How Sentara Migrated Epic to Azure, Saved Millions & Launched a Cloud Spinoff
Struggling with EHR scalability and rising IT costs? Sentara Health’s Epic EHR cloud migration to Microsoft Azure saved over $8M—while enabling a rapid COVID-19 response. In this comprehensive case study, we explore how their visionary CIO re-engineered legacy systems, automated HIPAA compliance, and achieved elastic scalability. By embracing a cloud-first strategy, Sentara not only reduced costs but also paved the way for the spinoff of their cloud consultancy, OptaFi, designed to support other healthcare organizations in their digital transformations.
Why Sentara Chose Epic on Azure
The Cost of On-Premise Data Centers
Before migrating, Sentara’s heavy reliance on on-premise data centers led to escalating capital expenses and resource inefficiencies. With significant underutilization of infrastructure, recurring costs for maintenance, energy, and periodic capital refreshes were driving a wedge into their operational budget. Migrating to Azure allowed Sentara to cut these legacy costs and unlock flexible, on-demand resources. This not only eased budgetary constraints but also set the stage for a more agile and future-proof IT environment. For further details on legacy costs and the transition process, refer to insights presented by Healthcare IT News.
Pandemic-Driven Scalability Needs
The COVID-19 pandemic underscored the critical need for scalable IT solutions. During the crisis, Sentara leveraged its partially migrated cloud infrastructure to quickly adapt, including scaling virtual desktop environments to support 8,000 remote workers. This agility was a direct result of shifting their Epic EHR systems to a cloud environment, proving that a cloud-first strategy can be invaluable in emergency situations. As highlighted by industry experts at Healthcare IT News, the cloud provides the resilience and rapid scalability required during unforeseen challenges.
Key Steps in Sentara’s Cloud Migration
From 1,300 Apps to 600: Rightsizing Infrastructure
One of the pivotal steps in Sentara’s migration was the comprehensive rightsizing of its application portfolio. By consolidating 1,300 legacy applications down to roughly 600 optimized systems, the organization was able to eliminate redundancies and reduce operational overhead. This streamlined approach not only simplified the architecture but also enhanced overall system performance in the cloud environment.
Automating HIPAA & Zero-Trust Compliance
Security remained a top priority during the migration. Sentara implemented an automated deployment process that integrated robust HIPAA and zero-trust security protocols. This re-engineered approach ensured that every system was deployed with appropriate encryption at rest and through stringent compliance checks. The automation minimized human error, reduced setup times, and maintained a secure operating environment—essential for handling sensitive patient data. This security-first methodology is integral when evaluating cloud migration options for healthcare IT.
$8M Savings & Operational Benefits
Real-Time Cost Modeling for IT Decisions
Transitioning to the cloud allowed Sentara to harness real-time cost modeling, enabling them to forecast and control operational expenditures with greater accuracy. This forward-thinking strategy transformed IT from a cost center into a strategic asset, where every investment was tracked and justified by tangible benefits. Hospitals can now leverage similar methods to redefine budgeting and justify future technological advancements.
How Elastic Scaling Cut Capital Spend
Elastic scalability in the cloud removed the need for significant capital expenditure on physical infrastructure. By dynamically adjusting resources based on current demand, Sentara could avoid costly over-provisioning and maintain a lean, efficient operation. This shift from heavy capital spending to an operational expenditure model not only ensured continuous innovation but also provided the flexibility to meet emerging clinical needs.
Launching OptaFi – A Cloud Spinoff for Healthcare
Lessons for Other Hospitals
Building on its success, Sentara spun off OptaFi—a cloud consultancy aimed at sharing best practices in Epic EHR migration. OptaFi is dedicated to guiding other healthcare organizations through the complex journey of cloud transformation. Key lessons include application rightsizing, automated security measures, and leveraging elastic scalability for both cost savings and improved operational efficiency.
Why CIOs Need a Cloud-First EHR Strategy
For healthcare CIOs and CTOs, adopting a cloud-first strategy is no longer optional. A modern EHR system must not only support clinical functions but also drive cost efficiencies and secure patient data. By shifting to a cloud-based model, hospitals can enjoy reduced costs, faster deployment times, and enhanced data accessibility—all critical factors in today’s digitally driven healthcare environment.
Conclusion & Call-to-Action
Sentara Health’s Epic EHR migration to Microsoft Azure stands as a powerful example of how healthcare organizations can overcome legacy system limitations and achieve significant cost savings—reportedly around $8M. The strategic overhaul not only enhanced operational agility and security but also launched a dedicated consultancy, OptaFi, to help other institutions replicate this success. If your hospital is ready to embrace a cloud-first approach and optimize your Epic EHR systems, contact OptaFi today for a tailored consultation. Explore our internal resources on HIPAA-compliant cloud solutions to learn more about transforming traditional IT infrastructures into agile, cost-effective systems.