Greg Farnum, senior vice president and general manager, federal strategic advisory, at Audacious Inquiry
Photo: Greg Farnum
This past year was a perfect storm of a new presidential administration determined to reshape healthcare, the integration and ongoing challenges of artificial intelligence, financial pressures on all fronts, and the lingering financial effects of the COVID-19 pandemic.
Federal healthcare agencies like the Centers for Disease Control and Prevention, the National Institutes of Health, and the Food and Drug Administration experienced significant funding uncertainty, program realignments and shifts in policy priorities.
While healthcare AI has advanced significantly in adoption and capabilities, the industry has struggled to realize the hoped-for ROI.
While 2026 also promises to be tumultuous, the industry should at least be better prepared for what's to come, said Greg Farnum, senior vice president and general manager, federal strategic advisory, at Audacious Inquiry. The company offers experience in software development, health IT policy, public health and emergency preparedness, combined with decades of experience working with and in federal and state agencies and health information exchanges.
AI ROI a must
"Healthcare AI has been so obscured by hype, promises and unrealistic expectations that it has been challenging to get an accurate read on just what the technology can and can't do," Farnum stated. "Spending on AI has been substantial, often driven by experimentation and pilot programs and adopted standalone systems to determine what works and the potential ROI. That is no longer sustainable. Healthcare can no longer afford to invest indiscriminately in AI in the hopes that it will eventually pay off.
"Organizations and investors will be more demanding and particular in 2026 regarding AI," he predicted. "They have a better idea of AI capabilities and how it can be integrated into their systems. While spending on AI will continue to grow, there will be insistence that tech vendors demonstrate their products deliver concrete, measurable ROI before an investment is made."
This year will also see healthcare organizations focus on better implementing and scaling their existing AI systems rather than adding new ones, he added.
Consumerism rules
Elsewhere, young, healthy adults will need to be engaged in demanding easy access to their records to facilitate true interoperability, Farnum said.
"The growing power of the consumer in healthcare requires providers to be more responsive to patients' needs and preferences," he explained. "Patients, particularly younger ones, are driving new models of healthcare delivery and consumption, demanding improved accessibility and greater involvement in what traditionally has been a one-sided arrangement.
"The new requirements for data interoperability will make it easier for all patients to access their records and exercise greater choice in how, when and from whom they receive care," he continued. "However, this is tempered by the fact that younger, healthier people tend to consume less healthcare and, therefore, spend less time thinking about it."
Maintaining momentum behind accessibility and interoperability will require a concerted effort by providers, health plans, patient advocacy groups and others to make younger consumers aware of their ability to better manage their healthcare and the financial advantages of doing so, he added.
"Whether coordinating care for aging parents, managing fitness data, or preparing for life events like pregnancy, consumer apps that aggregate health data with financial benefits like HSA integration or lifestyle applications will drive adoption," Farnum noted. "Their greater involvement will be essential if the nation is to achieve its goals of value-based care, improved chronic care management and cost control."
Here comes rural health
Farnum further predicted private money will follow public dollars into rural health initiatives in 2026.
"Federal investments in rural healthcare infrastructure are de-risking markets for private investors," he contended. "As public funding demonstrates viable models and improves baseline infrastructure, private equity and venture capital will see opportunities. The $50 billion Rural Health Transformation Program stands out as the newest and most significant public investment in improving healthcare interoperability and accessibility.
"The grants, the first round of which was just announced, are an indication of where the administration's healthcare priorities lie," he continued. "Healthcare organizations, even those not directly involved in rural healthcare, will take note of these priorities, as will health tech companies hoping to sell to providers. The grants are likely to spur additional spending by providers, as well as by the government at the state and local levels."
In this year's tightly constrained spending environment, healthcare will want to focus its investments on those areas the government has clearly identified as priorities, such as greater interoperability and increased efficiency – money follows money, he concluded.
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Healthcare IT News is a HIMSS Media publication.
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