Giles Bruce

Health system leaders are monitoring AI regulation as states and the federal government take different approaches to the technology.

The One Big Beautiful Act originally included a 10-year ban on state regulation of AI before the Senate scuttled it. Meanwhile, states continue to pass laws restricting AI as the Trump administration is taking a more hands-off approach to the technology.

But is government regulation of AI good for healthcare?

“Absolutely — but only if it is smart, risk-tiered and aligned,” Girish Nadkarni, MD, chief AI officer of New York City-based Mount Sinai Health System, told Becker’s. “In healthcare, we regulate outcomes not algorithms.”

He pointed to the FDA’s draft guidance on AI-enabled devices as an example of effective regulation, as it is helping speed up approvals and compelling postmarket monitoring.

“Regulation also unlocks reimbursement,” he said. “Payers rarely cover technology that lacks an agreed-upon safety bar.”

The danger, he said, is overreach: “Blanket rules could freeze low-risk automation like scheduling bots. The fix is proportionality — reserve heavy scrutiny for models that affect clinical decisions and keep a lighter touch for administrative AI. Done right, regulation becomes the runway, not the speed bump.”

Zafar Chaudry, MD, senior vice president and chief digital, AI and information officer of Seattle Children’s, called government regulation of AI a “double-edged sword.”

“While crucial for ensuring safety, efficacy, and building patient trust — preventing biases or critical errors — it also risks stifling the rapid innovation that could revolutionize care,” he said. “The challenge lies in creating nimble, principle-based frameworks that protect patients without slowing down progress.”

Kathleen Fear, PhD, senior director of digital health and AI at Rochester, N.Y.-based UR Medicine, said “well-considered government regulation” can help with the safe and effective development and deployment of healthcare AI, building trust among patients and providers while encouraging vendors to meet certain standards.

“However, regulation that is overly broad, poorly designed, or implemented without sufficient understanding of clinical workflows and technological nuances risks creating confusion, imposing significant administrative burdens, and potentially stifling the very innovation that’s needed to improve patient care and operational efficiency,” she said.

Dr. Fear said without clear guidance from the federal government, health systems must build their own internal AI governance frameworks and contribute their expertise to shape state and local AI policies.

 “The good news is that we’re not starting from scratch on this,” she said. “Hospital and health systems already have robust structures for clinical quality, patient safety, data privacy, and ethical review that can be adapted to effectively protect patients and ensure AI tools deliver real value.”

The FDA also has an evolving software-as-a-medical-device plan while CMS requires hospitals to monitor the safety of healthcare AI and report any adverse events, noted Sarang Deshpande, vice president of data and analytics at Mishawaka, Ind.-based Franciscan Health. He said health systems and solution vendors are also working to address transparency and algorithmic accountability through ONC’s health IT certification program.

“These federal frameworks, coupled with emerging state-level policies such as requirements for disclosure of generative AI in clinical communications, are shaping a regulatory environment that protects patients and promotes trust,” Mr. Deshpande said. “The ideal path forward would be a balanced approach — clear national standards, adaptable local safeguards and a commitment to innovation — that supports our core values of equity, human dignity, and compassionate care.”

Ayoosh Pareek, MD, medical director of AI and digital health at New York City-based Hospital for Special Surgery, said the industry needs “principled, adaptive and collaborative regulation” of AI, with clinicians, technologists, ethicists and even patients at the table.

“AI in medicine is evolving faster than traditional frameworks can often accommodate, and a purely hands-off approach risks allowing unvalidated tools into clinical workflows, which could undermine patient safety, deepen bias, or erode trust,” he said. “On the other hand, overly rigid or poorly informed policies may stifle innovation, which has happened time and time again in medicine.”

Government regulation of AI, like the technology itself, is complex, said Corey Arnold, PhD, director of the Biomedical Artificial Intelligence Research Lab at Los Angeles-based UCLA Health.

“Ensuring patient safety and data security is critical,” he said. “At the same time, innovation and rapid technological advancement should be encouraged. I believe that ‘good’ regulation would accomplish both of these broad aims.”
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With all the mergers and acquisitions in healthcare, IT departments might be forgiven for experiencing a bit of whiplash.

But IT integration can be a smooth process, provided that thoughtful procedures are in place to guide the transition, health system CIOs told Becker’s.

“I’ve had the most success when digital and technology leaders are included in initial acquisition or merger discussions,” said Jane Moran, chief information and digital officer at Somerville, Mass.-based Mass General Brigham. “Technology is not just an enabler; it’s a strategic capability that plays a critical role in designing how teams, processes and data come together to align on and support a business vision.”

Beyond that, she recommends establishing clear governance and a standardized technology ecosystem vision.

“Acquisition work sometimes takes priority over existing projects and takes significant collaboration and communication,” she said. “Last but not least, celebrate early wins. Transformation is a long game. Recognizing progress early and often helps keep teams engaged and focused on shared goals.”

Bob Berbeco, CIO of Oskaloosa, Iowa-based Mahaska Health, recommends not rushing and starting with the people, not the technology; aligning technical integration with business value; and establishing a core integration leadership team and additional subteams with clearly defined roles and responsibilities.

