Driving Tomorrow’s Advances in the Health Care and Life Sciences Ecosystems

The health care and life sciences sector enters 2026 in a period of accelerated change. New technologies, shifting regulatory frameworks, workforce pressures, and evolving reimbursement models are reshaping how organizations deliver care, manage risk, and invest for growth. This year’s Health Care & Life Sciences Top Trends report highlights where market, policy, and enforcement dynamics intersect — and where industry leaders will need clear strategy and proactive governance.

Key trends we highlight in this document include:

• Enforcement-Led Environment
• Under a Microscope: Digital Health & AI
• Public Program Pressure & Dual Enforcement Risk
• GLP-1 Market Momentum with Tighter Guardrails
• Cybersecurity Risks: Connected Devices
• Operating Model Imperatives for 2026

Enforcement will define the Health Care & Life Sciences sector for 2026. As President Trump enters the second year of his second term, federal oversight of the industry remains a clear priority. In 2024 and 2025 the government secured more than $3 billion in recoveries under the False Claims Act, marking consecutive years of record-breaking judgments. Antitrust enforcement is also expected to intensify, particularly as pharmaceutical and drug pricing issues draw heightened attention. Telemedicine and digital health companies continue to face increased scrutiny as evolving regulatory standards affect remote patient monitoring and the rapid expansion of Artificial Intelligence (AI).

As AI advances, regulatory uncertainty continues. Federal and state governments remain divided on how AI should be regulated, and the United States Patent and Trademark Office (USPTO) has yet issued guidance of AI-generated data — a growing concern as more health care & life sciences companies seek to patent their AI-generated innovations. This regulatory ambiguity comes at a time when Medicaid and Medicare Advantage face an uncertain future.

In the summer of 2025, President Trump signed H.R. 1 (One Big Beautiful Bill Act), reducing federal Medicaid spending by over $900 billion over a 10-year period. As states adjust to reduced budgets, Medicare Advantage (MA) is experiencing federal oversight. The Centers for Medicare and Medicaid Services launched its most robust enforcement initiatives yet, overhauling its Risk Adjustment Data Validation audit program. At the same time, Department of Health and Human Services Office of Inspector General has escalated its review of provider risk adjustment activities. Together, these actions signal a new era of dual enforcement risk for both Medicare Advantage Organizations and health care providers

Amid these changes, the demand for GLP-1 drugs and medical devices remain strong. As more pharmaceutical manufacturers develop GLP-1 products, the U.S. Food and Drug Administration is keeping a close eye, issuing warning letters to companies marketing unapproved or misbranded compounded products. Additionally, we explore how medical devices, such as smart watches and wearable trackers, raise growing cybersecurity concerns.

Together, these trends reflect a system demanding both innovation and accountability. Organizations that invest in strong compliance, data governance, operational resilience, and strategic technology deployment will be best positioned to navigate uncertainty and capture opportunity in 2026 and beyond.

Foley’s Health Care & Life Sciences Sector is comprised of 250+ attorneys with decades of collective in-house experience at health care providers and vendors, pharmaceutical and biotechnology firms, and key state and federal government agencies. Our attorneys have been deeply immersed in these industries, acquiring substantial technical and scientific knowledge through graduate degrees and ongoing training that enables us to provide forward-looking, practical solutions to our clients most pressing business challenges.

The 2026 Health Care & Life Sciences Top Trends Report includes the following articles.

• Trump 2.0: Health Care Enforcement Remains a Top Priority
• Remote Monitoring Enforcement Trends: What Providers and Technology Vendors Need to Know
• Trends in Antitrust Enforcement in Health Care
• Medicare Advantage at a Crossroads: CMS RADV Audit Overhaul and OIG Risk Adjustment Enforcement Explained
• Health Care Patent Practice: Changes at the USPTO for 2026
• Telehealth Longevity Clinics and the Legal Environment in 2026
• Shifting Trends in the Oncology Space
• Safety Net Providers Brace for Federal Medicaid Cuts
• Digital Health and Telehealth in 2026 and Beyond: Building the AI and Privacy Advantage
• Compounded GLP-1s: Current Status
• Medicare Advantage Supplemental Benefits: Recent Developments in SSBCIs and Speculation on the Future of Supplementals
• Medical Devices: A Ripe Target for Cybercriminals?
• Patent Protection in the Age of Artificial Intelligence: An Examination of the Potential Role of AI-Generated Data in Diagnostics and Therapeutics Inventions

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