Tech investments health systems are scrutinizing in 2026 – Becker’s Hospital Review

In 2026, health systems are taking a more disciplined approach to technology investments that have shown promise but failed to deliver the operational or financial return initially expected. 

The increased scrutiny is not due to failed initiatives, CIOs told Becker’s. Rather, it’s driven by growing pressure to reduce complexity, improve adoption and ensure spending translates into enterprise-wide value.

At Sky Lakes Medical Center in Klamath Falls, Ore., CIO and CISO Rick Leesman said artificial intelligence and EHR optimization remain priorities. However, the organization is taking a closer look at how cybersecurity investments perform once deployed.

“Over time, healthcare organizations have added layers of security to respond to evolving threats, and while those investments are necessary, they do not always mature into a cohesive, efficient control environment on their own,” Mr. Leesman told Becker’s.

Rather than cutting back on security spending, the focus is on ensuring tools work together effectively. The goal is to reduce unnecessary complexity and deliver measurable risk reduction while minimizing friction for clinicians and staff.

“This is less about pulling back and more about making sure investments deliver sustained value, resilience and operational clarity at scale,” he said.

Several CIOs described a similar reassessment of technologies layered onto core platforms. At Tower Health in West Reading, Pa., Senior Vice President and CIO Tom Bartiromo said the organization is scrutinizing “AI-adjacent add-ons” more aggressively. The focus has shifted from acquiring new tools to extracting more value from existing systems.

“Our emphasis is less about point solutions and more toward realizing more value from the core platforms we already own,” Mr. Bartiromo told Becker’s. “We are pressing vendors and partners to demonstrate measurable, system-level outcomes rather than feature-level promise.”

That shift reflects a broader emphasis on disciplined value realization, he said.

At Reid Health in Richmond, Ind., CIO Muhammad Siddiqui said standalone point solutions layered onto core platforms are also under closer review. While many of those tools delivered incremental benefits, he said their full cost becomes clearer over time.

“These tools did not fail, and many delivered limited wins,” Mr. Siddiqui told Becker’s. “The shortfall becomes apparent when accounting for support effort, integrations, governance and ongoing operational load.”

In response, Reid Health has changed how it evaluates technology investments. The organization is now applying an enterprise workflow and value-realization lens, with greater emphasis on adoption. Mr. Siddiqui said the health system is focusing on activating existing platforms, particularly Epic and enterprise automation, to remove manual work and reduce variation.

“This approach drives fewer tools, clearer ownership and outcomes measured against cost, access and workforce relief,” he said.

AI initiatives are also under greater scrutiny at Fisher-Titus Health in Norwalk, Ohio. Chief Digital Information Officer Linda Stevenson said application rationalization remains a priority. While AI holds significant potential to enhance productivity and financial outcomes, she emphasized that implementation alone does not guarantee return.

“Implementation is just the beginning; ensuring that these solutions are integrated seamlessly and that changes are managed well is vital,” Ms. Stevenson told Becker’s. “This means hardwiring new workflows and processes to make sure they are fully embedded in our operations.”

She said that for rural and community providers, achieving an appropriate return on technology investments is especially critical.

“Without achieving the appropriate return on these solutions, rural and community healthcare providers like us will struggle to innovate due to funding constraints,” Ms. Stevenson said.

At Nathan Littauer Hospital & Nursing Home in Gloversville, N.Y., Vice President and CIO James Wellman said the organization has taken a patient, structured approach to AI adoption. Its efforts are organized around four pillars: ambient AI, call center agents, search and summarization, and revenue cycle management.

“We have been patient with our adoption of AI,” Mr. Wellman told Becker’s.

He said revenue cycle management is expected to deliver the greatest impact and return on investment. AI is designed to augment patient finance teams, although that initiative remains in development. Mr. Wellman said the organization chose to work with a single vendor across its AI initiatives, believing an integrated approach would be more effective than deploying multiple “best-of-breed solutions.”

Together, the CIOs’ responses reflect a recalibration heading into 2026. The focus is less on expanding technology portfolios and more on reducing complexity, improving adoption and ensuring that existing investments deliver clear, enterprise-wide value.