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

Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Health
- event Date
Tuesday, July 15, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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.
Faculty

Ms. Metnick is a partner in the Corporate Practice Group in the firm's Chicago office and a member of the Healthcare and Privacy & Cybersecurity Teams. She represents a range of healthcare industry clients, including hospitals and health systems, physician organizations and digital health companies. Ms. Metnick advises on healthcare regulatory and transactional matters with a focus on health information privacy and security. She is the founder and leader of Sheppard Mullin Healthy AI, which is an initiative focused on legal issues relates to the use of AI in healthcare. Ms. Metnick counsels healthcare clients on issues relating to AI, including governance, contractual matters, and data related issues. She advises clients on a range of privacy and security laws, including HIPAA and other federal and state privacy laws. Ms. Metnick also counsels businesses in data breach investigations and compliance with federal and state breach notification laws. She is a Certified Information Privacy Professional/United States (CIPP/ US) and a Certified Information Privacy Professional/Europe (CIPP/E).

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.
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.
Outline
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
Benefits
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?
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