With 2025 off to a quick start, we can expect the healthcare industry to continue seeing rapid changes. Advances in technology, changing patient expectations, and operational changes are shifting care delivery to improve patient outcomes, boost access, and control costs.
In this article, review these key healthcare trends:
- Balancing Business Priorities with Patient-Centered Care
- Managing Complex Regulatory and Reimbursement Changes
- Telehealth and Remote Patient Monitoring
- AI-Powered Diagnostics and Personalized Medicine
- MedTech and Digital Innovation
- Navigating the Shift to Value-Based Care
- Workforce Challenges and AI-Driven Solutions
- Health Equity and Access Initiatives
- Data-Driven Decision-Making and Predictive Analytics
- Cybersecurity in Healthcare
Beyond these key trends, LBMC is seeing rapid advancements in AI, cybersecurity risks, and evolving policies, as well. Our experts dive deeper into the key developments shaping the future of healthcare in this supplemental piece, 2025 Healthcare Trends: AI, Cybersecurity, and Policy Shifts Reshaping Industry. From AI-powered diagnostics to regulatory changes and the growing impact of mergers and acquisitions, explore how these shifts will influence patient care, operations, and data security in the years ahead.
“Healthcare organizations face unique tax challenges, from compliance to maximizing available credits. LBMC’s tailored tax solutions address these specific needs, ensuring healthcare providers can focus on delivering quality care while maintaining financial health.”
BEN CARVER, SHAREHOLDER AND HEALTHCARE INDUSTRY LEADER, TAX, LBMC, PC
2025 Business Outlook Report
The 106-page 2025 Business Outlook Report breaks down the biggest shifts happening right now.
Balancing Business Priorities with Patient-Centered Care
Rising prices, regulatory demands, worker shortages, and the aging population present significant challenges that call for proactive solutions. These advancements highlight the need to effective responses to address these issues.
- Managing Complex Regulatory and Reimbursement Changes
- Addressing Persistent Denial Management Challenges
- Integrating Advanced Technology and Automation (e.g., AI and RPA)
- Reducing Rising Administrative Costs and Inefficiencies
- Improving Patient Payment Collection and Financial Experience
Sales for the US healthcare industry are forecast to grow at a 5.58% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy.
US Healthcare Sector Industry Growth
Source: Vertical IQ, Interindustry Economic Research Fund, Inc.
1. Remote Patient Monitoring and Telehealth
Beyond its initial use, telehealth is growing to help providers reach patients anywhere, at any moment, enhancing access to treatment, especially in low-income areas. From pre-pandemic levels, telehealth use grew by 38 times, underscoring its increasing relevance in healthcare.
Growth in telehealth usage peaked during April 2020 but has since stabilized.
Telehealth claims volumes, compared to pre-Covid 19 levels (February 2020 =1)*
*Includes cardiology, dental/oral, dermatology, endocrinology, ENT medicine, gastroenterology, general medicine, general surgery, gynecology, hematology, infectious diseases, neonatal, nephrology, neurological medicine, neurosurgery, oncology, ophthalmology, orthopedic surgery, poisoning/drug tox./comp. of TX, psychiatry, pulmonary medicine, rheumatology, substance use disorder treatment, urology. Also includes only evaluation and management visits; excludes emergency department, hospital inpatient, and physiatry inpatient claims; excludes certain low-volumes specialties. Source: Compile database; McKinsey analysis
Rising Costs and Telehealth Adoption Challenges
Although telehealth offers accessibility and has shown positive results for chronic conditions, full adoption is limited by high deployment costs, incompatible EHR systems, and non-compliance with changing standards (such as ICD-11).
Still, telehealth provides access to care to underserved communities who might not be able to travel. Those who live in low-income or rural locations and struggle to receive constant healthcare access especially benefit from telehealth services.
These challenges, along with the rapid shift to digital healthcare, highlight the critical importance of safeguarding patient data—not only to ensure trust and compliance but also to address cybersecurity concerns.
“Healthcare companies continue to be a growing target for cybercriminals. In an era of digital healthcare, safeguarding patient data is not just a regulatory requirement—it’s a commitment to trust and care.”
DREW HENDRICKSON, SHAREHOLDER AND PRACTICE LEADER, CYBERSECURITY, LBMC, PC
Remote Monitoring of Chronic Illnesses
A potentially more cost-effective route to improved patient experience is telehealth-enabled remote patient monitoring (RPM). Wearable devices allow diseases like diabetes to be constantly tracked by providing real-time alerts and interventions. This reduces the need for in-person visits, saving patients and healthcare organizations time and money.
