What are the critical challenges for healthcare IT leaders in 2025? Our Client Advisory Board, a group that includes CIOs from prestigious academic and regional healthcare organizations, recently met for a three-day offsite to discuss this very question. Interestingly enough, AI breakthroughs are not their only concern. Here are their top five actual priorities.
1) Improving Data Reliability
The push to implement AI has caused hospital leaders to confront an uncomfortable reality: their data is often unreliable. “That alone is a scary thought,” an advisory board member told us, “because how can you have governance, regulatory assurances, and ethical compliance when your data sources aren’t consistent and sometimes don’t talk to one another?” Poor data can also lead to interoperability issues, data fragmentation, data inaccuracy, and increased risk of cyberattack—all of which have financial impacts. According to Gartner, poor data quality costs organizations an average of $12.9 million annually. In healthcare specifically, where accuracy is paramount, these costs can escalate quickly when unreliable data compromises AI-driven processes and decisions.
2) Making ROI-Driven Decisions
Amid the public policy turmoil surrounding reimbursements, hospitals (whether for-profit or not-for-profit) must operate in the black to keep their doors open. About 768 rural hospitals in the U.S. are at risk of closing, with 315 at immediate risk. Metro hospitals are increasingly vulnerable, too. Multiple hospitals have faced bankruptcies and closures in the early months of 2025. No wonder our CIO advisors are being pressed to consider the financial implications of their decisions. Can they justify ROI for new tech? Which tech helps most to manage staff costs, bolster operational efficiency, or improve revenue cycle gains? What do predictable quarterly tech delivery cycles look like? How will consultants add incremental value?
3) Using IT to Develop More Efficient Care Models
For years, hospitals have been looking for ways to shorten stays, because shorter stays are often healthier for the patient and more efficient for the provider. Our CIO advisors said hospitals have just begun to figure out how to utilize technology to provide efficient continuity of care. “We mistakenly think that because an EMR makes it easier for virtual care and follow-up, we’ve scaled that mountain of offloading,” said one Client Advisory Board member. “But we get a sense that technology has been taking baby steps. We need to do everything we can to use technology to better support cheaper care models, like hospital-at-home, virtual care, and more outpatient procedures.”
4) Focusing on AI Foundational Preparedness
Hospital boards, physicians, and community influencers are asking the wrong questions around AI, leading to what our CIO advisors called “hype fatigue.” They explained that they don’t want tactical solutions from AI. Instead of buying AI trinkets, what they really want is AI foundational preparedness. An advisory board member shared, “In other words, we want data quality and governance, AI standardization models across platforms, better vendor and on-site staffing integration, clarity around how AI is structured within the IT stack, a governance model for clinical and operational alignment, and AI ROI decision-making.”
5) Re-Inventing the IT Consulting Model
The CIOs in our Client Advisory Board spend huge sums on outsourcing. “Sometimes I think I don’t run the IT area,” said one advisory board member. “Rather, I run IT outsourcing. We have so many vendors and consultants, but the bigger issue right now is finding a strategic technology partner who can both architect and operationalize solutions. In some cases, I want to find vendors willing to share the risk for revenue cycle gains.” These CIOs contend that IT should be as responsible as clinicians in reducing re-admissions or reducing chronic care costs. They want to contribute to process maturity and structured workflows.
To address the top five technology hurdles identified by our Client Advisory Board, we at Innovative are pioneering a unique approach that emphasizes strategic consulting and value-based contracting. That’s what hospital CIOs need (and deserve) to know they’re accomplishing operational impact, not just technical proficiency. It just might be the key to getting a good night’s sleep if you’re a CIO in 2025.