Telehealth is set to experience another pivotal year in 2025 as advancements in technology, shifting policies, and evolving consumer demands shape the industry’s trajectory. Health IT investment remains a cornerstone of telehealth’s growth, with 80% of healthcare organizations increasing their budgets over the past year and prioritizing areas like cybersecurity, interoperability, patient engagement tools, and virtual care solutions. This surge in funding reflects the sector’s commitment to integrating telehealth, remote monitoring, and AI technologies into mainstream healthcare delivery. However, the rapid adoption of digital tools has also brought heightened cybersecurity risks. High-profile breaches, such as the Change Healthcare attack, have prompted congressional investigations and the first proposed updates to HIPAA cybersecurity requirements in over a decade, making data protection a critical focus in the coming year.

At the same time, telehealth faces uncertainty with the expiration of several key COVID-19-era waivers. Policies that allowed Medicare beneficiaries to access care from any location, expanded the provider types eligible for telehealth billing, and supported programs like Acute Hospital Care at Home are set to sunset. These expirations could restrict access to vital services unless legislative action is taken. Meanwhile, the rise of direct-to-consumer (DTC) telehealth services is transforming the patient experience, offering on-demand clinician access but sparking concerns about quality and continuity of care. Additionally, longstanding barriers like state-based licensure continue to challenge telehealth’s scalability, though lawsuits and the expansion of interstate compacts aim to simplify cross-state practice.

Below, we explore the top five trends that will shape the future of virtual care and digital health.

1. Growing Health IT Investment

Since the COVID-19 pandemic, healthcare organizations have grown their investments in their health IT infrastructure to accommodate new telehealth, remote monitoring, and AI technologies. Health IT infrastructure is the backbone of telehealth’s expansion, and investments in this space continue to surge.

A recent survey revealed that 80% of healthcare organizations have increased their health IT budgets over the past year, with over half ranking it as a top-three priority.
Key investment areas include:
- Cybersecurity
- Clinical workflow optimization
- Data platforms and interoperability
- Telehealth and virtual care solutions
- Electronic health records (EHR)
- Patient engagement tools

This trend reflects a broader commitment to integrating telehealth, remote monitoring, and AI into healthcare delivery, underscoring the industry’s shift toward digital-first care.

2. Increased Cybersecurity Focus

2024 saw numerous cybersecurity breaches targeting healthcare organizations, bringing heightened government scrutiny surrounding health cybersecurity practices. One of the most high-profile incidents was the Change Healthcare attack, which brought down one of the largest payment processing companies in the world and was investigated by Congress. With the expansion, integration, and deployment of new digital health tools expected to continue growing, new cybersecurity threats will also emerge. HHS recently proposed a set of new cybersecurity requirements in the agency’s first HIPAA regulations in over ten years.

Congress is now investigating vulnerabilities in healthcare systems, while HHS has proposed the first HIPAA updates in over a decade, including stricter cybersecurity requirements.
As telehealth and digital tools expand, protecting sensitive patient data will remain a top priority. Organizations must adopt advanced cybersecurity measures, such as AI-driven threat detection, to safeguard their systems.

The stakes are high: A single cyberattack can disrupt care, compromise patient trust, and cost millions in penalties and recovery efforts.

3. Expiring COVID-19 Waivers

Many telehealth flexibilities introduced during the COVID-19 pandemic are set to expire in 2025, raising concerns about access to care. Key programs under review include:

Medicare originating site waivers, which allow patients to receive telehealth services from any location.
Expanded provider types eligible to bill Medicare, such as physical therapists and speech-language pathologists.
Acute Hospital Care at Home, which delivers inpatient-level care remotely.
DEA telehealth prescribing waivers for controlled substances, essential for managing substance use disorders (set to expire December 31, 2025).

As these policies sunset, stakeholders are urging policymakers to make these changes permanent to ensure continued access to telehealth services.

4. The Rise of Direct-To-Consumer (DTC) Telehealth

Direct-to-consumer telehealth services are reshaping how patients interact with the healthcare system. These platforms offer on-demand access to clinicians, appealing to tech-savvy consumers seeking convenience.

By 2025, DTC telehealth is projected to grow by 15% annually, driven by increased adoption of subscription-based models and concierge services.
However, critics highlight concerns about care quality and the lack of continuity in treatment.

Balancing convenience with quality will be critical for the long-term success of this model.

5. Licensure Reform and Interstate Compacts

Licensure remains a significant hurdle for telehealth providers seeking to deliver care across state lines.

Multiple lawsuits challenging restrictive state licensure practices are gaining traction, potentially setting new legal precedents.
Meanwhile, interstate compacts, such as the Interstate Medical Licensure Compact (IMLC), continue to expand, simplifying the process for physicians and other providers to practice in multiple states.

As states grapple with workforce shortages and patient demand for telehealth, licensure reform is expected to be a focal point in 2025.

The Road Ahead

As telehealth matures into a foundational element of healthcare, the industry must navigate these challenges while leveraging opportunities for innovation and growth. From increased investment in health IT to addressing cybersecurity threats and rethinking licensure, 2025 will be a defining year for virtual care’s evolution.

Telehealth is no longer just a pandemic-era solution—it’s a cornerstone of modern healthcare. With increased investment, enhanced cybersecurity measures, evolving policies, and innovative care models, telehealth in 2025 is poised to break new ground. However, challenges like licensure barriers and the expiration of critical waivers must be addressed to ensure equitable access for all.

Top 5 Trends to Watch in Telehealth in 2025