Impact of policy shifts under the Trump administration on the MedTech industry
The Trump Administration has introduced a sweeping set of policy changes during President Trump’s first several weeks in office, and their impact on the MedTech industry remains uncertain. One such change is the revocation of the Biden Administration’s “Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” replacing it with the “Executive Order Removing Barriers to American AI Innovation” – suggesting a shift in priorities with respect to the safety restrictions and other limitations sought by the Biden.
The MedTech industry is also expected to be impacted by the Trump Administration’s tariffs on foreign goods, especially with respect to raw materials and medical device components manufactured in China and Mexico. The Advanced Medical Technology Association has already pushed for an exemption to these tariffs for medical devices, but it remains to be seen whether such an exemption will be granted.
The administration’s overhaul of federal regulatory agencies, including the Food and Drug Administration (FDA), Centers for Medicare and Medicaid Services, and Department of Health and Human Services, has the potential to introduce uncertainty over the level of regulatory oversight these agencies will be equipped to provide with respect to medical devices and the healthcare industry writ large. In particular, dozens of MedTech regulatory professionals at the FDA’s Center for Devices and Radiological Health had their positions terminated as part of widespread government layoffs. More time is needed to assess the impact of these changes, as well as whether further actions will be taken that alter the industry.
The push to legalize AI-powered prescriptions
The Healthy Technology Act of 2025, introduced on January 7, 2025, seeks to redefine the role of AI in healthcare. The bill proposes to amend the Federal Food, Drug, and Cosmetic Act by officially recognizing AI and machine learning technology as “practitioners licensed by law” when prescribing FDA-approved medications. If passed, this legislation could mark a transformative shift in medical practice by allowing AI-driven systems to issue prescriptions, provided they meet two key requirements: state authorization and FDA approval.
Supporters of the bill argue that AI-driven prescribing could streamline healthcare, reduce human error, and alleviate physician shortages, particularly in underserved areas. However, opponents of the bill have raised ethical, legal, and safety concerns. For example, unlike human pharmacists and physicians, AI systems may struggle to fully account for complex patient factors such as socioeconomic conditions, drug interactions, or rare medical conditions.
Beyond medical concerns, data privacy and cybersecurity risks present serious challenges, as AI-driven prescribing would require extensive access to sensitive health records, raising questions about the protection of patient data. Furthermore, the legal liability in AI prescribing errors remains unresolved. While the bill signals a bold step toward integrating AI into medical decision-making, its passage and implementation will depend on the development of robust regulatory frameworks to address these concerns and ensure patient safety.
43rd J.P. Morgan Healthcare Conference
Thousands of professionals in the biopharma, biotech, and MedTech industries converged at the 43rd J.P. Morgan Healthcare Conference, paving the way for new collaborations and exciting product launches. Similar to last year, AI was a central topic of discussion, as tech and life sciences companies unveiled significant partnerships and contributions that predict coming advances in healthcare and drug development enabled by AI. For example, NVIDIA’s trio of partnerships with IQVIA, Illumina, and Mayo Clinic aim to leverage agentic and generative AI to accelerate drug discovery, enhance genomic research, and pioneer advanced healthcare services.
Other high-impact areas for investment and transformation in the MedTech space include obesity, mental health, and virtual care. Additionally, several MedTech acquisitions were also announced, including Health Catalyst’s acquisition of Upfront Healthcare Services, a next-generation patient engagement platform provider. Overall, the MedTech sector appears poised for a notable year, fueled by groundbreaking technological developments and increased deal activity.
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