CIOs Need to Embrace CFO Mindsets Amid Hospital Financial Losses, Says Kyndryl Executive

Key Takeaways

CIOs are set to adopt roles similar to CFOs to enhance financial strategies within health systems.
37% of American hospitals reported financial losses in 2024, highlighting ongoing challenges post-COVID.
Generative AI has significant potential to optimize non-clinical sectors, yet only 3% of executives prioritize it for transformation.

The Evolving Role of CIOs in Healthcare Finance

In 2025, chief information officers (CIOs) in health systems are expected to assume greater financial responsibilities, akin to those of chief financial officers (CFOs). Trent Sanders, vice president of U.S. healthcare and life sciences at Kyndryl, emphasized this shift during the HIMSS global health tech conference. Many hospitals are still grappling with financial challenges since the COVID-19 pandemic, as indicated by Kaufman Hall’s National Hospital Flash Report, which revealed that 37 percent of hospitals were operating at a loss in 2024.

Kenneth Kaufman, managing director and founder of Kaufman Hall, analyzed this issue, noting that hospitals often focus on managing their largest clinical and nursing departments. However, this approach can leave other departments underperforming, contributing negatively to the hospital’s overall financial health.

Sanders mentioned that technological innovation, especially artificial intelligence (AI), holds promise for enhancing performance in non-clinical areas, which can account for up to 35 percent of a health system’s operational budget. These sectors, particularly IT, revenue cycles, and supply chains, are often significant expenses but have potential for automation. Despite this, a recent Accenture survey of executives from U.S.-based provider organizations indicated that only a minority (3 percent) identify generative AI as transformative for customer service and call center operations.

For CIOs to effectively contribute to improving financial outcomes, collaboration with CFOs and other department leaders is essential. They need to address cost pressures strategically and leverage technology maximally to drive efficiency. Sanders highlighted the importance of using the CIO’s office as a catalyst for growth in revenue cycles and supply chain management by integrating emerging tech capabilities into everyday operations.

The current landscape requires a mindset shift among CIOs, moving beyond merely adopting cutting-edge technologies to focusing on how these tools can concretely benefit their organizations. This responsible approach also involves communicating the maturity and value of emerging technologies within the organization.

CIOs are positioned to facilitate substantial change in health systems by prioritizing impactful technology implementations. Sanders advocates for a concentrated effort on proving the real benefits of innovative tools, which can lead to meaningful advancements across the healthcare landscape.

For those interested, Sanders will be participating in an upcoming virtual panel, “Is Your Hospital Cyber-Safe?” on April 10 at 2 p.m. ET, where he will share more insights about these evolving trends in healthcare technology.

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