Five-Year TCO of a Co-Managed IT Operating Model for a 100-Provider Clinic Group

Five-Year TCO of a Co-Managed IT Operating Model for a 100-Provider Clinic Group
TL;DR
  • A 100-provider clinic group operating co-managed IT typically runs at a recognizable five-year total cost composed of partner fees, internal staff, tooling, training, transition costs, integration overhead, and executive oversight.

  • The composition shifts year to year: year-one transition spike, years two through five at predictable run-rate.

  • The CFO question is not whether co-managed costs more or less than alternatives in year one. It is what the cycle reveals.

The Seven Cost Components a Co-Managed IT Engagement Actually Includes

Partner fees recurring. Internal staff retained. Tooling split. Training. Transition cost year one. Integration overhead recurring. Executive oversight.

 

How Co-Managed IT Costs Settle After Year One

Year one heavy. Years two through five stable.

 

Why "Internal-Only Is Cheaper" Doesn't Hold in Thin Talent Markets

A CFO will hear: *internal-only is cheaper.*

False in markets without talent depth.

 

The TCO Analysis That Makes the Co-Managed Decision Defensible

A defensible approach involves clinic CFO through structured TCO across operating models.

 

Year-One Price Comparisons Hide What the Cycle Actually Costs

TCO across the cycle reveals what year-one comparisons hide.

If your clinic has not produced multi-year TCO in the last twelve months, that is the conversation worth having with your Tech-Operations partner.

Five Nines Technology Group is the Tech-Operations partner serving clinics, hospitals, and healthcare practices across the region. We focus on helping CFOs size operating-model decisions on five-year TCO.

Frequently asked questions

How does year-one cost compare to steady-state?

Year one runs meaningfully higher.

Can the partner fee be negotiated mid-cycle?

Annual escalation typically; substantive renegotiation at renewal.

How does this compare to fully managed TCO?

Highly clinic-specific.

What if the partnership ends mid-cycle?

Transition costs apply.

Does TCO include compliance program costs?

Should, at most defensible engagements.

Should the board see TCO?

Yes, summary form.

How does HIPAA program cost integrate?

As part of overall cost composition.

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