The barrier stalling digital transformation isn’t legacy technology

Provider organizations have the budget, the roadmap and the confidence. Scaling is still where initiatives break down.

Digital transformation spending is climbing across the industry, and 92% of executives expect measurable ROI within 24 months. But asked to name the single biggest barrier to accelerating digital transformation and artificial intelligence, 47% pointed to change management and governance. Legacy system complexity, at 23%, and funding constraints, at 20%, trailed well behind.

Meanwhile the pace is not slowing. The majority of leaders surveyed said they are pursuing multiple initiatives simultaneously across the enterprise, and just 1 percent are stepping back to reassess their roadmap.

BDO’s 2026 State of Digital Transformation Healthcare Survey, conducted by Becker’s Healthcare, draws on 181 senior executives at large health systems, community hospitals and academic medical centers. The report examines what separates AI and digital initiatives that scale from those that stall.

Inside the report:

  • Why executives rank organizational barriers above technical ones
  • Where leadership alignment breaks down, and what closes the distance
  • Self-reported data management maturity across seven capability areas
  • The drivers behind digital investment, from competitive positioning to margin