Artificial intelligence holds transformative promise for American healthcare. Yet hospitals and health systems have only scratched the surface of its potential. The American Hospital Association (AHA) is pushing hard for change. In response to a federal request for information, the AHA outlined four clear priorities to remove barriers and speed up AI adoption across clinical care.
Why AI Adoption in Healthcare Cannot Wait
AI already improves care in measurable ways. Ambient listening tools cut documentation burdens. Chatbots streamline scheduling and triage. Algorithms support clinicians in interpreting medical images. These tools boost outcomes, improve access, and reduce costs.
However, systemic barriers still hold hospitals back. Administrative tasks alone consume roughly one-quarter of all healthcare spending — close to $1 trillion annually. Excessive regulatory requirements have forced many hospitals to scale back services or even close. Moreover, rural facilities struggle with limited broadband and Wi-Fi, preventing digital service adoption entirely.
The AHA argues that smart, targeted policy reform can unlock AI’s full value for patients and providers alike.
Priority 1: Sync AI Policy With Existing Frameworks
Avoid Redundancy, Embrace Alignment
The AHA’s first recommendation is straightforward: new AI policies must align with existing regulatory structures rather than duplicate them. Current frameworks — including HIPAA, the HHS cybersecurity performance goals, FDA premarket testing rules, and CMS Medicare Advantage regulations — already govern major aspects of healthcare operations.
Applying these same frameworks to AI tools avoids redundancy. Furthermore, the AHA cautions that creating an entirely new regulatory layer for AI could generate inefficiency and confusion. Existing frameworks were built around human clinicians and discrete medical device updates. AI tools evolve continuously, so any policy alignment must account for that ongoing adaptability.
Priority 2: Remove Regulatory Barriers Stifling Innovation
A Patchwork of Laws Is Holding Hospitals Back
The second priority focuses on dismantling barriers that directly limit AI development and deployment. The current patchwork of state privacy laws creates complications for hospitals operating across state lines. Similarly, 42 CFR Part 2 regulations restrict access to critical health information, especially for substance use disorder providers trying to leverage AI in care delivery.
The AHA recommends enacting full HIPAA preemption to replace this fragmented state-by-state approach. Additionally, the AHA supports removing remaining Part 2 requirements to improve data access. Rather than adding new cybersecurity mandates, the AHA favors voluntary, consensus-based practices such as HHS cybersecurity performance goals. Together, these steps would give hospitals the regulatory clarity they need to invest in AI tools confidently.
Priority 3: Ensure Safe and Effective AI Use
Clinicians Must Stay in the Loop
The third priority addresses patient safety directly. The AHA insists that trained clinicians remain involved in all AI-driven decisions that affect care access or delivery. This is especially critical for prior authorization algorithms, where commercial payer use of AI has already triggered inappropriate claim denials at scale.
Beyond clinician oversight, the AHA calls for consistent privacy and security standards for third-party AI vendors. Post-deployment monitoring standards must also apply, so tools maintain their integrity long after launch. Patient safety does not end at go-live — it requires sustained vigilance.
Priority 4: Build Infrastructure and Provide Incentives
Investment Must Match Ambition
The fourth priority tackles the practical realities of adoption. Many hospitals — particularly in rural areas — lack the broadband access and financial resources needed to deploy AI tools. Adequate reimbursement for AI services remains narrow and fails to cover the full spectrum of available tools or their associated costs.
Meanwhile, Medicare reimbursement already lags behind inflation, covering just 83 cents for every dollar hospitals spend. Without correcting this gap, hospitals simply cannot fund the infrastructure AI adoption demands. The AHA urges expanded, clearly defined reimbursement pathways for AI, alongside infrastructure investment to close the digital divide — especially for rural and underserved communities.
The Road Ahead for Hospitals and Health Systems
AI adoption in healthcare is not a question of if — it is a question of how fast and how safely. The AHA’s four-priority framework offers a practical roadmap. Policy alignment prevents regulatory duplication. Barrier removal frees innovation. Safety guardrails protect patients. Infrastructure investment ensures no hospital is left behind.
Consequently, the opportunity before federal regulators and Congress is significant. Acting on these priorities will not only modernize American healthcare — it will make care more accessible, more efficient, and ultimately more human.
