This article was originally published on Government Technology Insider and explores how federal healthcare organizations are redefining modernization to improve patient care, strengthen cybersecurity, and enable more connected digital health services. Highlighting insights from the Federal Executive Forum “Healthcare IT Strategies in Government Progress and Best Practices 2026,” it examines how public sector healthcare and industry IT leaders are advancing interoperability, responsible AI adoption, and secure data sharing to build a more resilient healthcare ecosystem. Read on to learn how agencies are turning technology investments into measurable healthcare outcomes.
Federal healthcare officials say the conversation around healthcare modernization has shifted. Rather than ask which technologies to adopt next, agencies are focused on building an integrated digital environment where technology supports healthcare outcomes across the enterprise, AI-driven capabilities enhance operations, and data flows seamlessly. Leaders from the Office of the National Coordinator for Health IT (ONC), Defense Health Agency (DHA), Centers for Medicare & Medicaid Services (CMS), and industry spoke at the recent “Federal Executive Forum Healthcare IT Strategies in Government Progress and Best Practices 2026” webinar about how interoperability, AI, cybersecurity, and cloud-enabled architectures are reshaping healthcare delivery. In response to this shift, agencies are focusing on improving access, strengthening trust, reducing administrative burden, and empowering patients with more control over their healthcare information.
The panel of speakers included:
- Molly Prieto, Principal Deputy Director, Office of Standards, Certification, and Analysis, at the ONC
- Pat Flanders, Chief Information Officer, at the DHA
- Kathryn Wetherby, Acting Director, IT Capital Planning Group, at CMS
- Kim Kilty, Senior Manager, Federal Civilian, at Cloudflare
ONC’s Focus on Data Liquidity and Trusted Health Information Exchange
For the ONC, modernization starts with ensuring healthcare data can move where it is needed, when it is needed, while maintaining trust and governance. As Prieto explained, “Data liquidity is ensuring that information is available when we need it, where we need it.” The agency’s approach centers on standards-based interoperability, enabling providers, patients, and organizations to securely exchange important health information.
A key priority is advancing the Trusted Exchange Framework and Common Agreement (TEFCA), which was designed to create a nationwide network for health information exchange. As adoption expands, the ONC is concentrating on improving the quality, usability, and accessibility of healthcare, rather than just increasing data exchange as adoption accelerates.
Preparing the healthcare ecosystem for upcoming interoperability requirements, including electronic prior authorization and real-time prescription benefit information, is another one of the ONC’s modernization priorities. These initiatives aim to create a more seamless experience for patients and providers by reducing manual processes and improving transparency.
DHA Advancing AI-enabled Healthcare Operations
Driven by the need to support both clinical care and operational readiness, the DHA’s strategy focuses on using emerging technologies to improve healthcare delivery while ensuring systems remain secure, resilient, and mission-ready. As Flanders explained, “Cyber can’t be bolted on. It needs to be part of your design.” This philosophy has shaped the agency’s approach to AI adoption, where deploying new capabilities has been just as critical as meeting Department of War security standards.
One major advancement has been the integration of AI capabilities into healthcare workflows. To help clinicians focus more time on patient care and less time on paperwork, the DHA has deployed AI-enabled tools, such as ambient listening capabilities. The agency has also implemented Ask Sage, a large language model environment accredited for protected health information, enabling AI-assisted workflows while maintaining security requirements.
Looking ahead, the DHA sees intelligent automation, secure AI adoption, and technologies that support both clinicians and patients are essential to improving healthcare delivery while strengthening operational readiness.
CMS Modernizes Through Digital Experiences and Patient Empowerment
CMS is approaching modernization from the user’s perspective, improving how citizens interact with government healthcare systems. CMS is focused on creating more user-friendly digital experiences while transforming healthcare delivery models to provide more proactive, connected care.
A major priority for the agency is transitioning from traditional reactive healthcare models toward approaches that leverage data, analytics, and technology to support prevention and continuity of care. CMS is expanding efforts to improve access for underserved populations through telemedicine, remote monitoring, identity verification, and digital services. According to Wetherby, “Technology is an enabler. We don’t build technology for technology’s sake. We build it because we are solving a problem.”
Additionally, CMS is focused on ensuring modernization initiatives balance innovation with reliability. As new capabilities such as AI and advanced analytics emerge, the agency is emphasizing governance, transparency, and human-centered design. Their goal is to create healthcare experiences where patients have more visibility, access, and control over their information.
Cloudflare’s Vision for Secure, Distributed Healthcare Infrastructure
Security architectures must evolve alongside innovation as healthcare organizations adopt cloud platforms, AI, and digital services. Cloudflare highlighted how the industry is moving away from centralized infrastructure and toward distributed environments, where users, data, and applications are spread across several locations.
Traditional security models based on centralized networks are no longer sufficient. Identity-based access, secure connectivity, and edge protection are essential in modern healthcare environments. Kilty emphasized this shift, saying, “It isn’t just moving data to the cloud; it’s moving secure access and intelligent processing to the edge, closer to the patient and closer to where care is delivered.”
As healthcare organizations expand digital services and connected care models, the company sees secure, distributed architectures as the cornerstone for protecting sensitive data while improving performance and accessibility. Agencies and providers can strengthen resilience, reduce latency, and deliver more seamless experiences for patients and clinicians by bringing security and processing closer to users.
The Next Chapter for Healthcare Modernization
Throughout the webinar, one theme emerged consistently: integrating new technologies into a secure, interoperable ecosystem that improves patient outcomes is now what defines healthcare modernization. Connecting data, strengthening cybersecurity, enabling responsible AI adoption, and delivering digital experiences that are resilient, accessible, and centered on the needs of both patients and providers are critical to the success of federal healthcare agencies.