Health Information and Technology Services (HITS) is a shared services provider of the “core IT” for Michigan Medicine, supporting patient care, research, and education across the U-M Medical School and Health System. On the basis of head count and annual IT hardware/software purchases, HITS represents roughly 2/3 of Michigan Medicine IT.
As a non-revenue generating unit, HITS is charged with stewarding scarce financial resources to optimize for support of daily operations, financial efficiency, life cycle management of IT assets, information assurance (compliance and data security), and flexibility to align with the Michigan Medicine strategic plan.
The composition and financial scope of HITS is dynamic. Drivers such as growth, consolidation of core IT expenses and physical assets, technology change, and new functionality require the Finance and Administration team of HITS to calculate and forecast funding requirements and potential scenarios over a multi-year horizon, as much 10 years into the future. The Strategic Financial Framework (SFF) is a process and a set of templates/tools to “do the math” of creating a common reflection of multiple financial inputs. Further, the SFF exists to spur engagement and participation across HITS leadership. The SFF is a mechanism to “zoom out” and to demonstrate the resource and financial impact of multi-year projects, investment options, or competing priorities. While forecasting is inherently uncertain, HITS seeks to maintain fiscal credibility by carefully weighing and isolating known uncertainty, good faith estimates, and formal multi-year budget commitments to ensure prudent allocation of incremental dollars entrusted to HITS within Michigan Medicine.