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August 05.2025
2 Minutes Read

Fragmented Healthcare Data Infrastructure Threatens AI Innovations

Fragmented healthcare data infrastructure illustrated with digital circuits and magnifying glass.

AI in Healthcare: An Unmet Potential?

The landscape of healthcare innovation is often painted with the bright colors of artificial intelligence (AI) progress. Startups like Abridge and Ambience Healthcare are emerging as leaders, capturing significant investments and turning heads as their valuation grows. However, omens of stagnation lurk beneath the surface. OMNY Health CEO Mitesh Rao warns that AI’s real potential in transforming healthcare could soon be stunted due to one major issue: fragmented data infrastructures. This sentiment resonates across the industry, revealing a web of challenges as stakeholders aim for a more interconnected future.

The Need for Interoperability

Rao emphasizes the critical need for a more interoperable data infrastructure if AI applications are to thrive. Current systems, characterized by silos and a lack of standardized formats, leave developers grappling with inaccessible data. These obstacles are not merely technical; they also stem from a lack of incentive for established vendors like Epic and Cerner to facilitate better data sharing. Rao states, “We need to build the roads before the Ferraris,” signifying that while ambitious AI projects are on the horizon, the foundational infrastructure must first be established.

Challenges Innovators Face

Despite the advancements in AI, most successful applications currently exist in areas like documentation and revenue cycle management—fields that do not require deep patient data access. As AI begins to approach more intricate care processes, limited data accessibility can emerge as a formidable hurdle. Rao’s insights highlight an urgent need for healthcare tech leaders to confront these limitations to unlock the full potential of AI in clinical applications.

Vision for a Connected Future

Rao's comments reflect a broader industry consensus that achieving true innovation in healthcare AI requires concerted effort to enhance data interoperability. The recent interoperability initiatives launched by CMS aim to alleviate some of these pressures. However, without tangible incentives for legacy systems to adapt, the promise of improved healthcare outcomes through AI remains distant.

Empowering Change

To achieve the transformative potential of AI in healthcare, leaders must advocate for infrastructure improvements and push for shared standards across platforms. Such efforts are essential for fostering a culture where innovation can thrive in a data-rich environment.

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