3. Uncertainty clouds M&A outlook
Upcoming changes in government regulations and enforcement, as well as potential lawsuits arising from those changes, will weigh on potential mergers in the coming year, said Frank Carsonie, chair of the healthcare practice group at law firm Benesch, in his survey response.
Curt Chase, leader of the healthcare, life sciences and education business unit at law firm Husch Blackwell, also cited some uncertainty.
“It remains to be seen if the new administration will take a more "free market" approach, increasing market activity, or if the uncertainty, new (Hart–Scott–Rodino Antitrust Improvements Act) requirements, and increased state scrutiny will lower the appetite for mergers and acquisitions,” he said in the survey response.
Other responding firms expressed a more positive outlook on M&A oversight.
In its survey response, law firm Manatt, Phelps & Phillips said it expects the healthcare market to become more dealer-friendly — and possibly even bullish — subject to expected federal regulatory changes under the Trump administration.
Erin Whaley, partner at law firm Troutman Pepper Locke, also expressed a favorable outlook.
“The healthcare market will make a gradual rebound over the next year, with a significant uptick in deals,” she said in her survey response.
4. Bullish outlook for growth in digital health
Survey respondents also see increased momentum in the telehealth and digital health sectors, particularly in areas such as personalized care, diagnostics and clinical documentation.
“We expect a surge in digital health innovations, such as AI-driven diagnostics and personalized treatment plans,” said Krist Werling, global head of McDermott’s health and life sciences practice.
Brent Hill, healthcare section leader at Holland & Knight, expects many changes in the industry will be driven by the continued adoption of telehealth, remote patient monitoring capabilities, personalized care and increased utilization of AI for clinical diagnostics documentation.
Benesch’s Carsonie also sees strength in those sectors.
“Telehealth and virtual care should continue expanding, making healthcare more accessible, while AI will play a larger role in clinical documentation, patient communication, and personalized care,” he said.