RFID in Healthcare [Updated for 2026]

Healthcare leaders are driving a new era of visibility and automation—with RFID at the center of that shift. As costs rise and staffing shortages persist, hospitals rely on RFID to track assets, medications, and patients in real time.

This article explores how RFID is shaping healthcare in 2026 and how providers use it to improve efficiency, safety, and outcomes.

Updated on 1/16/2026

Update for 2026

Hospitals, clinics, and supply chain partners are accelerating RFID adoption through 2026 and beyond. Analysts project the RFID healthcare market to grow from $7.7 billion in 2025 to over $31 billion by 2034.

Other analysts project the healthcare RFID market will reach $19.8 billion by 2034 as investment accelerates.

Key Trends Shaping RFID Use in 2026

Here are a handful of key trends to look for in 2026.

Expanded Real-Time Asset and Patient Tracking

Hospitals now use RFID to track equipment, beds, and patient movement—reducing delays and improving workflows.

Smarter Medication and Supply Management

RFID enhances medication safety and inventory accuracy by automating scans of large numbers of drugs at once and reducing reliance on barcode workflows. This automation eliminates manual entry of lot numbers and expiration dates while speeding recalls and restocking.

Integration with AI, IoT, and Analytics

By combining RFID with AI and IoT, healthcare teams gain predictive insights like early stockout detection and OR readiness optimization.

Broader Adoption Across Clinical and Logistics Use Cases

Beyond equipment and patient tracking, Healthcare teams are expanding RFID into surgical instrument tracking, cold-chain monitoring, and device lifecycle management.

Miniaturization and Cost Reductions

Manufacturers now produce smaller, more durable, and more affordable RFID tags—enabling use on disposable supplies and small devices.

As demand grows for real-time visibility, patient safety, and automated processes, healthcare providers that embrace RFID—combined with data analytics and IoT—will be better positioned to improve outcomes, reduce costs, and streamline care delivery.

Why RFID in Healthcare Matters

Did you know U.S. hospitals are expected to lost approximately $4,000 worth of equipment per bed in 2026 due to misplacement or theft? For healthcare facilities, losses like this can be quite destructive. To stave off such losses, facilities need some kind of tracking system. This is where RFID comes into play.

From asset tracking and patient identification to medication management and supply chain optimization, RFID solutions are revolutionizing traditional healthcare practices. Today, RFID systems integrate directly into clinical workflows, helping healthcare organizations improve safety, efficiency, and quality of care.

84% of healthcare organizations that deploy RFID use it to review inventory content and track trays and boxes across the hospital, noting an 82% improvement in inventory tracking capabilities, a 73% increase in data availability to optimize kit or tray contents, along with a 64% improvement in managing drugs for recalls. (Source: MedTechIntelligence.com)

Accurate inventory data is essential, yet traditional manual counts are labor-intensive and often inaccurate. RFID dramatically improves inventory accuracy by processing thousands of items in minutes. It eliminates manual barcode scanning and touch-counting altogether.

RFID is the future of inventory tracking. Its many uses in retail are only limited by the imagination of their users.

Let’s explore the current landscape of RFID technology in healthcare, its diverse applications, benefits, and the transformative impact it is having on healthcare delivery and patient outcomes.

How Does RFID Work in Healthcare?

Healthcare organizations deploy RFID in several ways to track inventory, assets, and people wirelessly. Here’s a breakdown of how RFID works in healthcare:

RFID Tags

RFID tags are small electronic devices that consist of a microchip and an antenna. Teams attach these tags to medical equipment, medications, patient wristbands, and staff badges. Tags come in different forms, including passive, active, and semi-passive, each suited for specific applications based on their power source and functionality.

RFID Readers

RFID readers, also known as interrogators, emit radio waves and receive signals from RFID tags within their vicinity. These readers can be stationary, handheld, or integrated into other devices, such as smartphones or tablets. When a tag enters range, the reader captures its unique identifier and sends the data to connected systems.

Data Transmission

When a reader sends a signal, the RFID tag responds by transmitting its data instantly. This data typically includes a unique identifier that identifies the tagged object or individual. The RFID reader captures this data and sends it to a central database or software system for processing and analysis. Additionally, RFID systems, such as Edgefinity IoT, can work with other kinds of modern tech such as Bluetooth Low Energy, RTLS, or Ultra Wideband.

Use Cases of RFID in Healthcare

RFID offers a wide range of use cases in healthcare and hospitals, revolutionizing various aspects of patient care, operational efficiency, and asset management. Here are some key use cases of RFID in healthcare and hospitals:

Patient Identification and Tracking

Hospitals use RFID wristbands to identify and track patients throughout their care journey. This includes admissions, transfers, surgeries, and discharge processes. RFID-enabled patient tracking systems enhance patient safety by reducing the risk of identification errors and improving staff visibility into patient whereabouts.

Asset Tracking and Management

Teams attach RFID tags to medical equipment to track location, usage, and availability in real time. Hospitals utilize RFID technology to locate assets, monitor usage patterns, and streamline inventory management processes. This ensures that critical equipment is readily available when needed, reducing equipment loss and improving resource utilization.

Medication Management

Pharmacies and care teams use RFID to manage inventory, track expirations, and verify medication administration. RFID tags applied to medication packaging enable automated inventory tracking, reducing medication errors and improving patient safety by ensuring the right medication is administered to the right patient at the right time.

