How Will Trump’s Presidency Impact Healthcare Privacy?
New presidencies mean new approaches to just about everything—including healthcare privacy. As President Trump begins his new term, the healthcare industry is on high alert, preparing to pivot their privacy strategies. From evolving state laws to reduced enforcement budgets, the stakes are higher than ever.
While Trump’s plans to curb regulations may provide short-term flexibility for health systems, the complexity and potential risks demand a careful, forward-thinking approach.
In this article, we’ll unpack the key ways a Trump presidency could impact healthcare privacy, and most importantly, what you need to do to stay ahead of the curve.
Less Federal Regulation, More State-Level Complexity
Trump’s commitment to federal deregulation will almost certainly continue into 2025. For healthcare marketers, this means that privacy decisions will increasingly fall to the states, creating a growing "patchwork" of laws. The result? More complexity and higher costs for organizations managing compliance across state lines.
This concern isn’t just theoretical—it’s a reality many healthcare organizations already face. In a recent survey we conducted, 75% of respondents said they expect state laws to "increase operational complexity and costs."
What does that mean for you? If your organization operates in multiple states, there’s a solid chance your compliance strategy could become more complicated.
Reduced Enforcement Budgets: Short-Term Wins, Long-Term Risks
Trump’s push to reduce government spending will likely result in budget cuts for enforcement agencies like the FTC and HHS. In the short term, this might seem like a win for healthcare marketers: fewer investigations, lower penalties, and less pressure to comply.
However, there’s more to the picture. Reduced enforcement could lead to more privacy breaches, which in turn can erode consumer trust and open the door to costly class action lawsuits (more on that soon).
87% of the healthcare marketers we surveyed said they're either increasing privacy budgets or keeping their current privacy measures in place. The remaining 13% of respondents may take a "wait and see" approach to privacy—a risky strategy given the rising tide of litigation.
The Demand for Consumer Privacy Isn’t Going Anywhere
Here’s one thing Trump’s presidency won’t change: Consumers want more data privacy. Period. This isn’t a partisan issue—it’s a fundamental expectation from today’s patients.
Case in point: According to our survey, 68% of respondents agreed that consumer interest in privacy will "continue to grow" under the new administration. This aligns with broader industry trends, such as the growing bipartisan support for the American Privacy Rights Act (APRA).
If passed, APRA would establish a federal standard for data privacy, overriding the current patchwork of state laws. For healthcare organizations, this could mean a more uniform approach to compliance but also stricter regulations to adhere to, including limitations on how health data is shared and used.
For consumers, APRA promises more control over their personal information, including the ability to opt out of data sharing and to sue organizations for privacy violations. While it’s unclear if APRA will gain momentum under the Trump administration, its bipartisan support is a testament to the growing demand for privacy protections—and the need for healthcare marketers to stay ahead of potential changes.
Bottom line? Don’t underestimate the power of consumer trust as a competitive advantage. Organizations that proactively address privacy concerns are far more likely to retain and attract patients.
A Look Ahead at the Legal Landscape
Fewer regulations doesn’t mean fewer legal risks for healthcare organizations. In fact, it can produce the opposite effect. There was a shocking number of privacy-related class action lawsuits against providers and payers this year. These lawsuits can costs tens of millions of dollars to defend—not to mention the reputational damage from negative press.
In our survey, respondents cited "operational complexity" and "litigation risks" as top concerns under Trump’s deregulated approach. Mass General Brigham’s $18.4M settlement for using cookies and analytics tools without proper consent is a sobering example of how these risks can play out.
Class action lawsuits are a powerful tool to hold healthcare organizations accountable for sloppy data handling, and the growing complexity of state-level laws is setting the stage for more to come.
Want a deep dive into privacy-related class action lawsuits? Check out our guide to how they work and how to avoid them.
3 Tips to Stay Ahead of the Curve
While there’s plenty of uncertainty around how President Trump’s policies will impact healthcare privacy, there are a few proactive steps you can take to reduce your risk of legal trouble:
1. Evaluate Your Tracking Technologies
Web trackers are notorious for triggering privacy violations. That means you’ll need to account for all of the tracking tech that exists on your website to ensure they don’t share sensitive information to any unauthorized third parties.
For every tool, consider these two key questions:
- What data is the web tracker sharing?
- Is that data sharing permissible?
Want a full assessment of your website’s privacy risks? Get a free web tracker report.
2. Stay Informed About State-Level Regulations
With federal deregulation likely to continue, states will remain the primary drivers of privacy laws. Keep an eye on state-level developments, especially in high-regulation areas like California and New York, and update your compliance strategies accordingly.
3. Prepare for Federal Privacy Legislation
Even though APRA’s future is uncertain, its potential to create a unified federal standard could dramatically change how you approach data privacy. Start planning for stricter data-sharing limitations and enhanced consumer rights to future-proof your operations.
Policies Change, the Need for Privacy Doesn’t
Trump’s presidency will spark yet another shift in the ever-evolving world of healthcare marketing. Sure, these changes make things murky. But they also create an opportunity to double down on privacy-first marketing that balances compliance and performance.
There will be plenty of updates over the next few months, so make sure you’re subscribed to the Freshpaint 5 to get the latest insights (and tips to navigate them) delivered straight to your inbox.
