What You Should Know:
– A new report from Barnes & Thornburg reveals that healthcare compliance professionals are facing mounting pressure as they navigate a complex regulatory landscape, increasing cyberattacks, and the rapid adoption of artificial intelligence (AI).
– The inaugural 2025 Healthcare Compliance Outlook draws on insights from over 120 U.S.-based healthcare and life sciences organizations to explore the evolving compliance challenges facing the industry.
Overall key findings from the 2025 Healthcare Compliance Outlook reveals:
- Resource Constraints: More than half of respondents report resource constraints in areas like budget, staffing, and technology, impacting their ability to address compliance challenges effectively.
- AI Adoption and Governance: Nearly three-quarters of organizations are using or considering AI for compliance functions, but many struggle to develop governance structures for this rapidly evolving technology.
- Cybersecurity Concerns: Cybersecurity threats, including ransomware and data breaches, remain a top concern, with many organizations feeling unprepared to mitigate these risks.
- Private Equity Investment: Over half of the organizations surveyed are seeking or considering private equity backing, highlighting the growing importance of external capital in the healthcare sector.
AI Implementation and Ethical Use
The report reveals a growing trend of AI adoption in healthcare compliance, with organizations leveraging both generative and predictive AI for tasks like data analysis, risk assessments, and administrative functions. However, the lack of established regulatory frameworks and clear ethical guidelines for AI use poses challenges for compliance professionals.
Compliance Priorities and Pressures
Security and privacy top the list of compliance priorities for healthcare organizations, followed by auditing high-risk areas and staying up-to-date with emerging regulations. However, resource limitations and staffing shortages hinder many organizations’ ability to address these priorities effectively.
Recommendations for Healthcare Organizations
The report offers several recommendations for healthcare organizations to strengthen their compliance efforts:
- Proactive Risk Mitigation: Implement continuous monitoring systems, conduct proactive internal audits, and collaborate with external partners to identify and address potential compliance gaps.
- AI Governance: Develop robust governance policies for AI implementation, focusing on data privacy, security safeguards, and ethical considerations.
- Cybersecurity Preparedness: Invest in threat-detection tools, incident response plans, and employee training to mitigate cybersecurity risks.
- Private Equity Due Diligence: Organizations considering private equity backing should conduct thorough due diligence and ensure compliance with complex regulatory requirements.
“Healthcare compliance professionals are dealing with expanding areas of risk, even as many report resource constraints that could limit their ability to meet challenges,” said John E. Kelly, partner and chair of Barnes & Thornburg’s Healthcare Department and Healthcare Industry practice. “These pressures underscore the need for organizations to adopt a robust compliance strategy to stay ahead of the curve.”