NYC Health System Consolidation, Global IT Regulations, and AI Adoption Dominate Healthcare News
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A surge in healthcare consolidation, tightening international data security standards, and the rapid integration of artificial intelligence are reshaping the industry as 2025 draws to a close.
New York City’s healthcare landscape is undergoing a significant shift as Mayor Adams and NYC Health + Hospitals President and CEO Dr. Katz announced a merger with Maimonides Health on December 30, 2025. The move aims to stabilize the financially challenged Maimonides Health system and will include the implementation of the Epic electronic health record system. This consolidation signals a broader trend of larger health systems absorbing smaller, struggling entities to ensure continued access to care.
Global Scrutiny of Health IT Vendors Intensifies
Beyond the US, health ministries worldwide are implementing stricter regulations for health IT vendors, particularly concerning data security and sovereignty. According to a recent report by Black Book Research, an increasing number of non-US markets are now requiring data residency – meaning data must be stored within the country’s borders – in-country processing, and robust legal control as mandatory criteria for selecting health technology systems. This shift reflects growing concerns about data privacy and national security in the digital age. “These requirements are no longer ‘nice-to-haves’ but ‘must-haves’ for vendors hoping to compete internationally,” one analyst noted.
AI in Healthcare: Ambient Documentation Leads the Way
The adoption of artificial intelligence (AI) within healthcare continues to accelerate, with 79% of health systems now utilizing AI technologies, according to a new study by KLAS. However, the types of AI applications being deployed vary significantly. Ambient documentation, which uses AI to automatically transcribe and summarize patient encounters, is currently the most prevalent use case. Interestingly, the KLAS research revealed that only one out of 3,000 respondents reported their organization is currently using agentic AI – a more advanced form of AI capable of independent action and decision-making. This suggests that while AI is becoming commonplace, the industry is still in the early stages of exploring its full potential.
Streamlining EHR Certification: HHS Seeks Input on HTI 5
The US Department of Health and Human Services (HHS) – through its ASTP/ONC office – hosted an information session on December 30, 2025, to discuss its proposed plan to streamline the EHR certification process and update regulations related to information blocking. The proposed rule, known as HTI 5, aims to reduce administrative burdens for EHR developers and promote greater interoperability. The HHS is actively seeking feedback from stakeholders to refine the proposed changes and ensure they effectively address the evolving needs of the healthcare industry.
These developments collectively paint a picture of a healthcare sector in rapid transformation, driven by financial pressures, technological innovation, and a growing emphasis on data security and patient privacy.
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