While funding constraints may stifle innovation, they also prompt providers to focus on sustainable, internally funded solutions. We'll see an uptick in healthcare systems seeking established, well-capitalized, and innovative partners to deliver reliable results without relying on volatile funding streams. Providers prioritizing operational efficiency and long-term financial planning will be best positioned to navigate this new reality.
FinTech companies, specifically those that rely on abundant, affordable capital to finance patient debt purchases or fund patient financing, will struggle. Expanding patient financing will be very difficult for underfunded companies and will leave their health system clients in a difficult position.
4. AI takes over routine administrative tasks AI has already impacted clinical decision-making and diagnostics, but its role in healthcare's administrative processes will dramatically expand in 2025. AI is set to revolutionize routine tasks such as claims processing, denials prevention and management, and patient communication, resulting in reducing staff workloads and improving efficiency. The workforce will be refocused on higher value work (work at top-of-license) and will drive operational improvements and productivity.
In 2025, high-value use cases with proven results will be implemented to first apply AI technology as a foundation to a health system and gain quick financial/operational wins. Then, the second and third phases of this playbook will emerge. Innovative health systems that are quick learners and can be designed and implemented quickly will be the first winners. The larger health systems will face greater challenges to deploy in more complex organizations.
Health systems that leverage AI for back-office operations will benefit from streamlined workflows and cost savings. Beyond financial gains, AI can also enhance patient engagement by automating reminders, payment follow-ups, and eligibility verification, making interactions more efficient and patient-friendly. In 2025, early adopters of AI will stand out for their ability to manage operational complexity while maintaining high levels of patient satisfaction.
5. State reforms reshape medical debt management Medical debt has been a source of financial stress for patients and a challenge for providers. In fact, it's one of the leading causes of personal bankruptcy in America. In 2025, states are expected to implement stricter regulations around debt collection and debt sale to recourse-based vendors, forcing health systems to rethink how they handle unpaid balances.
