Pro-Business Administration, Vaccine Skepticism, and Future Healthcare Trends in 2025
TL/DR –
The new U.S. administration is seen as pro-business but its approach to healthcare remains uncertain, with the Federal Trade Commission and the Justice Department planning to keep the existing 2023 Merger Guidelines. A shift in healthcare policy could see a move from pharmaceutical-focused healthcare towards more holistic treatments, and a greater focus on preventive health and wellness. Changes in healthcare may also lead to an increased focus on patient empowerment, with an emphasis on patient-centric products and services, and increased accessibility through devices like the Apple Watch and remote patient monitoring technology.
Healthcare Uncertainty amid New Administration’s Approach
The new administration’s pro-business stance could potentially ease M&A deals in the healthcare sector, according to Glenn Barenbaum. There’s uncertainty, however, about the administration’s healthcare approach in the U.S. The FTC and Justice Department have expressed intent to maintain existing guidelines, indicating that significant changes might not occur immediately. Fears about the extensive use of tariffs as a trade policy potentially triggering an economic downturn could dampen healthcare M&A.
Skepticism Towards Current Vaccines and Emphasis on Holistic Treatments
Robert F. Kennedy Jr.’s skepticism towards current vaccines has raised concerns among medical professionals. Insights from the healthcare ecosystem suggest a possible shift in healthcare policy, moving away from a pharmaceutical-focused approach towards more holistic treatments. This could lead to greater emphasis on preventive health through better nutrition, indicating more deals for wellness-focused companies.
Effects of Administration’s Cuts on Health Institutions
The administration’s cuts to the National Institute of Health, the Centers for Disease Control and Prevention, and research grants to U.S. universities are having immediate effects on the research these institutions conduct. Such actions risk jeopardizing partnerships with private entities and impact medical research in the U.S.
Focus on Patient Empowerment
Changes in how healthcare and associated treatments are provided could steer private equity investment towards embracing overall wellness and healthcare consumerism trends. There’s significant interest in the consolidation of medical spa and aesthetic businesses, addiction treatment, in-home care, and traditional outpatient psychiatric and behavioral healthcare.
Increasing Intersection of Consumer Technology and Healthcare Services
There’s a growing overlap between consumer technology and healthcare services, with wearable devices and remote patient monitoring technology gaining popularity. The shift in focus from provider-centric to patient-centric solutions is evident. Healthcare sector startups focusing on patient-centric products and services are expected to attract significant investor interest in 2025 and beyond.
Virtual Health Expansion and Restrictions
The rise in virtual health usage has made virtual health companies common targets for M&A interest. Iris Telehealth’s acquisition of InnovaTel makes Iris one of the largest virtual health telepsychiatry providers in the U.S. Medicare has extended telehealth services until 2025, and FQHCs and RHCs can continue providing virtual services until 2026. Despite some limitations, virtual care is a viable treatment option, especially in rural care and behavioral health.
—
Read More Health & Wellness News ; US News