News on health sector belt tightening popped up often on SmartBrief readers’ screens in March, with major agencies and programs feeling the pinch of government action in critical areas like staffing and research funding. Some of the top topics people clicked on were extensive personnel cuts at the FDA, NIH budget reductions affecting biomedical research, survey results suggesting an exodus of health executive talent, and limits on compounded weight loss medications that could boost patient costs.
Turbulent times at the FDA
What happened: Significant staffing cuts at the FDA raised questions about the funding of clinical trials and other research, and some companies mulled the idea of moving their drug development to other countries. Members of the biotechnology community sent President Donald Trump an open letter criticizing the staffing and budgetary cuts. The situation likely contributed to a climate of uncertainty that some experts say could compromise the competitive edge the US has in research, slow the progress of drug approvals and ultimately affect patient care.
What’s next: Some laid-off FDA staffers were ultimately recalled, but observers fear the experience may have damaged their long-term trust in the agency. In the meantime, China’s pharmaceutical manufacturing capabilities are growing, which could put the US on the back foot in terms of leading innovation. Recently, a CBS News report said that some laid-off FDA staff members likely would be replaced with contract employees.
Far-reaching impact of NIH cuts
What happened: Proposed reductions in funding for the NIH could put key medical research on hold and threaten jobs across the country, experts opined in March. The aim was to save the agency about $4 billion in costs yearly, but scientific innovation could suffer serious setbacks as funding is rescinded for hospitals, universities and research organizations. For example, rural cancer patients could lose access to clinical trials, and therapies for people with intellectual disabilities could be disrupted.
What’s next: A Nature analysis illustrates in chart form which types of grants and projects were cancelled, including research on HIV/AIDS, trans health, COVID-19, vaccine hesitancy and climate-related health issues. The data also show which US states and NIH institutes will be hardest hit by the cuts.
A potential health exec exodus?
What happened: A survey by B.E. Smith/AMN Healthcare found that about 46% of nearly 600 health executives were feeling dissatisfied with their current positions and planning to quit in the next year. Issues with job satisfaction, compensation and tenure were among the reasons leaders said they wanted to leave, and nearly three-quarters said they had been approached about other job opportunities in the previous six months. The report said that employers should pay closer attention to organizational culture, compensation and other factors to bolster job satisfaction and retention.
What’s next: A recent Challenger, Gray & Christmas report and HealthLeaders Media analysis found that 25 hospital CEOs departed their jobs in the first two months of 2025, comparable to the 26 who left during the same period last year. Despite the survey results and broader economic pressures, hospitals have not seen a rise in CEO turnover so far this year, but that could change.
Compounded weight-loss drug availability
What happened: The FDA said shortages of weight-loss medications such as Zepbound and Wegovy have been resolved, so future access to pharmacy-compounded versions of the drugs will be restricted. A US judge declined an injunction that would have allowed compounding to continue, and the FDA announced a series of deadlines after which different types of pharmacies must stop doing it.
What’s next: A Healthline report says manufacturers such as Eli Lilly and Novo Nordisk are working on plans to make their drugs more affordable as the staggered compounding deadlines progress. Some patients worry that the medications will still become too costly for their budgets, and they may regain weight they have lost.