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The US Department of Health and Human Services canceled around $12 billion in federal grants to states that were allocated during the Covid-19 pandemic, the federal department and state officials said on Wednesday.

The grants were being used to track, prevent and control infectious diseases, including measles and bird flu, as well as track mental health services and fund addiction treatment, said lawmakers and state governors, who sharply criticized the move.

Public health officials in Lubbock, Texas, received orders to stop work supported by three grants that helped fund the response to the widening measles outbreak there, said a spokesperson for city public health director Katherine Wells.

The funds were largely used for Covid-19 testing, vaccination, and other responses to the pandemic, HHS said. Termination notices began on Monday, it said in a statement.

“The Covid-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago,” it said.

President Donald Trump’s administration ended more than $11 billion in funding awarded by the Centers for Disease Control and Prevention and roughly $1 billion by the Substance Abuse and Mental Health Services Administration, US Senator Patty Murray said in a statement.

Washington state lost more than $160 million in funding to its health department, Native American tribes and other groups, said Murray, who called on the administration to reverse the decision which she said put more than 200 jobs at risk.

“Senselessly ripping away this funding Congress provided will undermine our state’s ability to protect families from infectious diseases like measles and bird flu and to help people get the mental health care and substance use treatment they need,” Murray said.

New York Governor Kathy Hochul said the Trump administration notified her office it intended to cut over $300 million in funding for the state’s Department of Health, Office of Addiction Supports and Services, and Office of Mental Health. She vowed in a statement to fight “tooth and nail” against federal attempts to withhold funding.

The Illinois Department of Public Health and 97 local public health departments had $125 million in funding pulled, money that had been allocated toward preventing and controlling emerging infectious diseases including measles and bird flu, Democratic Governor JB Pritzker’s office said on Wednesday.

In Massachusetts, the money was used for tracking mental health services, addiction treatment and other urgent health issues, Democratic Governor Maura Healey said in a statement.

The Trump administration, since taking office on January 20, has attempted to cut costs and dismantle many critical programs and some agencies in the name of preventing what it calls wasteful spending. Several programs have been removed and agencies gutted as a result, with tens of thousands of federal workers losing their jobs.

The federal health department is headed by vaccine critic Robert F. Kennedy Jr., who has pledged to tackle chronic disease and whose nomination and confirmation to the role had raised alarm with medical experts over his views. Reuters

The Gujarat government has sacked over 1,300 healthcare workers across the state as their indefinite strike to seek better salary continued on Thursday.

The government has invoked the Essential Services Maintenance Act against the healthcare staffers posted across the state to demand better pay scales, inclusion in technical cadres, and the cancellation of departmental examinations.

A government official said about 11,000 healthcare workers participated in the strike and were issued show-cause notices. “More than 1,300 have been removed from service as they did not resume work despite repeated notices,” the official said, adding that only 5,000 workers were still on strike,

“The government is considering all possible options to reach an amicable solution,” the official added.

Health minister Rushikesh Patel told reporters that the government will hold talks to find a solution only after the strike is called off. “Not before that,” he said.

The mass termination of staffers sparked outrage among opposition leaders and labour unions.

Congress leader Amit Chavda condemned the government’s decision, arguing that the workers who played a crucial role during the Covid-19 pandemic were being penalised for demanding their rights.

“These employees have long raised financial and administrative demands, and while the government has held multiple talks, it refuses to implement its own committee’s recommendations,” he said.

The strike, which began on March 12, has impacted healthcare services across the state.

The government ordered the termination of employees who did not comply with return-to-work notices, with over 400 dismissals in Sabarkantha district alone.

In Sabarkantha, about 115 healthcare workers of sub-centres and primary health centres returned to duty after receiving notices, but about 405 continued to absent themselves and were terminated. Additionally, 55 supervisors face chargesheets and an inquiry, said officials.

Community health officers and ASHA (Accredited Social Health Activist) workers have been deployed to minimise disruption of health services in rural areas.

According to the health workers, they had staged a massive protest in the state capital in September 2022 ahead of the Gujarat assembly elections. At the time, the BJP government promised to meet their demands but hadn’t kept their promise. Hindustan Times

The US Justice Department has lined up to support medical providers in lawsuits against health insurers and a data analytics company, telling a US judge that the use of a common pricing algorithm can violate federal antitrust law.

In a court filing on Thursday, the Justice Department’s antitrust division, under the leadership of newly confirmed Assistant Attorney General Gail Slater, challenged legal arguments made by analytics company MultiPlan and other defendants in their bid to dismiss a series of class action lawsuits.

Healthcare providers last year alleged major health insurers commonly were using a MultiPlan software tool as part of a price-fixing conspiracy that underpaid the providers billions of dollars in reimbursement rates for out-of-network services.

The lawsuits were consolidated before US District Judge Matthew Kennelly.

MultiPlan, which rebranded in February as Claritev, on Thursday declined to comment on the Justice Department’s filing but said the lawsuits “are without merit and would ultimately increase prices for patients and employers.” Other defendants also have denied any wrongdoing.

Christopher Seeger of Seeger Weiss, a lead attorney for the plaintiffs, in a statement said the Justice Department’s filing validates claims against MultiPlan and health insurer defendants.
“We look forward to holding the defendants accountable, ensuring that medical providers receive fair compensation and every American has access to the quality healthcare they deserve,” Seeger said.

The Justice Department did not immediately respond to a request for comment.

The medical providers’ lawsuits came amid a growing number of cases claiming hotels and other industries unlawfully use revenue maximization platforms to fix prices.

The insurer defendants have argued that there was no conspiracy because they did not use MultiPlan in the same way to determine individual reimbursements.

