Health systems across the U.S. are investing heavily in IT overhauls, with some spending hundreds of millions to modernize infrastructure, integrate acquisitions and streamline operations.
According to 2023 data from Definitive Healthcare based on more than 5,000 U.S. hospitals, hospitals spent an average of $9.51 million on IT operating expenses, or 2.29% of their total operating budgets. Spending scales significantly by facility size. Hospitals with 25 or fewer beds spent roughly $1 million, while those with more than 250 beds averaged more than $33 million.
The scope and cost of IT overhauls vary widely. Columbus, Ohio-based OhioHealth, for example, allocated $29.1 million to migrate newly acquired hospitals onto its Epic EHR platform, upgrade network infrastructure, and deploy Workday and Kronos platforms for operational and workforce management.
New Hyde Park, N.Y.-based Northwell Health, the largest health system in New York, is in the midst of a $1.2 billion IT overhaul to bring its entire enterprise onto a single instance of Epic—one of the nation’s largest EHR transitions.
Meanwhile, Atlanta-based Emory Healthcare is investing $51 million in a modernized, integrated Epic EHR system following its acquisition of Warner Robins, Ga.-based Houston Healthcare.
For systems considering their next major IT shift, the range of investments across the industry underscores a key truth: IT overhauls are no longer optional. But the scale, timing and cost structure must align with a system’s size, strategy and long-term digital goals.
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