Hospitals in 2025: Predictions for the new year

Hospitals and health systems will continue to face significant challenges and changes in the ever-changing healthcare industry.

Hospitals will adopt new strategies and technologies to stay competitive in 2025, analysts say.

These experts offer some perspectives and predictions for hospitals and health systems in the coming year.

Erik Swanson, senior vice president of data and analytics at Kaufman Hall

“If you compare hospital or health system performance relative to pre-pandemic levels, it's still a bit anemic than it was in pre-pandemic levels, particularly at the system level, albeit positive. So we have seen improvements over the last several years. I expect that we will continue to see some slow improvement over the course of 2025. There are still some fundamental challenges that exist. Cost of non-labor, particularly supplies and drugs, is quite high. Aging population is certainly increasing the utilization of some of that. We have a continued historically tight labor market, although that has shown some signs, actually, of a little bit of relief for organizations, given the stability of volumes, requiring less contract labor, which is a very expensive resource. So there are still some headwinds for organizations but, generally, they’re beginning to see a bit more stability.”

David Levine, MD, clinical director of research and development, Mass General Brigham

“In 2025, I think we will recognize the power of drones and begin to use them to transform the way we deliver health care by making the home the center of care. Drone-facilitated care will impact primary care, urgent and emergency care, and even enable public health leaps by bringing care directly to patients in ways we never thought possible (or maybe thought were possible only for the Jetsons).”

Bea Grause, president of the Healthcare Association of New York State

“There's some post-election priorities that we're going to work on, but everything we look at at HANYS is done with, how is it going to impact access to patient care? So Medicare and Medicaid funding is critical. That's going to be top of mind for us. I think this administration seems to be focusing on chronic disease, and we're happy to work with the incoming administration on regulatory reform, crime, and improving access to chronic care.”

Elizabeth Mitchell, president and CEO, Purchaser Business Group on Health

“Next year should see an even stronger push toward healthcare price transparency, which is fundamental to controlling costs and giving employers and patients greater choice. That should include stricter enforcement of the Hospital Price Transparency Rule and the Transparency in Coverage Final Rule, which are now in full effect. Legislators should not rest, but continue to work toward greater transparency, including extending it to more services and providers.”

Rom Eizenberg, chief revenue officer, Kontakt.io

“EBITDA margins will continue to be among the topics of greatest concern in health system boardrooms. Health system CFOs have two major levers at hand to improve margins: first, increasing operational efficiencies with a focus on greater productivity by care delivery staff and, second, increasing the utilization of assets. Technology investments that help health systems accomplish these two objectives will take center stage in 2025.”

Nick Patel, MF, physician executive partner for Pivot Point Consulting

“The Trump administration is anticipated to implement significant changes in healthcare technology, focusing on enhancing electronic health records (EHR) interoperability and reducing regulatory burdens in 2025. Building on previous initiatives, efforts will likely aim to streamline data-sharing among healthcare providers, improving patient care coordination. The administration may also revisit policies to expedite the approval and coverage of innovative medical devices, potentially accelerating patient access to cutting-edge treatments. Additionally, there could be a push to reduce administrative complexities associated with EHR systems, thereby alleviating clinician workload and fostering a more efficient healthcare delivery environment.”

Adam McMullin, CEO, AvaSure

“In 2025, inpatient virtual care use cases will expand to encompass computer vision and other process automation technologies. At the end of the day, workforce productivity, proven ROI and bringing the joy back for care teams are at the forefront of all health system leaders’ minds. Following the pandemic, there was a lot of reactionary investment in technology, which has essentially stopped, and now health systems are prioritizing value creation using platforms that allow them to deliver meaningful outcomes. On top of that, CIOs and CNOs want both innovation and expert change management in order to achieve results.”

