In this healthcare podcast, I am talking with Tom X. Lee, MD, who has a long history in primary care. He founded One Medical and then also, most recently, Galileo. Dr. Lee also was a founder at Epocrates (tossing that in for context).
For a full transcript of this episode, click here.
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I wanted to talk with Dr. Lee because so many RHV (Relentless Health Value) listeners are trying to figure out how to sustain primary care as a stand-alone entity when the most obvious and most common way to make enough money in primary care is to drive and maximize the dollars from downstream volume of high-priced service lines, which, if you think about it, undermines the entire point of primary care.
I’m starting to call this the paradox of primary care because when you start seeing the promise of primary care have to erode if you’re gonna stay in the business of primary care, then yeah, it’s sort of a paradox. Said another way, if you do primary care really well and use evidence-based preventative care to curb the need for excess specialty care (ie, you reduce specialty revenue through primary care), now you’re asking specialty to not only make less money but use the remaining money to pay for primary care, which is the entity that is reducing its revenue.
So, again, I am hereby coining the term the paradox of primary care to express the conundrum for why a consolidated entity that knows where its bread is buttered is going to do much, if anything, to empower primary care with the technology and the staff and the time, which, if it goes well, is going to cannibalize its own major source of revenue.
Meanwhile, if you choose not to participate in this paradox within the context of a consolidated entity, it’s kinda hard to stand up a pure play primary care practice. And I’ve heard this so many times, most recently from Paul Buehrens, MD, who said, he wrote on LinkedIn, “My own primary care clinic lasted independent from 1946-2017, and when costs were rising faster than reimbursement with no alternatives available, we sought out purchase by our hospital, giving up on trying to stay independent. … Consolidation is not driven by bad actors nor by quality nor volume savings, but by the bizarre economics of healthcare as a highly regulated but hardly rational market.”
I simply don’t get why knowing as much as we know about the importance of primary care, CMS (Centers for Medicare & Medicaid Services) and others continue to follow RUC (Relative Value Scale Update Committee) guidance on PCP (primary care provider) rates.
How much power must be wielded by the AMA (American Medical Association) or the AHA (American Hospital Association) or who knows? I don’t know the half of it, admittedly. Listen to episode 437 with Brian Klepper, PhD, for more on just the RUC. Also, despite again all of the lip service about the importance of primary care, our current cohort of payers seems to have a thing going where they do not offer value-based care (VBC) contracts to the primary care folks who seem most likely to succeed. Add to that the moving goalposts for ACOs (accountable care organizations) and the lack of available data to even know how you’re doing, and yeah, here we are.
So, again, the question is how to sustain primary care without falling into a paradox. That is the hard question that I asked Dr. Tom X. Lee today. I asked Dr. Lee flat out what it takes to stand up a stand-alone entity doing primary care, and he said enlightened leadership with a value mindset combined with big-time chops in service operations.
I, of course, asked, what does enlightened leadership and mad skills in service ops mean exactly and specifically? Dr. Lee broke this down. Part of it, he said, is finding an eliminated hidden waste, which, according to Dr. Lee, does exist in primary care, although maybe in a thinner layer than elsewhere. And trust me, I asked Dr. Lee what is this waste exactly and specifically of which he speaks. Turns out, a lot of it is cutting out busywork (like clicking 90 times to order a Tylenol) or dumb paperwork or doctors doing stuff that a nurse navigator could do in between visits or the medical assistant could do or technology could just automate.
If you think about wasted time as capital W Waste, then yeah, there’s a hefty amount of waste that could be cut. This also comes up in episode 446 with Spencer Dorn, MD, MPH, MHA, which is next week.
Now, you know me … you start talking about getting rid of waste, and I am immediately going to ask you how you define value, how you define what you value, because when cutting waste, it’s really easy to cut more than waste. Listen to the show with Kate Wolin, ScD (EP432) or Rik Renard (EP427) or Will Shrank, MD (EP413) for more on that one. So, I get into a proper grilling with Dr. Lee on how he defines value, which leads us to talk about open access as one component of delivering value.
But then, of course, I bring up, yeah, well … access was Walmart and Walgreens’ hypothesis, giving patients access to care, and they will come, and that didn’t work out so well. The rebuttal there is access, sure, but access to what? And good point. Clearly, there was a disconnect between what patients thought good primary care should be and what was on offer.
