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Federal Agencies Drive Healthcare Transformation with Cloud Tech

Healthcare professionals work in a hospital setting with subtle cloud technology elements integrated into the environment.

“It’s like changing the engine on a plane while it’s flying,” explained Bruce Caswell, President and CEO of Maximus, summing up the practical tension federal healthcare agencies face as they modernize systems that millions of Americans rely on every day.

Bruce Caswell on live modernization and patient-centered change

Caswell framed modernization as an exercise in continuity: agencies cannot pause delivery of care to retool systems. His metaphor — about changing an engine in flight — came during a Fed Gov Today conversation hosted by Francis Rose with Caswell, Srinivas Panguluri (Acting CIO of the Health Resources and Services Administration), and Barbara Keating (Managing Director of Federal Health at Maximus). Caswell argued that cloud adoption is central to that work because it delivers flexibility and cost savings while enabling agencies to keep services running. He emphasized that modernization must be organized around the citizen: “I would begin from the citizen standpoint, so we want to be able to enable individuals to use [a portal, a digital front door, or other system] on their terms,” he said, adding that agencies must continually rethink interactions “in generational terms” and “in a very thoughtful way that meets people where they are.”

Rural Healthcare Transformation Program and federal investment choices

The conversation noted real funding tensions across the federal health enterprise. While budget cuts have affected several federal healthcare agencies, the source reports there has also been targeted investment in other agencies and federal programs that support states expanding access to care — most notably the Rural Healthcare Transformation Program, which is administered by the Centers for Medicare & Medicaid Services. That program was cited as a concrete example of where federal dollars are being directed to reshape delivery and access at the state level.

Cloud migration to reduce financial, cybersecurity, and legacy burdens

Caswell and Rose argued the cloud is not merely a cost-center move but a strategic platform to address multiple liabilities created by legacy systems. The source states that “By moving to the cloud, federal healthcare agencies can mitigate the financial, cybersecurity, and delivery of care burdens brought about by legacy technology and systems.” For agency leaders trying to balance modernization with uninterrupted service, the cloud’s flexibility enables phased transitions that preserve continuity of care while delivering measurable operational improvements.

Generative AI: Srinivas Panguluri and Barbara Keating on potential gains

In the episode’s second half, Srinivas Panguluri and Barbara Keating discussed the opportunities and challenges presented by cutting-edge technologies such as generative AI. The source describes their exchange as focused on how generative AI can improve patient care, patient experience, and healthcare outcomes — a conversation the program recommends listening to in full. While the transcript here does not offer granular technical prescriptions, the participants positioned generative AI as a promising tool to advance the modernization agenda when paired with patient-centered design and secure cloud architectures.

What this means for technologists, policymakers, and patients

  • Technologists and security teams: The source points to cloud migration as a priority that can reduce legacy risks and improve resilience; teams will need migration plans that maintain continuity of care while addressing cybersecurity and cost constraints.
  • Policymakers and program managers: The example of the Rural Healthcare Transformation Program shows federal investment will continue in targeted programs that support state-level expansion of care — policymakers must balance cuts in some areas with concentrated funding to drive transformation.
  • End users and patients: The repeated call to “begin from the citizen standpoint” signals that agencies intend to prioritize portals, digital front doors, and generational usability to meet people where they are and improve experience and outcomes.

The conversation captured on Fed Gov Today frames a clear through-line: agencies want to modernize in ways that are rapid but not disruptive, technologically ambitious yet patient-centered. The litmus test Caswell offered — preserving delivery while changing the systems that underpin it — is stark and concrete. For federal health leaders, the next steps described in the episode are not abstract goals but operational choices about cloud strategy, program investment, and how emerging technologies such as generative AI are introduced in service of improved care and experience.

Read the original Fed Gov Today conversation and story