The real price of outdated hospital systems – and who’s paying for it.

By Nia Williams, Sales Director, Amalga

Across New Zealand’s private hospital sector, I see the same pattern emerge - hospitals held back not by the quality of their clinicians or their care, but by their outdated  hospital systems. 

As a former registered nurse, I learned that every minute matters, both for patients and for their caregivers. Now as a sales director, I see the same issues at stake for hospital operations: time, clarity, and confidence are everything.   

When a hospital outgrows its hospital systems like a Patient Administration System (PAS), the cracks show everywhere. Processes that should take minutes, stretch into hours. Data that should flow seamlessly between departments sits locked in silos.   The fragmented reporting and limited visibility into where time, resources, and revenue are allocated make leaders unable to gauge the financial health of the organisation. 

I often speak with hospital managers who spend more than an hour each day reconciling invoices manually, using up valuable time that could be spent improving service delivery or leading their teams. In theatres, nurses are still recording consumables by hand, balancing patient care with paperwork. In some cases, an experienced registered nurse is redeployed solely to manage these manual tasks, wasting their clinical expertise in a costly allocation of skilled labour. Procurement and stock control are still managed in spreadsheets instead of in an integrated inventory management system.   

The true cost of legacy systems  

According to CyberMedics, “Maintaining outdated systems consumes up to 75% of healthcare IT budgets - resources that could otherwise fund patient care improvements.” These systems also lack interoperability, creating fragmented data across departments.   

That fragmentation is both inefficient and risky. Without a single source of truth for patient information, inconsistencies emerge that compromise decision-making and operational accuracy. CyberMedics reports that clinicians and administrators both make decisions based on incomplete or outdated data, and that “83% of healthcare IT teams report that legacy systems actively disrupt day-to-day operations”.  

The reputation factor   

Hospitals don’t operate in isolation. Patients talk, and staff compare experiences. A hospital that lags digitally soon develops a reputation as difficult to work with for both patients and professionals alike.   

Modernising isn’t simply about replacing old software. It’s about strengthening the operational backbone that enables a hospital to deliver safe, efficient, and financially sustainable care. It positions the organisation as one that values its people as much as its patients, and one that’s ready for the future of healthcare.   That message matters. Today’s workforce, especially the younger generation, view technology not as a convenience but as a deciding factor in where they choose to work. Modern, intuitive systems attract and retain top talent, while outdated ones risk driving it away. 

A familiar problem with growing consequences  

   In my unique line of work, I’ve seen this challenge from both sides. From the patient bedside to the executive offices that keep hospitals running, one reality stands out: an outdated Patient Administration System (PAS) doesn’t just slow a hospital down - it quietly undermines efficiency, profitability, and patient experience.   

The operational fallout can be seen in:  

• Revenue leakage from missed charges and unrecorded consumables.   

• Duplication of effort with staff re-entering data across disconnected systems.   

• Burnout, as both clinical and administrative teams lose hours to time-consuming manual processes.   

And the true cost isn’t only financial, it’s cultural. When capable staff spend their days fighting outdated technology, the morale drops, turnover rises, and reputation suffers.      

The way forward   

   Modernising hospital systems is an investment - but the greater risk lies in standing still.   
Every missed charge, every hour of manual reconciliation, and every frustrated staff member carries a cost that compounds over time. The systems we rely on should empower staff, strengthen patient care, and support sustainable growth.     

For private hospitals, where patient experience, reputation, and operational efficiency drive competitiveness, the question is no longer  ‘Can we afford to modernise?” but rather  ‘Can we afford not to?’