Healthcare’s 2025 Playbook: Compliance, Security, and Smarter Tech Investments

By Martin Hager, Founder & CEO, Retarus

Following a volatile year, 2025 initially appeared to promise more stability for the global economy. Three months in, however, uncertainty persists and is already affecting businesses across numerous industries. 

Nowhere has this been more evident than in healthcare, where new U.S. Department of Health & Human Services (HHS) appointees, the prospect of changing regulations and massive funding cuts are reshaping how organizations will approach technology adoption and investment. 

I believe the volatility that has marked the opening quarter of 2025 will continue to be a theme for the year, with three significant effects on the healthcare industry: a return to reality regarding AI, a prioritization of what works over what’s new, and a heightened focus on compliance and security. 

Healthcare Gets Realistic About AI’s Limitations

For many healthcare companies, 2024 was marked by what I call ‘Shiny Object Syndrome’, as organizations prioritized the promises of AI over the realities of what could be achieved today. As a result, many of these AI investments underdelivered and negatively impacted business operations. Healthcare IT teams are now dealing with the fallout of a multiplication of investments and pilot projects that were often met with disillusion – especially when it came to their ROI, the ability of people to drive those projects, and the lack of a concrete strategy to drive efficiency. 

With federal funding for healthcare organizations expected to disappear at a rapid rate in 2025, the cost of poorly implemented AI is even greater. Healthcare providers are already tempering their expectations of AI and reevaluating whether the technology can effectively address operational challenges or enhance decision-making. 

The focus is shifting to identifying the use cases where AI can deliver real value, rather than simply adding layers of data that may not translate into improved care or cost savings. This doesn’t mean companies have to abandon their AI integration projects; instead, they should begin to view AI as part of a long-term business plan rather than overestimating its potential in the short term.

‘Old Tech’ Reliability Remains a Priority

The shift from ‘Shiny Object Syndrome’ to a more measured approach to emerging technologies is a direct reflection of the current landscape in the U.S. 

In business communications, implementing the latest new technology can be tempting, given the heightened stakes associated with digitalization. However, the U.S. economy is coming under increasing stress, partly due to the ripple effects of the new administration’s projected trade tariffs and the anticipated rise in costs nationwide. 

As a result, business leaders are being more cautious about their spending plans, and prioritizing solutions that deliver tangible value. Healthcare organizations are no exception and are already rethinking their processes and resource allocation. 

This shifts the spotlight from emerging technologies to improving legacy systems for enhanced efficiencies. Legacy systems and established channels, such as email, fax, and SMS, remain essential to the healthcare industry’s daily operations but can be made more efficient through transformations like cloudification, helping to drive down costs without the need for a costly rip-and-replace project. 

Throughout the rest of 2025 and beyond, ‘older tech’ will continue to play a crucial role in digital transformation projects, paving the way towards future-proof, reliable solutions that support long-term success. 

Compliance and Security Take Center Stage

With HHS and the Office for Civil Rights (OCR) ramping up regulatory efforts and the new administration introducing changes to regulations such as the HIPAA Security Rule, healthcare providers are under pressure to strengthen data protection and compliance. As the attack surface expands with the adoption of remote work, cloud computing, and IoT devices, healthcare organizations face a growing target on their backs. These twin pressures mean decision-makers will prioritize data protection and compliance more than before. 

To future-proof operations, businesses will double down on security strategies grounded in proven, resilient solutions that comply with relevant regulatory frameworks, relying on technology that supports this goal. They are already implementing tried-and-true technologies, such as encryption, multifactor authentication (MFA), and threat intelligence sharing, to strengthen their defenses. 

This renewed focus on compliance and security means healthcare companies must assess the strength of their existing systems with a critical eye and evaluate opportunities for improvement through technologies adapted to the latest changes in the compliance landscape.  

Ultimately, the path forward for healthcare companies lies in incremental, strategic improvements rather than high-risk transformations. In an unpredictable year, success will belong to those healthcare organizations that adopt a more pragmatic approach to technology, focusing on solutions that deliver tangible benefits. Rather than seeking radical transformations, the healthcare ecosystem must focus on making necessary improvements to business operations to ensure resilience and compliance in uncertain times.