Companies are bringing new technologies into healthcare that make things work better for patients and providers. Health tech is a fast-moving, innovative industry. It is also highly regulated. All businesses in health tech need to stay up-to-date on regulatory matters. At Global Link Law, we are committed to education. Below, we highlight some of the key legal trends that are shaping the health tech industry in 2024.
Trend #1: Health Companies are Rolling Out AI-Based Customer Service
Artificial intelligence (AI) is already changing the way that business is done. One of the major industry trends—including in healthcare tech—is AI-based customer service representation. More specifically, the rolling out of AI-based chatbots. AI-driven chatbots and virtual assistants are already at the forefront of many customer service issues. They may be capable of handling a wide range of customer inquiries—from appointment scheduling to even providing basic health information. There are major legal implications for the use of AI-assisted customer service tools in healthcare. Health tech companies face a challenge in staying at the cutting edge of innovation while also complying with all applicable regulations.
Trend #2: More Artificial Intelligence/Machine Learning Medical Devices are Coming
Towards the end of 2023, the Food and Drug Administration (FDA) confirmed that it was receiving more applications for medical devices that relied, at least in part, on AI or machine learning (ML). ML is a branch of artificial intelligence that focuses on building systems that learn and improve from experience without being explicitly programmed. In 2024, the market is witnessing an even greater increase in AI/ML-enhanced medical devices. These devices are designed to offer more precise diagnostics and more predictive health analytics. They are becoming increasingly integral across a number of areas of healthcare, including such as radiology, pathology, and cardiology—which all prioritize faster and more accurate decisions. It is a trend that is not just about technological innovation but also about transforming patient care. There are big legal implications.
Trend #3: Big Data is Continuing to Transform Healthcare
Big data’s role in healthcare continues to expand in 2024, driving significant improvements in patient care, operational efficiency, and healthcare delivery. The vast amounts of data generated by electronic health records (EHRs), wearable devices, and other digital health tools are being leveraged to gain insights into patient health trends, treatment outcomes, and healthcare system performance. Indeed, the market for wearable health-related tech has exploded. There are big legal implications. Health data must be protected. In some cases, the Health Insurance Portability and Accountability Act (HIPAA) may be implicated.
Trend #4: Mergers and Acquisition (M&A) May Be Rising Again in Health Tech
As we moved beyond the height of the COVID-19 pandemic, mergers and acquisitions (M&A) dropped. Indeed, both 2021 and 2022 were light years for M&A transactions. However, the trend started to reverse last year. According to an assessment from Morgan Stanley, 2024 is expected to be another significant rebound year for M&A deals. Notably, this could be a big issue in the health tech industry. Both healthcare and technology have been leading sectors for M&A transactions in recent years. Opportunities for mergers and/or acquisitions are always something that leaders at healthcare companies should be aware of.
Trend #5: Regulatory Compliance (Heightened Scrutiny)
With technology rapidly changing many aspects of healthcare—especially technology such as artificial intelligence and/or machine learning—regulators are paying close attention. Health tech executives should understand that regulatory compliance is likely to be under heightened scrutiny in 2024. Regulatory bodies are considering and, in some cases, already tightening standards and protocols to ensure patient safety, data privacy, and ethical use of technology. All businesses and organizations operating in the health tech space must navigate these regulatory landscapes with diligence. Remember, compliance becomes a critical factor in maintaining both market access and consumer trust. Regulatory compliance—and the potential for major regulatory changes—is a key legal trend to watch out for in 2024.
Get Help From Our Health Tech Lawyer Today
At Global Link Law, we have specialized expertise serving companies at the cutting edge of healthcare technology. It is our mission to deliver efficient, reliable, and cost-effective solutions to our clients. If you have any questions about the legal trends that are shaping the health tech industry, we are here to help. Contact us today for a fully confidential initial consultation. With a main office in Philadelphia, we provide nationwide legal services to healthcare tech companies.
Sources:
https://www.morganstanley.com/ideas/mergers-and-acquisitions-outlook-2024-trends
https://www.hhs.gov/hipaa/index.html
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