Providers report significant IT budget increases for 2024

A report from Guidehouse reveals that health systems are increasing investments in cybersecurity and technology capabilities due to growing cybersecurity threats and operational complexities. The report is based on a survey of 144 provider executives, and it indicates that digital and IT budgets for health systems increased by an average of 18.3% from 2019 to 2023. One in five respondents reported increases of more than 30% over that period.

Since 2019, 70% of providers have updated their digital and IT decision-making structures, processes, or capabilities. Looking ahead to 2024, more than 85% of health systems are increasing their digital and IT budgets, with almost half projecting moderate to significant increases. Top investment priorities include cybersecurity (55%), electronic health record modernization (46%), digital care (32%), and advanced analytics, AI, and machine learning (31%).

The report also notes that for those not changing or decreasing their digital and IT budgets in 2024, 72% cite a lack of funding as the primary reason. The Biden-Harris Administration proposed significant healthcare IT spending for 2024, with a focus on improving cross-sector collaboration and earmarks for agencies such as the Cybersecurity and Infrastructure Security Agency and the Office of Veterans Affairs.

Healthcare cybersecurity leaders are facing challenges as budgets are constrained, while cyberattacks are intensifying. Smaller hospitals, particularly vulnerable to healthcare ransomware attacks, are calling for government incentives to improve their cybersecurity posture. The report emphasizes the need for investment strategies in 2024 and beyond that generate meaningful and measurable returns.