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Thought Leadership
Healthcare’s Chronic Dilemma: To Modernize or Maintain
June 11, 2025
Healthcare’s Chronic Dilemma: To Modernize or Maintain
Siva Sreeraman
VP, CTO and Modernization Tribe Leader

Healthcare’s Chronic Dilemma: To Modernize or Maintain

The healthcare industry stands at a critical crossroads. As digital disruption transforms sectors from finance to retail, healthcare is wrestling with a chronic dilemma: to modernize aging IT systems or maintain their current legacy infrastructure. Post-pandemic shifts, rising patient expectations, and evolving regulatory demands have only amplified this question. The path forward involves balancing innovation with caution, a task made even more complex by the intricacies of healthcare systems. Application modernization offers a route to resilience, agility, and enhanced patient care, but it comes with significant challenges.


The Current State of Healthcare IT

Healthcare organizations continue to depend on decade old legacy systems. These applications, including electronic health records (EHRs), billing systems, and clinical workflow platforms, often operate in silos, making interoperability a significant challenge. Many institutions still rely on on-premise servers and outdated programmes that are expensive to maintain and lack scalability. These outdated systems hinder real-time data access, create compliance risks, and delay critical decision-making.


Why Healthcare Needs Application Modernization

Modernizing healthcare applications is no longer optional. Here’s why it’s become a strategic imperative.

Interoperability: Modern systems support industry standards like HL7 and FHIR, which enable seamless data exchange between various healthcare providers and systems. This ensures a comprehensive view of the patient journey, reducing redundancies and improving continuity of care.
Real-time Analytics: With modern applications, healthcare organizations can leverage big data and AI to make informed clinical and operational decisions in real time. This can aid in early diagnosis, resource allocation, and population health management.
Regulatory Compliance: The regulatory environment is becoming more stringent. Modern platforms offer in-built tools and frameworks that support ongoing compliance with global standards such as HIPAA, GDPR, and emerging cybersecurity mandates.
Patient Experience: Today’s patients expect seamless, mobile-first interactions with healthcare providers, including telehealth services, appointment booking, and access to medical records. Legacy systems are often ill-equipped to deliver these experiences. ● Operational Efficiency: Modern architectures, such as microservices and cloud-native applications, enable better scalability and reduce technical debt. This improves uptime, reduces maintenance costs, and enhances the overall agility of healthcare organizations.

In essence, modernization empowers healthcare providers to meet current challenges while preparing for future needs.


Challenges in Modernizing Healthcare Applications

Despite the clear need, modernization in healthcare is fraught with obstacles:

Complex Interdependencies: Many legacy applications are tightly coupled with various parts of the IT ecosystem. Any change in one system can have unintended consequences elsewhere, making modernization a high-risk endeavor.
Safety Concerns: In healthcare, technology directly affects patient outcomes. Any system failure can lead to life-threatening scenarios. This heightens the need for robust testing, validation, and phased rollouts, which can slow modernization efforts.
Data Privacy and Security: Healthcare data is highly sensitive. Any migration or transformation of data must be handled with utmost care to avoid breaches, ensure encryption, and meet local and international data protection regulations.
Cost and Skills Gap: Modernization requires significant investment, not just in technology, but also in people. Many healthcare organizations lack access to skilled professionals proficient in cloud computing, DevOps, containerization, and AI.
Change Resistance: Healthcare institutions often have deeply embedded workflows and cultures. Physicians, nurses, and administrators may resist new technologies due to unfamiliarity or perceived increases in workload.

These challenges demand a modernization strategy that is not only technically sound but also organizationally inclusive and patient centric.


The Role of Mphasis in Driving Healthcare Modernization

Mphasis offers a comprehensive suite of application modernization services tailored to the unique challenges of the healthcare sector. Recognizing that archaic, monolithic applications can hinder innovation and adaptability, Mphasis employs a strategic approach to transition legacy systems to next-generation, cloud-native architectures.


Key aspects of Mphasis's modernization approach include:

Deconstructing Legacy Applications Breaking down monolithic systems into modular components, allowing for incremental modernization with minimal disruption to ongoing operations.
Leveraging Automation and AI: Utilizing advanced tools and methodologies to automate code analysis, extraction of business logic, and transformation processes, thereby accelerating the modernization timeline and reducing errors.
Ensuring Compliance and Security: Implementing robust frameworks to ensure that modernized applications adhere to healthcare regulations such as HIPAA and GDPR, while also enhancing data security and patient privacy.
Enhancing User Experience: Redesigning applications with user-centric interfaces, improving accessibility, and ensuring compatibility across devices to meet the evolving expectations of patients and healthcare providers.

Through this comprehensive approach, Mphasis enables healthcare organizations to reduce technical debt, improve operational efficiency, and deliver superior patient care.


Case Study - Transforming a Government Healthcare System

A U.S. government-owned healthcare maintenance system faced the challenge of modernizing its legacy PowerBuilder client-server applications. The objectives were clear: migrate to a web-based platform, ensure multilingual support, comply with U.S. Section 508 accessibility standards, and achieve comprehensive business transformation.

Case Study - US Government Healthcare saving cost

Mphasis addressed these needs through its structured modernization methodology:

Comprehensive Analysis: Conducted an in-depth assessment of the existing applications to understand functionalities and dependencies.
Automated Transformation: Converted 800 dynamic PowerBuilder windows into Oracle ADF-based web pages, facilitating a seamless transition to a modern web interface.
Accessibility and Localization: Ensured the new application met Section 508 standards and supported multiple languages, enhancing usability and compliance.
Custom Framework Development: Developed a scalable web application framework using Oracle ADF, enabling easier maintenance and future scalability.
Rigorous Testing: Implemented automated testing frameworks to ensure reliability and performance of the modernized application.

Outcomes Achieved:

Cost Reduction: Achieved a 57% cost saving compared to a manual rewrite approach.
Enhanced User Experience: Delivered a browser-based application with improved accessibility and multilingual support.
Accelerated Delivery: Shortened development cycles through reusable patterns and automated processes.
This case exemplifies how Mphasis's modernization services can effectively transform legacy healthcare systems, ensuring compliance, enhancing user experience, and delivering significant cost savings.


Striking the Right Balance

The healthcare sector doesn’t need to choose between modernization and maintenance—it needs a partner that helps navigate both. Strategic, phased modernization ensures continuity while unlocking the benefits of digital transformation. Mphasis offers the tools, expertise, and vision to help healthcare organizations achieve smarter, safer, and more scalable care delivery systems.

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