Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 176

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 176
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 facilities, including
our hospital clients. During the past decade, the healthcare industry has been subject to increased legislation and regulation of, among
other things, reimbursement rates, payment programs, information technology programs, and certain capital expenditures (collectively,
the “Health Reform Laws”). The Health Reform Laws contain various provisions that impact us and our clients. Some of these
provisions have a positive impact, by expanding the use of electronic health records in certain federal programs, for example, while others,
such as reductions in reimbursement for certain types of providers, have a negative impact due to fewer available resources. The continued
increase in fraud and abuse penalties is expected to adversely affect participants in the healthcare sector, including us.

The activity related to the repeal, repair, and/or
replacement of the Patient Protection and Affordable Care Act (“PPACA”), including any changes resulting from continued judicial
and congressional challenges to certain aspects of the law, and the 2015 repeal of the Sustainable Growth Rate and replacement with the
MACRA may have an impact on our business. The Affordable Care Act, passed in 2010, contained various provisions that have impacted us
and our clients, and any replacement or adjustment of that law may change requirements related to our products or how our clients use
them, as well as reimbursement available to our clients. These may have a positive impact by requiring the expanded use of EHRs and analytics
tools to participate in certain federal programs, for example, while others, such as those mandating reductions in reimbursement for certain
types of providers, may have a negative impact by reducing the resources available to purchase our products. Increases in fraud and abuse
enforcement and penalties may also adversely affect participants in the healthcare sector, including us.

As existing regulations mature and become better
defined, we anticipate that these regulations will continue to directly affect certain of our products and services, but we cannot fully
predict the effect at this time. We have taken steps to modify our products, services, and internal practices as necessary to facilitate
our compliance with the regulations, but there can be no assurance that we will be able to do so in a timely or complete manner. Achieving
compliance with these regulations could be costly and distract management’s attention and divert other company resources, and any
non-compliance by us could result in civil and criminal penalties.

We may not see the benefits from government
funding programs initiated to accelerate the adoption and utilization of health information technology.

While government programs have been implemented
to improve the efficiency and quality