And around the wheel we go, because again, we’re back to the delta between the promise of primary care and what often exists. Again with the paradox.
Okay … now, just let’s sum this all up here because I really want to get to the interview. The trick to doing a pure play PCP or indie PCP practice without falling into the paradox of primary care is enlightened leadership with a value mindset combined with service operations to find the balance between human centeredness, process, and technology. That’s kind of the big wrap-up of a many-pronged conversation that there is a balance here.
Dr. Lee puts it this way. He’s like, if you think about it as a paradox, you’re kind of creating a binary. What you want to find is the productive middle. Find the productive middle of primary care and you can get rid of the paradox.
Probably some of you are thinking direct primary care/DPC is a solution here and yet, for sure. But to do DPC well, you still have to have enlightened leadership and do a good job with service operations—especially if you’re thinking you want to work with employers or others who are going to measure outcomes.
Also mentioned in this episode are Paul Buehrens, MD; Brian Klepper, PhD; Spencer Dorn, MD, MPH, MHA; Kate Wolin, ScD; Rik Renard; William Shrank, MD; John Lee, MD; Scott Conard, MD; and Patrick Dunn, PhD, MBA.
You can learn more at Galileo.
Tom X. Lee, MD, is the CEO and visionary behind Galileo—a data-driven, multispecialty care model designed to improve quality and reduce total cost of care. Operating across 50 states and partnered with large employers and health plans, Galileo is one of the fastest-growing innovators in care delivery.
Prior to Galileo, Tom helped build One Medical into the leading, independent primary care system in the country. And previously, he helped launch Epocrates, the #1 mobile app used by clinicians at the point of care.
Tom is a board-certified internist who completed training at Harvard’s Brigham and Women’s Hospital. He received his bachelor’s degree from Yale University, an MD from the University of Washington School of Medicine, and an MBA from Stanford University’s Graduate School of Business.
07:02 What is the paradox of primary care?
09:19 Why is it hard to run an independent primary care practice?
10:01 What are the barriers to running an independent primary care practice?
10:41 Can you have fee for service and value?
12:25 “Value is more about a mindset.”
13:22 What hidden waste is there in a primary care practice?
15:11 What do you need to have a value-focused mindset?
17:14 Why does access precede quality?
18:20 Why have retail clinics failed in being longitudinal primary care destinations?
20:29 What is a longitudinal primary care destination and why does it matter?
23:48 What are the nuances of a service business that make them challenging for managers?
24:35 How do you find the balance between fee for service and value?
31:17 EP438 with John Lee, MD.
32:14 How can you invest in quality without a value-based contract?
34:19 How do you address the trade-off between fee-for-service finances and investing in value-based care?
35:36 Where is the “productive middle”?
36:27 Dr. Tom Lee’s message to payers.
39:55 Dr. Tom Lee’s message for policymakers.
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[00:00:01] [SPEAKER_01]: Episode 445 Can a Primary-Care-Only Practice Survive in 2024
[00:00:10] [SPEAKER_01]: Today I speak with Dr. Tom Lee.
[00:00:20] [SPEAKER_01]: American healthcare entrepreneurs and executives you want to know.
[00:00:24] [SPEAKER_01]: Talk, relentlessly seeking value.
[00:00:29] [SPEAKER_01]: Today I am talking with Tom X. Lee, MD, who has a long history in primary care.
[00:00:35] [SPEAKER_01]: He founded One Medical and then also most recently, Galileo.
[00:00:40] [SPEAKER_01]: Dr. Lee also was a founder at Epochrides, tossing that in for context.
[00:00:45] [SPEAKER_01]: I wanted to talk with Dr. Lee because so many RHV, Relentless Health Value listeners, are
[00:00:49] [SPEAKER_01]: trying to figure out how to sustain primary care as a standalone entity when the most
[00:00:56] [SPEAKER_01]: obvious and most common way to make enough money in primary care is to drive and maximize
[00:01:01] [SPEAKER_01]: the dollars from downstream volume of high priced service lines.
[00:01:06] [SPEAKER_01]: Which, if you think about it, undermines the entire point of primary care.
