Background: Digital transformation (DT) is a critical driver of improvements in healthcare quality and patient safety globally. In Saudi Arabia, national initiatives such as Vision 2030 have accelerated digital health implementation; however, empirical evidence on DT’s direct impact on hospital quality and safety outcomes remains limited. Objective: To examine the effect of DT on healthcare quality and patient safety at King Fahd Hospital in Medina, Saudi Arabia, across seven core DT components. Methods: A quantitative cross-sectional study was conducted among 278 healthcare professionals using a structured questionnaire covering seven DT domains: electronic medical record systems, digital prescribing systems, online appointment booking systems, automation of clinical tasks, automation of pharmacy dispensing systems, claims, billing and finance systems, and telemedicine platforms. Data was analyzed using SPSS with descriptive statistics, chi-square tests, and correlation analyses. Results: Participants reported consistently positive perceptions across all DT domains, with mean scores ranging from 4.00 to 4.33 on a five-point Likert scale. Online appointment booking systems showed the highest perceived contribution to quality and safety (M = 4.08), followed by electronic medical record systems (M = 4.04) and digital prescribing systems (M = 4.02). All DT components were significantly associated with perceived improvements in healthcare quality and patient safety (p < .001). Conclusion: DT was found to significantly and positively influence perceived healthcare quality and patient safety at King Fahd Hospital, underscoring the need for continued investment in digital health and optimization of key DT tools supported by ongoing training and strong governance.