2025 Digital Healthcare Outlook: Compliance, Security and Collaboration

Jim Jacobs

Throughout 2025, healthcare organizations will continue to face rapid-fire changes marked by significant regulatory shifts, escalating cybersecurity threats and the continued integration of advanced technologies such as artificial intelligence (AI). These forces will not only shape the way organizations operate but will also redefine the collaboration required among their leaders — their chief information officers (CIOs), their chief financial officers (CFOs) and others — to navigate these complexities effectively.

Regulatory changes: A shifting foundation

One of the most significant trends heading into 2025 is the growing impact of regulatory changes already set in motion. These include updates stemming from the 21st Century Cures Act, the HTI-1 final rule, and the United States Core Data for Interoperability (USCDI) Version 3. As these regulations become enforceable, healthcare organizations must prioritize compliance. Failing to meet these standards, whether related to information blocking or cybersecurity maturity, could result in severe financial and operational repercussions.

The new administration’s leadership changes in CMS and key cabinet positions introduce a dynamic of reduced regulatory oversight — particularly on the financial side — that could have ripple effects in healthcare. As ongoing pushback on healthcare costs continues to shape policy discussions, there may be headwinds for hospitals already grappling with shrinking margins. These dynamics could influence operational costs and long-term investment strategies. As healthcare organizations navigate these dynamics, interest rates and their effects may further impact financing decisions and capital expenditure plans. In this environment, hospitals must remain vigilant, keeping regulatory changes top of mind and proactively addressing areas of risk.

Building on these regulatory developments, HHS has proposed strengthening Health Insurance Portability and Accountability Act (HIPAA) security requirements in response to growing concerns over data protection. They cite a 102% increase in large data breaches over the past five years. Even worse, as of November 30 2024, more than 180 million individuals have had their personal and protected health information exposed or impermissibly disclosed in large healthcare data breaches. This alarming trend underscores the urgent need for healthcare organizations to bolster their defenses and mitigate risks.

The rising priority of cybersecurity

Cybersecurity will remain a critical concern in 2025, with hospitals under increasing pressure to protect patient data and maintain operational continuity. Recent high-profile breaches and ransomware attacks have highlighted vulnerabilities, prompting organizations to significantly increase budgets for cybersecurity initiatives. However, it’s not just about spending more; it’s about spending smarter.

Gap analyses will be critical to identify security vulnerabilities and protect critical healthcare data from both external bad actors and potential insider threats. As regulatory requirements for cybersecurity tighten, we’ll see greater collaboration between CIOs and chief information security officers (CISOs) and all executives to address compliance, mitigate risks, and secure critical systems.

These pressures raise the already significant need for application rationalization— the process of evaluating and prioritizing technology portfolios for optimization. Outdated applications that don’t comply with current regulations will need to be addressed immediately, ensuring organizations remain secure and operationally sound. Applications that are not under current maintenance agreements may not have the latest security patches.These issues become increasingly important during mergers and acquisitions.

The role of artificial intelligence in transformation

AI continues to generate excitement throughout healthcare as more organizations proceed with adoption. While AI holds tremendous potential to address inefficiencies and streamline operations, its success will depend on thoughtful implementation and user adoption. AI is not a magic bullet. Organizations must approach its integration with clear objectives and measurable goals.

In 2025, AI will have a more pronounced impact on nonclinical workflows. Automating repeatable tasks will enhance productivity and reduce system friction points in the admit process, ensuring complete and accurate patient intake forms, and identifying potential denial issues. These improvements not only enhance productivity but also contribute to better financial performance by addressing bottlenecks that currently slow operations. However, AI isn’t a substitute for staff. Although it can fill gaps in chronically understaffed areas, it’s unlikely to broadly replace staff. Instead, AI will enable staff to focus on higher-value activities, ultimately supporting better outcomes.

On the clinical side, we expect healthcare organizations to adopt AI incrementally. While some vendors and research institutions are exploring niche applications such as predictive analytics for disease states, many of these advances are still in their infancy. For example, companies working on early detection of conditions like sepsis or chronic disease management face significant hurdles in turning promising concepts into practical, scalable solutions. The focus for the time being will remain on enhancing clinical workflows, reducing alert fatigue, and providing decision support through existing platforms such as Epic and Cerner. These “pedestrian upgrades” may not grab headlines, but they offer meaningful benefits for healthcare providers and patients alike.

Collaboration and investment: Keys to success

The successful adoption of AI and cybersecurity solutions in 2025 will require a collaborative approach. CIOs and CFOs must work closely to align priorities and ensure that investments deliver measurable returns. This partnership will be particularly critical as budgets come under increasing scrutiny. As previously mentioned, regulatory demands, security risks, inflation, and the potential for fluctuating employment rates will necessitate higher spending, but organizations must justify these investments with clear, demonstrable benefits, such as improved productivity, enhanced compliance, and reduced risk exposure.

Cross-departmental collaboration will also play a crucial role. Input from clinical, administrative, and IT teams will be essential to ensure that new technologies address real-world challenges and are seamlessly integrated into workflows. The definition of “done” must evolve to include user adoption and tangible outcomes, not just the completion of implementation projects.

A look ahead

Looking beyond 2025, the trends we’re seeing now are likely to accelerate. Cybersecurity will remain a top priority as threats continue to evolve, and regulatory frameworks will only become more complex. AI will be deployed as part of a security framework. Broader economic forces and the potential impact of employment trends on healthcare staffing will shape strategic planning, coupled with strategic, incremental AI adoption for high-value use cases across the healthcare continuum.

Although these changes present challenges, they also offer opportunities. By investing in the right technologies, fostering collaboration, and staying ahead of regulatory demands, healthcare organizations can position themselves for success in an increasingly complex landscape. The road ahead may be difficult, but with thoughtful planning and execution, the healthcare industry can rise to meet these challenges and deliver better outcomes for patients, providers, and stakeholders alike.

Jim Jacobs is president and CEO of MediQuant.