[00:01:11] [SPEAKER_01]: I'm starting to call this the paradox of primary care because when you start seeing
[00:01:15] [SPEAKER_01]: the promise of primary care have to erode if you're going to stay in the business
[00:01:20] [SPEAKER_01]: of primary care then yeah it's sort of a paradox.
[00:01:23] [SPEAKER_01]: Said another way, if you do primary care really well and use evidence-based preventative
[00:01:30] [SPEAKER_01]: care to curb the need for excess specialty care, i.e., you reduce specialty revenue
[00:01:35] [SPEAKER_01]: through primary care, now you're asking specialty to not only make less money but
[00:01:40] [SPEAKER_01]: use the remaining money to pay for primary care which is the entity that is
[00:01:44] [SPEAKER_01]: reducing its revenue. So again I am hereby coining the term the paradox of
[00:01:49] [SPEAKER_01]: primary care to express the conundrum for why a consolidated entity that
[00:01:54] [SPEAKER_01]: knows where its bread is buttered is going to do much if anything to empower
[00:01:58] [SPEAKER_01]: primary care with the technology and the staff and the time which if it goes
[00:02:03] [SPEAKER_01]: well is going to cannibalize its own major source of revenue.
[00:02:07] [SPEAKER_01]: Meanwhile, if you choose not to participate in this paradox within the
[00:02:11] [SPEAKER_01]: context of a consolidated entity it's kind of hard to stand up a pure play
[00:02:16] [SPEAKER_01]: primary care practice and I've heard this so many times most recently from
[00:02:20] [SPEAKER_01]: Dr. Paul Burins who said he wrote on LinkedIn my own primary care clinic
[00:02:26] [SPEAKER_01]: lasted independent from 1946 to 2017 and when costs were rising faster than
[00:02:33] [SPEAKER_01]: reimbursement with no alternatives available we sought out purchased by our
[00:02:38] [SPEAKER_01]: hospital giving up on trying to stay independent consolidation is not driven
[00:02:42] [SPEAKER_01]: by bad actors nor by quality nor volume savings but by the bizarre economics
[00:02:47] [SPEAKER_01]: of healthcare as a highly regulated but hardly rational market.
[00:02:51] [SPEAKER_01]: I just I simply don't get why knowing as much as we know about the importance of
[00:02:56] [SPEAKER_01]: primary care CMS and others continue to follow Ruck guidance on PCP rates how
[00:03:03] [SPEAKER_01]: much power must be wielded by the AMA or the AHA or who knows I don't know the
[00:03:08] [SPEAKER_01]: half of it admittedly listen to episode 437 with Brian Clepper for more on just the Ruck.
[00:03:14] [SPEAKER_01]: Also despite again all of the lip service about the importance of primary
[00:03:18] [SPEAKER_01]: care our current cohort of payers seems to have a thing going where they do not
[00:03:23] [SPEAKER_01]: offer value-based care contracts VBC contracts to the primary care folks who
[00:03:28] [SPEAKER_01]: seem most likely to succeed add to that the moving goalposts for ACO's and the
[00:03:32] [SPEAKER_01]: lack of available data to even know how you're doing and yeah here we are so
[00:03:38] [SPEAKER_01]: again the question is how to sustain primary care without falling into a paradox
[00:03:43] [SPEAKER_01]: that is the hard question that I ask Dr. Tom X Lee today I asked Dr. Lee flat out what it takes to stand
[00:03:51] [SPEAKER_01]: up a standalone entity doing primary care and he said enlightened leadership with a value mindset
[00:03:57] [SPEAKER_01]: combined with big-time chops in service operations I of course asked what does enlightened leadership
[00:04:04] [SPEAKER_01]: and mad skills and service ops mean exactly and specifically Dr. Lee broke this down part of
[00:04:09] [SPEAKER_01]: it he said is finding an eliminated hidden waste which according to Dr. Lee does exist in primary
[00:04:15] [SPEAKER_01]: care although maybe in a thinner layer than elsewhere and trust me I asked Dr. Lee what is
[00:04:21] [SPEAKER_01]: this waste exactly and specifically of which he speaks turns out a lot of it is cutting out
[00:04:26] [SPEAKER_01]: busy work like clicking 90 times to order a Tylenol or dumb paperwork or doctors doing stuff
[00:04:32] [SPEAKER_01]: that a nurse navigator could do in between visits or the medical assistant could do or
[00:04:36] [SPEAKER_01]: technology could just automate if you think about wasted time as capital W waste then yeah there's a
