The Healthcare & Life Sciences (HCLS) technology sector continues to evolve rapidly, with artificial intelligence (AI) firmly establishing itself as an indispensable tool for improving clinical workflows and healthcare operations. Epic’s expansion of AI-driven charting, alongside new AI-powered tools from Optum and Infinitus, underscores the strategic imperative for health systems and payers to accelerate adoption of intelligent automation to reduce administrative burdens and enhance patient engagement.
The financial landscape of healthcare remains complex and challenging. Although healthcare bankruptcies decreased in 2025, providers, particularly hospitals and senior care facilities, still face significant headwinds amid cost inflation and reimbursement pressures. At the same time, notable transactions such as CommonSpirit Health’s deal to end a long-term revenue cycle outsourcing contract point to growing efforts to regain operational control and optimize revenue integrity internally.
Investment momentum in the sector demonstrates renewed confidence, particularly in early-stage ventures spanning biotech, medtech, and digital health. Firms like Santé Ventures and Redesign Health are capitalizing on this dynamic, funding innovation that aims to transform care delivery and scale new healthcare models. Such capital influx is vital for sustaining progress in value-based care and specialty areas, like cardiology, as evidenced by significant funding to companies like Chamber.
The policy and regulatory environment continues to shape market behavior notably. With new federal investment targeting addiction recovery and homelessness, alongside reforms passed on pharmacy benefit management (PBM), healthcare leaders must stay vigilant. Moreover, emerging technologies and new care models must navigate evolving compliance landscapes, as seen in contentious legal issues around gender-affirming care and drug marketing practices.
Overall, HCLS leaders should prioritize strategic allocation of capital to AI and digital transformation, strengthen internal operations amid financial uncertainty, and maintain proactive engagement with evolving regulatory priorities. Aligning these strategic dimensions will be key to thriving in a competitive and innovation-driven healthcare ecosystem in 2026 and beyond.
AI in Healthcare
Epic rolls out AI charting, touts strong growth of built-in features as AI race escalates — Epic is rapidly integrating AI into its EHR to enhance clinical automation and support clinician workflows amidst accelerated AI innovation. source
Optum unveils 2 new AI-powered tools for digital prior authorization — Optum introduced AI tools aimed at streamlining prior authorization processes to reduce treatment delays and administrative burden. source
A closer look at Elevance Health’s AI strategy — Elevance Health is implementing AI solutions with a focus on ethical guardrails to support health plan operations and patient care. source
Infinitus launches agentic AI support for health plans — Infinitus introduced the Agentic AI Member Services Suite to personalize member communications and expand call center capacity. source
Humana taps Google Cloud for new Agent Assist AI tool — Humana partnered with Google Cloud to deploy AI tools that assist teams in efficiently addressing member questions. source
Pharma & Research
TrumpRx, US government's cash-pay drug purchasing portal, primed for launch — The Trump administration is launching TrumpRx to direct patients to cash-pay channels for prescription drugs, aiming to increase affordability. source
Him & Hers plans to offer cheaper version of Wegovy pill, prompting Novo Nordisk to threaten legal action — Online wellness company Hims & Hers announced a lower-cost compounded semaglutide pill shortly after Novo Nordisk's Wegovy launch, triggering legal threats. source
UPDATE: FDA's Makary pledges crackdown on mass marketing of 'illegal copycat drugs' in wake of Hims' Wegovy pill push — FDA Commissioner Marty Makary vowed swift action against companies marketing illegal copycat drugs resembling FDA-approved treatments. source
NIH turmoil takes center stage as director acknowledges no vaccine-autism link — NIH Director publicly affirmed there is no causal link between vaccines and autism amid ongoing institutional controversies. source
Early-stage investor Santé Ventures gins up $330M to spread across biotech, medtech and digital health — Santé Ventures raised its largest fund to date to invest across emerging life sciences sectors emphasizing cautious optimism for 2026. source
Digital Health
