Healthcare funding and delivery are undergoing significant transformations as evidenced by PYMNTS’ comprehensive coverage throughout 2025. The focus shifted from traditional clinical aspects to a broader view of the sector as a complex marketplace grappling with administrative, financial, and digital challenges. A recurring theme surfaced: the growing disconnect between how care is provided and how it is financed.
Early in the year, PYMNTS reported that digital health venture funding fell to $10.1 billion in 2024, a decline from the previous year but still exceeding pre-pandemic levels. Late-stage companies faced tougher financing conditions, prompting a renewed emphasis on consolidation and partnerships. In an interview from January, Jared Augenstein of Manatt Health described 2025 as “the year of evidence,” asserting that HealthTech firms must demonstrate clinical impact and measurable return on investment (ROI) to remain competitive.
Consumer adoption of digital health tools is on the rise, although it remains uneven. The PYMNTS Intelligence report, “The Digital Healthcare Gap: Streamlining the Patient Journey,” revealed that two-thirds of consumers now utilize patient portals. Interestingly, older generations are engaging with digital healthcare services, as highlighted in the report “The Digital Platform Promise: What Baby Boomers and Seniors Want From Digital Healthcare Platforms.” This study indicated that baby boomers and seniors expressed high satisfaction with accessing test results online and actively participating in digital health activities. Despite this progress, the patient journey frequently falters at the financial stage.
AI Integration and Financial Challenges
Throughout 2025, the integration of artificial intelligence (AI) in healthcare transitioned from pilot programs to widespread deployment, with governance being a critical factor. In an October interview, Aashima Gupta, global director of healthcare strategy and solutions at Google Cloud, emphasized that ROI in healthcare encompasses not only efficiency but also the creation of conditions for improved patient care. Gupta cautioned against presenting AI as a substitute for clinicians.
Research from Google Cloud indicated that many executives in healthcare and life sciences reported having AI systems in production, with data privacy and security being essential criteria for their selection. Several discussions highlighted that the initial focus of AI is not on diagnosis but rather on enhancing workflows that influence payment processes and patient communication. Ganesh Padmanabhan, CEO of Autonomize AI, noted that large language models can extract and contextualize information from intricate clinical documentation, a task that has long resisted automation. The company’s focus includes streamlining administrative processes such as insurance approvals and patient interactions.
A significant step in integrating AI into patient experiences occurred in May when Weave announced its acquisition of TrueLark, aimed at automating scheduling and enhancing front-office communications. Weave Chief Operating Officer Marcus Bertilson stated that patients increasingly demand immediate answers, yet often find themselves waiting on hold. Weave’s strategy suggests that the most scalable interface may not necessarily be an app but could instead be a phone system enhanced by conversational AI.
Consumer Costs and Generational Insights
The financial implications of healthcare in 2025 were underscored by PYMNTS Intelligence’s Generational Pulse findings, which consistently linked digital healthcare adoption to financial stress and payment complications. Midyear reports illustrated that telehealth had gained mainstream acceptance among younger generations, with approximately 30% of Generation Z and millennials utilizing telehealth for their most recent consultations, compared to single-digit figures among baby boomers. Mental health services emerged as particularly reliant on digital platforms. Notably, nearly 70% of Gen Z patients reported encountering payment issues, including limited digital payment options and insurance-related challenges.
The June report, “Clicks, Care & Copays—How Each Generation Navigates Digital Healthcare,” sharpened the focus on the “expectations gap.” It found that younger generations faced more significant payment barriers compared to baby boomers, who were more likely to describe their last healthcare payment as straightforward. This reality presents challenges for banks, payment providers, and digital wallet services, highlighting that while healthcare is adopting digital channels, it still struggles with consumer-grade financial infrastructure.
As the year progressed, PYMNTS examined affordability issues, revealing in the November edition of Generational Pulse that 80% of Gen Z respondents indicated that healthcare costs strained their budgets. Many reported delaying medical visits or forgoing recommended tests due to financial constraints. Even with insurance coverage, the interplay of premiums, deductibles, and out-of-pocket expenses continues to burden early-career individuals.
The relationship between telehealth and insurance emerged as a critical narrative. A July analysis highlighted that while healthcare delivery has increasingly gone digital, payment systems have lagged, resulting in widespread difficulties in covering care costs and heightened friction for Gen Z users. As telehealth becomes commonplace, modernizing billing and payment processes has become essential for competitiveness rather than merely an upgrade to back-office systems.
By the close of 2025, PYMNTS’ healthcare coverage reflected the intricate interplay between finance and healthcare. Key topics included prior authorization, claims processing, and cost-smoothing tools embedded in health plans, all influenced by consumer experiences shaped by the immediacy standards of retail and banking. For executives in payments and financial technology, the core lesson of 2025 was clear: in healthcare, successful digital transformation hinges on the moment the bill arrives.