[00:04:43] [SPEAKER_01]: hefty amount of waste that could be cut this also comes up in episode 446 with Dr. Spencer Dorn
[00:04:49] [SPEAKER_01]: which is next week now you know me you start talking about getting rid of waste and I am
[00:04:55] [SPEAKER_01]: immediately going to ask you how you define value how you define what you value because
[00:05:01] [SPEAKER_01]: when cutting waste it's really easy to cut more than waste listen to the show with Kate Wellin
[00:05:06] [SPEAKER_01]: or Rick Renard or Dr. Will Schrank for more on that one so I get into a proper grilling with
[00:05:11] [SPEAKER_01]: Dr. Lee on how he defines value which leads us to talk about open access as one component of
[00:05:19] [SPEAKER_01]: delivering value but then of course I bring up yeah well access was Walmart and Walgreens hypothesis
[00:05:25] [SPEAKER_01]: giving patients access to care and they will come and that didn't work out so well the rebuttal
[00:05:32] [SPEAKER_01]: there is access sure but access to what and good point clearly there was a disconnect between
[00:05:38] [SPEAKER_01]: what patients thought good primary care should be and what was on offer and around the wheel
[00:05:44] [SPEAKER_01]: we go because again we're back to the delta between the promise of primary care and what
[00:05:50] [SPEAKER_01]: often exists again with the paradox okay now just let's sum this all up here because I really
[00:05:56] [SPEAKER_01]: want to get to the interview the trick to doing a pure play PCP or indie PCP practice without falling
[00:06:03] [SPEAKER_01]: into the paradox of primary care is enlightened leadership with a value mindset combined with
[00:06:08] [SPEAKER_01]: service operations to find the balance between human centeredness process and technology
[00:06:14] [SPEAKER_01]: that's kind of the big wrap up of a many pronged conversation that there is a balance here
[00:06:21] [SPEAKER_01]: Dr. Lee puts it this way he's like if you think about it as a paradox you're kind of creating
[00:06:25] [SPEAKER_01]: a binary what you want to find is the productive middle find the productive middle of primary care
[00:06:32] [SPEAKER_01]: and you can get rid of the paradox probably some of you are thinking direct primary care
[00:06:37] [SPEAKER_01]: slash DPC is a solution here and yet for sure but to do DPC well you still have to have enlightened
[00:06:44] [SPEAKER_01]: leadership and do a good job with service operations especially if you're thinking you want to work
[00:06:49] [SPEAKER_01]: with employers or others who are going to measure outcomes my name is Stacey Richter this podcast
[00:06:55] [SPEAKER_01]: is sponsored by Aventria Health Group Dr. Tom Lee welcome to Relentless Health Value
[00:07:00] [SPEAKER_01]: thank you thanks for having me I thought you would be the perfect person to talk about something
[00:07:05] [SPEAKER_01]: that I'm wrestling with and I know that a lot of our listeners are wrestling with and this is what
[00:07:10] [SPEAKER_01]: I'm starting to call the paradox of primary care this is the idea that the promise of primary
[00:07:16] [SPEAKER_01]: care is through evidence-based preventative care and by addressing issues early to prevent
[00:07:22] [SPEAKER_01]: or slow disease progression so specialist volume is there by reduced and therefore one might assume
[00:07:30] [SPEAKER_01]: that specialty revenue is reduced however one of the few it seems sustainable ways to pay for primary
[00:07:38] [SPEAKER_01]: care is by vertically integrating primary care into a consolidated stack and then using the money
[00:07:44] [SPEAKER_01]: from specialty care to subsidize primary care so I don't know I'm starting to call it a paradox
[00:07:49] [SPEAKER_01]: like why would a consolidated entity that knows where its bread is buttered why are they going
[00:07:54] [SPEAKER_01]: to do much if anything to empower primary care to cannibalize its own major source of revenue
[00:07:59] [SPEAKER_00]: yeah now I get it look I think the world is a slice into uneven slices and when you look at it from
[00:08:07] [SPEAKER_00]: a variety of lenses it looks out or maybe paradoxical that the two should cooperate certainly within one
[00:08:13] [SPEAKER_00]: combined entity and so I understand that maybe that might be one lens to look at it another