Women's health clinic Midi Health closes $100M series D as it aims to scale a national healthcare company — Midi Health expanded its clinician network significantly, serving over 230,000 patients and gaining unicorn status. source
Virtual diabetes prevention programs secure Medicare coverage — New legislation enables expanded provider types to offer virtual diabetes prevention programs covered by Medicare under the CMMI MDPP model. source
Redesign Health charts its future amid US and global growth — The venture firm has launched 60+ companies reaching over 15 million patients, navigating volatile markets and care disruptions with $1.5B+ raised. source
Carbon Health files for Chapter 11 bankruptcy relief with more than $100M in debt — The hybrid in-person and virtual care provider reached a restructuring deal offering a path to recapitalization and new ownership. source
Payers & Reimbursement
Patients cite prior authorization as the biggest healthcare navigation burden: KFF — A Kaiser Family Foundation poll identified prior authorization as the leading challenge to patients navigating healthcare. source
Cigna CEO Cordani says Express Scripts' new PBM model aligns with reforms, FTC settlement — Cigna anticipates industry changes and emphasizes its new PBM model supports transparency and regulatory compliance. source
Employers, pharmacists cheer as Congress finally passes PBM reform — Long-awaited legislative reforms targeting pharmacy benefit managers (PBMs) were enacted, eliciting positive response from employers and pharmacists. source
Aetna rolls out new digital member onboarding experience — Aetna enhances its member engagement capabilities with a streamlined digital onboarding program to improve customer experience. source
SCAN adds 127K members in Medicare annual enrollment window — SCAN Health Plan achieved a 40.6% growth rate, adding over 127,000 members during Medicare’s 2026 enrollment period. source
Centene 'laser-focused' on improvements to Medicaid business, CEO London says — Centene Corp. reported a $1.1 billion loss in Q4 2025 amid elevated medical costs and pledges strategic focus on Medicaid operations. source
Molina Healthcare's stocks fall as company plans exit from Medicare Advantage — Molina Healthcare’s Q4 losses and cautious 2026 outlook spurred a sharp decline in its stock price alongside exit plans from Medicare Advantage. source
Providers & Care Delivery
CommonSpirit Health pays Tenet Health $1.9B to end revenue cycle outsourcing contract, sells equity stake for $540M — CommonSpirit accelerates exit from a 20-year RCM contract, reclaiming equity and operational control while receiving a multibillion-dollar payout. source
Kaiser Permanente, Renown Health launch northern Nevada joint venture — The partnership expands outpatient access and value-based care networks under Kaiser Permanente Nevada to serve the region. source
MultiCare agrees to $3.7M settlement over allegations it knowingly allowed unnecessary surgeries — MultiCare settled allegations concerning improper spinal surgeries performed despite warnings, resolving DOJ claims. source
Healthcare bankruptcies declined in 2025, though providers remain hard-pressed — Though bankruptcies fell 21%, continued challenges for hospitals and senior care mean vigilance remains essential. source
IT to fuel hospital supply chain price inflation as pharmacy growth softens: Vizient — Hospital supply chains will see rising supplier and service costs driven more by IT spend, even as pharmacy inflation eases. source
California AG sues Rady Children's Health over halted gender-affirming care services — A lawsuit challenges Rady Children’s decision to stop gender-affirming care amid federal funding threats and merger agreements. source
Policy & Regulation
HHS plans to invest $100M to support addiction recovery and address homelessness — The department will fund outreach and clinical interventions for homelessness and substance use, shifting away from prior harm reduction strategies. source
CMS estimates 14.3M Medicare beneficiaries are enrolled in an ACO for 2026 — Medicare’s accountable care organizations continue expanding, now covering over 14 million beneficiaries. source
Sponsored Content & Specialized Topics
Optimizing Your Claims Management: The Imperative for Payors and TPAs — Insights on how unified claims technology and intelligence can prevent financial waste for payors and third-party administrators. source
When Getting There Matters: The Role of Transportation in Critical Care — Non-emergency medical transportation is a crucial component in care continuity for vulnerable patients requiring ongoing treatments. source