the most time crafting what they need to say, but dedicate much less time on how it will be heard. This is why it’s imperative to familiarize yourself with the CFO’s buying mindset.
If this sounds like it will take too much time, we’re with you. To give you a head start, we’ve compiled the most helpful research and provided you with our recommendations for convincing the CFO that your solution is the one to beat.
As a quick start of sorts, here are a few compelling insights:
Looking for more detailed advice? Check out our “Shortlist Makers” eBook, which shows you how to turn even the most discriminating CFOs into your solution champions.