8 top healthcare software development trends shaping digital health in 2025

13 min read
April 10, 2025

Software is reshaping healthcare, fast.

From telehealth platforms to AI-assisted diagnostics, healthcare software is changing how providers deliver and manage care – and how patients experience it.

But keeping up with all the moving parts? That’s the challenge.

For software companies and healthcare providers alike, it’s not just about chasing the latest tech.

It’s about building smarter systems that can solve real problems and designing software that fits into complex clinical workflows without adding more friction.

In this article, we’ll break down the 8 biggest healthcare software development trends in 2025 so you can stay ahead of the curve.

Let’s dive in!

Shift to telehealth and virtual care

Telehealth isn’t a temporary solution anymore, it’s a key pillar of healthcare.

What started as a pandemic workaround has turned into a permanent part of the healthcare system.

Providers are expanding care beyond the walls of hospitals and clinics. This means more:

  • Virtual appointments
  • Remote patient monitoring
  • Hospital-at-home set-ups

According to McKinsey, up to $265 billion of Medicare services – roughly 25% of total Medicare spending in the U.S. – could shift from traditional care to home care in 2025:

McKinsey at home care services

Why the shift? It’s what a lot of patients want – over half of patients in the U.S. reported increased satisfaction with their care because of telehealth and virtual care.

Convenience is the biggest driver. 65% of people say it’s the main reason they choose telehealth. 

Healthcare leaders are paying attention. Around 90% say virtual and connected care will play a major role in their 2025 strategy.

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But scaling it isn’t just about offering video calls. 

The tech behind the scenes needs to work. Telehealth solutions have to connect smoothly with EHRs, scheduling tools, and billing systems. 

That integration is what turns a one-off video visit into a consistent, reliable part of patient care.

Looking ahead, hybrid models that blend in-person and virtual care will become more common.

In short, software is now the front door to the patient experience.

And the tools you build today will shape how (and where) care happens tomorrow.

Wearables and remote monitoring

Smartwatches, rings, patches – wearable health tech is everywhere. 

And it’s not just fitness buffs using them anymore. 44% of Americans now own a health-tracking device, and that number is only going up. 

Globally, over a billion wearables are expected to be in use by 2025.

These devices track heart rate, sleep, blood oxygen, activity levels – and they’re generating a constant stream of real-time health data outside clinical settings.

Medical wearable

That data is opening the door to better, faster care. 

Healthcare providers are building Remote Patient Monitoring (RPM) programs around wearables and other at-home tools like glucose meters and blood pressure cuffs. 

RPM isn’t just a nice-to-have – it’s becoming essential for managing chronic conditions and keeping tabs on patients after surgery. 

Physicians are on board, too, with 88% saying they want patients to track key health stats at home.

And this isn’t just a trend on paper. The wearable medical device market is booming, expected to grow from $45 billion in 2024 to a projected $151.8 billion by the end of 2029.

But as more personal health data flows in, the pressure is on to get the backend right. 

And that means reliable data accuracy, rock-solid privacy and security, and platforms built for interoperability.

Diagnostic and clinical use of AI and machine learning

AI in healthcare isn’t a buzzword anymore, it’s the real deal. 

Nearly 9 out of 10 health organizations are already using it in some way. 

And for a growing number of them, it’s not just another tool, it’s uncovering insights they would’ve missed otherwise.

From diagnostics to operations, AI and machine learning are showing real impact.

On the clinical side, they’re helping interpret imaging scans like CTs, MRIs, and X-rays faster and more accurately than ever. 

In fact, two-thirds of FDA-cleared AI tools right now are built for medical imaging. That’s no coincidence. 

These tools are helping radiologists detect subtle changes that might otherwise slip through the cracks, which means earlier interventions and better outcomes.

Here’s how it works in practice:

AI integration in radiology

But AI isn’t just staying in the scan room.

Hospitals are using predictive models to stay ahead of problems and automating regulatory compliance.

What makes this all work is data. And what keeps it trustworthy is good governance.

As AI takes on more responsibility in healthcare, transparency, fairness, and validation are non-negotiable. 

Regulatory oversight, like with the EU AI Act, is tightening, and rightly so – the risks of poor implementation are too high.

Still, the momentum is clear. Investment in health AI is growing fast, and executives rank it among the most important trends shaping the future of care.

Generative AI and workflow automation

AI doesn’t just have clinical uses in healthcare.

Generative AI is reshaping how healthcare teams work. 

Tools built on large language models (LLMs), like GPT-4, are starting to play a real role in healthcare operations. 

Most health systems are either testing generative AI or building use cases for it right now. 

And many of them are already seeing results, with more than 40% of executives reporting a solid return on investment from these tools.

