Overview: What to expect in US healthcare in 2025

Using reports from Forrester, Deloitte, the Peterson-KFF Health System Tracker, and the Centers for Medicare & Medicaid Services (CMS), we’ve compiled a list of upcoming trends and expert predictions in policy shifts, AI adoption, workforce issues, and healthcare spending for 2025.

Healthcare organizations can use this information to improve patient-centered care and overcome regulatory uncertainties for a more sustainable future.

What the experts say

According to Forrester’s report, Predictions 2025: Healthcare Tackles Tough Terrain To Reach New Horizons, the healthcare industry will continue to face cybersecurity threats, low customer experience ratings, and disruptions in payer-provider relationships, leading to medical deserts. 

Meanwhile, Deloitte’s 2025 healthcare industry insights discuss the political and regulatory changes expected under the Trump administration.

Additionally, long-term projections from the Peterson-KFF Health System Tracker on healthcare expenditure and the Centers for Medicare & Medicaid Services (CMS) national health expenditure data suggest a decrease in health spending through 2032.

Industry priorities and regulatory shifts

• Forrester cites cybersecurity risks, low customer experience ratings, and payer-provider disruptions as major industry concerns.
• Healthcare organizations will invest even more in AI and cybersecurity to enhance efficiency and reduce costs.
• The Trump administration is expected to focus on Medicare protections, drug pricing, and price transparency regulations.
• Bipartisan efforts will likely regulate pharmacy benefit managers and enforce site-neutral payment policies.

Health plans and AI 

• Health plans will focus on AI and automation, while health systems prioritize core business technologies, like legacy systems.
• 60% of health plans expect regulatory changes to influence their business strategies, particularly in Medicare pricing and mental health parity.
• AI applications can improve claims processing, fraud detection, and personalized treatment plans.
• 30% of consumers distrust AI-driven healthcare decisions, urging ethical AI usage.

Workforce challenges and business technology investments

• 58% of health system executives mention workforce shortages, burnout, and labor costs impacting business operations.
• Only 45% of clinicians trust leadership decisions regarding patient care.
• AI-driven automation can reduce administrative burdens and improve workflow efficiency.
• Health systems are investing in enterprise resource planning (ERP), electronic health records (EHR), cloud adoption, and automation to streamline operations.

Healthcare spending projections (2025-2032)

• Per capita health spending growth: 4.2% in 2025, 4.3% in 2026, stabilizing at 5.0% (2027-2032).
• Prescription drug costs: Expected to rise by 5.4% annually (2026-2032), with Inflation Reduction Act (IRA) reforms curbing costs.
• Out-of-pocket spending: Projected to grow 3.5% annually, with IRA capping Medicare Part D out-of-pocket expenses at $2,000.
• Hospital and physician service spending: Stable in 2025-2026, increasing by 5.6% annually (2027-2032).
• Healthcare spending as part of GDP: Expected to reach 19.7% by 2032.

The way forward

Healthcare organizations must improve cybersecurity, expand AI integration, reduce administrative burdens, and invest in workforce sustainability. 

Additionally, optimizing core technologies, updating legacy systems, and balancing cost with quality can help organizations improve operational efficiency for better patient satisfaction and care.

FAQs

How does HIPAA impact AI usage in healthcare?

The Health Insurance Portability and Accountability Act (HIPAA) mandates that healthcare organizations safeguard individuals’ protected health information (PHI). So, AI systems handling PHI must comply with HIPAA Rules to prevent potential data breaches.

Will healthcare cybersecurity spending increase due to HIPAA compliance?

Yes, as cyber threats increase, spending on HIPAA compliant security measures will likely increase. Healthcare organizations are particularly prone to cyberattacks due to the large quantities of PHI they handle.

HIPAA compliant email solutions, like Paubox, are a cost-effective way to safeguard this data and maintain regulatory compliance.

Can AI be integrated into HIPAA compliant emails?

Yes, AI-powered features can be integrated with HIPAA compliant emailing platforms, like Paubox, to automate processes like patient consent management and sending personalized emails while maintaining HIPAA compliance.

Read also: HIPAA compliant email API