Trump Administration Policies could Create Headwinds across Healthcare: Fitch

Fitch Ratings warns that Trump administration policies could create financial challenges across the healthcare sector, affecting providers, insurers, pharmaceutical firms, and medical device manufacturers. Potential Medicaid cuts could strain hospitals and shift costs to private insurers. The administration’s efforts to reduce federal agencies, including FDA staffing cuts, have delayed medical device approvals, potentially driving mergers and acquisitions. Congress is also considering Medicaid reductions, which could leave millions uninsured. While tariffs on China, Canada, and Mexico pose minimal risk, potential trade disruptions with Europe or Chinese retaliation could impact global healthcare manufacturing. Fitch initially underestimated the administration’s aggressive cost-cutting measures, which now raise concerns about healthcare innovation, access, and financial stability. The overall outlook suggests significant industry headwinds under Trump’s policies.