Healthcare AI ROI

That’s impressive for tech that only entered the mainstream a short while ago.

Where’s it making the biggest impact? Admin-heavy work, where generative AI can:

  • Summarize long patient records
  • Draft clinical notes
  • Translate medical terms into plain language

So, doctors can get a quick and accurate snapshot or a patient’s history without having to dig through endless pages of documentation.

It’s also proving useful for patients

Chatbots powered by generative AI can answer common questions, help with triage, or offer coaching for chronic conditions, all in natural, human-sounding language. 

Some hospitals are even piloting AI agents, i.e. AI tools that can handle routine, multi-step tasks like booking follow-ups or checking insurance coverage without a human in the loop.

The big draw? Less administrative burden and more time for actual care, which is something clinicians desperately need in the middle of a burnout crisis.

Of course, generative AI isn’t without risk. Bias, accuracy, and data privacy concerns are real. 

These tools need guardrails like human oversight, clear validation, and strong governance, especially in high-stakes settings like healthcare.

But the direction is clear. Generative AI will be a key piece of how healthcare runs behind the scenes in the coming years.

Data interoperability and EHR modernization

Most patient data still lives in isolated systems. 

One hospital can’t talk to another. A clinic’s EHR can’t connect with a medical wearable. And good luck syncing with an insurer’s platform. 

That’s been the norm – and it’s holding the whole industry back.

For healthcare software to actually deliver on its promise, data needs to move cleanly, securely, and without friction.

Now that’s changing. Fast.

Interoperability has become a top priority across healthcare, with industry leaders recognizing it as the foundation for better care coordination and more personalized treatment.

Data interoperability in healthcare

At HIMSS 2025, it was one of the most talked-about topics. And for good reason.

Regulations are playing a big role. 

In the U.S., rules around information blocking and support for standardized APIs (like FHIR) incentivize vendors to open up. 

At the same time, health systems are investing in better infrastructure and ditching legacy systems in favor of cloud-native EHRs that can actually talk to other platforms.

According to Deloitte, 60% of health executives plan to invest more in clinical systems like EHRs and ERPs – and not just to upgrade, but to integrate.

But real interoperability goes beyond connecting hospital systems.

This means plugging in data from wearables, remote monitors, and apps while making that data useful in a clinical setting.

It also means syncing up with payers to share claims data, treatment plans, and outcomes.

It’s a shift from closed systems to collaborative ones, where data follows the patient and not the other way around.

Personalized and precision care platforms

Healthcare is moving away from generic treatment plans and toward care built around the individual.

Thanks to breakthroughs in genomics, AI, and data analytics, we’re entering an era where care can be tailored to each person’s biology, history, and behavior. 

It’s a big shift. And while it’s still early, the precision medicine market is expected to boom in the coming years, reaching a value of $301.7 billion by 2032.

You can already see this in oncology, where genomic testing is used to match patients with targeted therapies.

AI models can also help predict who’s at risk for certain conditions and flag those patients early, so care teams can step in before things escalate.

Another idea gaining traction is the “digital twin” – a virtual version of a patient, built from diverse datasets like data from lab results, imaging, genetics, medical wearables, and lifestyle inputs.

GettyImages 957609906 dcf4dbdc220d49c5b309a7f18d82adfe

Clinicians can test different treatments on the twin first, giving them better insights before making a real-world decision. 

And behind the scenes, AI is analyzing huge datasets to find patterns, like which treatments work best for which groups, and when to intervene. 

That’s going to result in real-world decisions that are more targeted, timely, and effective.

For software teams, this represents both a challenge and an opportunity.

To build truly personalized health platforms, you need to work with diverse data: clinical records, genetic info, real-time data from wearables, even social and behavioral factors. 

Luckily, the infrastructure is catching up. 

Genomic sequencing is becoming more affordable, cloud platforms are getting faster and cheaper, and investment in precision medicine is ramping up.

What does that mean for healthcare organizations? The ones who get this right won’t just be delivering better outcomes, they’ll be leading the future of care.

And that’s why it’s such an important trend to highlight.

Digital mental health platforms

Mental health is no longer on the sidelines, it’s a core part of healthcare. 

And software is playing a bigger role in making that care more accessible, responsive, and personalized.

Digital mental health platforms have exploded in recent years. 

From teletherapy to mood tracking apps to FDA-approved digital therapeutics, there’s now a tool for nearly every type of support. And that growth isn’t slowing down.

The mental health app market is expected to grow at an annual rate of 14.6% and reach a value of $17.52 billion by 2030.

There’s a clear reason behind it: demand. 

The pandemic and everything that followed pushed mental health to the forefront, while the shortage of therapists has made access harder. 

