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2026 Prospectus

AI is moving faster than hospital governance. Leaders need to close the gap.

AI is moving faster than hospital governance. Leaders need to close the gap.
Greg Wahlstrom, MBA, HCM

Most health systems already use AI. Far fewer could explain to a regulator how it works.

AI has moved from pilot to production across much of healthcare. Governance hasn’t kept up. A 2025 HFMA report found that 88% of health systems use AI internally, but only 18% have mature governance structures. A Black Book Research survey of 182 hospital leaders, published in November 2025, found similar gaps going into this year’s budgets.

What the survey found

  • Only 29% of hospitals had implemented and enforced policies covering AI model inventory, lineage and approvals. Another 48% were still drafting them.
  • Only 22% were confident they could produce a complete, auditable explanation of an AI tool within 30 days if a regulator or payer asked. Among small hospitals, that dropped to 15%.
  • The median 2026 budget share for AI governance and safety was 4.2%. Large systems allocated more, small hospitals far less.
  • The top obstacles: limited explainability from vendors (41%), incomplete tracking of data and model versions (37%) and unclear ownership among IT, quality and compliance (33%).

Governance is a leadership job, not an IT ticket

Clinical AI affects patient safety, documentation, coding and payer relationships. That puts it in front of the board and the CEO, not just the CIO. Start with three steps: keep a single inventory of every AI tool in use, name one accountable executive owner, and require vendors to provide documentation you could hand to an auditor.

Executive takeaway: Before approving another AI purchase, ask your team this: "If CMS or a payer asked us tomorrow how this tool reached its recommendation, could we answer within 30 days?" If the answer is no, fund the governance work first.

Sources

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