Research shows that C-suites are investing in tech for advancing top strategic initiatives, including building new markets or revenue streams, advancing patient acquisition, and expanding care access — but executives are anticipating declines in capital investments that will impact the health IT purchasing process.
BALTIMORE, March 24, 2026 /PRNewswire/ — Sage Growth Partners today released a new report showing how health IT budgets are changing as C-suites expect declining capital investments, what they are prioritizing as top strategic initiatives, and where executives are investing in the near-term.
Among the 101 health system and hospital C-suite leaders participating in the research, AI investments rose sharply, while data analytics and revenue cycle are also top areas, followed by virtual care and patient engagement. C-Suites now rank patient experience as their top strategic initiative for the next two years, and executives recognize the importance of integrating virtual care and digital health tools into existing care delivery models to improve the patient experience.
“As health systems and hospitals grapple with declining capital investments, C-suite leaders are likely to apply greater degrees of scrutiny to health IT purchasing decisions,” said Dan D’Orazio, CEO, Sage Growth Partners. “Overall, capital planning is shifting toward initiatives that drive growth, such as acquiring and retaining patients, expanding into new markets, and diversifying revenue streams to increase top line revenue.”
The survey’s key findings include:
- 41% of C-suite leaders anticipate their capital investments will be reduced in 2026-2027, 19% say their budget won’t change, while only 5% expect to see an increase of 20%, down from prior years
- 46% of C-suite leaders say that funding for new markets or revenue streams is a high priority, up from 34% in 2023
- 40% say patient acquisition is among their top priorities, and 40% are investing in patient engagement technologies
- 57% of C-suites rank AI-based clinical solutions as their top technology initiative for the next two years, up from 19% in 2023, and 29% rank AI-based administrative solutions within top five technology initiatives, up from 6% in 2023
“Ultimately, C-suites are looking to health IT companies to demonstrate cost-savings to CFOs focused on driving ROI, and to help CIOs align digital strategies with organizational performance and financial goals,” said Stephanie Kovalick, Chief Strategy Officer, Sage Growth Partners.
Read the new Sage Growth Partners report Health IT Purchasing Forecast 2026-2027: Where C-Suites are Investing Amid Declining Capital Budgets, to learn more about:
- How health IT budgets are changing
- C-suites’ current criteria for evaluating health IT solutions
- Pricing model preferences
- ROI expectations
- Which technologies executives are planning to invest in next
About Sage Growth Partners
Sage Growth Partners is a healthcare advisory firm with deep expertise in market research, strategy, and communications. Founded in 2005, the company’s extensive domain experience ensures that healthcare organizations thrive amid the complexities of a rapidly changing marketplace. Sage Growth Partners serves clients across the full healthcare spectrum, including Press Ganey, GE HealthCare, Xealth, LexisNexis, GoodRx, ProgenyHealth, Kyruus Health, Best Buy Health, New Jersey Brain and Spine, and Philips Healthcare. For more information, visit sage-growth.com.
For More Information:
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SOURCE Sage Growth Partners