Chris Darland, CEO of Peerbridge Health

“Many provider organizations want to participate in clinical trials but are unable to do so because of the associated costs and logistical issues around getting patients to trial sites. In a study of heart patients, for example, it can cost several thousand dollars for every ECG test conducted at a hospital or private practice. And providers in rural areas may not be able to recruit enough heart patients who can commit to driving long distances to take part in a clinical trial. Fortunately, new remote monitoring tools powered by AI that are entering the market will enable more providers in 2025 to participate in life-saving trials. These remote tools will allow providers to collect hospital-grade clinical data from patients in their homes quickly and at a fraction of the cost of traditional testing in a hospital or medical facility.”

Michael Poku, MD, chief clinical officer at Equality Health

“In 2025, we will navigate a pivotal moment for Value-Based Care, particularly for Medicaid populations. There is a significant ‘dislocation’ between Medicaid rates and the acuity of patient needs, primarily driven by the post-Public Health Emergency and the associated Medicaid unwinding process. To address this, innovative biopsychosocial care models will emerge, leveraging data science, technology enablement, and Social Determinants of Health (SDoH) services to ensure the sustainability and success of value-based care. As these models evolve and mature, they will further accelerate the ongoing shift away from fee-for-service, guaranteeing that even the most complex and historically marginalized patients receive evidence-based, high-quality whole-person care.”

Colin Banas, MD, chief medical officer of DrFirst

“Specialty pharmacies will further expand their patient support services to significantly increase collaboration with healthcare providers and patients to boost access, affordability, and adherence. Gone are the days of simply hitting 'send' on an e-prescription and hoping for the best. Successfully empowering patients with financial assistance, education, and tech-enabled 'nudges' will become the norm. As a result, there will be far more interest in holistic patient engagement solutions that can improve outcomes and reduce costs.”

Lyle Berkowitz, MD, CEO of KeyCare

“In 2025, we expect to see the continued expansion of Telehealth 2.0, which consists of a re-visioned model of care that enables doctors to automate, delegate and virtualize the numerous less complex, routine tasks that do not need to be performed via in-person office visits. In this world, many of these activities are accomplished online by virtual providers and non-physician team members who are empowered to manage stable patients via evidence-based protocols and similar rules to help automate their care. Thus, by expanding access and delivering more consistent care, organizations can both increase efficiency and improve the quality of care.”

Jason Considine, chief commercial officer, Experian Health

“We expect to continue to see significant emphasis around patient access and patient experience. Further modernization and automation is necessary so providers can reduce administrative burdens, streamline patient interactions, and improve transparency in access and pricing. As healthcare organizations adopt more efficient processes and integrate new technologies, it will help streamline administrative tasks, allowing providers to reduce wait times and improve overall access to care.”

Lani Bertrand, senior director of clinical marketing & thought leadership at Omnicell

“Hospitals continue to face financial pressures due to rising drug prices, the introduction of high-cost medications, and ongoing drug shortages. In response, health systems are going to move to centralized pharmacy models to optimize medication management—one of their most significant cost drivers. Consolidating pharmacy services can lead to enhanced operational efficiency and patient safety, improved inventory accuracy, and better resource allocations. These models provide a comprehensive view of medication inventory across multiple locations, enabling smarter purchasing strategies, bulk-ordering efficiencies, and better alignment with real-world utilization. This approach will reduce waste, mitigate the impact of drug shortages, and ensure consistent availability of critical medications.”

Jason Bobay, president of RF Health

“In 2025, the healthcare industry will witness a significant transformation in addressing hospital-acquired immobility (HAI), a condition resulting from a lack of mobility and physical function due to prolonged bed rest during a hospital stay. Hospitals will emphasize early and progressive mobility efforts to improve patient outcomes and comply with new regulations in this area.

“Regulatory drivers include new age-friendly structural measures introduced by the Centers for Medicare and Medicaid Services (CMS) that hospitals must report on starting in 2025. This measure builds on the success of the Age-Friendly Health Systems movement, which emphasizes the 4Ms Framework, including mobility.

In 2025 and beyond, hospital leaders will prioritize mobility as a key component of their safety and quality initiatives. New technologies will play a crucial role in enhancing these efforts.”