ASPs: An Executive Report

Publication Date: September 2000

Publisher: California HealthCare Foundation

Author(s): Gregory LeGrow

Research Area: Health

Type: Report


While the use of information technology (IT) is critical to any health care enterprise, managing that technology remains a challenge for most organizations. Some common issues are the high capital costs associated with acquiring technology; high maintenance costs; and a highly competitive IT labor market. This executive report is an introduction to the use of application service providers (ASPs) to outsource IT. Small and mid-sized enterprises turn to ASPs as a means to avoid large capital outlays for hardware, software, and IT staff. Enterprises of all sizes rely on ASPs to accelerate software installation and quickly build e-business offerings. ASPs are even gaining acceptance by geographically dispersed businesses or merged organizations that seek a universal solution. However, in the early days of the ASP vendor marketplace, health care organizations needed to carefully navigate the multitude of new entrants. The full report is available under Document Downloads below.