In 2025, healthcare AI drew roughly $18 billion in venture capital — about 46 percent of all healthcare investment for the year — with adoption moving more than twice as fast as the broader economy. This capital is concentrating in prior authorization, revenue cycle management, and member engagement — the workflows touching Medicare and Medicaid beneficiaries most directly and where recent policy efforts have focused. With these shifts come urgent questions about governance and whether the promised efficiency gains will materialize for health plans, providers, and state agencies.
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