KPMG: Technology and Supply Chain Resilience in Healthcare

Healthcare organisations face mounting pressure to secure supply chains as leaders prepare for geopolitical disruption and climate risks.

According to the KPMG 2025 Healthcare CEO Outlook, these operational concerns rank among the top priorities influencing short term decision making across the sector.

The report surveyed 110 global healthcare CEOs. It examines how executives balance innovation with operational constraints while managing workforce gaps, budget pressures and cyber threats.

Supply chain vulnerabilities rise

Supply chain resilience has become a primary concern for healthcare leaders. The pandemic exposed dependencies that many organisations had overlooked.

According to KPMG, regulatory pressures and supply chain stability compete for leadership attention alongside other operational demands. These challenges extend beyond immediate logistics issues.

The complexity of healthcare supply networks creates obstacles for organisations attempting to meet environmental targets. Decarbonising these systems could prove difficult without coordinated industry action.

"Many health systems are focusing on how to encourage their workforces to operate more effectively in multi-disciplinary teams across organisations and AI, and technology will play a key role in achieving that," says Sarah Abbott, Partner, Health, Ageing & Human Services, KPMG Australia, in the report.

Digital infrastructure expands risks

Telehealth adoption and connected medical devices have increased network vulnerabilities. According to KPMG, this expansion has heightened exposure to cyber attacks, fraud and identity theft.

Electronic health records now connect across multiple platforms. This integration creates potential entry points that require security investment.

Cybersecurity has shifted from an IT function to a strategic imperative. Healthcare executives must allocate resources to protect data and systems while maintaining operational continuity.

KPMG advises organisations to build partnerships that create more transparent supply networks. Collaboration between providers, suppliers and regulators could reduce risk across the healthcare ecosystem.

Investment priorities and barriers

According to the report, 87% of healthcare organisations plan to allocate more than 10% of budgets to AI solutions this year. Leaders expect returns within three years in 83% of cases.

"There is no question that digitalisation will serve as a pivotal catalyst in shaping the future of care delivery models," says Dr Jaz Dhaliwal, Global Digital Healthcare Lead KPMG International and Partner, KPMG in the UK, in the report.

However, data readiness presents a barrier for 55% of healthcare CEOs. Ethics concerns and technical capabilities also limit implementation.

Technology alone will not resolve operational pressures. KPMG notes that organisations need foundational systems including integrated data platforms and electronic health records before advanced tools can deliver value.

Climate goals remain distant

Only 30% of healthcare leaders calculate sustainability costs and integrate them into capital decisions, according to KPMG. Environmental considerations often remain separate from financial planning.

Confidence in meeting Net Zero targets by 2030 is low. The report indicates that 12% of CEOs feel highly confident their organisations will achieve these goals.

Internal skills gaps limit progress. The technical requirements for measuring and reducing emissions across complex supply networks exceed current capabilities in many organisations.

"Growing workforce shortages, rising demand, stretched budgets and concerns about cyber-attacks and the next pandemic should loom large on CEO's minds," says Beccy Fenton, Global Head of Healthcare at KPMG International and Head of Infrastructure, Government and Healthcare at KPMG UK, in the report.

Community pressures increase

According to KPMG, 84% of healthcare respondents feel compelled to address climate change and geopolitical conflict impacts on local populations. These expectations extend beyond traditional healthcare delivery.

Organisations must work with governments and stakeholders to build resilient infrastructure. This includes mental and physical systems capable of withstanding future crises.

"Rising demand is usually good news for business, but healthcare is different," adds Beccy.

"When public services face surging demand, governments are forced into tough trade offs between areas such as health, education and defence."

Productivity improvements are not optional for survival. Both public and private healthcare organisations must find ways to do more with existing resources.

Technology adoption requires support

According to KPMG, 72% of leaders believe their organisations are keeping pace with AI development. This confidence could be tested as implementation challenges emerge.

Change management will determine whether technology investments deliver expected improvements. Generational skills gaps and employee adoption rates affect outcomes.

KPMG warns against isolated technology adoptions. Organisations need comprehensive strategies that address data infrastructure, workforce training and process redesign simultaneously.

"Many sector CEOs say they are seeking to address many of their communities' most urgent ESG challenges, from sustainability and resilience through to enhancing access and care, through new partnerships, innovation and investment," says Beccy.

Healthcare executives must balance multiple demands while building systems that can adapt to future disruptions. Supply chain stability, cybersecurity and sustainability all require sustained attention and investment over the coming years.