Latest Health News: AI in Healthcare, FDA Staffing Issues, 340B Drug Program, and More

TL/DR –

OpenAI has launched ChatGPT for Healthcare, a set of AI products designed to aid healthcare providers and ensure HIPAA compliance. The Government Accountability Office reported that the FDA is understaffed and thus unable to effectively oversee medical device recalls. Healthcare saw a surge in private equity deals in 2025, with a record-breaking total value of $191 billion, largely driven by interest in health IT firms.


AI Chatbot Connects Medical Records with Healthcare Apps

OpenAI has unveiled ChatGPT for Healthcare, a product suite designed to help providers deliver superior care for patients whilst adhering to HIPAA compliance requirements. The platform aims to facilitate evidence-based patient care decisions while minimizing administrative tasks.

Insufficient FDA Staffing Hinders Oversight on Medical Device Recalls

The U.S. Food and Drug Administration faces operational challenges due to a lack of adequate staffing, hindering its ability to manage the recall of faulty medical devices. According to a report by the Government Accountability Office, the FDA failed to meet its three-month target for resolving manufacturer-initiated device recalls over five fiscal years, with almost 74% of recalls exceeding the set goal.

Panel Rejects Appeal Blocking 340 Drug Discount Program

A three-judge panel rejected the federal government’s appeal to block a court decision that temporarily halted the 340B drug discount program. The 1st U.S. Circuit Court of Appeals stated that the Department of Health and Human Services had not made a strong case that it would likely succeed on the merits. More details here.

AMA Brief Advocates for Permanency of Telehealth Flexibilities

The American Medical Association issued a brief encouraging lawmakers to make pandemic-era telehealth flexibilities permanent, highlighting the benefits of telehealth and urging a reconsideration of traditional cost modeling. Read the full brief here.

Healthcare Dealmaking in Private Equity Reached Record $191B in 2025

Private equity dealmaking in healthcare reached a record $191 billion in 2025, buoyed by investor interest in health IT companies. The data, obtained from a report by Bain & Company, also recorded 445 buyouts. Read more.

Digital Health Investments Surge to $14.2 Billion in 2025

Investment in digital health rose 35% to $14.2 billion in 2025, marking the highest total since 2022. The increase was primarily driven by excitement around artificial intelligence, according to Rock Health’s year-end analysis of digital health deals. Find out more here.

AI Expansion in Healthcare to Continue in 2026

Experts predict that AI will continue to expand in healthcare in 2026, enhancing workflow efficiencies and strengthening cyberattack defense. Find more details here.

Hospitals Struggle with Digital Communication for Nurses

US hospitals are struggling to effectively communicate critical workplace information to nurses, owing to understaffed, high-pressure clinical environments. Firstup’s survey of 1,000 US hospital nurses suggests improvements are needed in communication methods and content. Read more.

Utah Initiates AI-based Medical Prescription Renewals

In a pioneering move, Utah has launched a pilot program with health-tech startup Doctronic, allowing an AI system to handle routine prescription renewals for patients with chronic conditions. Discover more here.


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