Digital Health Under the New Administration: Cautious Optimism, Systemic Barriers and a Call for Bold Action in Healthcare Delivery

Gabrielle Goldblatt, MBA

As we pass the first 100 days of the new administration, the U.S. healthcare system is entering a new chapter, and the delivery sector finds itself at a digital crossroads. HHS program changes, executive orders, and congressional funding changes have created a landscape of unprecedented change and uncertainty.

What does this mean for the healthcare delivery industry? How can we best navigate these changes? Where are the areas poised for growth?

According to the May 2025 DiMe Pulse Administration Survey Report (“the DiMe survey”), professionals closest to patient care express strong optimism — 67% of healthcare delivery respondents believe innovation will accelerate in this new era. Yet layered beneath this confidence is a shared recognition that real transformation will require more than optimism. It will demand bold, intentional change amid persistent and evolving barriers.

This dual sentiment — hope paired with hard truths — is echoed across the industry and should serve as a clear signal to health system leaders: the tools for transformation are here, but the scaffolding for scaled, sustainable impact remains incomplete.

Innovation is accelerating, but adoption Isn’t keeping up

The DiMe survey highlights a core tension: while respondents representing digital health startups and academia report near-unanimous confidence in the pace of innovation, many care delivery professionals remain stuck navigating outdated workflows, fragmented infrastructure, and reimbursement uncertainty.

This disconnect is not just anecdotal. An American Hospital Association report revealed that while over 85% of hospitals offer telehealth, fewer than half have successfully integrated remote monitoring or asynchronous tools into routine care pathways. As one patient surveyed by DiMe put it, “Digital innovation continues to explode, while adoption by healthcare institutions remains glacial.”

The current administration’s stance on digital health is still taking shape, but many healthcare executives are bracing for ambiguity. Key policy decisions around telehealth parity, home-based care reimbursement, and AI regulation remain in flux, leaving delivery organizations hesitant to scale promising pilots. Without clarity on financial and regulatory incentives, innovation risks stalling at the edge of the exam room.

Investments are up but may not be equitably deployed

Nearly 74% of DiMe survey respondents reported planned increases in digital health investment, encouraging news for an industry long held back by undercapitalization in digital transformation. Healthcare delivery respondents are among the top sectors investing, alongside pharma and technology.

But the distribution of those dollars tells a more nuanced story. No respondents from non-profits or academia reported plans to increase investment, and many health systems still struggle with constrained budgets and workforce shortages that limit innovation capacity. In this uneven environment, market leaders may pull ahead while smaller or rural systems fall further behind.

A central question emerges: Are health systems investing not just in technology but in the operational infrastructure — governance, training, integration — that turns digital potential into performance?

AI, food as medicine and aging in place: Thematic signals for healthcare delivery

Not surprisingly, artificial intelligence (AI) emerged as the top area of promise across sectors, particularly among healthcare delivery professionals (37.1%), according to the results of the DiME survey. From ambient clinical documentation to predictive population health, AI holds clear potential to ease burden and improve care.

But leaders are rightly wary of “shiny object syndrome.” As one DiMe respondent noted, “Without thoughtful implementation, AI may just help us automate broken workflows faster.” This sentiment is consistent with a KPMG report that found that 57% of healthcare technology leaders experience weekly disruptions due to flaws in enterprise IT systems. Google, the University of Pittsburgh Medical Center, Deloitte and others are working to develop implementation playbooks to ensure the value health AI promises is unleashed in clinical care.

“Food as Medicine” and “Longevity” also captured cross-sector attention, signaling rising interest in whole-person care models that align with proactive care. Meanwhile, chronic disease management, while essential, failed to garner breakout enthusiasm, perhaps reflecting fatigue with stagnant innovation in this critical space.

Notably absent were mentions of value-based care, precision medicine, and rural health, despite these being perennial talking points in federal strategy. Their absence signals that without clearer ROI or operational pathways, even high-potential models risk being deprioritized.

Path to success: Lead with standards, outcomes and Urgency

The digital health community is clear-eyed about the stakes. As one DiMe survey respondent advised: “We must sharpen this story and tighten the value prop… Without a stronger narrative, many solutions won’t have the commercial runway to grow.”

Healthcare delivery leaders have a choice: wait for perfect policy conditions — or step up to create a favorable landscape by building the blueprints for scalable and sustainable digital care now.

As priorities for our industry come into view, we must leverage our collective expertise and continue to drive progress. Topics like longevity and aging have come into focus for innovators, and DiMe’s Aging in Place of Choice initiative offers a ready-made opportunity to lead. Join industry leaders in defining the connected care models that will allow older adults to thrive safely and independently—while strengthening system performance where it matters most.

Gabrielle Goldblatt, MBA, is associate partnerships director, healthcare, for the Digital Medicine Society.