Samwise Healthcare IT Newsletter
Wednesday, May 20, 2026
HHS Proposes Mandatory Cybersecurity Overhaul of HIPAA Security Rule
The Department of Health and Human Services is proposing a sweeping overhaul of the HIPAA Security Rule that would make cybersecurity requirements mandatory for all hospitals and covered entities. Published January 6, 2025, the Notice of Proposed Rulemaking would eliminate the current distinction between addressable and required specifications, mandating encryption of electronic protected health information, multifactor authentication, network segmentation, and annual penetration testing. Hospitals would need to restore critical electronic systems within 72 hours of any security incident. The proposed rule, which cites the February 2024 Change Healthcare cyberattack, drew significant industry opposition during a comment period that closed March 7, 2025. A final rule is expected around mid-2026.
Sources: Becker's Hospital Review
General Catalyst Leads $70M Round for Commure AI Platform at $7 Billion Valuation
Commure, an AI platform automating healthcare administration and clinical workflows, raised $70 million in a May 19 financing round at a $7 billion post-money valuation. General Catalyst led the round, with participation from Sequoia Capital, Morgan Stanley, and Kirkland & Ellis. The company deploys AI and agent-based technology across health systems and physician practices, targeting administrative tasks such as prior authorization, revenue cycle management, and clinical documentation. The new capital will advance Commure's push to automate high-volume operational workflows that have historically consumed significant staff time. The company serves health systems and physician groups across the United States.
Sources: Becker's Hospital Review
UnitedHealth Monitors Employee AI Usage as Part of $1.5 Billion Technology Push
UnitedHealth Group is tracking whether employees in its Optum services division make at least one daily query using AI tools including OpenAI's ChatGPT and Microsoft Copilot, Bloomberg reported May 15. Internal dashboards monitor training progress and identify adoption gaps across the company's workforce. The initiative is part of UnitedHealth's broader effort to embed AI throughout its operations, with more than 1,000 AI use cases already implemented and a $1.5 billion AI investment planned for 2026. A company spokesperson said UnitedHealth is investing in AI to “fundamentally transform how we organize, operate, and work as a company moving forward.”
Sources: Becker's Hospital Review
Epic EHR Credited with Memorial Sloan Kettering's $107 Million Q1 2026 Surplus
Memorial Sloan Kettering Cancer Center in New York City attributed its strong first-quarter 2026 financial results in part to its Epic electronic health record system. The cancer center reported a $107 million operating surplus and a 9% operating margin for Q1 2026, crediting “ongoing efficiencies in patient access and through the Epic electronic health record (EHR) system,” according to a May 15 news release. Memorial Sloan Kettering posted a $48 million operating loss in 2025, a figure that included a one-time $85 million Epic implementation cost. The Q1 2026 results suggest the system's financial benefits are beginning to materialize following last year's investment.
Sources: Becker's Hospital Review
Innovaccer Cuts 340 Jobs in Third Major Layoff Round, Cites AI Automation
Innovaccer, a San Francisco-based healthcare data integration and analytics company valued at roughly $3.45 billion, cut 340 employees across India and the United States in May, its third major workforce reduction in four years. CEO Abhinav Shashank told staff that AI systems had automated workflows previously requiring large teams and that the company's next phase would operate on an AI-native structure. Modern Healthcare reported the layoffs May 18. Innovaccer serves more than 130 healthcare organizations including Kaiser Permanente and Banner Health. The company also cut approximately 100 employees in 2022 and reduced its workforce by 15% in early 2023.
Sources: Modern Healthcare
Identity Verification Vendors Launch New Tools to Secure Digital Health Exchanges
Several technology companies are releasing new identity verification tools designed to secure patient access, improve health data interoperability, and protect against fraud in digital health exchanges, Healthcare IT News reported May 19. Verato is launching an identity network that would function as a single neutral utility layer connecting providers and payers to a central hub, rather than requiring each organization to build its own data bridge. Avi Mukherjee, Verato's chief product and technology officer, said organizations that solve identity verification first “will set the competitive standard.” The roundup reflects growing industry focus on patient identity as a foundational requirement for broader digital health adoption.
Sources: Healthcare IT News
Phase 1 Submissions for HHS EHIgnite EHR Data Challenge Due May 20
Submissions for the first phase of HHS's EHIgnite Challenge are due May 20, with nine prizes of $10,000 each available for the best concepts and wireframes to improve the usability of single-patient electronic health information exports. The Office of the National Coordinator for Health Information Technology launched the competition in February and plans a second phase with finalist prizes of $250,000, $100,000, and $50,000. ONC stated in a May 15 update that the challenge “seeks to incentivize the development of tools, platforms, and workflows that transform single patient EHI exports into usable, readable, and actionable information” for clinicians and patients.
Sources: Becker's Hospital Review
Hospital-at-Home Delivers Strong Outcomes for Medicaid Patients, Massachusetts Study Finds
A study of 906 acute hospital care at home episodes across four Massachusetts hospitals found strong outcomes for Medicaid patients, with only 8% readmitted within 30 days, according to research published in the May edition of the Journal of the American Geriatrics Society. Researchers tracked episodes at the four hospitals from November 2020 through September 2023 and found that fewer than 1.2% of patients were readmitted within three days, 9% were escalated back to a brick-and-mortar facility, and only 1% died within 30 days of discharge. The median total Medicaid and Medicare cost per episode was $11,622.
Sources: Becker's Hospital Review
CVS Health: 85% of Medicare Patients Struggle to Navigate Digital Health Platforms
A May 18 CVS Health research report found that 85% of Medicare-eligible consumers report difficulty navigating digital health platforms, even as 86% say they are open to using digital tools to manage their care. The study, which included ethnographic research, interviews, and surveys of Medicare-eligible Americans, found that 71% are eager to engage more with digital health tools and that 58% report low digital health literacy is negatively affecting their ability to manage their health. The findings point to a significant gap between senior interest in digital health technology and the practical ability to use the tools now available to them.
Sources: Becker's Hospital Review
Curated by JD · samwise.agency