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Think Before You Prompt: AI Use May Waive Your Attorney-Client Privilege

By Sukrti Thonse & Alan S. Naar on May 5, 2026
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People are increasingly turning to AI for answers and advice, but many don’t understand the significant risks that are involved, particularly in the healthcare sector.  Healthcare providers and healthcare-adjacent businesses who input patient information (PHI) into these tools may be violating HIPAA rules and risk regulatory scrutiny and audit exposure.  Our recent Client Alert examines a recent federal court ruling and offers advice on how to protect yourself from the unintended consequences of AI use.

Tags: AI
Photo of Sukrti Thonse Sukrti Thonse

Associate, Corporate and Healthcare

Sukrti supports clients across a broad range of corporate and regulatory matters, advising at all stages of the business lifecycle with a strong concentration in healthcare and healthcare-adjacent industries. She regularly counsels physicians, medispas, multi-state provider groups, hospitals, and…

Associate, Corporate and Healthcare

Sukrti supports clients across a broad range of corporate and regulatory matters, advising at all stages of the business lifecycle with a strong concentration in healthcare and healthcare-adjacent industries. She regularly counsels physicians, medispas, multi-state provider groups, hospitals, and private equity sponsors on compliant corporate structuring, operational strategy, and growth initiatives. She provides guidance to healthcare start-ups, physician practices, and hospital systems on day-to-day operational, regulatory, and strategic matters, and assists clients in navigating complex and novel regulatory issues in highly regulated, multi-jurisdictional environments, including multi-state regulatory compliance and expansion.

In her corporate practice, Sukrti assists with the formation and capitalization of business structures and prepares key documents for fundraising, financing, and investor negotiations. She provides support on M&A transactions and in the structuring and implementation of Management Services Organization-Professional Corporation (MSO–PC) and Friendly PC models, ensuring compliance with Corporate Practice of Medicine (CPOM) doctrines, fee-splitting laws, and state ownership restrictions. Her work frequently involves advising on management services arrangements, equity structuring, rollover investments, and platform acquisitions involving physician-owned entities and private equity-backed healthcare companies.

Sukrti also has significant experience in physician and provider contracting, including drafting and negotiating employment agreements, independent contractor arrangements, professional services agreements, and compensation models (including wRVU-based structures), with careful attention to regulatory compliance and commercial reasonableness. Her practice includes coordinating regulatory due diligence and assisting with disclosure requirements, including for entities operating in FDA-regulated sectors.  She regularly structures and negotiates compensation arrangements with physicians in connection with employment and exclusive contracting arrangements, medical directorships, physician recruitment initiatives, office and equipment leases, and other key operational documents that support healthcare delivery and scalable platform growth.

She has developed particular strength in healthcare privacy and HIPAA compliance and works closely with firm partners to advise on federal and state regulatory frameworks. Sukrti regularly conducts multi-state regulatory analyses, including 50-state surveys addressing licensure, supervision, telehealth, reimbursement, and scope of practice considerations, enabling clients to expand across jurisdictions while mitigating regulatory risk.

Results may vary depending on your particular facts and legal circumstances.

Contact information:

sthonse@greenbaumlaw.com | 732.476.2480 | vCard

For more information visit the Greenbaum, Rowe, Smith & Davis LLP website.

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Photo of Alan S. Naar Alan S. Naar

Partner, Litigation

Alan is a seasoned litigator who represents clients in large and complex commercial matters. He represents a broad range of business entities and individuals in federal and state court civil litigation and appeals and before arbitration panels.

His diverse experience encompasses

…

Partner, Litigation

Alan is a seasoned litigator who represents clients in large and complex commercial matters. He represents a broad range of business entities and individuals in federal and state court civil litigation and appeals and before arbitration panels.

His diverse experience encompasses corporate and partnership disputes, business torts, securities litigation, product liability matters, trademark and unfair trade practice claims, trade secret litigation, antitrust matters, RICO claims, professional malpractice, employment litigation, land use and redevelopment challenges, and trust and estate litigation.

A key component of Alan’s practice is serving as a trusted resource for out-of-state and international firms requiring sophisticated New Jersey local counsel. He also bridges the gap between litigation and settlement through his work as an advocate, mediator and arbitrator.

Results may vary depending on your particular facts and legal circumstances.

anaar@greenbaumlaw.com | 732.476.2530 |  vCard

For more information visit the Greenbaum, Rowe, Smith & Davis LLP website.

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  • Posted in:
    Other, Technology and AI
  • Blog:
    Healthcare Perspectives
  • Organization:
    Greenbaum, Rowe, Smith & Davis LLP
  • Article: View Original Source

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