Health system executives are prioritizing AI, patient experience and growth initiatives as they navigate expected declines in capital investment, a March 24 report from Sage Growth Partners found.
The report examines health IT purchasing plans for 2026 and 2027 based on a survey of 101 hospital and health system C-suite leaders.
Here are four key findings from the report:
- Forty-one percent of executives anticipate reduced capital budgets over the next two years, while 5% expect significant increases.
- Despite tighter budgets, health systems continue to invest in technology tied to strategic growth. AI leads planned investments, with 57% of executives ranking AI-based clinical solutions as their top technology priority, up from 19% in 2023. Data analytics, revenue cycle tools, virtual care and patient engagement technologies also rank among key focus areas.
- Patient experience emerged as the top strategic priority for C-suite leaders, with executives emphasizing the need to integrate digital tools and virtual care into existing care delivery models.
- Funding priorities are also shifting toward growth-related initiatives. Forty-six percent of executives said investing in new markets or revenue streams is a high priority, up from 34% in 2023. Meanwhile, 40% cited patient acquisition as a top priority and the same percentage reported investing in patient engagement technologies.
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