In the wake of a wave of major data breaches exposing sensitive information of millions of patients nationwide, healthcare organizations across the United States are urgently transforming how they approach technology. Cybersecurity is no longer just an IT concern — it’s become the driving force behind tech budgets and purchasing decisions in 2025.

Cybersecurity Takes Center Stage in Healthcare Software Investments

According to the latest Medical Tech Trends Report from Software Advice, which surveyed 364 healthcare providers, safeguarding patient data ranks as the number one priority for software purchases this year. After the unprecedented cyberattacks and data leaks that rocked the healthcare sector last year, organizations have realized that robust security measures are vital to protect not only their patients but also their own operational integrity and reputation.

The report highlights that cybersecurity and IT management top the list of investment priorities for healthcare providers. Nearly half (45%) of those surveyed identified data security concerns as the biggest obstacle when adopting new software solutions. This reveals a growing awareness among healthcare buyers that poorly matched or inadequately secure technology can expose them to significant vulnerabilities — legal, financial, and ethical.

The Speed of Decision-Making Impacts Software Success

Choosing the right software for healthcare organizations is no small feat. These are high-stakes decisions with long-term consequences, and understandably, many providers spend months evaluating options. But the research uncovers an interesting paradox: taking too long to decide often leads to buyer’s remorse.

Survey results show that those who regretted their software purchases spent an average of five months in the evaluation process. Conversely, healthcare organizations that were happy with their decisions made them much faster, averaging just 3.7 months. Impressively, 64% of satisfied buyers completed their selection process in under three months.

This data suggests that clarity is key. When organizations set clear goals and outcomes from the start, they can streamline the buying process and make choices that truly meet their needs, avoiding costly missteps.

Optimism Drives Growing Tech Budgets Amid Economic Uncertainty

While many industries are tightening their belts due to economic uncertainties, healthcare providers surveyed by Software Advice paint a more optimistic picture. A remarkable 85% expect their revenues to grow by at least 5% this year, with a quarter anticipating growth of 15% or more.

Reflecting this positive outlook, 75% of respondents reported increasing their software budgets in 2025 compared to last year. This signals a strong commitment to invest in technology as a strategic enabler of growth and operational excellence.

Healthcare leaders understand that investing in the right tech stack is crucial to enhancing patient care, improving efficiency, and safeguarding against future cyber threats.

A Strategic Future for Healthcare Tech in 2025 and Beyond

As the healthcare sector navigates the aftermath of recent cybersecurity crises, the lessons learned are clear: protecting patient data is non-negotiable, and technology investments must be made thoughtfully and decisively.

Software Advice’s report reveals that U.S. healthcare organizations are embracing a more strategic approach to software buying — balancing security, speed, and budget with operational needs and revenue goals.

For healthcare providers looking to make smart, secure software choices in 2025, the report offers valuable insights and practical tools to simplify the complex selection process.