Health system leaders should focus on three strategic decisions during the second half of 2026 to strengthen operations heading into 2027, according to Deloitte’s midyear healthcare outlook, published July 16..
The report argues that while hospitals continue to see strong demand, many are still battling labor shortages, supply chain pressures and uncompensated care, leaving little room for operational missteps. On the other side of the spectrum, health plans face ongoing utilization pressures and policy uncertainty despite modest improvements in medical cost trends.
Against that backdrop, Deloitte said health systems should make deliberate decisions in three areas:
1. Move faster on digital experiences — but redesign workflows first
Consumers increasingly expect seamless digital interactions, with roughly one in three adults now using AI for health information and advice, according to the report. Deloitte’s analysis also found consumers who rate a health system highly for its technology and app experience are about 10 times more likely to remain loyal than those who rate those experiences poorly.
However, Deloitte cautioned that hospitals and health systems should avoid simply layering digital tools onto inefficient processes.
Instead, health systems should balance speed with operational readiness by redesigning workflows, data management and accountability while expanding digital capabilities, according to the report. Deloitte also noted that while every surveyed organization identified care delivery transformation as a high priority, health systems rated their ability to scale those efforts at just 2.7 out of 5.
2. Scale AI with discipline
Health systems should become more selective about AI investments as early experimentation gives way to operational deployment, according to the report.
Among 64 surveyed health system and health plan CFOs, one-third said AI initiatives launched over the past two years have expanded across multiple functions, one-third remain in pilot phases and one-third have been paused or abandoned.
According to Deloitte, leaders should establish clear timelines and performance metrics for AI pilots rather than allowing projects to continue indefinitely. Organizations should be willing to stop initiatives that cannot demonstrate measurable value, scale effectively or meet regulatory and ethical expectations.
3. Reassess ownership, partnerships and M&A
Health systems are becoming more intentional about where they invest capital, with mergers and acquisitions increasingly accompanied by portfolio restructuring, according to Deloitte.
The report found 59% of surveyed healthcare finance leaders expect mergers and acquisitions to become a higher organizational priority in 2026, up from 42% in Deloitte’s 2025 CFO study. Meanwhile, two-thirds of hospital and health system transactions completed during the first quarter of 2026 were divestitures, reflecting efforts to exit noncore markets and concentrate resources on strategic priorities.
Rather than asking whether to build or buy new capabilities, hospital leaders are increasingly deciding what to own, what to acquire through partnerships and what businesses or markets to exit, according to Deloitte. Health plans are similarly expanding partnerships with technology companies, employers and community organizations to accelerate growth without building every capability internally.
The decisions health systems make over the remainder of 2026 could shape their operating strategies for 2027 as organizations continue navigating affordability, access, financial performance and consumer expectations.
Click here to access the report.
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