healthcare.digital December 17, 2025
Executive Summary: The Anatomy of a Market Reset
The healthcare technology sector stands at a precipice. Following a period of unprecedented capital injection and exuberant valuation growth during 2024 and 2025, the market is careening toward a structural correction in 2026.
This report argues that the feared “burst” of the healthcare AI bubble is not merely a cyclical downturn in venture sentiment but the mathematical inevitability of three converging forces: a regulatory cliff that imposes hardware-grade compliance costs on software startups, a maturation of financial obligations incurred during the peak of the hype cycle, and an operational “reality check” within health systems that is rapidly closing the window on the pilot-driven sales model.
Founders and investors are right to fear...
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