[00:08:18] [SPEAKER_00]: lens to look at it is if you improve primary care by itself there's an opportunity set there but
[00:08:25] [SPEAKER_00]: what's implied in the paradox is that you can't make primary care work better on its own and you
[00:08:30] [SPEAKER_00]: know that was the whole premise of starting up one medical was can you start a pure play
[00:08:34] [SPEAKER_00]: primary care concept that's not dependent on specialty revenue and otherwise to self sustain
[00:08:41] [SPEAKER_00]: itself in scale so there is an opportunity to do so by itself but certainly when you combine the
[00:08:46] [SPEAKER_00]: two then you need what I would call enlightened leadership to move off of fee for service
[00:08:52] [SPEAKER_00]: and more towards value but not all organizations can traverse those waters at the same time so
[00:08:57] [SPEAKER_01]: one of the things that you said there is that there is an opportunity to start a pure play
[00:09:03] [SPEAKER_01]: primary care practice on its own do you feel like that is a hypothesis that has been borne out
[00:09:11] [SPEAKER_00]: well let's just say this it's not easy you know one man of on gallo are somewhat exceptions
[00:09:17] [SPEAKER_00]: to the rule but it's possible the reason why it's hard to do is the world has become increasingly
[00:09:23] [SPEAKER_00]: complicated and it's increasingly hard to run an independent primary care practice without a lot
[00:09:29] [SPEAKER_00]: of sophistication and so through unintended consequences through the policies that we have
[00:09:35] [SPEAKER_00]: you know starting up to know especially practices it's almost as hard as primary
[00:09:38] [SPEAKER_00]: care these days so the hospital consolidation has been happening for a reason and so yeah
[00:09:44] [SPEAKER_00]: it's increasingly hard but it is financially theoretically feasible it's just it requires a
[00:09:49] [SPEAKER_00]: different mindset to care in service operations that most folks don't have training in when you
[00:09:54] [SPEAKER_01]: say a different mindset what exactly do you mean and you also use the term enlightened leadership
[00:10:00] [SPEAKER_01]: maybe we start here what are the barriers exactly and specifically and I know a lot of our
[00:10:05] [SPEAKER_01]: listeners are like obviously if you're for service for the rock has destroyed primary care so
[00:10:10] [SPEAKER_01]: you know everybody's immediately going to be going the incentive payments are low
[00:10:13] [SPEAKER_00]: with primary care what else yeah so the main thing to think through is a lot of the world
[00:10:20] [SPEAKER_00]: is kind of viewed as a zero sum or binary state world where it's either a or b meaning fee for
[00:10:28] [SPEAKER_00]: service or value and you can't do both at the same time the rad is you can do both at the
[00:10:33] [SPEAKER_00]: same time it just requires a bit more creativity and innovation and the way you do that is frankly to
[00:10:40] [SPEAKER_00]: lower your unit costs if you can lower your unit costs you can make margin on fee for service
[00:10:45] [SPEAKER_00]: and you can actually now increase your scope and do more across value with the extra infrastructure
[00:10:51] [SPEAKER_00]: and enhance resources so I think there's a lot of different ways you can do both fee for service
[00:10:56] [SPEAKER_00]: and value it just takes a slightly different mindset to believe you can do both and I think
[00:11:01] [SPEAKER_00]: so many leaders kind of have these binary talking points about you can have your foot in two canoes
[00:11:07] [SPEAKER_00]: and a lot of that can be done it's just you kind of have to unlock yourselves from these kind of
[00:11:12] [SPEAKER_01]: binary modalities so it's interesting what you're saying and we're talking about a pure play
[00:11:16] [SPEAKER_01]: primary care practice right now what I'm hearing you say you can do this if you have some value
[00:11:22] [SPEAKER_01]: based contracts some of them and you also have you know if you have some value based you're
[00:11:28] [SPEAKER_01]: gonna have some fee for service I was listening to I think it was a radio advisory show where
[00:11:32] [SPEAKER_01]: they basically concurred with exactly what you're saying they're like it's not a binary there's these
[00:11:36] [SPEAKER_01]: spots in the middle where you've got varying amounts of value based contracts with fee
