Artificial intelligence (AI) is positioned to revolutionize health care, with data serving as the pivotal resource to propel this transformation. As detailed in an article by Foley & Lardner LLP on JD Supra, Health AI startups have recognized a unique opportunity in forming collaborations with health systems and hospitals. This cooperative venture has the potential to create a transformative network effect, closely resembling the dynamic seen in many data companies.
For these collaborations to be effective, they require thoughtful consideration of contractual terms and due diligence. This is crucial to ensure the protection of both parties involved and to carefully manage risk amid the rapidly evolving AI and data landscape in healthcare.
Firstly, data rights and usage are at the heart of these agreements. Both parties must ensure clarity of data ownership, usage rights, and any restrictions or obligations. This could cover data de-identification, HIPAA compliance, and commercialization rights among others.
Secondly, the agreement must clearly delineate all obligations and responsibilities of both parties, including the implementation, maintenance, and security of AI tools. A strong emphasis should be placed on addressing security vulnerabilities, as a data breach could potentially derail operations and damage the reputation of the parties involved.
Lastly, each party to the agreement should fully understand and negotiate the liability and indemnification provisions. These provisions should reflect technical, commercial, and legal risks unique to AI and data.
Due diligence is crucial. Entrepreneurs must conduct a thorough investigation of a prospective hospital partner’s proven ability to protect confidential information, as well as the hospital’s infrastructure, stability and market reputation. Similarly, health systems should verify a potential AI partner’s financial health, technological capabilities, and the performance track record of the AI product.
For this emergent paradigm of health AI and hospital collaborations to yield maximum benefit, vigilance and deft engagement with the legal and technical complexities cannot be sidestepped.