Liam Donohue on Fixing U.S. Healthcare: Why AI Alone Won’t Save It

AI can’t fix what the healthcare system fundamentally gets wrong.

In this episode, Liam Donohue, Co-Founder and Managing Partner at 406 Ventures, shares why his firm is betting on value-based care—and why AI risks breaking the system if applied to the wrong incentives.

From launching EdTech’s earliest funds to shaping 406 Ventures’ sector focus in healthcare, cybersecurity, and infrastructure, Liam offers hard-won lessons in disciplined investing, operator-first teams, and systemic transformation.

Key highlights:

• Why fee-for-service economics undermine care innovation
• How value-based care reshapes both incentives and outcomes
• The real reason AI is booming in revenue cycle management
• Lessons from WelbeHealth: rethinking elder care and payments
• Liam’s take on what makes a founder truly backable