Temperature Monitoring and Cold Chain Management

Hospitals use RFID tags to monitor temperature and protect cold-chain medications and biologics. RFID-enabled systems provide real-time visibility into temperature conditions during storage and transportation, ensuring compliance with regulatory requirements and maintaining product integrity.

Cryogenic labels combined with RFID can be used for managing assets in environments where extreme cold temperatures are a norm, such as in biomedical research, pharmaceuticals, and food storage.

Surgical Instrument Tracking

RFID tags are attached to surgical instruments and trays to track their usage, sterilization status, and location within the hospital. RFID tracking ensures surgical instruments are sterilized, accounted for, and available—reducing loss and improving patient safety.

Blood and Tissue Tracking

RFID technology is used to track blood products, tissue samples, and other biological materials throughout the healthcare supply chain. RFID tags applied to blood bags and tissue containers enable efficient inventory management, traceability, and compliance with regulatory requirements, ensuring the integrity and safety of these critical resources.

Patient Flow Management

Hospitals use RFID to optimize patient flow, reduce wait times, and improve staff coordination. RFID-enabled patient flow management solutions track the movement of patients and staff throughout the facility, providing real-time data to optimize staffing levels, allocate resources, and minimize bottlenecks in patient care pathways.

Security and Access Control

Healthcare facilities use RFID to control access, secure medications, and protect sensitive areas. RFID-enabled access control systems enhance hospital security measures and help protect patient privacy and confidentiality.

Regulatory Requirements for RFID in Healthcare

An RFID tag mandate in healthcare is a rule or policy that requires the use of RFID tags for specific healthcare applications. These mandates require hospitals, suppliers, and partners to use RFID for tracking, identification, and compliance.

Regulatory requirements for RFID in healthcare can vary depending on the country, region, and specific applications within the healthcare industry. Here are some examples of regulatory requirements for RFID in healthcare:

• FDA UDI Rule: The FDA’s Unique Device Identification (UDI) rule requires many medical devices to carry a unique identifier in both human-readable and machine-readable formats, including RFID, to improve traceability and patient safety.
• Drug Supply Chain Security Act (DSCSA): DSCSA mandates serialization and track-and-trace technologies to secure the pharmaceutical supply chain. RFID is commonly used to support product identification, authentication, and tracing.
• European Medical Device Regulation (MDR): The EU MDR requires medical devices to include a UDI for traceability and compliance. While RFID is not required, it may be used to meet these identification requirements.
• HIPAA (US): HIPAA governs the privacy and security of patient data. RFID systems used in healthcare must protect PHI and meet HIPAA security and access-control standards.
• ISO Standards: ISO standards such as ISO/IEC 18000 (RFID) and ISO 13485 (medical devices) guide the design, interoperability, and quality of RFID systems in healthcare.

Together, these regulations highlight the need for compliant RFID deployments that protect patient safety, ensure traceability, and meet global healthcare standards.

What Types of Equipment Can you use with RFID?

RFID technology can be used with various types of equipment and devices in the healthcare industry to enhance patient care, improve operational efficiency, and ensure regulatory compliance. Here are some examples of equipment that can be paired with RFID technology in healthcare settings:

• Medical devices like infusion pumps, ventilators, defibrillators, and monitors for real-time location and maintenance tracking
• Surgical instruments and trays to monitor usage, sterilization status, and prevent loss
• Medication packaging such as vials and blister packs for inventory control, expiration tracking, and authentication
• Patient wristbands for accurate identification, location tracking, and safer care delivery
• Medical supplies to automate inventory replenishment and reduce waste
• Laboratory samples to maintain chain of custody and improve traceability
• Patient transport equipment like wheelchairs and stretchers to improve availability and patient flow

By integrating RFID technology into various equipment and operations, healthcare organizations can enhance patient care, streamline operations, and improve overall efficiency and quality of care.

How Does RFID Help with Medical Inventory Management?

RFID automates the tracking of medications, equipment, and supplies, giving hospitals real-time visibility while reducing manual work and errors. Studies show RFID can reduce medication administration errors by up to 90%, increase equipment utilization by 30%+, and cut inventory waste by around 25%—often delivering ROI in under a year.

With automated reads replacing manual counts, healthcare teams can maintain accurate stock levels, manage expiration dates, and ensure critical items are always available when needed.

Key benefits include:

• Fewer errors: Automated tracking reduces reliance on manual processes
• Real-time inventory visibility: Know what’s in stock, where it is, and when to reorder
• Reduced waste: Track usage and expiration to minimize losses
• Higher asset utilization: Locate and use equipment more efficiently
• Improved security: Monitor high-value items and controlled substances
• Faster recalls: Quickly identify and remove affected products

By improving accuracy, efficiency, and control, RFID helps healthcare organizations protect patients, reduce costs, and streamline operations.

How Can Healthcare Organizations Get Started with RFID?

healthcare operators typically start with a RFID project or pilot test. Teams must address planning, logistics, and workflows before launching an RFID deployment. Teams evaluate the environment, required solutions, and project goals before deployment.

Organizations will then need to select their hardware and software. The hardware (RFID tags, antennas, readers, printers, etc.) will depend on the scope of the project. The software will depend on what you want to get out of your RFID investment. Some organizations may just want to run occasional cycle counts and receive basic inventory reports.

Once cost-prohibitive, RFID is now affordable for organizations of all sizes. And, organizations can start small. An initial RFID project can be done in a single stock room or department. Even a small RFID deployment can yield higher inventory numbers, improved employee efficiency, and a reduction in lost inventory.