Healthcare is evolving rapidly, particularly in the context of financial management and technological integration. In 2025, data from PYMNTS highlighted significant shifts within the healthcare sector, framing it as a complex marketplace where administrative and financial challenges often overshadow clinical concerns. The focus is now on how care is delivered and the financial mechanisms behind it.
Funding Trends and Digital Health Adoption
PYMNTS reported that digital health venture funding reached an impressive $10.1 billion in 2024, although this figure reflects a decline from the previous year. Despite this drop, funding remains higher than pre-pandemic levels. Companies at later stages are encountering tougher capital conditions, prompting a notable trend toward consolidation and strategic partnerships.
In a January interview, Jared Augenstein of Manatt Health described 2025 as “the year of evidence,” emphasizing the need for HealthTech firms to prove their clinical impact and demonstrate measurable return on investment (ROI) to maintain viability. This underscores a broader expectation for companies to validate their contributions in a competitive landscape.
Data from the PYMNTS Intelligence report, titled “The Digital Healthcare Gap: Streamlining the Patient Journey,” reveals a significant shift in consumer behavior. Approximately two-thirds of consumers now utilize patient portals, with older demographics increasingly engaging with digital health solutions. Further findings from the report “The Digital Platform Promise: What Baby Boomers and Seniors Want From Digital Healthcare Platforms” indicated that baby boomers and seniors expressed high satisfaction with receiving test results online and actively participating in digital healthcare activities. While digital adoption is expanding, it remains uneven, particularly at the intersection of patient experience and financial transactions.
Artificial Intelligence Takes Center Stage
Throughout 2025, interviews and analyses illustrated a transition in healthcare artificial intelligence (AI) from experimental phases to widespread implementation, with governance playing a critical role. In an October conversation, Aashima Gupta, global director of healthcare strategy and solutions at Google Cloud, stated that ROI in healthcare encompasses not only operational efficiency but also the creation of conditions conducive to improved patient care. She cautioned against presenting AI as a substitute for clinicians.
Research from Google Cloud revealed that many executives in healthcare and life sciences reported AI technologies actively in production, with concerns about data privacy and security as central factors in their decision-making processes. Discussions among industry leaders highlighted that the initial focus of AI deployment is not on diagnostics but on streamlining workflows that affect payment and patient communication.
Ganesh Padmanabhan, CEO of Autonomize AI, explained that large language models can effectively extract information from complex clinical documentation and contextualize it for various workflows, particularly in administrative tasks such as insurance approvals and patient interactions.
The theme of trust in AI also emerged in discussions about digital twins, with Jon Walsh, founder of Unlearn, noting that the aim is to fundamentally transform clinical research methodologies. After spending seven years building confidence with regulators, the company has positioned digital twins as a means to reduce reliance on placebo groups and expedite clinical trials.
In a notable development, Weave announced its acquisition of TrueLark in May, aiming to automate scheduling and enhance front-office communication. Marcus Bertilson, Weave’s Chief Operating Officer, shared insights on patient expectations for immediate responses, which often lead to frustrating wait times. Weave believes that the most scalable solution may not be a dedicated app but rather a phone system bolstered by conversational AI.
Financial Strain and Telehealth Adoption
The financial implications of healthcare in 2025 were starkly highlighted by findings from PYMNTS Intelligence’s Generational Pulse reports, which consistently linked digital care adoption to financial stress and payment challenges. Midyear analyses showed that telehealth has become a mainstream option for younger generations, with approximately 30% of Generation Z and millennials opting for telehealth services during their most recent healthcare visits. In contrast, baby boomers exhibited single-digit usage rates. Mental health services emerged as particularly conducive to virtual delivery.
Despite the rising adoption of telehealth, nearly 70% of Gen Z patients reported facing payment complications, including limited digital payment options and issues related to insurance. The June report, “Clicks, Care & Copays—How Each Generation Navigates Digital Healthcare,” underscored a significant “expectations gap,” revealing that younger consumers encounter more payment barriers compared to their baby boomer counterparts, who generally found their last healthcare payment experience easier.
By late 2025, the Generational Pulse report delved into the affordability of healthcare, finding that 80% of Gen Z respondents identified healthcare costs as a significant strain on their budgets. Many reported delaying doctor visits or forgoing recommended tests due to financial constraints, indicating that insurance coverage alone does not alleviate the issue, as premiums, deductibles, and out-of-pocket expenses continue to impact early-career individuals.
Telehealth’s rise as a delivery method highlights a parallel need for modernizing billing and payment systems. A PYMNTS analysis from July pointed out that while care delivery has advanced digitally, payment systems often lag behind, resulting in numerous challenges for consumers, especially younger patients. As telehealth becomes routine, the necessity to enhance billing and payment workflows has transformed into a competitive imperative.
As 2025 draws to a close, PYMNTS’ comprehensive healthcare coverage illustrates the intricate intersections between finance and healthcare. Key areas of focus include prior authorization, claims processing, and the integration of cost-smoothing tools within health plans. The overarching lesson for payment and FinTech executives is clear: the success of digital transformation in healthcare hinges on the consumer experience at the moment they receive the bill.