Telehealth and remote monitoring are revolutionizing healthcare delivery, enabling proactive and faster care for people with limited mobility or geographical restrictions.
“Ensuring accurate coding and compliance is foundational for mitigating risk and optimizing revenue. At LBMC, we empower healthcare organizations with tailored solutions to maintain regulatory adherence and improve financial outcomes.”
LANE JACKSON, SHAREHOLDER AND HEALTHCARE INDUSTRY LEADER, HEALTHCARE CONSULTING, LBMC, PC
2. Customized Medicine/AI Diagnostics
Adopting artificial intelligence and personalized medicine comes with great expense, possible data security threats, and the need for providers to invest in infrastructure and training. Furthermore, differences in access to these cutting-edge medicines can aggravate health inequities. Additionally, ensuring patients trust and grasp these cutting-edge technologies. Education regarding AI-driven tools and open communication helps to build confidence and raise adoption rates.
According to a Mckinsey survey, most respondents say their healthcare organizations are at least pursuing generative AI proofs of concept, if not already implementing the technology.
Healthcare organizations’ plans to use generative AI (gen AI), % of respondents (n = 100)1
Respondents include 40 payer, 40 provider, and 20 healthcare services and technology groups; -30% are C-level executives, and -30% are from >$10 billion revenue organizations. Source: McKinsey and Company.
AI Diagnostics Efficiency and Accuracy
AI investment in healthcare is predicted to soar from about $20 billion in 2024 to $150 billion over the next five years. Still, regulatory compliance, ethical usage of AI, and ensuring interoperability with current healthcare systems remain major challenges for industry adoption. Unlocking the full benefits of AI in diagnostics and personalized medicine depends on overcoming these challenges.
By offering faster, more accurate interpretations of imaging and health data, artificial intelligence may improve accuracy in diagnostic procedures across several disciplines like radiology and pathology. Targeted therapies and diagnostic tools may help doctors and clinicians concentrate more on patient care and less on administrative work.
“GenAI is knocking down the walled gardens of our data history.”
MATT CYBULSKY, PRACTICE LEADER, HEALTHCARE AI, DATA, AND PRODUCT INNOVATION, LBMC, PC
“By integrating advanced AI technologies, we can analyze complex data sets more efficiently, provide deeper insights, and create innovative applications tailored to our clients’ needs.”
JIM MEADE, CEO, LBMC, PC
3. MedTech and Digital Innovation
Today’s medtech advancements include digital tools like wearable ECG monitors and smartwatches, which may empower patients to manage their health more actively. For example, medical practitioners can use virtual reality to rehearse difficult operations, resulting in a safer learning curve before working with actual patients.
As the population ages, demand for creative medtech solutions keeps rising. Effective management of chronic diseases depends on instruments including home-based diagnostic gadgets, wearable monitoring, and fall warning systems. These developments could reduce the financial burden of increased healthcare use in older populations and improve patient care.
In 2024, over 1.3 billion people were projected to use digital health tools, including fitness trackers and smartwatches, reflecting a significant rise in patient engagement with personal health management.
Data Interoperability and Collaboration Challenges
Collaborating with technology companies offers innovation, but it also presents risks related to data privacy and interoperability between healthcare systems. Different data standards and fragmented EHR systems complicate smooth information sharing.
Unlocking medtech solutions’ full potential depends on government and industry initiatives to standardize patient records and improve interoperability.
Medtech companies are working with consumer technology companies to develop wearable technology, which is predicted to stimulate wearable health technology innovation. Analysts expect a 30% annual rise in these collaborations.
Actionable Advice: Addressing Data Interoperability in Medtech
Adopt open data standards, enhance collaboration with technology firms, and prioritize cybersecurity with encryption and anonymization. Embrace AI for real-time analytics, train staff for system adoption, and build modular data ecosystems. These steps unlock innovation, improve patient outcomes, and drive digital transformation in healthcare.
4. Navigating the Shift to Value-Based Care
Turning to value-based care requires significant operational changes and redesigned reimbursement systems. Providers also have to deal with penalties for failing quality standards, such as those set by the Centers for Medicare & Medicaid Services (CMS), which could affect their financial reserves.
Moreover, treating patients with complicated, chronic conditions calls for more intense, coordinated treatment, thereby demanding more resources.
Actionable Advice: Transitioning to Value-Based Care
- Engage patients with health apps.
- Develop individualized care plans.
