Purpose: This study explores how Dynamic Managerial Capabilities (DMC) influence Strategic Agility (SA) and Digital Readiness (DR) in the context of Strategic Renewal (SR) within private hospitals in Indonesia. Design/methodology/approach: The study employs a quantitative methodology, collecting 308 valid responses analyzed through SPSS 26 and LISREL 8.8 for structural equation modeling (SEM). Findings: The findings highlight the pivotal role of dynamic managerial capabilities (DMC) in driving digital transformation in healthcare, with strategic agility and digital readiness serving as key enablers of strategic renewal. These capabilities help organizations adapt, innovate and maintain competitiveness in a rapidly evolving environment. Research limitations/implications: This study contributes to strategic management literature by highlighting how dynamic managerial capabilities (DMC) drive digital readiness (DR) and strategic agility (SA) toward strategic renewal (SR) in healthcare organizations. Practical implications: These findings underscore the necessity of cohesive management, adaptable resource utilization and efficient resource allocation to overcome barriers to strategic renewal. Strong dynamic managerial capabilities significantly enhance both strategic agility and digital readiness, facilitating the successful implementation of digital health solutions in the healthcare sector. Originality/value: This study highlights the importance of dynamic managerial capabilities in fostering digital readiness in healthcare. However, it emphasizes that strategic agility is also crucial to enhance flexibility and adaptability, driving sustainable innovation and collaboration in the face of digital disruption. © 2025, Emerald Publishing Limited.