10/3/25 – HIStalk Update: Latest Developments and Insights in Healthcare IT

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Healthcare access Shifts as Telehealth Benefits Lapse

Washington D.C. – A recent federal government shutdown is creating notable disruption in healthcare access, especially regarding telehealth services. Changes took effect immediatly, reinstating geographic restrictions and eliminating the ability for Medicare patients to recieve care in their homes. These adjustments represent a reversal of policies enacted during the public health emergency,which sought to broaden access to care during the Covid-19 pandemic.

The new regulations also require an initial in-person visit within six months prior to any behavioral or mental telehealth session, and annually thereafter. Furthermore, audio-only telehealth appointments are no longer covered, and the Acute Hospital Care at Home program has been discontinued, forcing hospitals to transfer patients – including those with mobility issues – back into already strained inpatient facilities. While providers can still bill for services delivered to Medicare patients, retroactive payment authorization from Congress remains uncertain.

Industry consolidation Continues at a Rapid pace

Alongside the changes in telehealth policy,the healthcare industry is experiencing a wave of mergers and acquisitions. Fortified Health Security recently acquired Latitude Information Security, bolstering its cybersecurity offerings. Waystar finalized its $1.25 billion acquisition of Iodine, strengthening its position in healthcare software and artificial intelligence. General Catalyst’s HATCo has completed its $500 million acquisition of Summa Health in Akron, Ohio, transforming the hospital into a for-profit entity intended as a testing ground for new technologies.

Veradigm is still working to resolve revenue recognition discrepancies that led to its Nasdaq delisting,with hopes of relisting in 2026. The company remains confident in its financial standing but continues to withhold specific profit metrics.

Leadership Changes and Innovation

Several key personnel changes have been announced across the sector. TigerConnect appointed Peter Stetson, MD, MA, as Chief Medical Information Officer and Sheeza Hussain as Chief Growth Officer. NextGen Healthcare promoted Srinivas Velamoor, MBA, to President and CEO, succeeding david Sides, who will remain with the company as an investor and board member.

The Department of Veterans Affairs (VA) has unveiled an updated Artificial Intelligence (AI) strategy that focuses on deploying AI-powered assistants for appointment scheduling and form submission, enhancing Electronic Health Records (EHRs) with real-time transcription, and automating claims processing. HHS officials, however, have expressed reservations about private sector vetting of AI tools, fearing the creation of anti-competitive practices.

Data Privacy Concerns Escalate

Meta plans to leverage conversations from its AI products for targeted advertising, raising privacy concerns among users. The company’s updated privacy policy will also incorporate data from its smart glasses and AI image generator into its ad targeting systems, with no opt-out option provided to users.

Did You know? the global healthcare AI market is projected to reach $187.95 billion by 2030, growing at a CAGR of 38.4% from 2023,according to a report by Grand View Research.

Company	recent Activity
Fortified Health Security	Acquired Latitude Information security
Waystar	Closed $1.25B acquisition of Iodine
General Catalyst’s HATCo	Completed acquisition of Summa Health ($500M)
NextGen Healthcare	Promoted Srinivas Velamoor to CEO

What impact will the renewed restrictions on telehealth have on patients in rural areas? And how will the increased consolidation of healthcare companies affect innovation and costs?

Understanding the Long-Term Implications

These recent developments point to a complex and evolving landscape within the healthcare industry. The fluctuating policies surrounding telehealth highlight the ongoing debate between accessibility and regulatory oversight. The rapid pace of acquisitions suggests a drive toward greater efficiency and market share, but also raises concerns about potential monopolies and reduced competition.

Additionally, the increasing integration of AI into healthcare promises transformative benefits, but also necessitates careful consideration of data privacy, security, and algorithmic bias. The decisions made today will shape the future of healthcare delivery for years to come.