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Report finds health systems embrace AI faster than governance can keep up

On Behalf of | Aug 19, 2025 | Health & Health Care Law |

The rapid adoption of artificial intelligence (AI) in health systems is outpacing the development of internal governance structures, posing significant challenges for healthcare leaders. According to a recent report by the Healthcare Financial Management Association (HFMA) and Eliciting Insights, 88% of health systems are utilizing AI, yet only 18% have mature governance frameworks. The data draws attention to the fact that healthcare leaders and physicians need to put increased focus on establishing governance to ensure AI use within their facilities and private practices enhances patient care without compromising quality of care or triggering allegations of a violation of federal regulations.

Current state of AI adoption in health systems

AI is increasingly integrated into various functional areas within health systems, including finance, revenue cycle management, and clinical operations. Despite this widespread adoption, many health systems lack the necessary governance structures to manage AI effectively.

Healthcare executives recognize the importance of governance in building community trust and ensuring responsible use of AI. Those behind the study encourage increased focus in this area, noting governance around AI will likely be akin to following accounting rules and regulations.

Vendor partnerships and AI implementation

The report also underscores the importance of trusted vendor partnerships in AI implementation. Health systems tend to rely on vendors to provide these services, as the health system or private practice is not as familiar with the best areas for a return on investment when it comes to AI use. This is also in large part due to the fact that the health system has already established privacy and ethical guidelines with the vendor and depends on these guidelines to apply to AI use in these relationships. Although useful, a specific policy outlining these expectations is wise.

Health systems and private practices that are making use of AI are not alone. The HFMA report shows that many throughout the country are using these tools but calls attention to the fact that too many are doing so without internal guidelines. Hospital systems and private practices are wise to use this report as a call to put in place internal governance to mitigate the risk that use of AI results in allegations of a violation of patient privacy, billing practices, or trigger an OPMC license investigation.

Attorney John Rivas is responsible for this communication.

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