Virtual care stepped in to fill the gap and it stuck. Teletherapy is now a standard option, offering the privacy and flexibility that many patients prefer.

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But it’s not just about therapy sessions over Zoom anymore.

In 2025 and beyond, you’ll see more blended models, where in-person therapy is paired with app-based tools for check-ins between sessions, assignments, or symptom tracking. 

Some employers and insurers are backing these tools too, building them into benefits packages as mental wellness becomes a workplace priority.

AI-driven tools are making their mark too.

Chatbots like Woebot are delivering cognitive behavioral therapy techniques and mood support in a way that’s accessible and always on. 

They’re not a replacement for a human therapist, but they’re helping bridge the gap between sessions or support visits.

Looking ahead, you can expect tighter integration between mental health tools and primary care platforms and more tailored mental health programs.

For developers, this means two things: building engaging, evidence-based tools that people actually want to use and treating user data with the sensitivity and protection it demands.

Increased focus on cybersecurity and data privacy

As healthcare gets more connected, the risks get bigger.

And cybersecurity is no longer just an IT issue – it’s become mission-critical.

Healthcare is now one of the most targeted industries for cyber attacks.

In 2025, key threats include:

  • Ransomware locking down hospital systems and holding data hostage.
  • Phishing attacks aimed at stealing login credentials.
  • Insecure IoT devices that were never built with security in mind.

In 2024 alone there were 181 confirmed ransomware attacks on healthcare providers involving 26 million healthcare records plus 42 attacks on healthcare organizations that don’t provide direct care.

And the stakes are high. 

The average cost of a data breach in healthcare is $10.93 million, more than in any other industry.

Industries with the highest average cost of a data breach

But, why is healthcare such a big target?

The answer is simple: the data is valuable, and the systems are often vulnerable. 

With more IoT devices, more remote access points, and more cloud-based tools, the attack surface keeps growing. And attackers know it.

There’s also a growing concern around data privacy. 

As more health data flows between platforms like wearables, health apps, and remote monitoring tools,  keeping that information safe and private is a top priority. 

Regulations like HIPAA, GDPR, and regional privacy laws are setting the bar, and it’s high.

So, it’s no surprise that 72% of healthcare professionals see privacy risks as a major concern when adopting AI and healthcare software tools.

So what are organizations doing about it? Here’s what they’re investing in:

  • Zero-trust architectures are becoming standard.
  • AI-powered threat detection is helping spot anomalies in real time.
  • Network segmentation is limiting how far a breach can spread.
  • Biometric authentication is adding an extra layer of protection.
  • Training is ramping up, because human error is still the weakest link.

Software companies are also under the microscope. 

Providers want development partners who take security seriously, not just in principle, but in practice.

In short, security is now a differentiator. 

If your product handles patient data, it has to be trustworthy. Because no matter how smart your AI is or how beautiful your UI looks, if people don’t feel safe using it, none of it matters.

Healthcare software trends: FAQs

There’s a few things driving these trends:

  • Growing patient demand for accessible and personalized care
  • Staffing shortages
  • Regulatory pressures
  • Rapid advances in AI

It’s not just one trend –  it’s all of them pushing the industry forward at once.

AI has a wide range of use cases in healthcare, like:

  • Diagnostics (especially imaging)
  • Predicting patient risks
  • Optimizing workflows and processes
  • Helping with medical documentation

It’s not hype anymore – medical professionals are using this tech to make faster and smarter decisions and improve patient outcomes.

It’s non-negotiable.

If your product handles patient data, you need airtight security. And not just for compliance, but to build trust. 

This includes encryption, secure coding, strong authentication, and support for industry standards like SOC 2 or ISO 27001.

Need a reliable healthcare software development partner?

Building healthcare software isn’t easy. 

You’re dealing with sensitive data, strict regulations, and complex integrations with zero margin for error.

This means you can’t afford to hire a low-quality vendor to do that work.

And that’s where we come in.

We have 12+ years of experience building custom software solutions for a wide range of industries and we’re confident that we’re up to the task.

If you want to learn more, feel free to reach out and our team will be happy to set up a meeting to discuss your needs in more detail.

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Written by

Damir Plejic

Strategic Partnerships Manager

Damir knows how to build partnerships that last. With 20+ years of experience in sales leadership, business development, and tech consulting, he’s helped companies grow, scale, and adapt - whether by leading teams, building businesses from scratch, or driving digital transformation. He started with a degree in history and archaeology before adding an MBA and training in negotiation, web development, and more. That mix of curiosity and drive is what makes him great at what he does. Outside of work, you’ll find him on the trails, pushing his endurance limits, or at home keeping up with his three kids. And when he's not on the move, he's diving into the latest and greatest history books and documentaries.

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