[00:11:43] [SPEAKER_01]: for service and that's not going to go away anytime soon it's not this kind of like
[00:11:48] [SPEAKER_01]: messy middle on the way to some Shangri-La like it is the way it is so what I'm hearing
[00:11:54] [SPEAKER_01]: you say is you can do a pure play primary care if you have some mix of value based and fee for
[00:11:59] [SPEAKER_01]: service and leadership is able to contend with having value based contracts as well as fee
[00:12:05] [SPEAKER_01]: for service contracts at the exact same time but then it also sounds like becoming very efficient
[00:12:10] [SPEAKER_01]: and lowering costs is also part of this mix did I get that right close I mean again there's a lot
[00:12:17] [SPEAKER_00]: subtleties in kind of the terms when I say value it's not only about value based arrangements and
[00:12:25] [SPEAKER_00]: payment architectures value is more about a mindset can I do more for less can I be more
[00:12:31] [SPEAKER_00]: effective more efficiently and so that mindset can exist in a 100% fee for service architecture
[00:12:37] [SPEAKER_00]: or a blended architecture where some of my payments are at risk so all I'm saying is
[00:12:43] [SPEAKER_00]: within primary care you can what I call slim down your overhead run your practice more effectively
[00:12:48] [SPEAKER_00]: and efficiently and be in a fee for service world and that's still a value focused mindset because
[00:12:54] [SPEAKER_00]: you're trying to do more for less and that's how we started off with one medical is trying
[00:12:59] [SPEAKER_00]: to do more for less and then we realized that oh wow we can make margin in primary care by itself
[00:13:04] [SPEAKER_00]: and then you know scaled it from there and so again it's a bit of the awareness that there
[00:13:10] [SPEAKER_00]: is hidden waste everywhere across every layer of the ecosystem and granted primary care is a smaller
[00:13:16] [SPEAKER_00]: thinner layer within the health care ecosystem but there are still opportunities to innovate within
[00:13:21] [SPEAKER_01]: that layer by itself what are some examples of hidden waste in a primary care practice the easiest
[00:13:28] [SPEAKER_00]: anecdote I would use or maybe kind of shorthand is look at all the people around any service model
[00:13:34] [SPEAKER_00]: and for the most part let's use knowledge based workers and ask yourself what percent of their day
[00:13:40] [SPEAKER_00]: is their brain effectively utilized and if it's you know let's call it any reasonable percent
[00:13:47] [SPEAKER_00]: that's an opportunity and I would argue that most clinicians most administrative personnel would say
[00:13:53] [SPEAKER_00]: my brain is not being effectively utilized my body in busy work is being effectively
[00:14:00] [SPEAKER_00]: utilized meaning my busy work is very high but my effective work the the thing that I most skill
[00:14:06] [SPEAKER_00]: that is being underutilized and so I think that's where in almost all service models we don't recognize
[00:14:13] [SPEAKER_00]: untapped talent untapped potential and the lack of productivity because people are just
[00:14:20] [SPEAKER_00]: underutilized and or the work is not organized to be most effective and this is true of all
[00:14:25] [SPEAKER_00]: service organizations when we were starting up one medical I was looking at all different
[00:14:29] [SPEAKER_00]: types of service organizations and you just you can see organizations where workers are engaged
[00:14:35] [SPEAKER_00]: and workers are not engaged and we have a high percent of unengaged workers particularly in
[00:14:40] [SPEAKER_00]: you know office based settings because it's chaotic right and that chaos dwarfs the ability to
[00:14:46] [SPEAKER_01]: actually think and do productive work I could ask you like 40 questions right now so let me
[00:14:51] [SPEAKER_01]: contain myself I love what you said about having a value focused mindset and that doesn't just
[00:14:56] [SPEAKER_01]: mean in a value based care payment architecture that one can have a value focused mindset anytime
[00:15:04] [SPEAKER_01]: including it even if it's pretty much all fee for service as I contemplate that in order to have
[00:15:12] [SPEAKER_01]: a value focused mindset you kind of really have to think about what is value what are we trying
