- Continuing Action by State Officials Related to
Reproductive Rights and Gender-Affirming Care: Texas
continued to take actions to defend and uphold its abortion bans in
2024. This included an interpretation of the state's emergency
abortion exception and action by State Attorney General Ken Paxton
in December 2024 to prosecute an out-of-state physician for
prescribing abortion medications in Texas via telemedicine. These
issues, as well as controversies over the state's ban on
gender-affirming care, can be expected to continue in the new
year.
- Increasing Coverage of GLP-1s: The widespread
adoption of GLP-1s, alongside the development of increasingly
robust research related to their benefits for a variety of chronic
conditions, was perhaps the health care story of 2024. 2025 will
likely bring pressure on public and private payors to expand
coverage of GLP-1s. The Biden administration proposed covering
GLP-1s under Medicare and Medicaid, and discussions of Medicaid
coverage are ongoing in multiple states. Many commercial payors may
follow Medicare's decision, but cost pressures may result in
many payors still placing limitations on coverage, even in an
environment where some of the drugs are emerging from
shortages.
- Texas Health Care and Life Science Incubators:
Texas is positioning itself to better attract entrepreneurs and
innovators leading the way in developing diagnostic and therapeutic
products and technology. This includes the establishment of
incubator ecosystems in state-of-the-art facilities within the
largest medical centers in the world, including the TMC Helix Park
(Houston), Pegasus Park (Dallas), and Austin Technology Incubator @
UT (Austin). These entities and many others located in Texas are
garnering the attention of the health care and life sciences market
on a global scale. The anticipated expansion to position Texas as a
leader in shepherding new discoveries and serving as the home of
successful ventures in these industries is a major trend for
2025.
- Public Policy Changes: The Trump
administration is expected to significantly impact federal health
policymaking. New agency leadership appointments, including at the
Department of Health and Human Services (HHS), the Centers for
Medicare and Medicaid Services (CMS), and the Food and Drug
Administration (FDA), will directly shape agency priorities. The
Supreme Court's 2024 decision to overturn Chevron,
which had governed federal courts' deference to agency
interpretations of ambiguous statutes for nearly four decades, is
further likely to influence policymaking dynamics between the new
administration, federal courts, and private businesses.
- Private Equity and Health Care – A System in Transition: Private equity investments in health care came under increased scrutiny under the previous administration. Several states have enacted legislation to require disclosure of transactions in health care that involve private equity (PE) funding. Investment trends predicted in 2025 include but are not limited to (1) increased investment in digital health, healthtech, and medtech; (2) value-based care models; (3) consolidations and mergers; and (4) specialty care. The new administration is expected to propose significant changes that will affect health care investment to include changes in (1) regulations, (2) Medicare and Medicaid; (3) the ACA; and (4) market competition as nontraditional leaders assume roles in the various health care departments. Additionally, Pitchbook predicts that PE-backed IPOs will increase and older PE investments will be sold or wound down.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
