Farah Amod
The healthcare industry is shifting fast, and 2025 is set to bring in more changes. AI is making many manual tasks more efficient, but questions about regulation and transparency are still up in the air. Cybersecurity threats are growing, especially after last year’s record-breaking data breach. Telehealth’s future remains uncertain as temporary policies near expiration, and the digital health sector is gearing up for more mergers and acquisitions. Here’s a closer look at the trends shaping healthcare technology in the coming year.
Summary and outlook
Healthcare is changing fast as digital tools and data become more integrated into everyday care. As patient expectations shift and the demand for sustainable solutions grows, healthcare systems should focus on making care more accessible and efficient through technology.
Medical costs are expected to rise by 10.4% globally in 2025, making cost-effective solutions more urgent than ever. Some of the biggest trends shaping the industry include the rise of digital home monitoring, AI-driven personalized treatments, the integration of mental health into primary care, and a stronger push for preventive care to reduce long-term expenses.
New medical technologies are also a major factor driving up costs, with 69% of insurers citing them as the top cost driver worldwide—especially in the Americas (88%) and Asia Pacific (73%). To keep costs under control without sacrificing quality of care, digital tools like telehealth are becoming necessary. Nearly half of global insurers added telehealth and wellness services in 2024, up from 41% the year before, showing the growing reliance on remote care.
At the same time, demand for healthcare services is rising fast. Around 64% of insurers expect medical costs to continue climbing, with Asia Pacific seeing even higher predictions (76%). To meet this growing demand, healthcare systems need to lean on technology and sustainable care models.
All of these changes are coming together to create a more connected, data-driven healthcare system. The increased use of digital health tools, AI-powered treatments, and integrated mental health services will help address rising costs and growing demand, ultimately making healthcare more accessible and efficient.
AI adoption expands in administrative healthcare
Hospitals are under constant financial pressure, and AI is stepping in to help, especially on the administrative side. Instead of replacing doctors, AI is being used to handle tasks like medical coding, billing, and prior authorization. With hospitals looking for ways to boost revenue and operate more efficiently, automation has become a valuable tool.
A 2024 survey by the Healthcare Information and Management Systems Society (HIMSS) found that 86% of medical organizations are using AI, with a strong focus on automating administrative processes to cut costs and improve efficiency. However, as AI adoption increases, hospitals are demanding more transparency from vendors to ensure compliance and effectiveness. AI models also need ongoing monitoring to prevent errors or unintended consequences over time.
Regulatory oversight remains uncertain. The Biden administration took steps to establish AI regulations in late 2023, but with Trump signaling plans to roll back many of Biden’s policies, the future of AI governance is unclear. If the U.S. wants to stay competitive in AI innovation, investment in research, talent, and clear regulations will be required.
Read also: Artificial Intelligence in healthcare
Cybersecurity remains a top concern
In 2024, the healthcare sector experienced a record-breaking number of data breaches, with 567 incidents exposing the health information of nearly 170 million individuals.
Notably, the February 2024 cyberattack on UnitedHealth's subsidiary, Change Healthcare, compromised the personal data of approximately 100 million people, marking it as the largest healthcare data breach in U.S. history.
The healthcare industry's reliance on interconnected systems makes it an attractive target for cybercriminals, and outdated IT infrastructure further increases vulnerability.
Hospitals and health systems are working to improve their cybersecurity defenses, but it’s not an overnight fix. Strengthening security requires investment, training, and cultural shifts within organizations. Even with these efforts, healthcare remains a prime target for hackers due to the high value of patient data.
Uncertainty surrounds telehealth policies
Telehealth grew during the pandemic, especially as healthcare practices were forced to switch to virtual care. However, many of those policies are now set to expire, leading to some of these digital providers and insurers facing uncertainty.
Congress was expected to approve a multi-year extension, but instead, lawmakers passed a short-term, three-month extension. While this prevented an immediate disruption, it didn’t provide the stability some healthcare organizations hoped for.
Medicare’s stance on telehealth reimbursement will be a major factor in shaping the industry’s future. Private insurers often follow Medicare’s lead, so any cuts to Medicare’s telehealth payments could have widespread effects.
