Ernst & Young LLP (EY US) revealed eight major trends expected to influence the health sector in 2026 and beyond.

According to Kim Dalla Torre, EY Global and Americas Health Sector Leader, these developments demonstrate that health is changing and moving toward digital transformation in spite of strict macroeconomic and regulatory challenges.

“As 2026 approaches, the health sector is poised for significant transformation,” stated Dalla Torre. “Health leaders are facing unprecedented pressures as well as unique opportunities to evolve their business models. Tomorrow’s leaders will prioritize leveraging AI and deploying innovative talent strategies while focusing on financial resilience.”  

Top EY Health sector trends for 2026:

  1. AI: While clinical uses of AI lead the way, and 88% of health leaders trust in AI technologies, responsible AI strategies will be critical as organizations move beyond experimentation. In this progression, it’s important to establish proactive guidelines and guardrails for agentic AI, focusing on safe implementation and creating checkpoints to validate outputs, along with educational resources for patients and clinicians. AI is streamlining payer claims adjudication by enabling faster, automated decisions when data is missing and increasing processing speed and volume, while also reducing fraud through quicker detection of improper claims.

  2. Cybersecurity: The EY-KLAS The US Healthcare Cyber Resilience Survey found that 72% of health executives experienced moderate-to-severe financial impacts from cyber incidents, indicating the importance of shared responsibility for cybersecurity across healthcare organizations. Health leaders must shift their perspective, viewing cybersecurity not as a cost center but as a strategic enabler. 

  3. Mergers and acquisitions: The health sector is poised for targeted M&A expansion in 2026, with key opportunities in lower-acuity care segments, AI-enabled technology solutions, and network expansion; however, regulatory scrutiny, capital constraints, and economic headwinds persist. Opportunities for targeted M&A can unlock new growth in services such as ambulatory care and create new technology-driven operational efficiencies.

  4. Financial sustainability: Amid aging populations and rising costs, many health leaders are embracing tech-enabled care delivery models to help lower costs and improve efficiency. By optimizing resources and reducing waste, health leaders can thrive amid tighter margins while continuing to deliver high-quality care.

  5. Offshoring: As leaders prioritize financial sustainability amid worker shortages and increasing demand for remote care delivery, offshoring clinical services can address these challenges. Offshoring allows healthcare organizations to tap into a global talent pool while maintaining high standards of care. However, the current geopolitical climate and shifting immigration policies present challenges to obtaining and supporting workers.

  6. Talent management: Upskilling can help attract and retain talent, especially as organizations continue to adopt AI and strengthen cybersecurity. Leaders should prioritize training to help staff validate outputs and build trust in new technologies to reduce risks from AI errors and cyber threats while empowering a more resilient workforce.

  7. Regulatory environment: In 2026, healthcare executives will need to adapt and prepare for federal funding cuts that threaten Medicaid coverage for over 10 million individuals. These shifts will reshape market dynamics and transform healthcare delivery, pushing providers and payers to streamline operations and rethink traditional models to better serve patients.

  8. Third-party vendors: Partnering with third-party vendors can boost efficiency and improve patient outcomes more cost-effectively than building in-house capabilities. As companies increasingly rely on third-party vendors, additional vetting and vendor consolidation are key to mitigating risk and creating a trusted ecosystem.

“Payers, providers, and consumers are finding themselves at the intersection of change in healthcare like no other time in history,” stated Dalla Torre. “Leaning into solutions now could drive value and care models that are sustainable for everyone’s future.”

Disclaimer:

The information contained in this article is for educational and informational purposes only and is not intended as a health advice. We would ask you to consult a qualified professional or medical expert to gain additional knowledge before you choose to consume any product or perform any exercise.

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