Today in Health IT, we're discussing, will NIH cuts boost public health or destroy it? My name is Kate Gamble and I'm Managing Editor at This Week Health, where we host a set of channels and events dedicated to transforming healthcare, one connection at a time.

And I'm joined by Sarah Richardson, President of Community Development here at This Week Health. Sarah, welcome to the show and happy Friday. It's always a happy Friday, Kate. And we are just days away for opening day for most MLB teams. I'm so excited. I will be parked on that couch watching the Red Sox.

I'm very, very excited. Can you feel the excitement? Oh, yeah, no, literally, no one can see us with the recording, but I have what I call my goose fur because I'm a Dodger fan, love me or hate me for all of those reasons. We have a new pitcher, we've got so many different just elements of another great season.

And I love summer baseball, even down the street from our house is the ball field for the kids. And you can hear the games, when you have the windows open and it is just the best sound of summer, just the crack of the bat and the roar of the crowd, all those elements for sure. You and I are going to have one heck of a great summer with all kinds of fun discussion topics about our favorite baseball

And right now, everyone's undefeated, so there's that, too. Everyone has an A going into this season.

But we do have to talk about the topic at hand, which is one that is sending ripples through the medical and scientific communities. The recent budget cuts to the NIH implemented by the Trump administration.

So these cuts raise big questions for health IT leaders, as well as the broader healthcare industry. And we're going to break that down with some key takeaways, why they matter, and how healthcare leaders can navigate those changes.

And stick with us, because we're also going to discuss actionable strategies you can bring back to your organization to continue to drive the conversation forward. So let's dive in. The first highlight is the reduction in federal research grants to leading institutions. Take Johns Hopkins, for example.

They're seeing an 800 million cut in federal funding, which has led to project cancellations and significant staff layoffs. That's a massive number. Okay, research hospitals and academic medical centers are deeply reliant on these funds to advance medical technology. AI and health care cybersecurity.

These cuts could halt or slow down projects that directly impact outcomes for patients. And I'm going to restate that number. 800 million, and that's one organization. That is absolutely staggering. And so if you're a health IT leader, you need to ask, how do these funding cuts impact the technology and security infrastructure that supports research?

Which is our second key takeaway, the proposed 15 percent cap on indirect research costs. If this goes through, institutions are going to their IT infrastructure, cybersecurity needs, and data storage, which as we have discussed this week, the data storage needs getting bigger and bigger and bigger with the more prolific usage of AI in these environments.

Yeah, it's scary to think about when you're using AI as organizations are thinking about, you need to have security. Cybersecurity, as we know, already a growing concern. So if hospitals and research institutions can't fund their security teams adequately, They become easy or even easier targets for cybercriminals.

Because all of that research is generating vast amounts of sensitive patient data. So if your budget's cut, how are you going to still have resources to secure that data properly? So that leads into our next takeaway, which is how these cuts could weaken America's leadership in scientific innovation.

With less funding, there's a real risk that private companies and even other countries could leap ahead in medical AI, biotech, and digital health solutions. And let's not forget about the talent pipeline as well. So if universities are cutting funding and reducing graduate admissions and pausing hiring, the effect on the entire workforce pipeline for healthcare is going to be an issue.

We already see the clinician. So I mean, like if China, and I think we have the largest nationwide staffing shortage over the next couple of decades, that's going to directly impact I. T. as well. And we covered deep sea a few weeks ago. If China, who is the number two economy in the world behind us, is advancing their medical and their AI and even some of their cyber typically and towards some of these entities, how quickly will we fall behind?

Yeah, that really does put it into perspective. If your students are getting trained in biomedical informatics, cyber security, and AI driven healthcare. We're looking at a skills gap down the road, and as you stated, there already is a skills gap, so I would say an even wider one. So the question for Friday is, what are healthcare leaders going to do about it?

So this is where it gets interesting. We know funding is tight, but history tells us that disruption often forces innovation. Some healthcare organizations are already looking for alternative funding sources. Exactly. It's important to discuss these for the, Oh my gosh, this is what's happening. And then we say, Oh my gosh, what are we going to do about it?

We're already seeing a shift towards private public partnerships and philanthropy driven research. So organizations are getting creative with hybrid funding models. Absolutely. Healthcare IT leaders need to think about how strategic partnerships with big tech, venture capital, and even startups can help this.

If government funding is decreasing, private investment might step in to fill in the gap. There's also another angle to think about here. Federal budget cuts often push industries towards efficiency. And that's what we're seeing across the continuum with the Department of Governmental Efficiency and all of the different things that are happening.

Whether you agree with them or not, it's the intent behind some of these decisions. that are so important to be considering. So in the past, we've seen funding constraints lead to automation, AI driven analytics, and streamlearned research processes. There is nothing if not a level of resilience amongst this country and the way we provide services for healthcare and adjacencies that we will find a way.

Yeah, that's a great point. Instead of waiting for new funding, leaders can focus on optimizing what they already have. Leveraging AI for clinical trials, blockchain for secure patient data, and automation for administrative efficiency. And I really like that point because that resiliency is huge.

And when you talk to people who are in the research space, there is such a passion there. And, you really get the feeling that they're not going to be stopped. They're just going to have to find different ways. And let's consider advocacy. We have advocacy here within this week. Health and the conversations we have at our city tours and our summits.

There's organizations like HIMSS at the recent global conference. Almost 30, 000 people were there. At Vive, the conversations were also about working to educate policymakers and the importance of sustained research funding. Healthcare leaders should be involved in these discussions. Find the outlet. That allows you to stay informed that you can share with your teams.

That's why we do the today show. It's why we attend these different conferences. It's why we host the events that we do. Find a way to stay informed and involved. Absolutely. If you're a CIO, CTO, any C suite leadership role. You need to be part of these conversations, connect with policymakers, explain how research directly impacts healthcare technology, and push for smarter funding policies.

And we've seen that it makes a difference when leaders are willing to get up there and tell their stories. it more real. It just lends it more credibility. So in summary, leaders should take the following steps to navigate these funding challenges. 1. Diversify funding sources. 2. Secure the IT infrastructure.

Optimize resources, whether that's through automation or other tools. Advocate for sustained research and invest in workforce development. And that last one's really important because even with budget cuts, upskilling your current team in AI, cybersecurity, and data science will help mitigate talent shortages.

And as you and I always like to say, that's also the right thing to be doing. When there is financial constraint, when there is concern about jobs, about funding, take that time. To still invest

and their skill sets, because this is a very critical moment for health care and health care. I. T.

Leaders. Budget cuts aren't just a research problem. They affect all areas of your organization. So lean into cyber data, infrastructure, innovation, and even the future of your workforce planning. And while the challenges are real, as we said, there is also opportunity here. The best leaders are going to use this as a catalyst for innovation, efficiency, and smarter funding strategies.

That's it for today's episode. Join us next week as we break down more of the most relevant stories in healthcare IT. Don't forget to share this podcast with a friend or colleague. Use it as a foundation for daily or weekly discussions on the topics that are relevant to you and the industry. They can 📍 subscribe wherever you listen to podcasts.

Sarah, thank you as always for joining me. Go Dodgers. Go Sox. Go all the teams. And thank you all for listening. That's a wrap.