Technovation with Peter High (CIO, CTO, CDO, CXO Interviews) Liam Donohue on Fixing U.S. Healthcare: Why AI Alone Won’t Save It
Jan 2, 2026
Liam Donohue, Co-founder and Managing Partner at 406 Ventures, delves into the essential role of value-based care in healthcare reform. He argues that fee-for-service models hinder innovation and explains how AI, if misapplied, could exacerbate existing issues. Liam shares insights on the potential of AI for proactive patient care and rethinking elder care through WellBeHealth's value-based model. He emphasizes the need for founders who understand the problems they aim to solve and draws parallels between the current AI boom and previous market trends.
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Incentives, Not Tech, Drive Healthcare Outcomes
- The core U.S. healthcare problem is incentive design, not just tech gaps.
- Shifting to value-based care aligns payment with keeping populations healthy, unlocking tech's true value.
AI Is Supercharging Billing, Not Care
- AI today mostly amplifies existing revenue-focused workflows rather than improving care outcomes.
- Liam Donohue warns this can "break the system" if incentives stay fee-for-service.
WellBeHealth Reimagines Elder Care
- WellBeHealth cares for frail elderly using Medicare/Medicaid capitated payments instead of nursing homes.
- They achieve better outcomes and profit while costing the government ~10% less than nursing homes.