5 Serious Risks When Nonprofit Hospitals Cling to Legacy Systems

Imagine that your nonprofit hospital is stuck using outdated servers to run your IT infrastructure. Because of budget constraints, you’ve had to make do with what you have. 

One day, critical applications stop working and your operations are severely disrupted—from affecting patients relying on you for life and death care to routine appointments, procedures, and nursing activities. And when you heavily rely on donations and outside support to keep your operations running, such an incident will lead to many questions about the quality of your hospital. 

A nightmare, indeed. But too many nonprofit hospitals are gambling in this exact way. Using legacy systems can create significant challenges and risks, both in terms of technology and patient care. 

Let’s examine more closely why relying on legacy systems is problematic. 

1. Security Vulnerabilities 

Legacy systems often run on outdated software that no longer receives security updates, making them vulnerable to cyberattacks such as ransomware or data breaches. The longer you keep these systems, the worse the security gets. Plus, cyberattackers know how to exploit existing vulnerabilities and scan for networks that are susceptible to their attacks. 

These security vulnerabilities can also result in non-compliance with healthcare regulations such as HIPAA, which can lead to fines, legal liabilities, and loss of reputation. HIPAA requires “procedures for guarding against, detecting, and reporting malicious software”—and you are failing that requirement by using legacy systems with known security vulnerabilities. 

2. Risk of System Failure 

Older systems are more prone to hardware and software failures, which can lead to unexpected downtime that disrupts hospital operations and patient care. Think of it like a car you’re driving into the ground. The longer you drive it, the more problems it will have. And one day, it will die. 

In your personal life, that mentality may not affect anyone but you. But at a hospital, think about the impact on patients, hospital staff, and operational continuity. Legacy systems also may not have robust disaster recovery solutions, increasing the risk of data loss during a system failure or natural disaster. 

3. High Maintenance Costs 

Maintaining legacy systems can be costly, as they require specialized knowledge and parts that are often scarce and expensive. IT teams waste a lot of time keeping such systems alive, your break/fix vendor or managed service provider (MSP) bills will be high, and the knowledge needed to maintain these systems becomes harder to find. Plus, legacy systems may lack the automation and efficiency of modern solutions, leading to increased operational costs and resource use. 

🔎 Related: Guide To Modern Managed IT Services Pricing Models

4. Integration Issues 

Legacy systems may not be compatible with modern software and tools, making it difficult to integrate new technologies or systems and leading to data silos and inefficiencies. It’s important that you run modern software and systems that can accommodate new technologies—especially in the ever-evolving field of healthcare technology. 

Older systems often also struggle to communicate with other systems, hindering the seamless sharing of patient information across different departments or with external providers. Patients rely on such communications within your hospital system between different doctors, specialists, and healthcare providers. Slowing down or disrupting such communication only negatively impacts your patients. 

5. Reduced Functionality and Innovation 

Legacy systems may not support the latest functionalities such as advanced analytics, telemedicine, or electronic health records (EHR) interoperability. Relying on outdated systems can slow down the adoption of innovative practices and technologies, limiting your hospital’s ability to improve patient care and operational efficiency. 

🔎 Related: Stollery Children’s Hospital Foundation Reshapes IT with VC3

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If you’ve been struggling with legacy systems for years, it’s time to confront the issue head on. Once you agree on the risks, it’s time to create an action plan—while acknowledging budget and resourcing issues. 

• Conduct a system assessment: Hospitals should assess their current IT infrastructure to identify legacy systems and determine the risks associated with their continued use. Identify which legacy systems are critical to operations and patient care, and then prioritize them for upgrades or replacements. 
• Develop a modernization plan: Develop a strategic plan for phasing out legacy systems. This way, you can accomplish this plan on a timeframe that works right for your budget requirements and resource allocation. If budgets are tight, consider gradually upgrading or replacing legacy systems to spread out costs and reduce disruption to hospital operations. 
• Invest in modern, secure systems: Invest in up-to-date EHR systems, cloud-based solutions, and other technologies that offer better security, functionality, and integration capabilities. You will be surprised to find that the ROI of such systems, despite an initial upfront investment, will benefit you greatly in the long run. Ensure that new systems are equipped with robust cybersecurity measures to protect patient data and comply with regulations. 
• Seek external funding: Nonprofit hospitals can seek grants, donations, and partnerships to help fund the transition from legacy systems to modern IT infrastructure. Use the best practices shared in this article to help you build a sound business case. 
• Use a Managed Services Provider (MSP): Consider partnering with an MSP that can offer expertise and resources to support the transition and ongoing maintenance of new systems.  

By proactively addressing the use of legacy systems, nonprofit hospitals can enhance their security, operational efficiency, and ability to provide high-quality patient care, ultimately ensuring better outcomes and a more sustainable future.