Cry Freedom! How Breaking Free from Vendor Dependencies Helps Healthcare Organizations Reclaim IT Control

Updated on July 28, 2025

Healthcare systems across the nation are navigating a confluence of challenges that demand both operational excellence and strategic innovation. Increasing patient volumes, staffing shortages and financial constraints are reshaping how organizations approach both technology investments and partnerships.

Recent industry research indicates that workforce sustainability concerns dominate executive priorities, with talent acquisition and skill development becoming critical strategic imperatives. Deloitte’s 2025 U.S. Health Care Outlook revealed that 58% of health system leaders anticipate workforce issues such as talent shortages and the need for upskilling adversely influencing their organizational strategies. Meanwhile, the imperative for digital transformation has never been stronger, as organizations seek to enhance care quality while streamlining complex operations.

However, a significant obstacle hinders this transformation: the restrictive nature of traditional software vendor relationships. Many healthcare organizations find themselves constrained by inflexible support structures and predetermined technology roadmaps that seem to prioritize vendor interests over organizational needs. This dynamic creates a paradox where the very software tools meant to enable innovation can instead become barriers to adaptive change.

The Hidden Costs of Vendor Dependency

This reliance on traditional vendor support models creates operational challenges that extend far beyond technology departments. Healthcare CFOs already face declining operating margins amid escalating operational expenses — in fact, 65% of public healthcare CFOs expect operating margins to decline in the near future due to rising medication, equipment and supply costs. When software vendors demand costly maintenance and support fees and deliver less support, less innovation and even no more access to security updates, those margins get squeezed even further as organizations add more headcount and service providers to fill the gap. All the while, the software vendor can pocket more than 90% profit margins from those maintenance dollars. 

Worse, restrictive vendor agreements trap organizations in expensive upgrade cycles that may not align with clinical priorities or operational readiness. These transitions consume valuable financial and human resources while potentially disrupting established workflows that clinical teams rely upon for patient care delivery.

The ripple effects of this scenario even reach the front lines of care. When IT resources are monopolized by vendor-mandated changes and system maintenance, fewer resources remain available for innovations that directly benefit clinicians and patients. This creates a reactive technology environment that serves vendor timelines rather than healthcare missions.

Strategic Consequences of Limited IT Autonomy

The ramifications of these constrained technology choices compound over time, creating systemic vulnerabilities that affect organizational resilience. Budget allocations that could fund transformative patient care technologies instead flow toward maintaining vendor relationships and compliance requirements.

Operational disruptions from forced system changes can introduce risks that healthcare organizations can ill afford. Clinical workflows, carefully optimized over time, face interruption and potential instability when vendors dictate upgrade schedules without regard for operational impact.

Perhaps most critically, by capitulating to vendor mandates, healthcare organizations surrender strategic decision-making authority over their own technology infrastructure. This erosion of autonomy delays or prevents adoption of emerging technologies such as AI, advanced analytics and enhanced interoperability solutions that could significantly improve patient care delivery and operational efficiency.

Eggs in the Right Baskets: A New Healthcare IT Strategy

Healthcare organizations must fundamentally reimagine their relationship with technology vendors, shifting from passive compliance to active strategic leadership. The future of healthcare technology should be determined by clinical needs and organizational priorities, not external vendor agendas.

This transformation requires adopting a mission-driven approach to IT management that extends system lifecycles based on value rather than vendor preferences, and that prioritizes operational stability over pressured upgrade cycles. This way, organizations can achieve greater cost predictability while maintaining the flexibility to invest strategically in technologies that advance their specific care delivery goals.

Transformation without disruption becomes possible when healthcare systems break the status quo and look towards vendor-agnostic partners that align with their operational realities and vision. Independent support providers can deliver comprehensive solutions that maintain system stability while freeing resources for strategic initiatives. Organizations partnering with these providers can redirect millions of dollars from maintenance costs to patient care improvements, AI projects and other innovations that directly impact clinical outcomes.

The evidence supports this approach. Healthcare providers working with independent third-party support have successfully upgraded enterprise systems on their own timelines, reducing support costs by up to 50% and maintaining ultra-responsive 24/7/365 support coverage. These organizations demonstrate that it’s possible to maximize the value of systems, making them robust, compliant and agile while escaping restrictive vendor cycles.

By establishing this “new normal”, healthcare systems can redirect resources toward initiatives that directly impact patient outcomes, enhance clinician satisfaction and strengthen organizational resilience. The goal is not just technological independence, but the creation of IT environments that truly serve healthcare’s fundamental mission of improving patient outcomes and lives.

Helio Matsumoto
Helio Matsumoto
CTO at Rimini Street
Helio Matsumoto is a senior executive and CTO at Rimini Street with over 20 years of experience leading digital transformation and technology strategy. Helio drives innovation, and promotes operational excellence for enterprises focused on innovation.