Health system CIOs and IT leaders are facing increased internal and external challenges in the year ahead as margins tighten and cybersecurity threats evolve. AI is also evolving rapidly and has great potential, but also big risks.
"Several headwinds are emerging, particularly in health IT and cybersecurity," said Nick Sturgeon, vice president and CISO of Community Health Network in Indiana."One major concern is the growing focus on AI by state and federal regulatory agencies, which could significantly impact how AI is utilized in patient care and IT environments."
AI regulations have become a point of contention at the national level. During his first day in office, President Donald Trump suspended former President Joe Biden's executive order for the federal government to create guidance on safe AI use. He also announced plans to work with OpenAI, SoftBank and Oracle to develop an AI infrastructure project.
"Regulatory and policy changes represent a considerable hurdle," Marc Perkins-Carrillo, MSN, RN, CNIO of Moffitt Cancer Center in Tampa, Fla., told Becker's. "The evolving landscape of healthcare regulations and policies requires vigilant navigation. Preparing for potential policy shifts and ensuring compliance with new regulations will be essential to maintain operational efficiency and prevent disruptions. This will involve staying abreast of legal developments and actively engaging in policy discussions to advocate for favorable outcomes."
Health systems have already begun integrating AI into clinical and operational workflows. Some are holding back to see what state and federal regulations are rolled out while others have gone full steam ahead, and may need to backtrack if regulatory standards change. Mr. Sturgeon cited the recent guidance on web tracking technologies as an example of what could happen with AI in the future.
"The recent guidance from HHS/OCR on web tracking technologies has already created considerable challenges for healthcare organizations," said Mr. Sturgeon. "If similar restrictive measures are applied to AI, the consequences could be far more severe."
He also noted ongoing scarcity of AI and tech-related skills as a headwind for health systems that could pose risks to the sector. AI technology is evolving rapidly and it's a challenge for health systems to keep up.
"The top headwinds for 2025 revolve around managing the increasing complexity of AI-driven threats, the rapid evolution of regulations surrounding AI and data privacy, and the challenge of securing hybrid and multi-cloud environments," said Matt Morton, executive director and CISO of University of Chicago. "The integration of generative AI into operations and its potential misuse will require robust monitoring and governance. Additionally, talent shortages in cybersecurity and the need to balance innovation with operational security will remain pressing issues."
Darrell Bodnar, CIO of North Country Healthcare in Whitefield, N.H., said one of his major focuses for the year is financial stability. CIOs have influence over IT spending as well as efficiencies and cost savings created by IT.
"Managing vendor performance and helping our teams use tools and information to make better financial decisions will be critical as we move into 2025," said Mr. Bodnar. "I'm learning a culture initiative to better align our teams with our goals as a system. This means encouraging collaboration, improving communication and helping leaders and staff connect with our shared vision."
On the technology side, North Country is improving EHR usability and rolling out ambient voice technology. Mr. Bodnar is also identifying areas where AI can support better clinical decision-making, financial modeling and improved operations. Many health systems are in a similar spot, prioritizing optimization of existing technology and partnerships over seeking out new investments; this is especially true as hospitals see margins continue to tighten.
"Achieving long-term financial stability for healthcare organizations will necessitate strategic planning and efficient resource allocation," said Mr. Perkins-Carrillo. "This includes optimizing our budgetary practices, exploring innovative funding opportunities and implementing cost-saving measures without compromising on quality of care."
But there is still room for meaningful IT investments. C-suite executives are looking for smart cybersecurity protection as well as AI-driven technology as a long-term solution for financial and workforce challenges.
"Our ongoing investments in IT solutions are transforming our operations," said Luis Taveras, senior vice president and CIO of Jefferson Health in Philadelphia. "These advancements empower our clinicians to deliver exceptional patient care and achieve outstanding results. As the IT department, our mission is to maximize the benefits of these innovative solutions."
Jefferson will also modernize applications and technology environments in the coming years to create a "future-ready healthcare system and university."
"By modernizing infrastructure and streamlining our applications, we are paving the way for an environment where data drives excellence and efficiency," said Dr. Taveras.