Newfront’s Digital Health and Telemedicine Practice team recently participated in the annual Crittenden Medical Liability Conference in South Carolina. The event featured in-depth discussions on the use of technology and artificial intelligence in the healthcare industry, focusing on its advantages, drawbacks, and effects on claims.

As AI continues to make headlines, the healthcare industry is attracting significant investment to expand its use of of the technology. Over the last five years, the US has invested $117.6 billion in the digital health ecosystem. This investment is expected to help address the healthcare industry's labor shortage by supporting the development of tools to reduce provider burnout, enhance the user experience, and improve patient outcomes. However, as the industry grows rapidly, there are potential drawbacks, as reflected in claims. Notable examples include:

• At Lee High Valley Hospital System, a handful of patients had their exam room photos stolen and published online after the hospital refused to pay the ransom.

• In Des Moines Iowa, a three-year-old patient was prescribed five times the prescribed medication due to a ransomware attack that shut off access to tools a physician might use or a patient record to reference.

• A ransomware attack on a German hospital caused an emergency patient to be sent to a neighboring hospital for care. The delay in treatment caused the patient to die shortly after arriving at the nearby facility.

• Medicare Advantage plan patients had been declined certain treatments, including long-term care, due to AI algorithms. The error can cause a long uphill battle, delaying critical care that could lead to more severe injury or death.

The recent Change Healthcare breach has brought the healthcare industry to the forefront of cyber risk. The repercussions are still spreading throughout the industry and the final cost and impacts are still unknown. Since most of the big breaches have been specific to healthcare records, credit card information, and personal information, we have yet to see how the industry’s usage of AI will be impacted. As we continue to see technology be integrated into treatments, tools, and utilization, the risks related to this innovation are closer to home than ever before. Whether it’s a home monitor linked to an iPhone or a program aiding in knee surgery, it’s not just our pocketbooks at risk but our bodies as well.

As a risk consultant to those in the Digital Health/Telemedicine space, the Newfront team is extremely versed in the wide range of emerging and traditional risks surrounding this industry. Contact us to learn more.