Top 10 Global Long-Term Care & Healthcare Policy Developments of 2025
(Source: Pexels)
In 2025, global policymakers prioritized scalable Long-Term Care (LTC) models and digital health frameworks amid demographic pressures. China's nationwide AI healthcare strategy announced on November 4 stands out for its scale, planning to integrate AI into primary care across 500 township clinics with CNY 15-20 billion investment, setting a model for scalable digital health in BRICS and emerging markets.
Simultaneously, the EU Health Data Space (EHDS) Regulation entered into force on March 26, and the U.S. Department of Health and Human Services (HHS) published proposed HIPAA Security Rule amendments on December 27, 2024, collectively forming the three pillars of global digital health governance in 2025.
1. China's Nationwide AI Healthcare Strategy: A Reference Model for Emerging Markets
China's National Health Commission unveiled a comprehensive AI healthcare plan on November 4, 2025, aiming to integrate AI-assisted diagnostics into all primary care facilities by 2030.
Implementation Scale and Timeline:
Pilot phase: Starting 2026 in 50 hospitals and 500 township clinics
Funding: CNY 15-20 billion (approximately USD 2-3 billion) over a five-year implementation period
Building national health data infrastructure to set a model for scalable digital health in aging societies
Global Impact Analysis
Compared with EU and U.S. regulatory frameworks, China's strategy demonstrates three distinctive characteristics:
Scale Advantage: Pilot coverage of 550 healthcare institutions far exceeds individual projects in Europe and North America
Speed Advantage: Only 14 months from policy announcement (November 2025) to pilot implementation (early 2026)
System Integration: Integrates AI diagnostics, data infrastructure, and primary care capacity building into a unified strategy
Implications for BRICS and Emerging Markets:
Provides a replicable model for rapidly expanding digital health services in resource-constrained environments
Demonstrates how to reduce implementation risks through combined central coordination and local pilots
Offers pragmatic pathways for developing countries addressing population aging and healthcare resource shortages
Source: China Sets Ambitious Goal with Its Nationwide AI Healthcare Vision
2. EU European Health Data Space (EHDS) Regulation: A New Era of Cross-Border Data Interoperability
The EHDS Regulation was formally adopted on February 11, 2025, published in the Official Journal of the EU on March 5, 2025, and entered into force on March 26, 2025.
Core Functions:
Enables secure cross-border health data exchange for primary care and research purposes
Mandates data sharing by health data holders while prioritizing privacy protection and interoperability
Establishes unified health data governance standards across 27 member states
Comparison with China's Strategy
| Dimension | China AI Healthcare Strategy | EU EHDS |
|---|---|---|
| Implementation Approach | Central-led, local pilots | Member state coordination, cross-border integration |
| Technology Focus | AI diagnostic capability building | Data standardization and sharing |
| Implementation Speed | 14 months to pilot launch | Years of multi-national negotiation before entry into force |
| Coverage Scope | 550 pilot institutions | All healthcare institutions across 27 countries |
Source: European Health Data Space Regulation (EHDS)
Source: European Health Data Space Regulation (EHDS)
3. U.S. FDA Predetermined Change Control Plans (PCCP) Guidance: A New Paradigm for AI Medical Device Lifecycle Management
The FDA issued final guidance on Predetermined Change Control Plans (PCCP) for AI/ML medical devices on December 4, 2024.
Key Innovations:
Allows AI/ML devices to pre-authorize updates, streamlining lifecycle management
Accelerates global deployment of adaptive technologies
Provides regulatory certainty for dynamic AI models
Timeline Clarification: The guidance was published in December 2024 and became immediately effective as a non-binding guidance document, establishing the regulatory foundation for AI medical device innovation in 2025 and beyond.
Source: AI Medical Devices: FDA Draft Guidance, TPLC & PCCP Guide 2025
4. Trump's AI Executive Order: A New Approach to Federal-State Regulatory Balance
President Trump signed an executive order on December 11, 2025, aimed at establishing a unified federal AI policy and reducing state-level regulatory fragmentation.
Policy Objectives:
Promotes telemedicine and diagnostics innovation with lighter federal oversight
Addresses regulatory complexity from 50 different state approaches
Provides more predictable regulatory environment for AI healthcare technology companies
Comparison with EHDS and China's Strategy:
EU EHDS: Emphasizes data protection and cross-national coordination
China Strategy: Central coordination, rapid scaling
U.S. Executive Order: Federal simplification, state rights balance
Source: Executive Order Takes Aim at State AI Laws
5. Global Long-Term Care Market: Surpassing USD 2 Trillion by 2033
Market Size and Growth
The global long-term care market is projected to grow from USD 1.17 trillion in 2024 to USD 2.03 trillion by 2033, with a compound annual growth rate (CAGR) of 6.4%.
