Texas SB 1188 Raises the Bar on AI in Healthcare

Texas just passed a law that changes the way healthcare organizations handle electronic health records (EHRs). Senate Bill 1188 requires all EHRs to be stored in the U.S. which means companies can no longer send medical record reviews overseas. The law also adds new rules around AI in healthcare, such as telling patients when AI is used and making sure professionals review anything the AI produces.

This shift is not unique to Texas. Florida has taken similar steps and more states are expected to follow. For insurers, providers, and legal teams, it is a signal to prepare now by leaning on trusted U.S.-based AI solutions with human oversight, since these are quickly becoming the new standard.

How SB 1188 Changes the Rules for Healthcare and Insurance

Carriers and defense firms have long relied on offshore providers for medical record reviews because it was cheaper and convenient. SB 1188 ends that option for Texas claims, pushing teams toward U.S.-based partners that can keep data safe while maintaining speed.

The risks of noncompliance are steep. Fines start at $5,000 and climb to $250,000 for intentional violations tied to profit, with repeat offenses leading to license suspensions. What once felt like a shortcut could now be an expensive mistake. The smarter path is investing in secure, compliant solutions from the beginning.

The Role of AI in Healthcare Under the Law

SB 1188 does not ban AI in healthcare, but it sets clear limits. AI can support diagnosis and documentation, yet a clinical professional must review the results before they are used.

By late 2024, 86% of health organizations were already using AI tools, mostly for administrative work. The new law adds another layer by requiring patients to be told when AI is part of their care. It reinforces a simple point: AI can help do the heavy lifting, but expert verification makes the output trustworthy.

Building Compliance and Trust with Human-in-the-Loop AI

SB 1188 shows AI on its own is not enough. At Wisedocs, our proprietary domain-trained AI pulls together AI medical summaries and AI medical chronologies quickly, with clinical professionals stepping in to double-check the work. That combination makes the output reliable and defensible, which is exactly what regulators are asking for. It also matches how providers see it. Approximately 65% say AI is most helpful when it supports documentation rather than replaces it.

For practices adjusting to these emerging legislations, the lesson is simple. The safer bet is to choose partners who build adherence and oversight into the process early on. Our Buyer’s Guide offers tips on finding a verified claims platform delivering speed and confidence.

What Texas SB 1188 Means for the Future of AI in Healthcare

Texas SB 1188 is not an isolated case. Florida has already passed a similar law, and more states are likely to follow. Rules on storing health records and using AI in care are only getting stricter.

For risk managers, medical groups, and litigation teams, the best move is to prepare now. Partners who combine AI speed with specialist evaluation make compliance easier and build trust. That is the approach we take at Wisedocs, helping teams meet today’s regulations and stay ready for what comes next.