Weekly Rundown: Trump signs AI executive order; Health Catalyst to sell Vitalware for $147M

Stay up to date on the latest in health tech, digital health and health AI news with this weekly brief. This is news from the week of June 1 to June 5. 


Trump signs AI cybersecurity executive order

President Donald Trump signed an executive order on Tuesday aimed at strengthening government systems’ AI-enabled cybersecurity. The order puts in place a framework for voluntary testing of frontier artificial intelligence models with advanced cyber capabilities. 

The order asks AI companies, on a voluntary basis, to participate in a benchmarking process to assess a model’s “advanced cyber capabilities” and determine whether it should be considered a “covered frontier model.”

The order—entitled “Promoting Advanced Artificial Intelligence Innovation and Security”—gives agencies between 30 and 60 days to carry out the objections. As it relates to healthcare, the order expands protections for rural hospitals and other critical infrastructure.

For rural hospitals, the Secretary of Homeland Security has 30 days to facilitate access to cybersecurity tools and services. 

“Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies (agencies), and components,” the order read. “As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country.”


Health Catalyst to sell Vitalware business for $147M

Health Catalyst signed a definitive agreement to divest its mid-revenue cycle business Vitalware to Med-Metrix for a total consideration of $147 million in cash. 

This divestiture enables Health Catalyst to shed a non-core asset and sharpen its focus on core technology and driving AI-driven improvement for health systems across cost, clinical and consumer performance, the company said in a press release.

Net proceeds plus cash on hand are planned to fully repay and terminate a $160 million senior secured term loan, which Health Catalyst expects will strengthen its balance sheet and provide financial flexibility.

"This is a big step forward for Health Catalyst. We are concentrating our business around the areas where we have the deepest conviction, and we plan to put the capital structure in place to back our long-term strategy. Vitalware is a great business, and we are pleased to have found a partner in Med-Metrix who is well positioned to carry it forward," Ben Albert, CEO at Health Catalyst, said in a statement.

Founded in 2011 and acquired by Health Catalyst in 2020, Vitalware provides software for the financial operations of a health system, a category distinct from the clinical and operational improvement work at the core of Health Catalyst's strategy. Vitalware generated about $37 million in revenue in fiscal year 2025. 

Med-Metrix is a technology-enabled revenue cycle management company serving provider organizations. In a press release, the company said Vitalware's platform and domain expertise will strengthen its mid-revenue cycle offering, improving charge capture and coding accuracy, which is expected to help drive measurable improvement in net revenue yield for Med-Metrix's clients.

The transaction will augment Med-Metrix's technology-enabled revenue cycle platform and support its strategy of combining operator-led services with scalable software solutions. Vitalware's leadership team and employees are expected to be integrated into Med-Metrix's operations following the acquisition.

"Vitalware represents a natural extension of our platform," said Rob Wright, co-president of Med-Metrix, in a statement. "By integrating their impressive software capabilities, we are better positioned to help providers improve reimbursement accuracy, manage compliance risk, and capture the full value of care delivered."

The transaction is expected to close in 2026, subject to the satisfaction of certain specified closing conditions, including the expiration or termination of regulatory waiting periods. 


Vida Health, Instacart partner to expand nutritious food access

Virtual cardiometabolic provider Vida Health is partnering with Instacart to expand access to nutritious food for Vida members nationwide.

The partnership is powered by Instacart Health Fresh Funds, which are category-specific grocery stipends. Its goal is to close the gap between health advice and healthy foods for members, as it connects individuals to Instacart “with funds that enable a practical, accessible path to action on Vida’s nutrition advice.” 

The companies say the partnership is the beginning of a longer collaboration. 

“Building healthier habits takes more than information; it requires thoughtful, culturally relevant guidance and access to good food,” said Amy Mushlin, chief clinical and member service officer, in a statement. “By partnering with Instacart, the guidance dietitians and coaches provide is now more immediately actionable for members to purchase groceries, making it easier for people to make impactful changes in their lives.” 


AI tools top patient trust when searching for new providers: rater8

Patients looking for new providers are increasingly being influenced by AI when making their selections, a new survey from rater8 found.

Thirty-six percent of respondents cited AI tools as an influence in provider selection, compared with 34% citing Google and 32% citing clinician recommendations. 

Researchers surveyed nearly 1,000 adults across the U.S. for its 2026 Patient Choice Report. Other key findings include: 

  • Fifty-five percent of respondents have left a doctor based on content online, up 15% between 2025 and 2026
  • Thirty-nine percent of respondents cited AI tools as top digital influence when switching providers within the last year
  • Sixty percent of respondents came across incorrect provider information with AI, though 60% noted they trusted AI summaries without further verification
  • Seventy-five percent of respondents would not book with a provider rated below four stars on review websites

“Patients hold healthcare providers to a higher standard than almost any other business, and that scrutiny now starts long before they ever walk through the door,” said Evan Steele, rater8 founder and CEO, in a statement. “The practices winning on trust aren't just delivering great care; they're showing up accurately, responding to reviews visibly, and earning strong ratings everywhere patients are searching.”


Shriners Children’s, Shiftmed partner to expand specialized pediatric care access

AI-powered healthcare workforce platform Shiftmed and Shriners Children’s announced a partnership Tuesday aimed at expanding on-demand support, strengthening workforce stability and ensuring access to quality care.

Through the partnership, the health system will use ShiftMed's platform to build “dedicated community float pools” across its locations, the organizations said in the announcement.

“As a leading pediatric subspecialty healthcare system, our priority is delivering exceptional, specialized care to every child exactly when and where they need it,” said Beverly Bokovitz, Shriners Children's chief nursing officer, in a statement. “Partnering with ShiftMed to establish dedicated community float pools strengthens our ability to adapt to changing patient volumes with agility and precision. By deploying highly skilled clinicians on demand, we expand access, reinforce our presence in the communities we serve, and ensure children and families receive consistent, high-quality care without compromise.”


HSCC publishes AI cybersecurity governance framework 

The Health Sector Coordinating Council (HSCC)’s Cybersecurity Working Group published a guide to aid healthcare organizations in establishing cybersecurity frameworks when implementing AI solutions. 

The 87-page guide (PDF) addresses “unique cybersecurity and privacy challenges” surrounding AI implementation at healthcare organizations, including protection from adversarial threats, ensuring data privacy and integrity, securing the AI supply chain and more. 

American Hospital Association (AHA) National Advisor for Cybersecurity and Risk John Riggi said in a statement that the guide is a “must-read” for all organizations, vendors and suppliers. 

“The secure-by-design and implementation recommendations offered in this guide will help mitigate unintended cybersecurity risk and consequences of AI use in healthcare and help prevent adversarial exploitation of AI-related technical flaws,” Riggi said. “Mitigating AI cybersecurity risk is part of cyber safety, and cyber safety is patient safety.”