FHIR vs. HL7 Version 2: What to Know for Healthcare Interoperability (2025)

What should health interoperability look like in less than a decade?

Earlier this year, the Office of the National Coordinator for Health Information Technology (ONC), within the U.S. Department of Health and Human Services, crowdsourced visions for the future of interoperability in healthcare.

More than 700 submissions have been compiled and summarized online at Health Interoperability Outcomes 2030. Among the answers from health system experiences were improved digital integrations, data safety and decreased administrative tasks for clinicians.

Standards are needed to support interoperability, which healthcare systems remain committed to improving, especially as the volume of collected data continues to grow. Among the standards that the ONC highlights are HL7 Version 2 and FHIR, both from the nonprofit standards development organization Health Level Seven International.

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What is HL7?

For more than 30 years, Health Level 7 has been a widely used data interchange standard that allows hospital information systems to communicate clinical and administrative data to one another.

In the early 2010s, amid the growing use of smartphones and the ubiquity of the internet, the Fast Healthcare Interoperability Resources, or FHIR, emerged as a promising new standard for interoperability in the industry.

“The real game changer of FHIR versus HL7 V2 is that universal applicability,” says Daniel Golder, principal at healthcare consulting firmImpact Advisors. “FHIR opens the door to mobile devices, apps and wearables. It allows the user, the app to leverage the information.”

Here’s more about these two key standards, how interoperability in healthcare has changed over the years and what the future looks like in context with federal guidance.

Healthcare Data Management Is Evolving from HL7 V2

Hospitals had a growing need to connect multiple systems. First released in the late 1980s, HL7 V2 has become one of the most broadly implemented standards for healthcare data worldwide, according to HL7 International. Some 95 percent of U.S. healthcare organizations use HL7 V2, and it’s used in more than 35 countries.

Over time, the existence of data outside of hospitals became harder to ignore. Payers, pharmacies and laboratories all had data, so the expectations and meaning of interoperability had to adapt. There was also an increasing amount of data being created, recorded and stored within healthcare systems.

READ MORE: Learn 3 important practices to comply with CMS’ data accessibility regulation.

“HL7 V2 still has its purposes; it has to really be predefined. It takes a lot more effort in a lot of ways to implement that information,” Golder says.

A major benefit of HL7 V2 was its widespread adoption, says Aaron Seib, senior vice president of strategy and innovation at the IT and data management company NewWave. Its longevity is certainly remarkable, and Seib expects the standard will still be used in certain scenarios.

“There was this different, arcane art that was unique to healthcare,” Seib says. “What we benefit from in the FHIR world is that we’ve adopted the technology stack that’s used for other use cases in other industries.”

What Is FHIR and What Does It Mean for Healthcare?

After the rise in app use and smartphone ownership in the early 2010s, healthcare IT leaders such as Grahame Grieve, the architect of FHIR and the FHIR product director at HL7, sought to rethink health information exchange in a more contemporary context.

The decades-old HL7 V2 had been created before widespread internet use. Version 3, which tried to address certain issues in its predecessor, had not been widely implemented because of its complexity.

FHIR drew from previous HL7 standards and combined them with current web service technologies, such as those that power e-commerce services.

Think of it like a travel website, as Dr. Russell Leftwich, senior clinical advisor of interoperability at software company InterSystems and adjunct assistant professor of biomedical informatics at Vanderbilt University, described in an online presentation.

LEARN MORE:Find outhow interoperability increases efficiency and transparency in healthcare.

When people visit travel websites, they can see a list of flights from different airlines for a certain journey on a specified date. Those websites aren’t just downloading all the schedules; the airlines have agreed on how to represent the data for a flight, how to ask for it and what data a user gets back in return.

“FHIR is the same thing for healthcare,” Leftwich said in his presentation. “It is the same technology, and it is the agreement on the meaning of the data in healthcare. And of course, that’s where it gets a lot more complicated, because healthcare is more complex than air travel.”

The expansion of FHIR also signaled a wider pool of talent to recruit from, Seib says, such as RESTful API developers without hospital-specific backgrounds.

“We have a new technology stack that is not as unique as healthcare once was with V2 messages,” Seib adds. “The technologies that we’re using really lend themselves — it’s faster as an architect and an engineer to use the technology stack that we’re using.”

An Interoperable Future in Healthcare

Healthcare interoperability has made significant strides since the Health Information Technology for Economic and Clinical Health (HITECH) Act passed in 2009. Seven years later, with the 21st Century Cures Act, provisions targeting healthcare IT helped make the ONC a driver for greater interoperability, following up with the release of the final rule in 2020.

As the COVID-19 pandemic revealed the fissures in healthcare information sharing, interoperability has been a critical area of investment for providers.

Golder recommends healthcare organizations keep an eye on timelines for the Trusted Exchange Framework and Common Agreement, which he describes as an attempt to“establish a single ‘on-ramp’” for health information exchange. He adds that not enough stakeholders are paying attention to the October deadline for making all electronic health information available.

“Get to know the law, get to know your time frame for doing this and don’t put it off,” Golder says.

Organizations should also consider privacy and security risks as interoperability improves in healthcare, especially as patients navigate multiple apps and digital touchpoints.

“There needs to be a balance between interoperability and privacy,” Golder says. “Privacy and interoperability have to be tempered, one to another. It’s tougher than it might seem. I understand the challenges, but I do worry that we’re moving a bit too fast.”

