Inside Day 2 at McDermott HealthEx: Strategic Insights from Healthcare Leaders

Executives from top health systems and industry experts have convened this week in Nashville for McDermott HealthEx, a multi-day event focused on strategies and innovations shaping healthcare.

The Modern Healthcare Content Studio is on the ground bringing exclusive insights on optimizing operations, creating patient value and strategic growth.

Below are key takeaways from Day 2 of the event:

1. Health Tech Leaders Showcase Responsible AI Integration in Care Delivery

Legal and compliance leaders from top health technology companies underscored the promise of integrating artificial intelligence into care delivery.

Panelists shared how real-world applications are improving care across diverse populations, particularly in underserved communities. For example, AI agents are being used to conduct high-volume colorectal cancer screening outreach.

Yet, the panelists cautioned that implementation must be anchored in strong governance frameworks.

In an interview with panelist Maulik Shah, general counsel at Hippocratic AI, he said governance frameworks should involve ongoing evaluation and refinement of the tools based on performance in real-world settings.

Disclosing the use of AI tools with patients was another recurring theme, particularly when AI is used in emotionally sensitive contexts. Trust can be built when patients have empathetic interactions with the technology.

Speakers also discussed the concerns about risks associated with AI. “Never let the perfect be the enemy of the very, very good,” Shah said.

Overall, the panelists encouraged iterative pilot programs and collaboration between developers, providers and legal teams to responsibly scale AI in care delivery.

2. Health Systems Rethinking Private Equity Partnerships: Ken Marlow, Managing Partner of McDermott's Nashville office

Despite ongoing market volatility, health systems are not shying away from merger and acquisition activity, but they are approaching it more strategically, said Ken Marlow, managing partner of McDermott Will & Emery’s Nashville office.

Uncertainty in the markets has created a divergence in how systems are responding. Often the larger, more resource-rich systems continue to pursue deals, albeit cautiously. “They’re scrutinizing deals much closer now,” he said.

One of the biggest shifts, Marlow noted, is the growing openness among not-for-profit systems to partner with private equity firms, particularly around service-line joint ventures. These arrangements bring capital, operational know-how and performance improvement support. “It’s much more of a partnership,” Marlow said. “They’re bringing a lot of additional attributes to the table that can be positive for the health system.”

The key to a fruitful health system and private equity partnership is alignment on goals and values, he said.

As financial pressures mount and traditional growth strategies become harder to execute alone, Marlow said he expects creative partnerships—grounded in mission and backed by capital—will define the next phase of healthcare consolidation.

3. Zocdoc CEO: Financial Headwinds Accelerating AI Adoption

As provider organizations grapple with ongoing economic headwinds, they’re turning to artificial intelligence to streamline operations, reduce costs and improve the patient experience, according to Dr. Oliver Kharraz, CEO and founder of Zocdoc.

“We’re witnessing a critical macroeconomic shift that’s accelerating AI adoption,” Kharraz said. “2025 marks a distinct shift towards decisive action.”

While early adopters began testing AI in recent years, Kharraz said forward-thinking organizations now view it as essential infrastructure. Administrative tasks—particularly calling and scheduling—can greatly benefit from AI tools.

One example is Zo, Zocdoc’s AI-powered phone assistant, which in many cases independently manages 70% of inbound appointment calls, allowing staff to focus on more complex cases. Providers are integrating Zo as a replacement for their traditional interactive voice response systems and as the first point of contact for inbound calls.

Kharraz will share more insights on the rise of AI in healthcare and lessons from Zocdoc’s work in the space during his panel at McDermott HealthEx on Thursday, May 8.

4. Providers Set Eyes on Medicaid, Commercial Insurance for Value-based Care Agreements

With mounting financial pressure in the Medicare Advantage market, providers are increasingly exploring value-based care models in Medicaid and commercial insurance.

“A lot of the value-based care activity has to date been in the Medicare Advantage space,” said Kate McDonald, partner at McDermott Will & Emery. “With downward revenue pressure in Medicare Advantage over the past couple of years, we have started to see much more interest in Medicaid-focused care models as well as implementation of value-based care in the commercial market.”

She noted that Medicaid presents an opportunity for providers willing to invest in holistic care.

Still, McDonald added that Medicaid requires a different approach. “It just is a different animal than Medicare Advantage,” she said. “There’s absolutely a learning curve... It demands that value-based providers really reduce medical costs through improved quality and delivering the right care at the right time.”

On the commercial side, McDonald said the shift is growing, particularly in employer-sponsored and individual markets, as providers look to diversify beyond federal programs.

Despite shifting payer dynamics and political changes, McDonald emphasized that value-based care remains resilient. “Value-based care is really a non-partisan issue,” she said. “The focus of value-based care, which is to deliver better care at a lower cost, is not going to change.”

5. Health Plan Leaders Urge Deeper Provider Relationships in Value-Based Care

Health plan leaders emphasized that successful value-based care partnerships hinge on trust, timely support and clear communication, not just financial alignment.

Speaking on a panel focused on the payer perspective, executives from national and regional Medicare Advantage plans called for providers and payers to move beyond transactional dealings and toward deeper, more collaborative relationships.

Panelists acknowledged that providers often feel overwhelmed by multiple payers’ conflicting metrics and technology platforms. Simplifying processes and proving value quickly are key to keeping providers engaged.

The panel also explored how artificial intelligence is being deployed for administrative tasks like sorting claims and identifying at-risk patients. Looking ahead, AI holds promise to improve efficiency and enhance real-time decision-making.

Despite differences in scale and approach, all panelists agreed: real success in value-based care requires more than just contracts. It demands transparency, shared goals and a long-term commitment to improving patient care together.