Trends of 2025 as We Head Towards the End of the Decade

Let’s start with some data on medical school applicants and enrollment for the 2024-25 academic year. Though the total number of medical school applicants fell by 1.2%, reaching the lowest level since the 2017-18 academic year, first-time applicants increased by 2.3%. The number of first-year enrollees (matriculants) in U.S. MD-granting medical schools increased by 0.8%, but there was a decline in matriculants from historically underrepresented groups, with some experiencing double-digit decreases.While there were increases in Black or African American (up 2.8%) and Hispanic, Latino, or Spanish Origin (up 2.2%) applicants, American Indian or Alaska Native applicants saw a significant decline of 15.4%. “In the wake of the 2023 U.S. Supreme Court decision on the consideration of race in admissions and state-level policies ending funding for diversity, equity, and inclusion programs, medical schools are operating in a new environment,” said David A. Acosta, MD, AAMC chief diversity and inclusion officer. “In order to continue to recruit and matriculate strong classes, it is critical that schools support pathways programs and use effective race-neutral admissions practices and tools, such as holistic review. The AAMC and our member medical schools remain committed to increasing the number of students from historically underrepresented groups.” Women continued to make up the majority of applicants (56.8%) and matriculants (55.1%), although the increase in women matriculants was minimal at 0.2%. The number of male matriculants increased by 1.0% for the third consecutive year. There were declines in applicants and matriculants from lower socioeconomic backgrounds, with a 2.2% drop in applicants whose parents had less than a bachelor’s degree and a 2.3% decline in first-generation matriculants.

According to Yahoo Finance The global medical billing software market is expected to grow more than double in the next ten years. The market is expanding due to the increasing need for cloud-based solutions, the rise of telemedicine, regulatory compliance, the adoption of electronic health records (EHR), and the demand for automated billing solutions. The institutional billing segment is expected to generate the highest revenue in 2024, driven by the large volume of claims processed by healthcare institutions. The professional billing segment is projected to grow the fastest due to demand from physician practices and specialty clinics. Web-based medical billing software is anticipated to lead in revenue due to its accessibility and lower costs. The cloud-based segment is also expected to see rapid growth, thanks to its scalability and enhanced data security features. Healthcare providers are the largest revenue-generating segment, seeking efficient billing systems to reduce costs and improve cash flow. The healthcare payers segment is predicted to grow quickly due to the adoption of automated billing solutions for claims processing. North America is expected to dominate the market, supported by a well-established healthcare infrastructure, high adoption of advanced IT solutions, and favorable government regulations promoting electronic medical records and billing systems.

Of course cyber security is top priority this year with a new rule proposed to include providers anticipating threats. According to AMA, given the rising cybersecurity threats confronting the healthcare industry, OCR –Office for Civil Rights – and HSS – US Department of Health and Human Services– is working to enhance cybersecurity measures for electronic protected health information (ePHI) managed by covered entities, including healthcare providers, health plans, and healthcare clearinghouses, along with their business associates. The HIPAA Security Rule was first introduced in 2003 and underwent its latest revision in 2013. OCR is suggesting covered Entities and Business Associates should offer more detailed approaches when performing their security risk analysis. This includes a documented assessment that identifies all reasonably foreseeable threats to the confidentiality, integrity, and availability of ePHI, and establishing written procedures aimed at restoring access to critical electronic information systems and data within a 72-hour timeframe. Furthermore, the regulations would mandate encryption of ePHI, implementation of multi-factor authentication, regular vulnerability assessments every six months, and conducting penetration tests at least annually. The AMA is currently evaluating this proposed regulation. Many of the changes suggested by OCR could pose significant challenges for numerous physician practices seeking to comply. Public feedback on these proposals must be submitted by March 7, 2025. Share your thoughts!

A new maternal health model has been adopted in 15 states which began January 1 of this year with West Virginia “chosen as national leader.” A 10 year model called Transforming Maternal Health (TMaH)  addresses the unique health challenges faced by mothers and infants in the state, particularly in rural areas. It emphasizes collaboration with collaboration among healthcare providers, community organizations, and government agencies like extending Medicare for Postpartum mothers for an extra year.

People are wondering how the White House and U.S. Senate Flip change will affect the healthcare industry. On January 29 the AMA will host a webinar addressing questions like “With a new administration and new Congress taking the reins at the start of this new year, how is AMA advocacy positioned to effect change on the key issues facing patients and physicians? What opportunities and challenges lie ahead, and how can physicians get involved?” Also according to AMA Physicians concerns for this year include “defending the practice of medicine against scope of practice expansions that threaten patient safety and undermine physician-led, team-based care. That includes equipping physician leaders and medical society staffers with the insights and tools they need to make their case to lawmakers, regulators, news media and the public.” The American Hospital Association has a very detailed plan for the next two years, outlining nine principles for an effective health care system including accessibility, affordability, equity, safety, staffing, economic viability, innovation, coordination, and person-centered care. You can download their PDF plan here.