As healthcare continues to move away from a fee-for-service model toward a value-based approach, the ability to leverage data and turn it into information will be a competitive differentiator, Seib says. Ensuring interoperability through a newer standard such as FHIR will set healthcare systems up for success.

“Healthcare is not a solo act. It really is a whole orchestra doing jazz 24/7 for a population of 330 million people. If you build your technologies in a silo and you’re not looking at these open standards, you’re really closing yourself off from future compatibility,” Seib says.

So, what does interoperability look like in 2030? For Seib, he hopes to see future generations avoid the struggles with weak healthcare data exchange that he has had to navigate as a caregiver. “The professional lifetime goal is to leave a better system for everyone than what I’ve been working in for 30 years. I think we’re on the right track,” he says.

And for Golder: “My hope for 2030 would be that we’ve developed interoperability, but we’ve also maintained very robust privacy and security.”

FHIR vs. HL7 Version 2: What to Know for Healthcare Interoperability (2025)

FAQs

FHIR vs. HL7 Version 2: What to Know for Healthcare Interoperability? ›

HL7 V2 is the older legacy standard, while FHIR is a more modern and flexible alternative. HL7 V2 lacks precise message modeling and requires custom coding for interoperability. FHIR leverages RESTful web services and open web technologies, making it easier to integrate and exchange clinical data.

What are the advantages of FHIR over HL7? ›

Ease of Implementation.

FHIR is designed with modern technologies in mind, making it more intuitive for developers. Its compatibility surpasses that of HL7 standards, and its primary aim is to simplify interoperability. FHIR is not just about exchanging data but ensuring it's done seamlessly across different platforms.

How does HL7 support interoperability in healthcare? ›

Using systems that conform to HL7 standards, healthcare organizations can easily share patient histories, lab results, and other information across EHRs and between other systems from a wide range of vendors.

How does FHIR improve interoperability? ›

The FHIR standard simplifies this process by using internet-based methods to improve communication between different EHR systems. This approach enables seamless information sharing, similar to how programs interact with websites—requesting and receiving data effortlessly.

What is the difference between HL7 and Smart on FHIR? ›

What is the difference between HL7 and SMART on FHIR? The primary difference between HL7 and SMART on FHIR is the process involved. HL7 is a messaging standard while SMART on FHIR is an API standard, using open web technologies such as XML, JSON, and RDF to send and receive service requests.

What is the difference between HL7 V2 and FHIR? ›

HL7 V2 and FHIR are two interoperability standards for healthcare data management. HL7 V2 is the older legacy standard, while FHIR is a more modern and flexible alternative. HL7 V2 lacks precise message modeling and requires custom coding for interoperability.

What are the disadvantages of FHIR? ›

The disadvantages of FHIR are;

This lack of centralisation leads to many point to point integrations that are overall harder to maintain (though manageable at smaller scales). No workflow.

What are the core capabilities of FHIR? ›

Core capabilities of FHIR

to create a set of Resources that, individually or in combination, satisfy most common use cases. REST defines categories of data, or “Resources ,” to exchange data. The philosophy behind FHIR is to create a set of Resources that, individually or in combination, satisfy most common use cases.

How do you achieve interoperability in healthcare? ›

Interoperability is possible only when all stakeholders—healthcare organizations, governments, payers, and other players—agree on the standards, technologies, and terminology needed for the exchange of data between diverse systems.

Is HL7 still relevant? ›

But, the reality on the ground is that HL7 v2 is still chugging along: 95% of U.S. healthcare organizations use it. There are many reasons for this, including: HL7 v2 includes capabilities that are not yet widely adopted by FHIR (this is the primary focus of the rest of this post).

What problem does FHIR solve? ›

FHIR can be used in a wide range of scenarios, but two common applications include patient access to personal health records (PHRs) and the electronic exchange of healthcare data between payers and providers.

How is FHIR used in healthcare? ›

FHIR's role: FHIR helps clinical decision support systems by structuring patient data. It allows these systems to integrate seamlessly with EHRs, providing real-time, relevant information to aid healthcare providers in making informed decisions, ultimately enhancing patient safety and care.

Why is FHIR better? ›

FHIR is a RESTful web service, which means that it is based on modern web technologies, such as HTTP and JSON. This allows for faster and more efficient data exchange between systems. With FHIR, developers can create lightweight APIs that can be used to access specific data elements within a patient's health record.

Can FHIR replace HL7? ›

The FHIR standard in healthcare can do everything HL7 V2 does and more. It eliminates the limitations of HL7 and has a less steep learning curve. FHIR is not limited to a single encoding syntax, unlike V2.

How does HL7 enable interoperability? ›

HL7 provides a consistent framework for data exchange, allowing disparate systems to communicate seamlessly. For example, when a patient is referred from one hospital to another, HL7 messaging ensures that critical information such as: Medical History. Allergies.

What are the disadvantages of smart on FHIR? ›

Interoperability Limitations

While it significantly improves data exchange, it does not provide a one-size-fits-all solution for all interoperability challenges in the complex healthcare landscape.

What are the disadvantages of HL7? ›

HL7 standards can be complex and challenging to implement, especially for organizations with limited technical expertise or resources. This complexity can lead to longer implementation timelines and the potential for errors during the integration process.

Why should we use FHIR? ›

It allows healthcare information, including clinical and administrative data, to be available securely to those who have a need to access it, and to those who have the right to do so for the benefit of a patient receiving care.

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