Kyndryl to Acquire Healthcare IT Leaders to Expand AI-Led Healthcare Modernization

Kyndryl announced on the 10th that it had agreed to acquire Healthcare IT Leaders, an enterprise IT services provider serving hospitals and health systems, as it looks to expand its AI-led modernization services for U.S. healthcare organizations.

The transaction would combine Healthcare IT Leaders' consulting and application managed services with Kyndryl's infrastructure and AI capabilities. Kyndryl said the combination would allow healthcare providers and payors to work with a single technology services provider across applications, platforms and underlying IT environments.

Jamie Rutledge, President of Kyndryl U.S., said healthcare organizations are facing pressure to modernize clinical, operational and workforce systems while maintaining security, resiliency and compliance.

The terms of the transaction were not disclosed. Kyndryl expects the acquisition to close during the second quarter of its fiscal year 2027, subject to customary closing conditions and regulatory review.

Kyndryl Adds the Application Layer

Healthcare IT Leaders brings expertise across the applications used to run clinical and business operations at hospitals and health systems. Its services cover electronic health records (EHRs), enterprise resource planning, revenue cycle management and human capital management systems, as well as cloud transformation and application migration.

Its cloud practice has supported healthcare organizations moving EHR and other applications to public and hybrid cloud environments. The company also provides managed services for healthcare applications, giving Kyndryl additional capabilities around the systems that sit above the infrastructure it already manages.

That application layer is becoming increasingly important as health systems embed AI into existing clinical software. Providence, for example, expanded its use of Epic's native AI tools in 2026, adding use cases for clinical documentation, coding, predictive denials and reporting. 

Sutter Health has similarly moved AI into its EHR environment by integrating OpenEvidence into Epic, following earlier deployments across imaging, primary care and documentation. 

Kyndryl said the acquisition would deepen its relationships with national healthcare systems and expand its access to the application and consulting layer of those organizations.

Healthcare AI Moves Toward Enterprise Systems

The deal comes as healthcare organizations work to move AI from individual deployments into broader technology environments. Kyndryl's March Healthcare Readiness Report found that 55% of surveyed healthcare organizations were concerned about keeping pace with changing policies and regulations, while only 30% felt prepared to adapt.

Infrastructure modernization is also becoming part of that transition. WellSpan Health recently moved more than 300 clinical applications and 7.5 petabytes of data to Amazon Web Services, including its full Epic environment, to establish a foundation for AI across clinical and operational functions.

Kyndryl already provides technology services to healthcare providers and payors, including IT modernization and infrastructure services. 

The Healthcare IT Leaders acquisition would extend that position into applications and consulting. Kyndryl said the combined capabilities would serve healthcare organizations across federal, academic, pediatric and regional segments as they manage increasingly complex technology and workforce requirements.