Top 5 Healthcare Predictions for 2025 by VC Firm

ealth companies over the past decade, but is expected to slow down in 2025. Keith Figlioli, managing partner of LRVHealth, mentioned that this slowdown may result in some companies shutting down or merging due to being more product-centric than company-centric.

Additionally, Figlioli shared insights about the healthcare M&A market potentially waking up in 2025, with a lot of activity expected at the JPM healthcare conference. He also mentioned the possibility of the IPO market opening up for healthcare companies in the second half of the year, leading to increased investments returning to Limited Partners (LPs).

2. Artificial intelligence: Figlioli predicts that the reality of AI in healthcare will become more evident in 2025. While some pilot projects may fall short, a few sustainable use cases are expected to succeed and scale, particularly in areas like ambient scribing and prior authorization. He also mentioned that there will be progress in clinical decision support that could address healthcare workforce burnout and shortage issues in the long term.

In a similar vein, Ellen Herlacher, a partner at LRVHealth, mentioned a shift in focus from value-based care solutions to clinical efficiency in 2025. While value-based care is still on the horizon, she highlighted that innovations in clinical efficiency can create new points of access, address shortages, appeal to patients, and set clinical enterprises up for future success.

Moreover, Herlacher discussed potential changes in healthcare coverage, anticipating a shift towards more ICHRA programs from small and medium-sized employers. She also mentioned a possible reduction in Medicaid funding under the incoming administration, leading to changes in coverage for certain populations.

Lastly, Josh Flum, managing partner at LRVHealth, emphasized the increasing scrutiny on prescription drug pricing in 2025, particularly with the rise of new therapeutics. He highlighted the impact on traditional pharmacy business models and the potential for new innovations in pharmacy pricing, distribution, and fulfillment models. Flum also mentioned the trend of pharma companies investing in access and patient services to facilitate better therapeutic care.

These insights provide a glimpse into what the healthcare industry might experience in 2025, with changes in digital health, AI, value-based care, healthcare coverage, and prescription drug pricing on the horizon.