Healthcare Authority Newsletter - February 2025 #3

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News Briefs


Proposed Budget Cuts Could Greatly Impact Healthcare Sector

House Republicans unveiled a budget resolution that asks the Energy and Commerce Committee, which oversees Medicare and Medicaid, to find $880 billion in savings. Democrats, hospitals, and patient advocates quickly slammed the budget, noting any cuts to public insurance programs would disproportionately impact the neediest Americans.

(Source: Healthcare Dive, 2025-02-13)

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Hospitals Will Feel Impact of Medical Research Cuts

A proposal by the Trump administration to reduce the size of grants for institutions conducting medical research would have far-reaching effects, and not just for elite universities and the coastal states where many are located. Also at risk could be grants from the National Institutes of Health to numerous hospitals that conduct clinical research on major diseases, and to state universities across the country.

(Source: The New York Times, 2025-02-13)

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Hospice Special Focus Program Suspended by Trump Administration

The Trump Administration has suspended implementation of the hospice Special Focus Program. Finalized in the 2024 home health payment rule, the program is designed to identify poor performing hospices, mandate quality improvement, and in some cases impose additional penalties. However, stakeholders in the hospice space have contended that the agency's methodology for selecting hospices for the program is deeply flawed.

(Source: Hospice News, 2025-02-14)

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Tariffs Likely to Disrupt Healthcare Supply Chain, Impacting Many

The Trump Administration's tariff plans could have a measurable impact on the healthcare industry, including healthcare supply chain disruptions and higher costs. A recent Black Book Market Research survey of different healthcare industry executives showed widespread worry about escalating costs for hospitals, physicians, payers, and patients as a result of the double-digit tariffs under Trump.

(Source: Tech Target, 2025-02-11)

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46% of Rural Hospitals Operating in Red, 432 at Risk of Closure

The portion of rural hospitals operating with negative margins has dipped slightly from last year, though the number of facilities most likely to close has also crept up, healthcare advisory services firm Chartis found. The group's latest report on the state of rural healthcare providers found that 46 percent of rural hospitals are operating at a loss while 432 hospitals are deemed to be "vulnerable to closure."

(Source: FierceHealthcare, 2025-02-13)

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Hospitals Concerned Trump's DEI Order Will Harm Workforce Efforts

Some hospitals are bracing to be caught up in the Trump administration's DEI executive order, which could upend their efforts to recruit a health workforce reflective of the communities they serve. Hospitals -- and most of the healthcare sector writ large -- have leaned into the belief that embracing diversity and inclusion can improve patient care, lead to better employee retention, and ultimately make the healthcare system more equitable.

(Source: CNBC, 2025-02-12)

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More Physicians Embracing Use of AI in Their Practices

A new survey by the American Medical Association finds that a growing number of physicians are embracing what they call augmented intelligence -- more commonly known as artificial intelligence -- in healthcare. The survey highlights that physicians see the greatest opportunity in AI for reducing administrative burdens, with a significant increase in AI usage in these areas in 2024.

(Source: silive.com, 2025-02-17)

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Study Finds 65.8% of Americans Distrust AI in Healthcare Settings

A majority of U.S. adults have low trust in their healthcare systems to use artificial intelligence responsibly, according to a new study published in JAMA Network Open. Led by researchers from the University of Michigan and the University of Minnesota, the study found that 65.8 percent of U.S. adults expressed low levels of trust in their healthcare system's ability to use AI responsibly.

(Source: Medical Economics, 2025-02-14)

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Experts See Benefit of Digital Health, Physicians Still Critical

From artificial intelligence and telehealth to robotics and AI-driven diagnostics, these innovations are changing how healthcare is delivered. However, experts stress that while these advancements can elevate patient care, they cannot replace the critical role of physicians and in-person interactions.

(Source: PYMNTS.com, 2025-02-13)

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Gaps in Third-Party Risk Management

The healthcare sector is no stranger to third-party data breaches, making third-party risk management and privileged access management imperative elements of any healthcare organization's security strategy. However, according to a survey by Ponemon Institute and Imprivata, just 36 percent of health IT respondents said that their organizations have a strategy to address privileged access risk that is consistently applied across the entire organization.

(Source: Tech Target, 2025-02-13)

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Despite Being New Field, Over 62,000 Hospitalists Practice Today

Hospitalists are so deeply integrated into many organizations that it might be hard to remember this role has only existed for a few decades. More than 62,000 hospitalists are practicing today, according to the Society of Hospital Medicine.

(Source: Medscape (free reg. req'd), 2025-02-17)

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Arnall Golden Gregory LLP

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