At HIMSS 2025 conference, fears loom over federal spending cuts on research

Las Vegas – There’s been plenty of buzz and enthusiasm at the HIMSS Global Health Conference & Exhibition, with thousands checking out AI technology and all the latest healthcare gear and gadgets.

Hal Wolf, president and CEO of HIMSS, said he's worried about the prospect of reduced federal spending on research.

However, healthcare leaders are also expressing anxiety, and even outright fear, over the prospect of the federal government reducing spending on health and scientific research. Many have been alarmed at spending cuts at the National Institutes of Health, and President Trump’s administration is cutting spending and jobs across the federal government.

Leaders from hospitals and academic medical centers who came to the conference say they’re worried about the prospect of a much tougher funding environment, with some saying they’re not sure if it’s worth applying for federal aid for research. Some academic medical centers and colleges are looking at leaner budgets and are cutting spending on their own in the face of uncertain federal funding.

Hospitals are also dreading the possibility of reduced spending for the Medicaid program, which offers health care for nearly 80 million Americans. The program also provides critical funding for hospitals, especially safety net hospitals and rural hospitals.

When asked about the prospect of reduced federal spending on health care and research, Hal Wolf, president and CEO of HIMSS, said, “I think we’re all concerned. If you're not concerned, I'd be almost more worried.”

“I'm not trying to overreact to what we hear, but I want to understand what we see,” Wolf said. “But am I concerned? Absolutely. How do I measure that level of concern or impact? I don't know yet. I think none of us do, right? So we'll be watching very carefully.”

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There are many unknowns about the federal spending levels for agencies that support health care and scientific research. The NIH is the largest source of federal funds for medical research.

But other agencies provide valuable support for health and science, including the Department of Defense, the National Science Foundation, the Department of Veterans Affairs, and others. The VA, which cares for the nation’s veterans, is planning to lay off 80,000 people this year, the Associated Press reports.

Congress is working on a federal spending package, since a short-term budget to sustain government operations expires March 14. It’s unclear if lawmakers will be able to broker a broad spending deal or may have to settle for another temporary extension.

If the federal government does cut back on research spending, Wolf said that it’s highly unlikely that the private sector would be able to make up the difference.

“No question that we see a lot of great research that comes out of the private sector, and we also know that's driven by quarterly results,” Wolf said. “The strength of our system has always been taking a long-term view.”

And that’s where the federal government’s support of scientific research has been valuable, in financing research and medical studies that may not have an immediate payoff.

Nonprofit organizations and foundations may end up playing a bigger role in supporting academic research, Wolf said.

“Are there foundations that can step into those models? I hope so, and I know there are,” Wolf said.

The NIH said last month that it is capping how much it will reimburse for “indirect costs” of research. The agency said it wants to ensure money is going to the lab and to scientists and not overhead. The NIH said the policy change would save $4 billion annually.

Hospitals and universities say those indirect costs aren’t luxuries but essential parts of scientific research, including computing costs and security, among others. Critics argued the cuts would slow the progress of research and force universities and academic medical centers to cut jobs, adding economic fallout to the prospect of slowing advances and discovery.

Universities and medical schools took solace in a federal judge’s ruling Wednesday to block the NIH’s spending cuts. U.S. District Court Judge Angel Kelley of the District Court of Massachusetts upheld a temporary injunction that prevents the Trump administration from moving forward, at least temporarily, on its plans to reduce spending on indirect costs.

The Association of American Medical Colleges issued a statement saying that it is “heartened” by the federal court ruling.

“These unlawful cuts would slow medical progress and cost lives, and we will continue our fight to stop the implementation of this harmful action,” the organization said. “The AAMC maintains its strong support for robust NIH funding to advance cutting-edge research that benefits every person and community in America.”

Universities, medical schools and academic medical centers are still navigating a funding environment that is uncertain, at best, said Tom Leary, senior vice president and head of government relations at HIMSS.

“The academic community is really scrambling,” Leary said, adding that many institutions have moved into “austerity mode.”

Wolf also noted the potential for reductions in spending for the Affordable Care Act, which would have “a downstream impact on Medicaid.” Enhanced subsidies to support coverage under the Affordable Care Act are slated to expire at the end of the year. If Trump and the Republican-controlled Congress opt to let those subsidies lapse, then it’s almost a certainty that fewer would be covered under the Affordable Care Act.

Hospitals have warned that reduced coverage for the Affordable Care Act or Medicaid means they will be providing more uncompensated care, putting more cost pressures on health systems.

In a climate with less federal spending on health care or research, Wolf said that could mean hospitals and academic institutions would have less to spend on upgrading technology.

“I think we can all safely assume we won't have more money in ’26 than in ’25,” Wolf said.

“If you're going to have some money to invest this year in digital health, you're going to want to find those tools as soon as possible,” he added.