Healthcare organizations of every shape and size are rapidly expanding their use of artificial intelligence solutions from high-risk applications like clinical decision-support interventions, ambient listening, and charting to lower-risk administrative activities like automated patient communications and scheduling. While adoption is widespread and increasing in depth and breadth across the industry, not every healthcare organization has established governance around AI or a monitoring process for exploration and adoption of new tools – including those contemplating a sale of assets or equity. For buyers in healthcare mergers and acquisitions today, AI diligence needs to be a focus, given the potential risk of compliance and class action concerns related to high-risk AI solutions, particularly those that have any interaction with protected health information (“PHI”) regulated under the Health Insurance Portability and Accountability Act, as amended and pursuant to its implementing regulations (collectively, “HIPAA”).

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