Healthcare is evolving rapidly into a complex marketplace where administrative and financial challenges take center stage. According to PYMNTS, in 2024, digital health venture funding reached $10.1 billion, a decline from previous years but still surpassing pre-pandemic levels. This year, the focus shifted to the disconnection between healthcare delivery and payment systems, highlighting significant friction in patient experiences.
The beginning of the year set the tone for these dynamics. In an interview, Jared Augenstein of Manatt Health characterized 2025 as “the year of evidence,” emphasizing that HealthTech companies must prove clinical impact and return on investment (ROI) to secure their future. Data from PYMNTS revealed a growing demand for digital solutions, with two-thirds of consumers utilizing patient portals, including older generations who are increasingly engaging with digital healthcare services.
AI Adoption and Financial Challenges in Healthcare
As 2025 progressed, the adoption of artificial intelligence (AI) in healthcare transitioned from experimental phases to widespread implementation. Aashima Gupta, global director of healthcare strategy and solutions at Google Cloud, noted in an October interview that AI’s ROI is not solely about efficiency but also about enhancing patient care. She cautioned against framing AI as a substitute for healthcare professionals.
Research from Google Cloud showed that many executives in healthcare and life sciences are now employing AI agents, with data privacy and security being key considerations. Discussions throughout the year revealed that AI applications are primarily focused on streamlining workflows that facilitate payments to providers and improve patient communication, rather than on diagnosis alone.
A notable instance of this trend is the acquisition of TrueLark by Weave in May, aimed at automating scheduling and front-office communications. Marcus Bertilson, Weave’s Chief Operating Officer, emphasized that patients expect quick responses but often face long wait times. By integrating conversational AI, the company hopes to enhance immediate access to information.
Generational Perspectives on Healthcare Costs
Financial barriers emerged as a critical theme in PYMNTS’ reporting throughout the year, particularly among younger generations. Findings from the Generational Pulse highlighted that healthcare expenses are straining the budgets of many. In November, the data revealed that 80% of Generation Z reported that healthcare costs affected their financial stability, causing them to delay medical visits or forgo recommended tests.
Telehealth services gained popularity, especially among younger cohorts, with around 30% of Generation Z and millennials utilizing these services for their most recent healthcare interactions. In contrast, baby boomers showed significantly lower engagement, often reporting smoother payment experiences. The report titled “Clicks, Care & Copays—How Each Generation Navigates Digital Healthcare” underscored that payment issues disproportionately impact younger patients, while older generations often find the payment process easier.
With healthcare increasingly adopting digital channels, the need for modernized billing and payment workflows has become essential. As telehealth continues to normalize, PYMNTS’ analysis indicated that improving payment systems is crucial for retaining competitive advantage in the evolving healthcare landscape.
The overall narrative of 2025 in healthcare reveals a landscape characterized by a growing reliance on digital solutions, the imperative for financial transparency, and the need for healthcare providers to adapt to the expectations of a digital-savvy populace. As healthcare and financial systems increasingly intersect, the effectiveness of digital transformation will largely hinge on the experiences patients encounter at the point of billing.
