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The U.S. healthcare and life sciences (HLS) industry’s business model is under threat from the clash between affordability and a raft of policy and regulatory challenges, according to a report from AlixPartners.
“This report reveals the most pressing stresses on the healthcare and life sciences industries in 2026, and what operators, advisors, and investors should do about it,” says Adam Fless, Americas co-leader of healthcare and life sciences at AlixPartners.
Key takeaways:
- Regulatory and policy uncertainty is the biggest challenge for HLS operators, but fewer than 40% are significantly prepared for the wide range of potential changes.
- More than 90% of executives are prioritizing strategic M&A in 2026, but only 27% are ready to execute deals quickly.
- AI implementation is booming across the industry, but only a third of operators have realized clear, measurable financial returns.
- The life sciences sector is under strain from downward pressure on global drug prices created by the U.S. administration’s most-favored-nation policies and wider competitive forces, requiring more disciplined capital allocation.
- Investors and advisors are far more bullish than operators about existing transformation efforts, including M&A and the benefits of AI-driven tools.
