Recent Digital Health Trends, Insights and News – May 2026

Last month marked continued progress as digital health moves into its next phase — from AI expanding into drug discovery and core infrastructure to new federal pathways accelerating device access and home-based care. Together, these shifts signal a turning point toward real-world scale.

Here’s a closer look at the key developments driving that momentum.

Technology, News, and Insights

CMS Launches First Wave of HealthTech Ecosystem Tools, Fast‑Tracking a Fully Digital, Patient‑Centered Health System

CMS introduced the first wave of its HealthTech Ecosystem initiative, rolling out new interoperable tools, a Medicare app library, and patient-facing applications designed to streamline how individuals access and manage their health data. The effort brings together hundreds of organizations aligned around shared standards for identity, security, and data exchange.

Read the full CMS press release here >>

Self-Powering Smart Fabrics Signal Next Phase of Wearables

Researchers are developing sensor-embedded fabrics that can track health metrics like heart rate, respiration, and temperature while generating power from body heat and movement. The technology could be integrated into everyday clothing, yoga mats, wristbands, or even bedsheets,  enabling continuous tracking without the need for charging or standalone devices.

This points to a broader shift from device-based wearables to ambient health monitoring,  where data collection becomes passive, always-on, and embedded into daily life.

Read the full TechRadar article here >> 

OpenAI Partners with Novo Nordisk to Accelerate AI-Driven Drug Discovery

Novo Nordisk announced a strategic partnership with OpenAI to integrate advanced AI across its drug development pipeline, using large-scale data analysis to identify new drug candidates and accelerate time from research to patient delivery. The collaboration will also extend into manufacturing, supply chain, and commercial operations, signaling a broader shift toward end-to-end AI integration in pharma.

Read the full MobiHealthNews article here >>

Policy and Regulatory

FDA to Review Peptides for Potential Compounding Access in July Advisory Meeting

The FDA announced it will convene the Pharmacy Compounding Advisory Committee (PCAC) on July 23–24 to evaluate whether seven peptides should be added to the 503A bulk drug substances list. A key step that would allow licensed 503A pharmacies to compound them with a valid, patient-specific prescription. The substances under review include peptides tied to conditions like obesity, wound healing, inflammation, and sleep disorders.

Read the full FDA announcement here >> 

FDA Launches READI-Home Innovation Challenge to Advance Home-Based Care

The FDA introduced the READI-Home Innovation Challenge, a new initiative aimed at accelerating development of medical devices designed for use in the home to reduce hospital readmissions. The program invites innovators to submit technologies that support patients and caregivers following acute care episodes, with a focus on improving outcomes and preventing avoidable returns to the hospital.

Read the full FDA announcement here >> 

CMS and FDA announce RAPID Pathway to Accelerate Medical Device Coverage

CMS and the FDA introduced the RAPID (Regulatory Alignment for Predictable and Immediate Device) coverage pathway, designed to speed up Medicare access to breakthrough medical devices by aligning regulatory approval and reimbursement processes. The program enables earlier collaboration between regulators and manufacturers so that clinical evidence generated for FDA review can also support Medicare coverage decisions.

Read the full FDA announcement here  >> 

DOJ Moves to Reclassify Medical Marijuana, Expanding Access and Research Pathways

The Department of Justice announced it will place FDA-approved and state-regulated medical marijuana products into Schedule III, a move that recognizes their medical use while maintaining federal oversight. The decision expands access to approved therapies, supports state programs, and enables broader research into safety and efficacy — alongside an expedited process to evaluate full federal rescheduling.

Read the full DOJ announcement here >>

Industry Conversations

Retail Giants Race to Redefine GLP-1 Care Beyond Prescriptions

Amazon’s national GLP-1 program through One Medical highlights a broader shift from standalone weight loss prescriptions to integrated, longitudinal care. One Medical executive told Axios some patients are arriving from other providers “malnourished” or on improper doses, underscoring risks tied to fragmented, low-oversight models. This highlights a growing demand for stronger clinical oversight and more connected care approaches in this rapidly expanding market.

Read the full Axios article here >> 

Pharma Expands Direct-to-Patient Strategy Through Cost Plus Drugs

Bristol Myers Squibb and Pfizer’s decision to offer blockbuster blood thinner Eliquis through Mark Cuban’s Cost Plus Drugs platform signals a broader shift toward direct-to-patient distribution. Priced at $345 for a 30-day supply, the model targets cash-paying patients and reflects a growing push to expand access beyond traditional pharmacy channels.

Growth, Funding, and Innovation

Digital Health Funding Shifts Toward AI Infrastructure and Workflow Tools

April 2026 funding trends show capital flowing toward infrastructure that directly supports how care is delivered, paid for, and documented, including clinical workflow AI, payer infrastructure, and medication access systems. From AI agents reducing admin burden to back-end tools enabling health plan operations, investors are prioritizing technologies embedded directly into care delivery and payment workflows.

Read the full New Market Pitch article here >> 

U.S. Captures 76% of Global Digital Health Funding in Q1 2026

The U.S. captured 76% of global digital health funding in Q1 2026, totaling $5.34 billion, driven by larger, high-conviction investments and a surge in mega-rounds. While deal volume declined, average deal size more than doubled, signaling a shift toward fewer, more mature companies, particularly in AI infrastructure and health system–embedded solutions, as investors prioritize outcomes and real-world adoption.

Read the full Galen Growth article here >> 

AI-Native Medicare Platform Raises $100M, Highlighting Demand for Navigation Infrastructure

Chapter, an AI-powered Medicare navigation platform led by Cobi Blumenfeld-Gantz, raised $100 million in Series E funding as it scales tools to help seniors navigate complex coverage decisions. The company has rapidly grown to over $100 million in annual recurring revenue, using AI to match patients with plans, providers, and prescription options while reducing reliance on traditional broker models.

Read the full Business Wire article here >> 

OpenLoop Resources & News

OpenLoop Expands Into Sleep Diagnostics with FDA-Cleared Happy Ring Technology

OpenLoop announced the launch of sleep diagnostics as a new product category within its platform. Built through a partnership with Happy Sleep, provider of the FDA-cleared Happy Ring, the offering gives OpenLoop’s network access to at-home sleep apnea testing for the first time, delivering diagnoses in days rather than months and helping address a condition where nearly 80% of patients remain undiagnosed.

Read the full OpenLoop press release here >> 

Current State of the Peptide Market and Where it's Headed

The peptide therapeutics market is one of the fastest-growing areas in biopharma, so if it’s not currently on your radar, it should be. What was once viewed as a niche segment of drug development is today a high-growth solution attracting longevity, aesthetics, and wellness markets. This blog breaks down the current market data and what you can expect from the peptide market in 2026 and beyond. 

Read the full OpenLoop blog here >> 

How to Launch and Scale Your Telehealth Business

As telehealth shifts from rapid adoption to long-term scale, success is increasingly being defined by operational infrastructure, not just front-end experience or point solutions. OpenLoop’s refreshed guide outlines what it takes to build and scale a telehealth business today, including how to establish compliant legal structures, operationalize clinician supply and licensing, architect revenue systems, and design patient experiences that drive retention and program growth.

Download the full guide here >> 

*This content is intended for general informational purposes only and should not be construed as legal advice. For guidance on your specific situation, please consult a licensed attorney.