PurposeThe adoption of digital technology has not been able to overcome the problem of patient healthcare service quality in Indonesian hospitals, especially in lower middle-class hospitals that are widely distributed in the regions, because its utilization has not been well coordinated. This research explores the influence of Digital Adoption Capability (DAC) on Hospital Performance (HP) for these service problems.Design/methodology/approachThis research used a quantitative methodology design approach. Survey data were collected from 285 leaders of class C and D hospitals throughout Indonesia, who were selected at simple random from March to August 2023. Data analysis was carried out using the structural equation modeling method with the help of LISREL version 8.80 software.FindingsThe research found a positive and significant influence of DAC on HP. Digital Leadership (DL) plays an important …