Introduction
Modern Healthcare’s latest Digital Health Survey revealed a telling statistic: 43% of digital health vendors cite long sales cycles as one of their biggest obstacles. On the surface it seems to confirm the familiar view that hospitals simply move slowly. In reality it points to a tug of war between ambitious AI vendors and cautious customers. Vendors push hard to get their tools into the market, while providers pull back to ensure safety and fiscal stewardship. This tension is not a bad habit; it reflects learned prudence in a sector where past technology waves promised more than they delivered. Health systems are not dragging their feet; they are intentionally weighing evidence to protect patients and budgets.
Looking past the stereotype
Alex Lennox Miller, a research analyst at Silicon Valley Bank, observed that health system leaders are doing everything they can to make the right decision (Modern Healthcare, 2025). These leaders operate in complex organizations with life and death responsibilities. They cannot adopt unproven products because a software vendor says it will change the world. As Aaron Miri, chief digital and information officer at Baptist Health, explained, there is a lot of unproven return on investment when it comes to AI and executives must build a business case before committing (Modern Healthcare, 2025). In this context it is not surprising that slow sales cycles remain a top barrier for vendors.
Lessons from past hype cycles
Provider caution is rooted in experience. Take Babylon Health, a company that went public via SPAC in 2021 at a $4.2 billion valuation with promises of AI-powered primary care and diagnostics. Despite the bold vision, Babylon filed for Chapter 7 bankruptcy in August 2023 (Fierce Healthcare, 2023; Healthcare Dive, 2023).
Another example is Amazon Care. Launched in 2019 as a virtual clinic for employees, the service expanded to external employers but never offered a complete enough solution for large enterprise customers. Amazon announced it would shut the program down at the end of 2022 (Mobile Health News, 2022). That closure came after Amazon’s employer focused joint venture with Berkshire Hathaway and JPMorgan, Haven, also ended quietly (Mobile Health News, 2021). These high profile missteps reinforce why health systems demand clear value before committing.
Olive AI serves as a cautionary tale about overpromising to hospital executives. The automation company told health‑system leaders that its AI‑driven revenue‑cycle tools would slash administrative costs by fivefold, but internal reviews at one major Midwestern hospital found savings closer to ten to fifteen percent, prompting the hospital to end its contract and complain of mismatched expectations (oyelabs.com). More broadly, Olive raised about $852 million and deployed its software at roughly 1,000 hospitals, yet the startup ultimately shut down in 2023 because the promised return on investment never materialized and savings were offset by implementation costs and error correction (OyeLabs, 2025; Global Publicist 24).
What providers are doing
At Baptist Health every AI project must have a business case, go through technology and security vetting and demonstrate a clear return on investment (Modern Healthcare, 2025). Products are tested in a pilot before a full contract is signed. At Inova Health, chief information officer Matthew Kull noted that adopting an AI product from a lesser known vendor can take up to a year because leaders must dig into the product and its claims. The buying side of the sales cycle might be shortening, but the investigatory side is growing as providers verify that an AI badge on a logo means something real. While vendors often see this diligence as resistance, it is a sign of responsible stewardship.
Providers also recognize the potential upside. Sixty three percent of vendors dedicate more than half of their research and development budget to AI and twenty two percent of vendors see increased adoption as a key opportunity for growth. Health system executives do not want to miss out. They simply want evidence before they invest. That means vendors must adjust their approach.
Shifting the burden to vendors
The current environment puts the ball squarely in the vendors’ court. If providers are going to invest time and money in a new tool, the vendor needs to come with data and a fast path to measurable value. Long presentations and glossy marketing decks are not enough. Vendors should offer small pilots that require minimal lift from the hospital’s IT team. By proving early ROI they give champions inside the health system the evidence they need to build momentum. In other words, vendors must move beyond selling subscriptions and start co‑creating value with their customers.
Ascertain’s philosophy
At Ascertain we believe that responsible AI adoption starts small. We partner with leadership teams to deploy targeted solutions quickly, measure the impact and iterate together. Our implementations require minimal support from the customer’s IT department and can be up and running in weeks. We do not focus on selling long term subscriptions; we focus on creating value. By aligning our success with our customers’ outcomes we build trust and accelerate adoption.
My Perspective: Building Sustainable Digital Health Partnerships
From my own career experience, the data showing that 43% of digital health vendors cite long sales cycles as their biggest barrier to growth rings true. I do not see health systems as dragging their feet—rather, they are exercising rational caution. High profile failures have left many healthcare leaders wary of hype. The journey from innovation to proven return on investment is a long, winding road that requires patience, persistence, and proof that new tools deliver tangible value. In response, these leaders have built robust governance processes and insist on clear evidence before adopting new technology.
My recommendation to fellow innovators is to respect that diligence. Vendors who lean into pilots, provide transparent data and work collaboratively with providers will be rewarded with trust. I have learned that success comes from co creating outcomes rather than pushing subscriptions. At Ascertain, we are committed to being part of this new chapter—one where excitement about artificial intelligence and digital solutions is matched by real improvements in cost, quality and patient experience.
