Axios Future of Health Care

November 13, 2026
Happy Friday! We're taking a step back from all the politics today and talking about who's legally responsible if AI hurts patients.
Today's newsletter is 747 words, a 3-minute read.
1 big thing: Docs want legal shield from AI errors
The rapid deployment of artificial intelligence in hospitals and clinics is leading the nation's biggest physicians group to lobby for new legal protections if AI harms patients.
Why it matters: The use of increasingly sophisticated AI tools and recommendations is blurring the lines around negligence in health care, raising questions about whether doctors should be held responsible for decisions that rely on software.
- There's added urgency as autonomous AI takes on more and more important medical tasks with less direct oversight.
- The question is who's responsible when something goes wrong.
Driving the news: The American Medical Association this week called for federal and state legislation to protect physicians from liability when AI products injure patients, despite physicians using the tools as intended.
- The group also is pressing for new laws mandating that AI companies carry adequate liability insurance and disclose product limitations and performance data.
- Hospitals, health systems, insurers and health tech vendors should be responsible if the required use of specific AI products results in harmful errors, the AMA policy states.
Between the lines: The group's push comes as AI clinical tools are flooding the health system, unlocking new efficiencies but giving algorithms increasing power to make decisions like whether to order a diagnostic test or prescribe an expensive drug.
- Legal and medical experts point to the possibility of triage errors, in which AI systems that process clinical histories, vital signs and imaging can misjudge the severity of a case without the attending doctor's knowledge.
- The AMA also raises the possibility of an AI system making a plausible recommendation for treatment, but with incomplete laboratory results or an outdated diagnoses. In such cases, a physician may be unable to verify the inputs.
- In cases where a patient is harmed, responsibility should fall on AI manufacturers and vendors — and possibly on health systems that require the systems' use — instead of through a medical malpractice claim against the physician, the AMA argues.
Context: There already have been lawsuits around algorithm-driven medical decisions, including a wrongful death case in Alabama involving a screening tool for heart abnormalities.
- The software developer wasn't held liable because its licensing agreement left final medical decisions to doctors.
The big picture: Courts around the country are concluding that companies that design, train and deploy AI systems bear responsibility for what the systems do, said University of California, Davis professor Martin Hilbert, who studies the role of digital information and algorithms in society.
- Accountability hinges on factors including who shares responsibility when multiple parties build an AI system, how to prove fault inside an opaque model, and what to do when damages surface only after the system is deployed.
- "Different parties are responsible for different cases, and you can't just hold the end user responsible," he told Axios.
What we're watching: The FDA is weighing whether a new framework is needed for regulating AI-enabled medical devices.
- But the agency oversees software that meets the definition of a medical device, not all of the AI in health care.
2. What we're reading
Trump's plan to lower drug prices in U.S. is leading to fewer new drugs in Europe (WSJ)
Our take: President Trump's drug pricing deals with manufacturers are having the effect many skeptics predicted: Pharmaceutical companies are delaying drug launches abroad to maintain higher U.S. prices, which wasn't exactly the administration's intended outcome.
Hospitals brace for Medicaid work rules and deep funding cuts (NYT)
Our take: Democrats who campaigned on expanding access to health care are about to be in control of Congress while the delayed impacts of Republicans' Medicaid changes begin to play out, with millions of people potentially losing coverage. Their voters will expect them to respond — but remember, President Trump still has the veto pen.
A new tactic in the war over out-of-network bills: Health care providers are suing employers (STAT)
Our take: Insurers and providers battling in court over the No Surprises Act is apparently old news. The new thing is providers directly suing the employers who hire insurers and ultimately foot most of the bill for employees' coverage. A word of caution to providers: Employers currently have a lot more political juice than insurers do.
Thanks for reading Axios Future of Health Care, and to editor David Nather and copy editor Amy Stern. Please ask your friends and colleagues to sign up.
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