Financing the Cloud: Considerations for Switching CapEx for OpEx

Here’s a telling statistic: Even as more and more hospitals are subscribing to cloud computing services, 56 percent of CIOs said it is very difficult to explain the Capital Expenditure or Operational Expenditure ins-and-outs when vying for IT budgets and approvals. 

That’s according to data that Black Book managing partner Doug Brown pulled from research the firm compiled for its pending 2018 Health IT Trends report. 

But guess what’s coming, and quickly. Black Book found that “85 percent of hospital managers in facilities under 200 beds are paring back or freezing new IT CapEx investments in 2018, opting instead wherever possible to fund projects from the OpEx budget.”