- Adopt telehealth solutions.
“Maximizing reimbursements is critical for maintaining financial health. LBMC’s expert consultants help providers navigate these challenges by ensuring that healthcare providers capture appropriate revenue while adhering to regulatory requirements.”
LANE JACKSON, SHAREHOLDER AND HEALTHCARE INDUSTRY LEADER, HEALTHCARE CONSULTING, LBMC, PC
Managing Workforce Shortages in Value-Based Models
The shift to value-based care further aggravates already present staffing issues. High levels of burnout, a shrinking healthcare workforce, and rising demand are generating workforce shortages that impede the application of thorough, patient-centered treatment.
To close the gap, providers are implementing creative training courses and AI-assisted systems of operation. Value-based models also encourage a shift from fee-for-service models toward coordinated, preventative care models.
Although a national surplus of 30,000 registered nurses (RNs) is expected by 2028, regional gaps remain clear; Tennessee is facing a critical shortage of 3,000 RNs during the same timeframe.
“Individuals are more apt to seriously consider a job change if they feel they are not appreciated, not seeing the growth they desire or simply aren’t enjoying their position/work environment due to burnout. Today, it is becoming increasingly important for companies to focus on being as proactive as possible in retaining top performers. Some top employees are contemplating leaving for better offers or more fulfilling challenges, making the proactive role of management and human resources more vital.”
DEBBIE ELLIOTT, CEO, ACCOUNTING AND FINANCE DIRECT HIRE, LBMC STAFFING SOLUTIONS
Enhancing Patient Accountability
By including patients more fully in their treatment plans, patient-centric models are also increasing patient accountability. Patient portals and mobile apps allow individuals to monitor development, access educational resources, and make informed decisions—empowering them to take charge of their health and thus improve overall results.
Data-Driven Realizations for Economic Control
Data aids patient-centric care models to better grasp patient behaviors and health trends. Predictive analytics assist doctors in tailoring treatments and decreasing complications, optimizing resources, and raising patient satisfaction. Value-based care models using predictive analytics identify at-risk groups, increasing outcomes while minimizing needless usage of resources.
Moving toward value-based and/or patient-centric treatment will help improve healthcare quality and cut rising costs. Those who follow data-driven, outcome-oriented strategies are positioned to provide not only more efficient operations but also improved treatment.
5. Initiatives in Health Equity and Access
Health equity affects how well healthcare outcomes improve. Healthcare providers help ensure fair access to high-quality treatment by using technology and outreach programs.
Demand for geriatric care, home healthcare, and nursing homes is being driven by chronic illnesses including diabetes, heart disease, and arthritis. Providers are using telehealth, mobile clinics, and community outreach programs to solve access differences—especially in rural and low-income areas.
By providing treatment and education directly to underserved groups, these programs ensure equitable access to needed services and help close care gaps.
Comprehensive care approaches that address issues such as food and housing insecurity can reduce healthcare costs by up to 15%.
Expanding Equity Programs and Addressing SDOH
Reducing inequalities and improving outcomes depend critically on programs addressing social determinants of health (SDOH)—such as housing, food security, education, and transportation.
Delivering preventive treatment and education straight to underserved communities, mobile health clinics and telehealth services are vital.
Addressing these challenges requires not only innovative care delivery methods but also robust support systems that enable healthcare providers to focus on their mission of improving patient outcomes.
“Healthcare organizations operate in a highly regulated environment. By ensuring adherence to strict standards, LBMC’s healthcare-specialized audit services free up clinicians to concentrate on their primary goal of providing high-quality patient care.”
LAURA MCGREGOR, SHAREHOLDER AND HEALTHCARE INDUSTRY LEADER, AUDIT, LBMC, PC
Navigating the Healthcare Landscape with LBMC
These trends underscore the need for flexibility, patient-centered care, and technological advancements as we head into 2025. While prioritizing patient experience, healthcare providers have to solve systemic challenges including rising costs, workforce shortages, and demands of an aging population. At LBMC, we are dedicated to guiding healthcare companies through these changes with customized solutions that maximize resources, optimize the revenue cycle, improve patient care, and drive sustainable growth.
“The revenue cycle is the financial lifeline of any healthcare organization. LBMC provides advisory services that enhance financial performance. Our cross-functional teams allow us to impact all aspects of the revenue cycle across people, processes and technology.”
LANE JACKSON, SHAREHOLDER AND HEALTHCARE INDUSTRY LEADER, HEALTHCARE CONSULTING, LBMC, PC