Read more: HIPAA compliance in a telehealth world
AI and robotics
According to the Vettafi 2025+ Outlook Report, robotics in healthcare is set to change in the next few years, especially as robots become smarter and more adaptable. Unlike traditional robots, which mostly repeat fixed tasks, newer behavioral robotics can "learn and adapt in real-world settings," meaning they can better respond to the constantly changing hospital environment. These robots don't just follow set routines; they continuously use real-time information to adjust their actions, helping healthcare workers manage complex tasks more efficiently. The report specifically mentions the rise of collaborative robots, or "cobots," designed to safely assist medical staff rather than replace them. In practice, this means cobots can help with repetitive or physically demanding tasks like delivering medication or assisting patient transport, allowing human caregivers to focus more directly on patient interactions. Additionally, as robotics technology becomes more energy-efficient, it will be easier to deploy in healthcare settings with limited resources. Even hospitals in remote or underserved areas could soon benefit from advanced robotic assistance without relying heavily on strong internet connections or costly infrastructure. Ultimately, these advances in healthcare robotics aren't minor upgrades; they're actively reshaping the way care is delivered, making hospitals safer and more efficient for both patients and medical staff.
Blockchain for healthcare data security
Blockchain technology made its initial impact by securing cryptocurrency transactions, but its potential extends far beyond financial applications. The healthcare industry is now exploring its tamper-proof and decentralized nature to strengthen data security, improve operational efficiency, and enhance patient control over personal health records.
Medical Tech Outlook states, “Blockchain technology may have made its big splash in the world by securing cryptocurrency exchanges over a decade ago. Still, its tamper-proof characteristics are increasingly appealing to the healthcare industry.” Cyberattacks targeting hospitals and healthcare institutions have been on the rise, with medical facilities being prime targets for ransomware attacks. The reason is clear: personal health information is highly valuable, making data security a top priority. Medical Tech Outlook outlines this growing concern, stating, “Hospitals and other healthcare facilities are primary targets for cyber attacks, and it's no secret why. Ransoming personal health information (PHI) is, unfortunately, lucrative, making healthcare data security all the more important for facilities.”
Blockchain offers a potential solution by decentralizing data storage and ensuring data integrity. Unlike traditional centralized databases, which are more vulnerable to breaches, blockchain distributes encrypted records across multiple nodes. Each transaction is timestamped and linked to previous records, creating an immutable audit trail that enhances security and transparency. Medical Tech Outlook notes that “Blockchain has the potential to provide the healthcare industry with PHI data security and integrity, as well as patient control over record sharing.”
Current applications of blockchain in healthcare include streamlining administrative processes, securing patient records, and managing pharmaceutical supply chains. Smart contracts, self-executing agreements coded into the blockchain, can automate claims processing and provider credentialing, reducing paperwork and administrative costs. Supply chain management also benefits from blockchain’s ability to enhance traceability, ensuring the authenticity of pharmaceuticals and medical devices.
Despite these advantages, challenges remain. Implementation costs, interoperability issues with existing electronic health record systems, and scalability concerns hinder widespread adoption. The volume of healthcare data raises questions about storage feasibility and processing speeds, while regulatory compliance with laws like HIPAA adds another layer of complexity. Medical Tech Outlook acknowledges these obstacles, stating, “Nevertheless, questions regarding implementation, scalability, and practicality remain serious barriers.”
While blockchain is not a silver bullet, its potential to improve security, transparency, and patient empowerment makes it a compelling avenue for the future of healthcare data management.
Related: Basics of the blockchain in healthcare
FAQs
How is AI being used in healthcare beyond administrative tasks?
While AI is primarily streamlining administrative functions like billing and medical coding, it is also advancing in diagnostics, predictive analytics, personalized treatment plans, and drug discovery. However, regulatory and ethical concerns remain.
What are the biggest cybersecurity threats facing healthcare in 2025?
Ransomware attacks, phishing scams targeting healthcare employees, and vulnerabilities in outdated IT infrastructure remain top threats. Interconnected systems and third-party vendor risks also increase the attack surface.
What will happen to telehealth if current policies expire?
If temporary telehealth policies are not extended, Medicare reimbursements could be reduced, leading private insurers to follow suit. This may limit access to virtual care, particularly for rural and underserved populations.
How can healthcare organizations prepare for regulatory uncertainty in AI and telehealth?
Organizations should stay informed on policy developments, invest in adaptable technology, and build compliance into their AI and telehealth strategies to navigate potential regulatory changes.
