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Michael Sutton is an associate in the Corporate Practice Group in the firm's Dallas office.

Since the Dobbs v. Jackson Women’s Health Organization decision (which overturned the landmark Roe v. Wade decision), the healthcare industry has continued to grapple with renewed concerns over patient privacy and reproductive healthcare. Legislators and regulators have not been idle, establishing a patchwork of authorities which require careful navigation and consideration. It is worth noting that reproductive healthcare privacy is not a concern exclusive to women. Rather, such privacy concerns also apply to services traditionally received by men, such as testosterone replacement and male fertility treatments.Continue Reading The State of Reproductive Healthcare Privacy

“Kicking Off Accountable Care” served as the theme for this year’s America’s Physician Groups’ (“APG”) Spring Conference, a three-day event packed with compelling speakers and breakout sessions focused on the state of accountable or value-based care. While the overall tone of the conference was optimistic, primarily being focused on the promises and expansion of value-based care models, there was also another theme which colored many of the presentations and breakout sessions: expect turbulent times.Continue Reading Takeaways from the America’s Physician Groups’ Spring Conference: Turbulent Times Call for Change and Innovation

In an era where cyber threats are escalating, healthcare has emerged as a critical battleground for security. Its significance has become increasingly crucial as the intersection of healthcare, cybersecurity, and technology permeates every aspect of our lives. In the fifteenth episode of Sheppard Mullin’s Health-e Law Podcast, Jonathan Meyer, former General Counsel of the Department of Homeland Security and current partner at Sheppard Mullin, offers a deep dive into the implications of cybersecurity threats on the healthcare industry as well as national security.Continue Reading Healthcare Security is Homeland Security: A Discussion with Jonathan Meyer

2024 marked a notable year in AI and healthcare, with AI being top of mind for all healthcare players, including providers, technology companies, developers and regulators. The adoption of AI into clinical settings became more common, as scribe and clinical-decision support products gained popularity and EMR vendors incorporated AI tools into their products. The federal government released guidance, established task forces and implemented the directives of the 2023 Executive Order on AI. Similarly, state regulation began to unfold with some states passing legislation around AI’s use in healthcare.Continue Reading Healthy AI: 2024 Year in Review

Cyberattacks on healthcare organizations are on the rise, with the number of affected individuals nearly tripling between 2022 and 2024, according to data compiled by the Department of Health and Human Services Office for Civil Rights (“OCR”).[1] OCR data also reveals a 239% and 278% increase in hacking incidents and ransomware attacks, respectively, between January 2018 and September 2023.Continue Reading New York Adopts Comprehensive Hospital Cybersecurity Requirements

The U.S. Department of Health and Human Services (“HHS”) issued a Notice of Proposed Rulemaking (the “Proposed Rule”) on December 27, 2024, to significantly amend HIPAA’s Security Rule, which sets forth the security standards for the protection of protected health information by covered entities and their business associates. The Proposed Rule’s issuance was expected, especially in light of the growing number of health data breaches and disclosures of large scale foreign cyberattacks.Continue Reading HHS’ Last-Minute Holiday Gift: Proposed Changes to the HIPAA Security Rule

Texas is joining a growing number of states in considering comprehensive laws regulating use of AI. In particular, the Texas Legislature is scheduled to consider the draft “Texas Responsible AI Governance Act” (the “Act”), which seeks to regulate development and deployment of artificial intelligence systems in Texas. Critically, as most states continue to grapple with the emergence of AI, the Act could serve as a model for other states and could prove tremendously impactful.Continue Reading Texas Considers Comprehensive AI Bill

As the shift toward value-based care continues to transform the healthcare industry, hospitals and health systems are increasingly utilizing incentive-based physician compensation structures. Incentive-based compensation often includes a combination of a base salary with a variable bonus component tied to performance metrics, with the metrics being chosen based on overarching organizational goals, such as improving quality of care and managing costs. With these aims in mind, hospitals and health systems often base bonus achievement on meeting certain objective metrics, such as patient satisfaction scores, productivity measures, adherence to clinical guidelines, cost-saving measures, or other quality indicators most applicable to the department or physician group involved.Continue Reading Navigating Gainsharing Pitfalls in Value-Based Models

California Governor Newsom signed Senate Bill 1120 into law, which is known as the Physicians Make Decisions Act. At a high level, the Act aims to safeguard patient access to treatments by mandating a certain level of health care provider oversight when payors use AI to assess the medical necessity of requested medical services, and by extension, coverage for such medical services.Continue Reading California Limits Health Plan Use of AI in Utilization Management

Ethical hackers are becoming crucial allies in the battle against healthcare data breaches and ransomware attacks. In the twelfth episode of Sheppard Mullin’s Health-e Law Podcast, Ilona Cohen, Chief Legal Officer and Chief Policy Officer of HackerOne, delved into the pressing issue of cybersecurity in the healthcare sector and the pivotal role that ethical hacking may play, with Sheppard Mullin’s Phil Kim, Sara Shanti, and Michael Sutton.Continue Reading Healthcare Needs More Hackers: A Discussion with Ilona Cohen