Healthcare Authority Newsletter - January 2026 #2

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News Briefs


ChatGPT Health Connects AI Chatbot with Medical Records, Apps

OpenAI has launched ChatGPT for Healthcare, a set of products designed to help providers deliver high-quality care for patients while supporting HIPAA compliance requirements. ChatGPT for Healthcare is built to support evidence-based reasoning for patient care while reducing administrative burden, according to OpenAI.

(Source: Healthcare Finance News, 2026-01-09)

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GAO Says FDA Lacks Staff to Oversee Medical Device Recalls

Efforts by the U.S. Food and Drug Administration to oversee the recall of faulty medical devices are being directly impacted by insufficient staffing at the agency. According to a report issued by the Government Accountability Office in early December, the FDA failed to meet its three-month target for terminating manufacturer-initiated device recalls during the five-year period from fiscal years 2020 through 2024, with nearly 74 percent of recalls exceeding the three-month termination goal.

(Source: In Compliance, 2026-01-08)

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Panel Denies Appeal Temporarily Blocking 340 Drug Discount Program

A three-judge panel has denied the federal government's appeal of a district court decision temporarily blocking the launch of a hospital industry-opposed pilot swapping upfront 340B drug discounts for after-the-fact rebates. The 1st U.S. Circuit Court of Appeals wrote that the Department of Health and Human Services and its agencies had "failed to carry its burden of 'mak[ing] a strong showing that [it is] likely to succeed on the merits.'"

(Source: FierceHealthcare, 2026-01-08)

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AMA Brief Urges Permanency of Telehealth Flexibilities

With the deadline for making pandemic-era telehealth flexibilities permanent looming at the end of the month, the American Medical Association issued a brief aimed at convincing lawmakers to take action. The brief provides extensive evidence on the benefits of telehealth, but also argues for thinking beyond traditional cost modeling.

(Source: MedPage Today, 2026-01-08)

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P.E. Dealmaking in Healthcare Soared to Record High $191B in 2025

Private equity dealmaking in healthcare surged in 2025, boosted in part by investor interest in health IT firms, according to a report published last week by Bain & Company. Healthcare deal value soared to a record-breaking $191 billion last year, surpassing earlier heights seen in 2021, the consultancy estimated using data through November, while the number of deals was also strong, with 445 buyouts on record in 2025.

(Source: Healthcare Dive, 2026-01-12)

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Digital Health Investments Rose 35% to $14.2 Billion in 2025

Digital health investment seems to be hitting a healthy stride, bringing in $14.2 billion in funding in 2025, up 35 percent from the prior year and the highest total since 2022. The market is nowhere near the pandemic-era peak, but it marked a growth year, driven in large part by excitement around artificial intelligence, according to Rock Health's year-end analysis of digital health deals in 2025.

(Source: FierceHealthcare, 2026-01-12)

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Experts Predict AI Will Continue to Expand in Healthcare in 2026

AI has been a buzzword for years, with discussions of its promises and perils coming up in conversations across every industry. In 2026, experts predict that AI will continue to expand its foothold in healthcare, enabling workflow efficiencies and even cyberattack defense.

(Source: TechTarget, 2026-01-07)

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Increasing Cyberattacks Have Hospital CEOs Concerned

The frequency of cyberattacks against hospitals and health systems continues to rise, making the risk no longer hypothetical. Executives are looking closely at how federal and state initiatives can better support preparedness and recovery, especially for organizations operating on thin margins.

(Source: HealthLeaders Media, 2026-01-12)

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Hospitals Struggle to Provide Nurses Info Through Digital Means

Hospitals across the U.S. are struggling to effectively reach nurses with critical workplace information, relying on communication methods that often fail to cut through the realities of understaffed, high-pressure clinical environments. These were among the findings of Firstup's survey of 1,000 U.S. hospital nurses, which suggests while hospitals are communicating frequently, the methods and content often fail to reach nurses effectively during demanding shifts.

(Source: Healthcare IT News, 2026-01-12)

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Hospices Face Compliance Issues Over GIP Stays

Hospices must pay close attention to regulatory compliance when transitioning hospital-bound patients to the General Inpatient (GIP) level of care. The U.S. Centers for Medicare & Medicaid Services has indicated that a GIP stay is appropriate when patients require pain control or chronic symptom management that cannot be delivered in any other setting.

(Source: Hospice News, 2026-01-09)

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Utah Allows AI to Renew Certain Medical Prescriptions

In a first for the U.S., Utah is letting artificial intelligence -- not a doctor -- renew certain medical prescriptions. The state has launched a pilot program with health-tech startup Doctronic that allows an AI system to handle routine prescription renewals for patients with chronic conditions.

(Source: Politico, 2026-01-06)

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Arnall Golden Gregory LLP

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