Asia-Pacific Region Leading Growth
The Asia-Pacific region is expected to lead with growth rates exceeding the global average, driven by long-term care insurance and home care subsidy reforms in Japan, China, and South Korea.
Key Drivers:
Accelerating population aging
Addressing workforce shortages through telemedicine
Expansion of home care subsidy policies
6. EU Civil Society Calls for Long-Term Care Reforms
In January 2025, the European Federation for Services to Individuals (EFSI), together with multiple civil society organizations, urged the EU Commission to increase long-term care funding, strengthen workforce training, and adopt quality-focused procurement policies.
Core Demands:
Fill preventive care gaps through European funding support and relaxed public spending rules
Improve rights and social protection for informal carers
Revise public procurement directives to prioritize quality over price alone
Source: The new EU Commission must prioritise long-term care ambitions
7. OECD Report: Shift to Home-Based Long-Term Care Models
The OECD's Health at a Glance 2025 report, published in November 2025, notes that member countries are reducing institutional beds and shifting toward community care models.
Major Trends:
Germany, France, and other countries advancing reforms to enhance workforce and supply balance
Emphasis on preventive care and community integration
Transition from institutional care to home and community-based care
Source: Health at a Glance 2025
8. U.S. HIPAA Security Rule Major Proposed Amendments
The U.S. Department of Health and Human Services (HHS) published a Notice of Proposed Rulemaking (NPRM) for HIPAA Security Rule amendments on December 27, 2024.
Key Changes (effective date pending):
Mandatory encryption of electronic protected health information (ePHI) at rest and in transit, with limited exceptions
Mandatory implementation of multi-factor authentication (MFA), with limited exceptions
Requirements for vulnerability scanning every six months and penetration testing every 12 months
Elimination of distinction between "required" and "addressable" implementation specifications, making all specifications required with limited exceptions
Implementation Timeline:
Public comment period ended on March 7, 2025
Final rule expected by late 2025 or 2026
Covered entities will have 180 days to comply after the final rule becomes effective 60 days post-publication
Synergy with EU EHDS: Both emphasize cybersecurity and data protection in the digital health era, setting standards for global digital health infrastructure.
Source: Vital Signs: Digital Health Law Update | Spring 2025
9. Japan Long-Term Care Insurance and Immigration Policy Updates
Japan implemented reforms in 2025, adjusting health insurance contribution rates from 4.99% to 4.955%, and long-term care insurance rates (for ages 40-64) from 0.80% to 0.795%.
Immigration Policy Adjustments: Extended visa periods for care technology startups and implemented tuberculosis screening for care workers to address super-aging society demands.
Long-Term Care System Challenges:
Projected 7 million dementia patients by 2025, representing 20% of the population aged 65 and over
Persistent workforce shortages
Rising care costs
Source: Japan Statutory Updates 2025
10. EU Cybersecurity Action Plan for Healthcare Facilities
The European Commission released a Cybersecurity Action Plan for hospitals and healthcare providers on January 15, 2025, aimed at better protecting the healthcare sector from cyber threats.
Four Pillars:
Prevention: Building prevention capabilities through enhanced risk management, risk assessments, and cybersecurity training
Detection: Developing EU healthcare sector early warning service by 2026
Response & Recovery: Ensuring availability of EU Cybersecurity Reserve and emergency response services
Deterrence: Strengthening cybercrime law enforcement and international cooperation
Implementation Timeline:
Early 2025: Official announcement and stakeholder consultation launch
Mid-2025: Member states begin NIS2 transposition, healthcare-specific guidance published
End 2025: Incident response playbooks implemented and mandatory ransomware payment reporting
Early to mid-2026: EU early warning service launch
Synergy with NIS2 Directive: The plan builds on the NIS2 Directive, classifying hospitals and healthcare facilities as highly critical sectors. Member states will require entities subject to the NIS2 Directive (including healthcare facilities) to report ransomware payments when reporting significant incidents to competent authorities.
Source: European action plan on the cybersecurity of hospitals and healthcare providers
Conclusion
2025 marks a turning point in global digital health and long-term care policy. China's AI healthcare strategy provides a replicable model for emerging markets with its scale and speed; the EU EHDS sets standards for cross-border data governance; and the U.S. balances innovation and security through regulatory reform. These three pillars collectively form the core framework of global healthcare policy in 2025, profoundly influencing the development trajectory of global health systems for the next 5-10 years.
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