Five signs your IT vendor sprawl is out of control

Digital transformation in healthcare is delivering impressive wins: faster data analysis, improved patient communication, targeted interventions, and on-demand scheduling. But more technology isn’t always better. Too many vendors can strain resources and slow workflows—a problem known as vendor sprawl. 

Vendor sprawl occurs when healthcare organizations adopt multiple point solutions to address various, narrowly scoped challenges, such as scheduling, billing, patient outreach, documentation, and referrals. Over time, this leads to fragmented workflows, multiple logins, data silos, more training and maintenance requirements, and higher overall costs. 

Left unchecked, vendor sprawl will overwhelm staff, reduce operational efficiency, hinder data interoperability, and create disjointed patient experiences. Yet, health systems need the benefits of widespread technological innovation.

A consolidated, streamlined platform delivers on innovation without the vendor chaos. Here are five signs your organization may be experiencing vendor sprawl and should consider moving to a unified platform. 

1. IT systems are fragmented and costly to maintain

High ticket volumes, redundant platforms, and time-consuming maintenance are all side effects of using numerous, disjointed point solutions. Not only is the monthly cost of each solution adding up, but so are the costs of multiple implementations, training sessions, and ongoing management and IT support needs. Not to mention that as your organization grows and evolves, you need to add more tools to scale your operations, amplifying the complexity and cost of managing them all. Point solutions often tout cost savings but ultimately lead to a higher total cost of ownership in the long run. Custom-built tools add another layer of complexity, often requiring constant upkeep and maintenance.

Aligning IT functions under a single platform creates visibility and control, and comes with a single implementation and infrastructure. Efficiency gains and fewer support tickets are all part of the return on reducing vendor sprawl. 

2. Lagging technology slows integration and innovation 

Legacy technology often requires patchwork solutions and one-off integrations to fill innovation gaps. Subpar or unreliable performance frustrates teams. Relying on legacy technology may work temporarily, but it’s not built to scale as each new vendor adds complexity. 

When your organization relies on multiple point solutions to fill the gaps left behind, your IT team’s time, energy, and budget can become focused on maintenance rather than making meaningful progress. Additional financial pressure makes it difficult to justify new investments, delaying your potential to continue innovating. 

Instead of rolling out new capabilities, you’re stuck managing tools. A platform approach simplifies everything, reducing vendor sprawl and freeing up IT to move faster. With centralized data and automation built in, a platform gives your team the foundation to innovate efficiently across the enterprise. 

3. Staff are overwhelmed with data sources, screens, and logins ‍

As new point solutions or custom tools are added to your tech stack, operational staff are often left to bear the brunt of fragmented systems. Disconnected workflows force staff to toggle between multiple applications to complete a single task, logging in and out of different systems, re-entering the same patient data, and searching across multiple dashboards and data sources for missing information. This not only increases the likelihood of human error but also contributes to the high levels of burnout and turnover in the industry. 

A unified platform minimizes cognitive load for staff and enables a seamless, efficient working experience. By consolidating systems and automating repetitive tasks, organizations free up teams to focus on high-value efforts, ultimately improving workforce satisfaction and productivity. 

4. Patients are frustrated by disconnects and delays

Patients often see the seams between poorly integrated tools: repeated intake questions, missed or inconsistent follow-ups, delayed referrals, and scheduling difficulties. Point solutions that don’t communicate with each other result in disjointed care, and patients notice. 

Vendor sprawl compromises the quality and timeliness of the patient experience, leading to issues like lower satisfaction, increased no-shows, and referral leakage. A single platform approach can automate routine communications, accelerate bottleneck-prone processes like authorizations and referrals, and enable personalized outreach accounting for preferred languages and communication channels. This ensures patients experience continuous, connected care, building loyalty and improving outcomes. ‍

5. AI lags instead of leads

Health systems are often stuck between a future vision and the limitations of their current technology. While many leaders envision their AI-powered future, they often lack the necessary solutions to enable AI to operate holistically across the organization. AI point solutions often work well within a narrow workflow, but without orchestration, they can’t deliver end-to-end automation or enable cross-functional use cases, stalling system-wide transformation. 

An AI platform erases this issue, allowing for total workforce orchestration across a team of AI Agents. With a platform, automation moves from an afterthought to the forefront.

Vendor consolidation and the platform advantage: Three moves to make now

There is a deep, urgent need for vendor consolidation in the healthcare industry. Innovation now means simplicity—for patients, providers, and the systems that connect them. A single platform with AI-powered automation is where healthcare thrives.

If you’re unsure about how to take the next step in your automation journey, keep it simple. And keep these three priorities in mind:

1. Minimize operational disruption. Choose solutions that enhance workflows, not hinder them, and measure time-to-value for every tool or platform.
   
2. Select a scalable, secure platform. Adopt a consolidated platform that not only grows with you but can adapt quickly when regulations shift, patient needs change, or new technology emerges.
   
3. Align technology with outcomes. Integrate tools seamlessly into workflows for patients, clinicians, and staff. Tie innovation to outcomes so technology guides the improvement strategy. 

A vendor consolidation strategy empowers your organization, making it agile and responsive. The sooner you consolidate, the faster you lead in healthcare innovation.