KPMG Survey Reveals Healthcare CEO Execution Challenges

CEOs in the healthcare sector are increasingly having to find ways to balance competing pressures from technological advancement, environmental targets and operational constraints. 

KPMG's 2025 Healthcare CEO Outlook, a broad piece of research based on responses from 110 global healthcare leaders, reveals the strategic priorities that could define the industry's trajectory over the coming decade.

The research examines how healthcare executives are responding to demographic shifts, resource limitations and the rapid pace of digital transformation. 

For leaders managing some of the world's largest healthcare organisations, the findings demonstrate clear opportunities to grow and evolve, but also significant implementation challenges.

ESG ambitions face execution gaps

While healthcare CEOs express confidence in addressing environmental, social and governance priorities, KPMG's research reveals a disconnect between aspiration and delivery. 

Only 30% of leaders comprehensively calculate sustainability costs and potential return on investment when making major capital decisions.

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

"Yet our survey suggests that most sector leaders believe that AI and digitalisation will deliver the panacea to their problems."

The confidence gap extends to climate commitments, with just 12% of CEOs highly confident their organisations will meet net zero goals by 2030. 

According to KPMG, this challenge stems from limited internal expertise and the complexities inherent in decarbonising healthcare supply chains.

Beyond carbon reduction, 84% of healthcare respondents report increasing pressure to address climate change impacts and geopolitical instability affecting their communities. 

KPMG suggests healthcare organisations must prioritise resilience planning, collaborating with government bodies and stakeholders to develop infrastructure capable of withstanding future disruptions.

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

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

"Productivity isn't optional, it's the key to survival for every healthcare organisation, public or private."

"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."

Digital transformation plans accelerate

Healthcare CEOs view digitalisation and artificial intelligence as fundamental to future productivity gains. 

KPMG's data shows 72% of leaders believe their organisations are successfully keeping pace with AI development, with 87% planning to allocate more than 10% of budgets to AI solutions in the next year. Of these, 83% anticipate returns within three years.

"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, KPMG identifies substantial implementation barriers. Data readiness represents a challenge for 55% of healthcare CEOs, alongside concerns regarding ethics and technical capabilities. 

The research suggests successful technology adoption requires foundational infrastructure including electronic health records, integrated data platforms and smart hospital systems.

KPMG warns that technological investments could fail without adequate change management to address generational skills gaps and support employee adoption across healthcare workforces. 

The integration of new technologies must be accompanied by comprehensive training programmes and cultural shifts to ensure healthcare professionals can effectively use digital tools in patient care delivery.

Tackling supply chain pressure

Supply chain resilience remains a top priority for healthcare CEOs in the short term, according to KPMG's findings. The pandemic experience continues to influence strategic decision-making around supply chain stability and diversification.

"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.

As healthcare organisations expand telehealth services, connected medical devices and electronic health records, KPMG notes that cybersecurity risks have increased substantially. 

Cyber-attacks, fraud and identity theft now represent strategic threats requiring leadership attention.

KPMG reports that regulatory pressures and supply chain resilience remain among the most pressing challenges for healthcare executives. 

The complexity of decarbonising supply chains presents an additional obstacle to achieving climate objectives.

To address these interconnected risks, KPMG advises healthcare executives to secure appropriate investment in data and systems protection while developing partnerships that could deliver more stable, resilient and transparent supply chains across the global healthcare ecosystem.