In our report US Tech Forecast 2026: What It Means For Healthcare Providers, Forrester projects that US healthcare providers will increase their technology budgets to $69 billion in 2026, up 7.6% year over year. Rising demand for personalized, connected care and resilient systems is accelerating spending. With these investments comes a clear mandate for healthcare leaders: Ensure that every dollar improves outcomes, resilience, or experience (for the patient and employee).

Providers Continue The Shift To AI, Software, And Interoperable Foundations

In 2026, software will account for $25 billion (36%) of provider tech budgets — outpacing hardware categories such as computer and communications equipment. Spending is flowing into AI-enabled analytics, cloud-based platforms, and modular solutions that power predictive diagnostics, help coordinate care, and automate administrative workflows, ultimately improving population health.

Beyond software, providers will spend $21 billion (31%) on CIO staff costs, reflecting the people-heavy nature of transformation across clinical, operational, and regulatory domains. Other major categories include tech consulting and systems integration ($7 billion), tech outsourcing ($6 billion), telecommunications ($6 billion), computer equipment ($2 billion), and communications equipment ($1 billion).

Tech priorities reflect this strategic shift toward the intelligent healthcare organization. In 2026, provider IT organizations are prioritizing:

  • Improving the use of data and analytics technology (62%).
  • Increasing adoption of industry clouds (55%).
  • Empowering hybrid work (52%), increasing use of edge technologies (52%), and increasing use of AI-enabled software development (52%).
  • Implementing generative AI tools for business apps (46%).
  • Adopting real-time, AI‑driven operational support (41%).

These shifts underscore the need for interoperability, security, and clinician- and staff-facing tools that reduce cognitive burden and improve care in hospitals, ambulatory settings, and the home.

Automation Becomes An Engine For Outcomes And Efficiency

Providers are scaling automation to drive forecasting, capacity and throughput, clinical documentation, supply chain, and revenue cycle outcomes — all while protecting safety and equity. Yet risk and maturity gaps persist. Fewer than half of provider decision-makers report mature third‑party risk management (TPRM) for AI. Success requires explicit AI governance, model monitoring, safety guardrails, and staff training (clinical and nonclinical) paired with clear outcomes measurement tied to patient safety, quality, access, and cost.

Macro Pressure Elevates Profitability And Outcomes As 2026’s North Star

Providers face tight margins, workforce shortages, payer mix shifts, denials, and capital constraints. The takeaway: Every technology decision must tie back to measurable impact on margins and outcomes. Adopt “always on” scenario planning and continually scrutinize both investments and cuts. Near-term ways to reclaim budget and boost resilience include:

  • Rationalizing overlapping tools, eliminating low-usage software, and consolidating vendor contracts.
  • Renegotiating inflexible terms and applying cloud FinOps disciplines to control variable spend.
  • Automating prior authorization, eligibility, and denial prevention to protect cash flow and reduce cost to collect.

What Healthcare Tech And Business Leaders Should Do In 2026

  1. Double Down On Efficiency Gains With AI And Automation

Healthcare leaders should prioritize AI and automation platforms that improve clinical throughput and administrative performance. Solutions such as ambient clinical documentation, decision support, and care orchestration reduce burden while increasing accuracy. Optimization tools for capacity, staffing, and/or utilization further boost efficiency. As software spending grows, every AI use case must deliver measurable ROI and simplify — not complicate — clinical workflows.

  1. Invest In Clinician- And Staff-Facing Tools To Elevate Care Experiences

While digital care expands, most interactions still occur in hospitals and clinics, making staff-facing technology essential. Unified patient records, real-time device integration, and contextual insights support safer, more coordinated care. Ambient documentation, mobile tools, and closed‑loop tasking reduce burnout and improve productivity. Consistent omnichannel access and EHR-integrated workflows streamline navigation for both patients and teams.

  1. Strengthen Data Privacy, TPRM, And Interoperability

Healthcare organizations must align with HIPAA, Cures Act requirements, and the TEFCA to ensure secure, compliant information exchange. Strengthening third‑party risk management and model governance reduces exposure as AI adoption accelerates. Hardening APIs, monitoring FHIR transactions, and securing data at rest and in motion are now table stakes.

  1. Modernize Payments And The Revenue Cycle To Improve Security, Speed, And CX

Payment modernization should be embedded throughout the patient journey to reduce friction and financial risk. Real-time eligibility, automated prior authorization, and predictive payment models support transparency and timely care. Tokenization and strong authentication enhance security while building trust with patients. AI‑assisted coding and denial prevention protect margins and reduce rework across the revenue cycle.

  1. Experiment Strategically With Emerging Technologies

Healthcare leaders should reserve budget for emerging tools such as AI agents, synthetic data, and edge intelligence. Most AI agents remain assistive or semiautonomous, requiring guardrails and guided oversight. Targeting high‑value, narrow workflows — such as prior authorization bots or supply chain replanning — accelerates safe adoption. Measure pilots against clear KPIs for safety, quality, access, and cost to ensure value.

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