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27 May 2026

U.S. Healthcare And Life Sciences Industries Face Affordability Crunch

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The U.S. healthcare and life sciences industry faces mounting pressure from affordability concerns and regulatory challenges that threaten its traditional business model. AlixPartners' inaugural...
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Readiness gaps hinder operators as margin and regulatory pressures mount, says AlixPartners’ new executive survey

NEW YORK (May 27, 2026) – The U.S. healthcare and life sciences 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 global consulting firm AlixPartners.

The inaugural AlixPartners U.S. Healthcare & Life Sciences Distress Survey provides a benchmark for the industry’s efforts to navigate structural cost and pricing pressures amid surging M&A and restructuring activity.

“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,” said Adam Fless, Americas Co-Leader of Healthcare and Life Sciences at AlixPartners.

Survey highlights include:

  • 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 margin pressures on healthcare and life sciences companies from top-line limitations and higher operating costs require proactive actions be taken to secure reasonable levels of profitability,” said Randall Eisenberg, Americas Co-Leader of Healthcare and Life Sciences at AlixPartners.

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.

“The industry’s long-standing model of high margins funding innovation is under strain as health systems and payers can no longer maintain those price levels,” said Chris Taber, Partner and Managing Director at AlixPartners.

The survey found investors and advisors are far more bullish than operators about existing transformation efforts, including M&A and the benefits of AI-driven tools. This critical divergence between external industry expectations and internal organizational realities should prompt organizations to pursue better governance, prioritization, and realistic planning.

"Perception gaps between operators and their advisers and investors should prompt organizations to pursue better governance, prioritization and realistic planning,” said Duane Selby, Partner and Managing Director at AlixPartners.

To explore AlixPartners’ U.S. Healthcare & Life Sciences Distress Survey, click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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