• videocam On-Demand Webinar
  • signal_cellular_alt Intermediate
  • card_travel Health
  • schedule 90 minutes

Healthcare AI Vendor Contracts: Customer and Vendor Negotiation Strategies, Risk Assessment, Key Provisions

About the Course

Introduction

This CLE webinar will examine the process for negotiating healthcare AI vendor contracts. The panel will discuss relevant regulatory considerations impacting product choice and risk assessment, advise on best practices for pre-negotiation and due diligence strategies, and address strategic considerations in negotiating key contractual provisions for AI vendors and healthcare AI customers.

Description

Artificial intelligence has the potential to revolutionize the healthcare industry, offering a wide range of applications to increase efficiency including patient monitoring, note-taking, and treatment recommendations. Many healthcare organizations are grappling in real time with how to develop governance and oversight strategies that protect patients' privacy and ensure the organizations can deploy new technology safely while still encouraging innovation among their stakeholders. Healthcare organizations can support their internal goals and stakeholders by developing creative and sophisticated approaches to negotiating with AI vendors

Even for very experienced healthcare attorneys, negotiating a vendor contract for a third-party AI tool requires a fulsome understanding of the tool's application, implementation, and risks across the full lifecycle of the AI product. Having a working understanding of the tool informs an attorney's risk analysis for a given vendor arrangement, which includes understanding the impact to operations, the effect on patient care and quality and safety goals, the handling of sensitive data, and the degree of control the organization has over its data, the AI tool, and its outputs. 

Counsel must also understand the evolving regulatory landscape surrounding the use of AI that lays the groundwork for vendor and product due diligence and selection, and contract negotiation and drafting, some of which varies from state to state.

Listen as our expert panel outlines best-in-class strategies for negotiating healthcare AI vendor contracts. The panel will address crucial strategic and practical considerations for AI vendors and healthcare AI customers, AI-related risk assessment, and key contractual provisions for both parties, along with best practices for successfully guiding clients through this complex process.

Presented By

Carolyn V. Metnick
Partner
Sheppard

Ms. Metnick advises healthcare organizations and digital health companies on regulatory and data governance challenges at the intersection of privacy, security and artificial intelligence. She focuses on HIPAA, other health information laws, data strategy and security incident response—helping clients deploy innovative technologies while managing compliance risks across federal and state privacy frameworks. As the founder and leader of Sheppard Healthy AI, Ms. Metnick brings together a cross-disciplinary team dedicated to the compliant development, deployment and use of AI in healthcare. The initiative guides stakeholders through governance, vendor contracting, notice/consent and risk allocation—aligning emerging technologies with evolving laws, regulations and industry best practices. Ms. Metnick counsels hospitals, health systems, physician organizations, payors and technology companies on the full life cycle of health information and all related issues. Her work includes structuring data-sharing collaborations, developing privacy and security programs, responding to security incidents and navigating federal and state privacy laws. She is a Certified Information Privacy Professional/United States and a Certified Information Privacy Professional/Europe.

Kathleen M. O'Neill
Attorney
Sheppard Mullin Richter & Hampton Llp - San Diego

Ms. O'Neill represents medical groups, independent practice associations, management services organizations, hospital systems, payors and other healthcare industry clients, both for-profit and non-profit. On the transactional side, she manages mergers and acquisitions, joint ventures and strategic affiliations of every shape and size. On the advisory side, Ms. O'Neill guides clients on legal issues impacting operations, including commercial contracting, corporate governance, provider employment, licensing, AI governance and oversight, telemedicine and remote patient monitoring, regulatory transaction reviews and approvals, corporate practice of medicine, reimbursement, fraud and abuse, peer review and mandated reporting. As a former registered nurse at a major academic medical center, Ms. O'Neill has years of hands-on experience in healthcare delivery and clinical operations. Her practical experience informs her advice to clients on value-based care transformation initiatives, including risk-based contracting, population health management, team-based care, care coordination, risk adjustment, provider alignment strategies, ACOs, and clinically integrated networks.

Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, July 15, 2025

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

I. Introduction 

A. AI's expanding role in healthcare

B. Regulatory considerations

II. Pre-negotiation strategies

A. AI vendor

1. Use assessment

2. Documentation

3. Customer communication

B. Healthcare AI customer

1. Ethical and privacy considerations

2. Data governance

3. Systems monitoring

4. Vendor due diligence

III. AI governance and risk assessment (HEAT Map, NIST, third-party certifications)

IV. Drafting the agreement

A. Key provisions

B. Data use and IP issues

V. Practitioner takeaways

The panel will review these and other important considerations:

  • How does the evolving AI regulatory landscape impact a healthcare company's choice of third-party AI tools? 
  • What matters most for performance of vendor due diligence?
  • What is involved in the risk assessment of third-party AI tools, particularly with respect to rights for data?
  • What are key contractual provisions to best protect the healthcare AI customer? The vendor?