Half of executives see persistent healthcare challenges
Health system executives agree that many aspects of their current healthcare delivery capabilities aren’t sufficiently addressing the most pressing challenges.
Facing an increasingly difficult strategic landscape, health system executives have set a bold imperative: They must fundamentally transform healthcare operations in the next 5 years.
Against the backdrop of growing space and resource scarcity, a dwindling clinical workforce, and health demands that are surging to unprecedented levels, 150 health system executives responded to our fifth annual digital transformation survey in September 2025.
In our previous surveys, executives said they were pursuing incremental digital solutions to help ease these intractable, long-standing challenges. But now executives see a different path forward.
This year’s survey reveals that they aim to systematically transform the reactive care delivery model that’s capital intensive and high cost. In its place, they are pursuing proactive models to deliver care that’s always on, lower cost, intelligent, and patient centric.
Executives believe they can achieve this paradigm shift by leveraging new, advanced digital and artificial intelligence (AI) tools that are unlocking new capabilities.
Health system executives agree that many aspects of their current healthcare delivery capabilities aren’t sufficiently addressing the most pressing challenges.
While health systems have put forth their best efforts to address these issues, traditional approaches and incremental changes haven’t achieved the necessary impact. 3 in 4 executives say the overall sustainability of the current delivery model won’t improve without “significant changes.”
Overcoming these challenges and repositioning to thrive in the next 5 years requires more than a focus on improvement. 9 in 10 executives agree that health systems must fundamentally change how they operate—shifting from reactive to proactive care delivery.
The current paradigm of reacting to patient demand as it presents at health systems’ doorsteps is inherently inefficient. And it’s simply unsustainable in the face of the known challenges of the coming 5 years.
Health systems previously undertook significant efforts and investments to overcome growing challenges in the reactive care delivery paradigm. But they made only modest improvements as they had to rely on inefficient downstream approaches to dealing with patient health needs.
Reactive approaches will no longer suffice. Building more beds won’t increase capacity if physicians and nurses can’t staff them. Hiring more providers isn’t an option if the pipeline isn’t keeping pace with staffing needs. And asking staff to do more in the current model risks heightened burnout and attrition.
Health system executives are prioritizing four domains to anchor the paradigm shift from reactive to proactive care delivery: