IT Costs: Health System Overhauls
- Across the United States, health systems are making ample investments in IT overhauls to modernize infrastructure, integrate newly acquired facilities, and streamline overall operations.
- Data indicates that hospitals are allocating significant portions of their budgets to IT spending.
- The scope and cost of these healthcare IT projects vary considerably.
U.S. health systems are decisively investing in IT overhauls, recognizing technology’s critical role in modern healthcare. These initiatives modernize infrastructure and streamline operations, with average hospital IT spending at $9.51 million. From OhioHealth’s $29.1 million Epic EHR integration to Northwell Health’s massive $1.2 billion undertaking, the scale varies, yet the goal remains: enhanced digital capabilities. Hospitals are strategically aligning IT investments with their size and strategic goals. News Directory 3 reports on these notable shifts. Discover what’s next in healthcare IT and explore the future of health system technology.
Health Systems Prioritize IT Investments for Modernization
Updated June 07, 2025
Across the United States, health systems are making ample investments in IT overhauls to modernize infrastructure, integrate newly acquired facilities, and streamline overall operations. These investments reflect the increasing importance of technology in healthcare management and patient care.
Data indicates that hospitals are allocating significant portions of their budgets to IT spending. According to Definitive Healthcare,the average hospital spent $9.51 million on IT operating expenses in 2023, representing 2.29% of their total operating budgets. The size of the facility greatly influences this figure; smaller hospitals with 25 or fewer beds spent around $1 million, while larger hospitals with over 250 beds averaged more than $33 million.
The scope and cost of these healthcare IT projects vary considerably. OhioHealth, based in Columbus, allocated $29.1 million to integrate newly acquired hospitals onto its Epic EHR platform. The project also included upgrading network infrastructure and deploying Workday and Kronos platforms for operational and workforce management.
Northwell Health, the largest health system in New York, is currently undertaking a massive $1.2 billion IT overhaul. This initiative aims to consolidate the entire enterprise onto a single instance of Epic, marking one of the largest EHR transitions in the nation.
Similarly, Emory Healthcare in Atlanta is investing $51 million in a modernized, integrated Epic EHR system following its acquisition of Houston Healthcare in warner Robins, Ga.
These investments highlight a crucial point for health systems contemplating their next major IT shift: IT overhauls are becoming essential. However, the scale, timing, and cost structure must align with the system’s size, strategic goals, and long-term digital vision.
What’s next
As healthcare continues to evolve, expect to see further investments in IT infrastructure as systems strive for greater efficiency and improved patient outcomes. The focus will likely remain on integrating systems and leveraging data to enhance decision-making.