Health system executives are preparing for tighter capital budgets over the next two years, but they are not pulling back on technology investments that drive growth, efficiency, and patient engagement. A new report from Sage Growth Partners shows that while 41% of health system leaders expect capital investments to decline, spending is being redirected toward AI, revenue cycle, and patient-focused technologies that can deliver measurable returns.
The survey of 101 hospital and health system C-suite leaders offers a clear signal for companies working with healthcare providers, including those involved in revenue cycle management and collections. Even in a constrained budget environment, providers are prioritizing tools that help them acquire patients, improve financial performance, and enhance the patient experience.
What is changing in healthcare spending
- Capital constraints are real: 41% of executives expect reduced budgets, while only 5% anticipate significant increases.
- Growth is the priority: 46% of leaders say investing in new markets or revenue streams is a top focus, up significantly from prior years.
- Patient acquisition matters more: 40% of executives rank patient acquisition as a key priority, alongside investments in engagement technologies.
Where the money is still flowing
Despite budget pressure, health systems are making targeted investments:
- AI is leading the way: 57% of executives rank AI-based clinical solutions as their top technology priority, a sharp increase from just 19% in 2023.
- Revenue cycle remains critical: More than half of respondents identified revenue cycle technologies as a top digital health priority.
- Digital engagement is expanding: Virtual care, patient engagement tools, and data analytics continue to see strong investment as providers look to improve access and retention.
Why this matters for collections and RCM
For companies collecting on unpaid medical debts or supporting healthcare providers, the implications are clear:
- ROI is non-negotiable: 77% of executives say anticipated ROI is the most important factor in purchasing decisions, with many expecting a 2x to 3x return.
- Efficiency and collections are under scrutiny: Providers are investing in tools that directly impact revenue capture, patient payments, and operational efficiency.
- Patient experience is now financial strategy: Improving how patients interact with billing, payments, and communication is central to growth, not just satisfaction.
The bottom line
Healthcare providers are not spending less, they are spending smarter. With capital tightening, every investment must tie directly to revenue, patient acquisition, or measurable efficiency gains. For vendors and partners in the collections and revenue cycle ecosystem, the opportunity is still strong, but the bar is higher than ever.
Those who can clearly demonstrate ROI, improve patient engagement, and integrate seamlessly into existing systems will be best positioned to win in this next phase of healthcare spending.
