Advances in medical technology rely heavily on the collection and analysis of measured data to facilitate patient diagnosis and business decisions. The healthcare industry, particularly pharmaceuticals and diagnostic processes, has an ongoing need to improve item tracking and data collection to improve the quality of care while reducing cost. The remote, non-invasive characteristics of radio frequency identification (RFID) can facilitate the information needs of healthcare without imposing additional burden onto the patient or the staff. Properly deployed RFID enabled devices can provide convenient and accurate data for disease diagnosis, evaluation of prescription noncompliance, and identification of medication dosage errors. This paper describes an overview of the concept of an all-encompassing RFID pharmaceutical tracking system that begins with compliance documentation from the drug manufacturer and continues through the confirmation of patient compliance by capsule extraction from the bottle into a pill case and ultimately ingested or inserted into the body. This system also facilitates compliance with Food and Drug Administration proposed e-pedigree requirements and provides data for healthcare decision making. An introduction to healthcare trends is provided in order to communicate the need for such a biocompatible RFID pharmaceutical tracking system. Also presented in this paper is the overall scope of research and in vitro test method to develop biocompatible RFID tag components for use in a “pharmaceutical supply chain system” beginning with the manufacturer, continuing through distribution, and ending at the point of interest within the patient’s body.