SmartSense Survey: 75% of Hospital CFOs Report Heightened Cost Pressures in 2026; One in Four Lose Over $1M Annually to Preventable Failures

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A SmartSense survey of 150 U.S.-based hospital CFOs finds 94% of respondents reporting unexpected expenses related to environmental condition monitoring failures

BOSTON--(BUSINESS WIRE)-- SmartSense by Digi, part of Digi International (NASDAQ: DGII, www.digi.com) and a leading global provider of Internet of Things (IoT) connectivity solutions, today released findings from its Hospital CFO Technology Outlook Report, based on a survey of 150 U.S.-based hospital CFOs. The report examines technology budget expectations, investment priorities, and how organizations are navigating increased economic pressure. In the findings of the report, 73% of CFOs say their organization’s technology budget will increase in 2026, AI tops priorities for clinical and operational use cases, and proven ROI is more dire than ever.

SmartSense Survey: 75% of Hospital CFOs Report Heightened Cost Pressures in 2026; One in Four Lose Over $1M Annually to Preventable Failures 

“Our survey captures how financial leaders are making decisions at a time when American hospitals face persistent financial headwinds,” said Guy Yehiav, President of SmartSense by Digi. “Cost pressure is rising, ROI expectations are tightening, and hospitals are being asked to do more with less money and talent across every department. The findings paint a clear picture: tech investments are growing, but scrutiny is growing faster. CFOs are not going to sign off on innovation unless there’s a clear bottom-line benefit within 12 months.”

CFOs have three wishes for their tech investments amid tight budgets

Though tech budgets are up year over year, 75% of hospital CFOs say cost pressures are higher now than in the previous three years, effectively cutting required payback periods for new investments in half. Historically, hospitals targeted ROI within a three-year window. However, the SmartSense study finds that 51% of respondents now require returns to exceed 110% within 18 months, meaning full recovery of initial investment plus an additional 10% in financial gain. About one in five (19%) expect returns to exceed 120% within 12 months.

At the same time, one in four (26%) of CFOs say their organization has no strict ROI requirements, so long as the technology supports compliance and other strategic objectives. This emphasis on compliance shows up throughout the SmartSense study. When respondents were asked to rank the top three factors they consider in approving a technology investment, compliance alignment was the most common motivator, with 45% of CFOs ranking clear alignment to reimbursement, regulatory, or compliance pressures in their top three.

CFOs turn to platforms to do more with less as tech pilots continue to fall flat

As CFOs evaluate the technologies primed to help their organizations achieve clinical, operational, and financial excellence, a shift is taking place, 62% of CFOs say they prefer platforms that address multiple operational needs over best-of-breed tools. Upon exploring the kinds of capabilities financial leaders are eyeing in 2026, unsurprisingly, AI makes the list. Seventy-three percent (73%) plan to invest in AI to improve patient experience and clinical outcomes, and 64% plan to invest in AI to improve staff experience and operational efficiency.

CFOs’ shift to a platform-first mindset reflects a growing demand for technology that scales across departments and objectives, and a more cautious approach shaped by years of tech pilots that failed to deliver. The SmartSense study finds 57% of CFOs say half or more of their tech pilots fail. Platforms can offer a better path forward by delivering broader value without forcing CFOs to approve multiple best-of-breed pilots.

CFOs see preventable failures as a persistent cost center

As CFOs increase tech spending in 2026, one area demands more dollars: Technology to avoid preventable, yet difficult to detect, operational failures. Eighty-two percent (82%) of financial leaders say hidden operational risks not captured in standard budgeting impact their organization.

Environmental condition monitoring failures are a top example of unforeseen operational risks, with 94% of respondents reporting unexpected expenses in the past year tied to these failures. The cost adds up: 24% estimate their organization loses more than $1 million annually to preventable operational failures. When asked where they incurred these unexpected costs in the last 12 months, CFOs most often pointed to:

• Pharmaceutical storage: 47%
• Equipment or server rooms: 41%
• Blood and biological product storage: 39%

“CFOs understand how hidden operational risks hit their budgets, and many veteran leaders have come to see them as an unavoidable cost of doing business,” said Yehiav. “That creates a major opportunity for tech leaders to bring forward solutions that quantify these risks, detect issues earlier, reduce preventable losses, and protect lifesaving, critical assets like medications and biologics.”

About the Study

This survey was conducted by Coleman Parkes in January 2026, polling 150 U.S. hospital CFOs to understand 2026 technology budget expectations, investment priorities, ROI approval requirements, and the operational risks driving unexpected costs. The respondent sample reflects a broad cross-section of hospital financial leadership, spanning rural and urban settings, varied lengths of tenure, ownership models (government, nonprofit, and for-profit), and organizational structures, including single-hospital, specialty, regional, multi-campus health systems and more. To read additional findings from the SmartSense Hospital CFO Technology Outlook Report, head to the blog post.

About SmartSense by Digi

SmartSense by Digi, a business unit of Digi International (NASDAQ: DGII), is a leading global provider of Internet of Things (IoT) Sensing-as-a-Service solutions that deliver dynamic and personalized asset tracking, monitoring, process digitization, and digital decisioning across key verticals. The company enables organizations to leverage the power of IoT automation, prescriptive workflows, and insightful analytics to ensure compliance, workforce productivity, brand loyalty, loss prevention, and reduction of waste and energy consumption. Combining new and innovative data-driven approaches with world-class IoT tools, SmartSense partners with enterprises to elevate their business outcomes and asset protection to new heights. For more information, visit www.smartsense.co/.

About Digi International

Digi International (NASDAQ: DGII) is a global technology leader empowering enterprises to build, connect, and manage the critical systems that drive their businesses. Through an integrated portfolio of managed services, intelligent software, secure connectivity, and resilient edge solutions, Digi helps enterprises monitor, update, and control assets in real time, strengthen compliance, streamline workflows, and keep distributed operations running without interruption. Since 1985, Digi has enabled organizations worldwide to modernize operations and confidently connect millions of devices. Learn more at www.digi.com.

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Media Contact  
Jeff Eltringham  
Head of Marketing  
Office: +1 952.912.3104  
Jeff.Eltringham@digi.com  

Source: Digi International