Why healthcare IT leaders care about vendor consolidation

Vendor sprawl is more than an IT headache. It drives up costs and blocks innovation. Worse, too many technology vendors can actually put an entire health system at risk. Yet many health systems feel stuck endlessly patching fragmented systems instead of charting a path toward an agile, integrated IT strategy. To help drive needed change, consider three common scenarios.

1. Technology vendor overload leads to redundant expenses and fragmented data. 
2. Legacy systems consume the majority of IT resources and hinder innovation. 
3. The presence of shadow IT causes numerous security and compliance risks.  

By reframing these scenarios as opportunities for vendor consolidation, you can drive transformation with a growth mindset.

Empower business users while maintaining IT control

"We have 14 different vendors for scheduling alone; no wonder we can’t keep up with consolidating patient data,” says your IT manager. “Every update, every integration, every support ticket is draining our team’s morale—and our budget."

Vendor sprawl creates complexity, delays, and a heavy burden on IT teams who must support redundant systems. Consolidating vendors through a single, comprehensive platform allows IT leaders to regain control over their tech ecosystem while empowering business users with tools they can actually use. 

With fewer systems to manage, IT can shift focus to governance, data integrity, and strategic innovation instead of tactical firefighting. Meanwhile, clinical and operational users benefit from streamlined, intuitive workflows that reduce frustration, increase productivity, and unlock new insights across the enterprise. 

MUSC Health discovered unexpected revenue opportunities when it deployed an AI-powered platform instead of multiple fragmented point solutions. Pre-visit completions increased 88%. No-show rates decreased from 14% to 8% through automated appointment reminders. MUSC achieves 52% of time-of-service copay collections digitally, without staff intervention. 

This kind of transformation is only possible through a platform approach, where a single solution performs the work of many, adapts quickly, and scales effortlessly. 

Prepare for innovation and demonstrate IT’s value to the organization

"AI? It hasn't been a priority," says your IT engineer, "we can barely maintain the 14 platforms we already have. There’s no room for innovation when we’re drowning in upkeep."

Developing a clear AI strategy is a challenge for many health systems, especially while balancing innovation, safety, and compliance. Data is fragmented. Legacy technology drains the budget. Support and upgrades are costly. Internal resources are too limited to build and support new technology, making AI an uncertain prospect.

However, your team can make space for innovation and become empowered to explore new technologies with the right tools. A platform allows you to start AI automation small, then scale as use cases prove value to the organization. 

Consolidation is less about reducing your vendor list. It’s about building an infrastructure that’s ready for what’s next. When AI is built into a unified platform, it becomes a leading indicator of operational excellence, not an afterthought.

For example, Montage Health implemented an AI platform to automate workflows across registration, referrals, and care gap closure, expanding patient volume without adding staff. In fact, the organization achieved a record number of radiology appointments in 2023, despite having the same number of staff members scheduling patients. The point-of-service cash collections rate increased by 2.8 percent, and Montage captured $2M in annual value through improved revenue and reduced operational costs. 

A consolidated platform model with deep Epic integrations enabled fast, low-lift deployment, giving IT teams control while empowering business users to implement and iterate new workflows directly.

Eliminate shadow IT and strengthen security

"We just had our third security audit this year, and every system failed differently. How can we fully support our employees when our fragmented infrastructure causes extra work and potential security risks?" asks your senior IT security and compliance manager.

When departments adopt tools outside of IT’s visibility, they introduce “shadow IT,” a patchwork of unvetted technologies that compromise security, fragment data, and increase support burdens. This leads to inconsistent practices, redundant tools, and heightened audit risk. 

Shadow IT isn’t just an inconvenience; it’s a security liability. But it often arises from necessity: staff seek better tools when existing systems fail to meet evolving needs. The solution isn’t control through restriction, it’s control through enablement. 

By consolidating vendors and modernizing with an AI platform, IT can meet departmental needs with enterprise-grade tools while maintaining visibility, governance, and trust. 

When Gillette Children’s was exploring IT vendor options, they needed a partner that accommodated the complexity and increased security needs of its patient population, integrated seamlessly with Cerner, and didn’t require outsized IT investment. Ultimately, by partnering with a platform to automate registration, intake, and scheduling, Gillette saved 118 hours per week, with its front desk saving two minutes on each registration at check-in. One automated pre-procedure form alone saved RNs 700 minutes a month without compromising patient security. With full control over permissions, workflows, and data governance, Gillette’s IT team maintains compliance while delivering on organizational goals. 

Accelerated innovation without compromising stability or governance—that’s the platform advantage.

Making the case for vendor consolidation 

Managing fragmented vendors comes at the cost of security and innovation. Organizations risk staying trapped, unable to reclaim resources or build the agile infrastructure that matches your organization’s innovation mindset. IT teams continue with endless tickets, legacy patches, and compliance risks.

To move forward, create a unified and scalable foundation for the future. 

A vendor consolidation strategy—one that utilizes a single platform to support protected, scalable automation—is how leading organizations create space for transformation. By driving vendor consolidation, you free your team’s capacity, reduce risk, and position IT as the engine for efficiency and organizational growth.