AI in healthcare may be entering a new chapter, one where the biggest question is no longer whether the technology works, but who is willing to deploy it, measure it, and take responsibility for the risk.

This week, Steve sits down again with Eric Larsen to revisit his predictions from last year’s Webby-winning episode on generative AI in healthcare. Eric argues that the first wave of AI has been inflationary, reinforcing the old payer-provider payment model, but that the next wave could be deflationary as automation moves into revenue cycle, administrative work, clinical reasoning, and drug development. They discuss why incumbents still have a narrow window to co-develop the future, why clinical AI may move faster outside the US, and why liability may become the deciding factor in who wins.

We cover:

Why healthcare is still the sector most exposed to AI-driven change
How AI has reinforced fee-for-service dynamics so far, and why that may soon reverse
What makes some healthcare work more automatable than others
Why liability may determine how fast clinical AI gets adopted
Which health systems, payers, and life sciences companies are moving fastest
What will change across providers, payers, and pharma over the next year

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👉Submit your questions!

We’re doing a followup episode with Eric. Submit your listener questions here: https://forms.gle/Bu335DkpHAUvygiBA

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About our guest:

Eric Jon Larsen is President of TowerBrook Advisors and a member of the healthcare leadership team at TowerBrook Capital Partners, a $30 billion AUM investment firm based in New York and London. TowerBrook invests across private equity, structured minority, and growth opportunities, with a strong focus on healthcare, partnering with health systems, payers, and other strategics. Notably, TowerBrook is the first mainstream private equity firm to achieve B Corp certification, reflecting its commitment to responsible business practices.

Eric is a nationally recognized healthcare strategist with a global advisory portfolio spanning CEOs and boards of leading healthcare organizations. He spent 25 years at The Advisory Board Company—five of those as President—advancing best practices in healthcare delivery worldwide. Following the firm's 2017 acquisition by Optum (UnitedHealth Group), Eric co-led strategic partnerships and market development efforts at UnitedHealth. He is also a Venture Partner at Thrive Capital and SignalFire, and serves on several digital health boards, including Somatus and Contessa Health.

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How AI Will Finally Make Healthcare Deflationary | Eric Larsen

The Heart of Healthcare | A Digital Health Podcast

How AI Will Finally Make Healthcare Deflationary | Eric Larsen