The Justice Department was not a party in the medical providers’ lawsuit, but asked to express the views of the United States.

“Competitors’ use of algorithmic technologies to coordinate their decision-making poses a growing threat to the free market competition on which our economic system is premised,” Justice Department lawyers said in their filing.

The case is In re MultiPlan Health Insurance Provider Litigation, US District Court for the Northern District of Illinois, No. 1:24-cv-06795. Reuters

The global medical digital imaging system market size was estimated at USD 36.51 billion in 2024 and is predicted to increase from USD 38.82 billion in 2025 to approximately USD 67.38 billion by 2034, expanding at a CAGR of 6.32% from 2025 to 2034. The increasing prevalence of chronic diseases globally, rising healthcare spending, rapid technological innovation in 3D and 4D imaging, and a surge in the aging population are among several factors expected to drive the growth of the medical digital imaging system market throughout the projection period.

Role of artificial intelligence (AI) in medical digital imaging system market
In recent years, with the rapid evolution of digitalization in healthcare, artificial intelligence (AI) has emerged as a driving force in the medical digital imaging system market. Combining cutting-edge AI techniques in medical digital imaging profoundly impacts medical diagnosis and patient care, and it continues to shape the future of the healthcare industry. AI algorithms effectively analyze imaging data from CT scans, X-rays, and Magnetic Resonance Imaging (MRIs) and assist in detecting abnormalities and chronic diseases, including cancer, at an early stage. Harnessing the power of AI in medical digital imaging provides substantial benefits to the healthcare industry. AI can improve diagnostic accuracy by rapidly and precisely analyzing massive amounts of imaging data, detecting abnormalities that can be overlooked by the human eye. Therefore, the integration of AI has great potential to reshape the future of medical digital imaging, enabling healthcare professionals to reduce and address complexities in diagnostics, streamline workflows, and improve patient outcomes.

US medical digital imaging system market size and growth 2025 to 2034
The US medical digital imaging system market size was exhibited at USD 10.10 billion in 2024 and is projected to be worth around USD 19.02 billion by 2034, growing at a CAGR of 6.53% from 2025 to 2034.

North America held the largest share of the medical digital imaging system market in 2024. This is mainly due to the presence of sophisticated healthcare facilities, the rising incidence of chronic disorders, and the growing geriatric population. There is a high demand for advanced medical imaging due to the heightened awareness among people about the early detection of diseases. The availability of advanced medical digital imaging systems, rapid technological innovation in medical imaging, and the rise in private and public investments to enhance healthcare infrastructure further bolstered the market in the region.

Asia Pacific is expected to witness the fastest growth during the forecast period. This is mainly due to the rising prevalence of chronic diseases, rising healthcare expenditure, increasing aging population, and rising awareness of early diagnosis of diseases for better treatment outcomes. The rising investments in research and development activities and the increasing demand for early detection technology further support market growth. Moreover, rising government initiatives to improve healthcare and diagnostic facilities are anticipated to fuel the regional market growth during the forecast period.

Europe is anticipated to witness notable growth in the upcoming period. The region boasts advanced medical imaging facilities, along with skilled professionals. There is a high demand for personalized treatment plans, in which medical imaging plays a crucial role. The rising adoption of cloud-based solutions, AI, and mobile technologies to revolutionize medical imaging contributes to regional market growth. Moreover, the rising focus on early disease detection and improving healthcare infrastructure is expected to propel the growth of the medical digital imaging system market in Europe.

Market overview
Medical digital imaging systems have significantly revolutionized the landscape of the healthcare industry. Medical digital imaging systems are modern medical imaging technologies and devices that are capable of generating visual illustrations of internal body parts for medical intervention and clinical diagnosis. Various types of medical digital imaging are used in the healthcare sector, including ultrasound, radiography, X-rays, CT scans, MRI, and nuclear medicine, which provide invaluable insights to doctors that enhance the chances of successful treatment of patients. The medical digital imaging system market is witnessing rapid growth due to the rising demand for minimally invasive procedures and advancements in imaging technologies.

Market dynamics
Drivers
Rising need for precise and accurate diagnosis
The growing need for precise and accurate diagnosis of chronic conditions is driving the growth of the medical digital imaging system market. With the increasing incidence of chronic diseases worldwide, there is a heightened need for precise and accurate diagnosis. Imaging techniques like MRI, CT scans, and X-rays provide faster and more accurate diagnoses as well as improve patient treatment outcomes. Medical digital imaging finds applications in various healthcare departments such as Oncology, Cardiology, Neurology, Gynecology, and others. Medical imaging technology has significantly revolutionized the way doctors diagnose and treat patients. Medical digital imaging systems bring new capabilities and advancements to improve patient care.

Restraint
High cost
The high cost associated with medical digital imaging systems is anticipated to hamper the growth of the medical digital imaging system market. The high cost of medical digital imaging systems may result in slow adoption, especially in low-income countries. High costs create barriers for small healthcare organizations due to budget constraints. In addition, the rising concerns regarding the potential health risks associated with continuous exposure to ionizing radiation from imaging tests, including CT scans, limit the growth of the market.

Opportunities
Technological advancements
Advancements in medical technologies create lucrative growth opportunities in the medical digital imaging system market. A medical digital imaging system plays a crucial role in the accurate and rapid diagnosis of a wide range of chronic diseases. The rapid advancements in medical imaging technology result in more accurate diagnoses and improved treatment outcomes. Some of the significant advancements in medical imaging systems include Magnetic Resonance Imaging (MRI), Computed Tomography (CT) Scanning, Ultrasound Technology, and Positron Emission Tomography (PET) Scanning. Precedence Research