“Relationship building, building mutual trust, and creating genuine partnerships will go a long way in furthering the converged goals of the overall organization and minimize silos being built,” he said.

He also suggests a structured approach that includes cultural and technical SWOT analyses (strengths, weaknesses, opportunities and threats), strategic roadmaps, stakeholder alignment, and empowered cross-functional teams.

“My advice would be to resist ‘rip and replace,’” said Ash Shehata, CIO of Alhambra, Calif.-based AHMC Healthcare. “Get in there. Understand the business. Peel the onion layer back and make sure you don’t financially impact the business negatively.”

Mr. Shehata has been part of several acquisitions, first with San-Francisco-based Dignity Health before it was acquired by Chicago-based CommonSpirit Health, and now with AHMC Healthcare, a for-profit 10-hospital system. He was CIO for its latest hospital purchase, Daly City, Calif.-based Seton Medical Center, in 2021.

That integration took about 18 to 24 months and saved Seton money because AHMC’s EHR, financial and other IT systems were anywhere from three to 10 times less expensive, he said (AHMC uses TruBridge, formerly CPSI, as its EHR vendor). AHMC also increased Seton’s IT staff, which started reporting to the enterprise level.

Mr. Shehata said he has noticed that the for-profit world is a bit more methodical in its approach to integration and laser-focused on the financials.

“The example I’ll give you loosely is if you were on Cerner and paying $12 million [annually] and we bring you in on a TruBridge system that’s costing $800,000, you can imagine the net savings,” he said.

Some bigger health systems, on the other hand, often look to put the newly acquired hospital on the organization’s standard EHR that might be three times the cost, not considering the financial strain it will place on the facility, he said.

None of the acquisitions he’s been a part of have led to IT layoffs, though there has been some outsourcing of IT positions, he said. In other cases, any job cuts might depend on how closely the facilities are located or if a health system looks to “optimize” its staff after a certain period of time after the deal.

“IT integration isn’t about systems; it’s about people, trust, and culture,” said Muhammad Siddiqui, CIO of Richmond, Ind.-based Reid Smith. “Before touching any tech roadmap, we listen first. Why did they choose that EHR? What pain points drove their workarounds? Understanding the ‘why’ prevents costly mistakes later.”

He said he first focuses on “early wins” involving shared analytics, security standards and creation of digital solutions; implementing cross-departmental joint governance from day one; and identifying integration “champions” who will spot workflow issues before they fester.

“In healthcare, where burnout runs high and digital fatigue is real, how you carry the transition matters more than the tech itself,” he said. “Done right, IT becomes the bridge that helps organizations not just integrate but evolve. This work is complex and personal.”

Little Rock, Ark.-based Baptist Health takes a “two-pronged approach” to IT integration, said CIO Michael Elley.

“First, the people: We bring the IT associates into the fold from the acquired hospital and make them a part of our broader team, focusing on both their skill sets as well as where a need for resources may exist in our current environment,” he said.

“Second, the technology: On the official date of acquisition, we take them live within our systems. We attempt to have the newly acquired facility look as close as possible to all the other Baptist Health hospitals. For those items we are unable to transition prior to acquisition day, we are then hyper-focused on converting those existing systems post-acquisition.”

John Potts, DO, vice president and chief medical information officer of Radnor, Pa.-based Main Line Health, said he brings together key stakeholders — across IT, clinical and operations — early in the process to understand their individual needs.

“For example, clinical teams may require uninterrupted access to the EHR, while IT may need to consolidate infrastructure or standardize device interfaces,” he said. “These discussions help surface potential conflicts or dependencies early, allowing us to codesign solutions that are both technically sound and clinically viable.”

Main Line Health recently acquired an ASC and has been working closely with perioperative leadership, surgeons, nursing, revenue cycle and IT to accurately map the center’s workflows into enterprise systems. That includes aligning documentation templates and uniting imaging and lab interfaces while maintaining patient safety protocols during the transition.

“My advice to other IT leaders is this: Don’t treat IT integration as a back-office function,” Dr. Potts said. “It’s a strategic enabler of clinical and operational excellence. Engage stakeholders early, listen deeply to their needs, and build a roadmap that reflects both the technical and human dimensions of the merger. And above all, ensure that your integration strategy is not just about unifying systems — but about advancing the mission of your organization.”
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Seventy-one percent of chief medical information officers have gotten a salary increase of less than 10% over the year, though the portion of CMIOs making over $350,000 a year has risen from 56% in 2023 to 83% in 2025, according to executive search firm

“This significant shift likely reflects a combination of factors: higher starting

salaries for newly hired CMIOs, experienced CMIOs leveraging job changes for substantial

compensation increases … and the cumulative effect of even modest annual increases,” the June report’s authors wrote.

