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Healthcare’s outlook in 2025: New administration spells uncertainty, but hope remains

Although the industry will grapple with uncertainty in a second Trump administration, some hope that yearslong headwinds could begin reversing course in 2025.

Article By: Sydney Halleman

Blog Source From : https://www.healthcaredive.com/

The healthcare industry is no stranger to volatility and uncertainty. A global pandemic, regulatory upheaval and debilitating cyberattacks have been hallmarks of the sector in recent years.

But this year may prove more even chaotic than usual as payers, providers and healthcare technology companies brace for a new Trump administration and potential upheaval in federal healthcare programs.

Payers and providers are watching closely for changes in federal programs, like Medicaid and the Affordable Care Act exchanges — both could significantly affect bottom lines — while healthcare technology companies worry the Trump administration could disrupt AI regulation. On his second day in office, President Donald Trump reversed a federal directive that asked the HHS to establish an AI task force.

Still, experts have hope that some years-long headwinds could begin reversing course this year.

Payers are looking to see improved profitability in Medicare Advantage plans. While the Biden administration made cracking down on MA profiteering a major part of its healthcare policy, experts say the Trump administration is less likely to want to advance those priorities.

Providers will build on recent margin improvements and also make progress on cutting expenses, including by scrutinizing AI investments.

And investors say more digital health acquisitions and public debuts could be on the horizon as the sector rebounds from years of declining venture capital investment.

These are the biggest healthcare trends for 2025:

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