Bearings · October 12, 2026 · Purpose Health
Bearings · October 12, 2026

Bearings

Weekly Intelligence by Purpose Health

By Jason Mudrick, Senior Director, Purpose Health · October 12, 2026

I'm back after a week away, so this edition covers the past two weeks of news.

Every Monday, Bearings sorts the week's healthcare IT news into what matters for the people who run health systems: what happened, why it matters, and what to do about it. The theme of the past two weeks was speed. AI is finding software flaws faster than hospitals are used to fixing them, the largest breach in the news came from two servers that had not been migrated, regulators now want proof that AI governance works, AI agents are starting to work across vendor platforms, and rural hospitals are asking for far more modernization money than the program can give.

EHR Security

AI found the gaps, and the advice now is to patch faster

Becker's reported that Epic tested its software with an AI security model and found configurations in which patient records could be viewed without the access appearing in an audit trail. The testing did not establish whether records could also be altered. Epic disclosed the issue, paused most new development for a six-week fix plan, and says its new products remain on track. Its chief security officer's advice to health systems: "patch, patch, patch." The same report notes that criminals are using AI to write convincing fake patient-portal emails aimed at card numbers and logins. Wisconsin Public Radio's coverage adds a researcher's point that AI shortens the time to find a vulnerability for defenders and attackers alike, and that hospitals cannot take systems offline for updates the way other industries can.

Our take

Epic deserves credit for testing its own software this way and saying so publicly. The harder part falls to health systems, which now have to absorb fixes at the pace AI finds problems. Many EHR teams still test updates by hand against long scripts built for a slower cadence. A short, agreed regression list for the workflows that cannot break, automated where possible, turns a weeks-long cycle into days. Review what your audit trail captures and who reads it, and tell patients plainly what your portal will and will not ask them for.

How Purpose Health helps. Our Epic Practice helps health systems test and apply updates faster, review audit and access-monitoring configuration, and prepare patient communications for portal phishing. Learn about our Epic Practice →

Cloud & Infrastructure

Half-finished migrations are a security risk

HIPAA Journal reports that the 2025 breach of two legacy Cerner servers, which had not yet been moved to Oracle's cloud, may have affected almost 20 million people based on Texas Attorney General data; Texas and Oregon filings alone confirm nearly 5 million. Oracle Health says its own systems were not affected, and the individual hospitals carry the duty to notify patients. In the same two weeks, Citrix patched a third actively exploited zero-day in the NetScaler remote-access appliances that sit in front of many hosted EHRs. Two governments moved to make cloud EHRs easier to adopt: Japan will certify secure cloud EHRs and subsidize adoption, citing the higher risk of on-premises servers maintained by multiple vendors, and Texas's comptroller moved to end sales tax on cloud EHR and patient-portal services.

Our take

Legacy servers waiting for the last phase of a migration and remote-access appliances with no clear owner after go-live are both easy targets. Set a date for every legacy system that still holds patient data, and treat remote-access appliances as clinical infrastructure with a named owner and a patch window measured in days. When a vendor hosts your data, your contract should say how fast you will hear about an incident and what evidence you will get, because the notification letters will carry your name.

How Purpose Health helps. Our EHR Cloud Hosting services plan and finish migrations, retire legacy servers, and run patching and monitoring for the remote-access layer, with incident-notification terms we can write into your hosting agreement. Learn about our EHR Cloud Hosting →

AI Governance

AI governance now has to be provable

A benchmark of 105 healthcare organizations found that 91% cannot verify what AI is running in their environments, and only about one in seven fully validates vendors' AI controls. California enacted two laws that take effect January 1, requiring hospitals to identify and monitor clinical decision-support tools with foreseeable bias risk and to protect clinicians' independent judgment when AI informs care. The Health Sector Coordinating Council published a playbook that divides duties when a vendor's clinical model fails: Hospitals monitor, log, and suspend; vendors change the model. The payer-provider argument over AI-assisted coding also continued. The American Hospital Association answered the Blue Cross Blue Shield Association's study by noting the study reviewed no medical records, and one vendor launched fully autonomous inpatient coding.

Our take

A policy that cannot be checked against what is running is a statement of intent. The organizations in good shape will be able to produce three things on request: an inventory reconciled against actual network and EHR activity, monitoring results by patient group for clinical tools, and a contract term requiring notice of model changes. The coding dispute will be settled the same way, by whether the record supports the diagnosis, and that evidence matters more as coding becomes autonomous.

How Purpose Health helps. Our AI Strategy practice builds AI inventories checked against what is running, bias-monitoring plans for new state requirements, documentation-integrity controls, and incident playbooks tied to vendor contracts. Learn about our AI Strategy →

Agents & Integration

AI agents are crossing platforms, and the rules are catching up

One large health system's CIO described a 12-month plan to build a shared control layer for AI agents that talk to each other across vendor platforms and pull data from outside their home system, because no single platform vendor covers the whole enterprise. A federal award from ONC will fund open-source guardrails for agents that manage clinical follow-ups, including tamper-evident records of how each request was routed. In Australia, after an AI agent reached non-public parts of a government Medicare portal during testing, OpenAI told a parliamentary inquiry it would support mandatory AI breach disclosure, and Anthropic said it would be open to such laws.

Our take

Agents need the same identity discipline people do: their own credentials, the narrowest scope that works, logs of every action, and a way to stop them. When agents start calling other vendors' agents, those controls have to live outside any one vendor's product. Expect incident reporting for AI agents to become a legal requirement in more places, and write notification terms into vendor contracts now.

How Purpose Health helps. Our Software Development & Integrations team designs agent integrations across EHR and third-party platforms with scoped access, audit logging, and shutdown controls built in. Learn about our Software Development & Integrations →

Rural Health

Rural modernization demand is far larger than the funding

Colorado published its list of 92 rural health awards, with electronic health record modernization and shared technology platforms among the funded program areas. North Carolina opened a $20 million fund that rural providers can use for EHR upgrades, cybersecurity, and telehealth, and Iowa's $209 million plan includes health information exchange tools connecting more than 100 facilities. Demand far exceeds the money. Tennessee's health department reported that a $50 million funding round drew 130 applicants asking for $900 million.

Our take

Most rural applicants will not be funded this round, and their projects still need doing. The hospitals that move first will phase the work: secure and stabilize the current EHR, connect to the regional exchange, then add telehealth and AI on that base. Funded or not, a plan with defined deliverables and reporting milestones makes a stronger application in the next round.

How Purpose Health helps. Our MEDITECH Practice specializes in rapid Expanse implementations for community and critical-access hospitals, and our program-management teams turn grant categories into delivered, reportable outcomes. Learn about our MEDITECH Practice →

The week in one paragraph

Four things belong on the calendar this quarter: an agreed regression list so urgent EHR fixes move in days, an end date for every legacy server that still holds patient data, an AI inventory checked against what is running, and a phased modernization plan ready before the next rural funding round opens.

Purpose Health partners with health systems on Epic and MEDITECH delivery, EHR cloud hosting, software development and integration, and AI strategy, in the United States and internationally. Talk to our team about any topic in this week's Bearings.

Bearings publishes every Monday at purposehealth.ai/blog. Sources are selected for open access; no paywalled links.