Seventy-eight percent of CMIOs are also eligible for an annual bonus. Here are CMIOs’ annual base salaries in 2025, per WittKieffer’s survey of dozens of the executives, mostly from the health system:

Over $500,000: 12%

$451,000 to $500,000: 15%

$401,000 to $450,000: 31%

$351,000 to $400,000: 25%

$301,000 to $350,000: 11%

$300,000 or less: 6%

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Patient portal use is on the rise, as more patients access their medical information online, increasingly through apps, HHS reported.

Here are six things to know about patient portal adoption, according to the July report from the Office of the Assistant Secretary for Technology Policy/ONC:

1. In 2024, 65% of individuals nationwide accessed their online medical records or patient portal, up from 25% in 2014.

2. Proxy or caregiver access to patient portals more than doubled between 2020 and 2024, from 24% to 51%.

3. App-based access to online health records rose from 38% in 2020 to 57% in 2024, while web-based use decreased from 60% in 2020 to 42% in 2024.

4. While 59% of individuals nationally had multiple online medical records or patient portals in 2024, only 7% said they used a portal-organizing app to combine them.

5. In 2024, 76% of individuals with a recent cancer diagnosis accessed their online medical records or patient portal.

6. In 2024, 87 percent of individuals encouraged by their healthcare provider to access their medical records online used their patient portal at least once in the past year, compared to 57% who weren’t encouraged. They were also more likely to view test results and clinical notes online.
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HHS continues to prioritize interoperability through the Trusted Exchange Framework and Common Agreement, or TEFCA.

Here are three of the agency’s plans for TEFCA for the remainder of 2025, according to a July 7 blog post from Steven Posnack, principal deputy assistant secretary for technology policy at HHS’ Office of the Assistant Secretary for Technology Policy/ONC:

1. Increase transparency. “Draft TEFCA work products will be available for public comment, giving everyone an equal chance to provide input,” Mr. Posnack wrote. “Up first is the draft Qualified Health Information Network Technical Framework v2.1, which is open for feedback through July 28.”

2. Drive participation and use. “While we are committed to scaling treatment exchange and individual access services on TEFCA, we are equally excited about expanding participation and live use of the network for the other TEFCA authorized exchange purposes: payment, healthcare operations, government benefits determination, and public health,” he wrote.

3. Activate HHS’ federal partners. “We look forward to supporting our federal partners’ participation in TEFCA and meeting their mission needs,” he wrote. “We’d like to thank everyone who submitted comments on the joint request for information issued with CMS. We are reviewing them carefully for policy and program implementation purposes, including to inform our work on TEFCA.”
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A Louisiana hospital is eyeing a stadium naming rights deal that could cost as much as $50 million over a decade, the Advocate in Baton Rouge, La., reported.

Baton Rouge-based Our Lady of the Lake Medical Center is in talks to acquire the naming rights for a planned $400 million sports arena for Baton Rouge-based Louisiana State University, according to the July 16 story.

“This is a generational project for the Baton Rouge community and economy,” E.J. Kuiper, president and CEO of parent system, Baton Rouge-based Franciscan Missionaries of Our Lady Health System, wrote in an email to employees July 11, per LouisianaSports.net. “Clinical care, economics, and social circumstances all contribute to the health and vibrancy of our region. While no formal agreement has been reached, we have been in discussions as a potential anchor investor for this project.” 

A November 2024 draft document from LSU states that a proposal with an “existing naming prospect” would cost $5 million a year over 10 years, the Advocate reported. A hospital spokesperson told the news outlet that “terms are still under negotiation.”

“While a partner of Our Lady of the Lake Health’s stature would clearly benefit the arena project and the region, LSU will not comment directly on potential naming rights agreements or other arena-related negotiations as none have been finalized or presented to the board or university leadership for approval,” an LSU spokesperson emailed the publication.
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Amazon’s streaming service pulled a documentary critical of pharmacy benefit managers after receiving a legal threat from UnitedHealth Group, The New York Times reported.

The docuseries, “Modern Medical Mafia,” accuses PBMs of acting as an organized “crime ring” that has patients “choosing between life or death with mafia tactics due to greed,” according to a description on YouTube. One of the largest PBMs, OptumRX, is a UnitedHealth subsidiary.

The documentary “spreads a vociferous and false screed in a thinly-veiled call to violence for anyone who is dissatisfied with the American healthcare system,” a lawyer for UnitedHealth wrote to Amazon in May, according to The Times. “Recent history and [UnitedHealthcare CEO] Brian Thompson’s murder demonstrate the devastating and irreversible consequences of ginning up such hatred with false claims designed to inspire violence.”

A few days later, Amazon Prime Video removed the documentary, which only had a few hundred views, as did streaming service Vimeo, according to the July 12 story. The docuseries remains on YouTube.

An Amazon spokesperson told The Times that the film’s distributor asked Prime Video to remove the series after Amazon flagged its “low video quality.”

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The state of Texas has enacted a law regulating EHR data and healthcare AI use in the state.

Texas Gov. Greg Abbott signed Senate Bill 1188 into law in June. The legislation requires that EHR data from Texas patients be physically maintained in the U.S.

The law also allows AI for clinical decisions provided that the use of AI is disclosed to the patient, the provider is acting in the scope of their license, and the use of AI is not restricted by federal law.
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