[00:15:18] [SPEAKER_01]: to do what are our goals and I've heard that there's only four categories of goals really
[00:15:24] [SPEAKER_01]: you know you can have financial goals you can have patient reported outcome kind of goals proms
[00:15:29] [SPEAKER_01]: you can have clinician reported outcomes right like what is an outcome that a clinician thinks
[00:15:34] [SPEAKER_01]: is something to be proud of and then lastly some kind of performance metric of some kind
[00:15:40] [SPEAKER_01]: like patient satisfaction etc so as I'm thinking about what constitutes this value focused mindset
[00:15:46] [SPEAKER_01]: probably part of it or the whole thing is gonna have to begin with what do we think value
[00:15:52] [SPEAKER_01]: is because if you try to be efficient without necessarily understanding what good looks like
[00:15:58] [SPEAKER_01]: then you wind up cutting corners in ways that actually diminish whatever you're trying to
[00:16:04] [SPEAKER_01]: accomplish beyond some financial metric would you concur there or how do you think about it
[00:16:09] [SPEAKER_00]: yeah dimensionally I think those are reasonable ways to categorize thoughts around quality
[00:16:16] [SPEAKER_00]: or performance the reality is that the decision making in any organization is much more subtle
[00:16:21] [SPEAKER_00]: than that you know let's just kind of pick a simple dimension such as access or service which
[00:16:26] [SPEAKER_00]: correlates with patient net promoter score otherwise right what's appropriate same day
[00:16:31] [SPEAKER_00]: appointments next day appointments one week appointments one month appointments what's
[00:16:35] [SPEAKER_00]: quality there depends right on the clinical situation the economic model the economic
[00:16:41] [SPEAKER_00]: affordability so you can say all you want about the dimensions but the judgments are
[00:16:46] [SPEAKER_00]: still up to the organization to determine what do they value and what can they financially
[00:16:51] [SPEAKER_00]: and operationally achieve based on that and if we used access as a surrogate for the quality which
[00:16:58] [SPEAKER_00]: again I'm not saying that it should be the industry is not doing great and so to me you
[00:17:03] [SPEAKER_00]: know when I think about care as a clinician if a patient can't reach me I've lost the job
[00:17:08] [SPEAKER_00]: at step one if they can't reach me then how am I supposed to be able to take care of them
[00:17:12] [SPEAKER_00]: how can I give them great care to me access is one of just the first steps to quality
[00:17:17] [SPEAKER_00]: and it precedes quality at some level we do so poorly of that across the industry so
[00:17:23] [SPEAKER_00]: to me access is one dimension of quality that we should start with separate from all
[00:17:28] [SPEAKER_00]: the clinical decision making separate from all the follow-through separate from
[00:17:32] [SPEAKER_00]: what are called the experience and outcomes of care so you just take a simple metric like
[00:17:37] [SPEAKER_00]: access and say well are we doing a great job you know probably could be better I'm
[00:17:41] [SPEAKER_01]: definitely going to loop back on some of other ways or kind of the process by which one becomes an
[00:17:46] [SPEAKER_01]: enlightened leader who has a value-based mindset but before I do reconcile for me you know the
[00:17:54] [SPEAKER_01]: hypothesis that walmart had and walgreens and some of these other let's put a clinic inside a
[00:17:59] [SPEAKER_01]: place that our customers slash patients slash members already are that is going to be great
[00:18:06] [SPEAKER_01]: access right like they're already in the walmart so they can just pop by and get some medical service
[00:18:13] [SPEAKER_01]: and you said this you said access is going to be an important metric but not the only one
[00:18:19] [SPEAKER_01]: talk a little bit about the experience maybe that some of these clinics found out the hard way
[00:18:25] [SPEAKER_00]: well I mean let's call it the retail clinics just broadly speaking which has you know been a
[00:18:30] [SPEAKER_00]: 20 plus year concept in general and has failed to what we call really truly deliver
[00:18:35] [SPEAKER_00]: great longitudinal primary care they've been convenient vaccine shops in you know what to
[00:18:42] [SPEAKER_00]: call minor urgent care type of clinics but very few have really become longitudinal primary care
[00:18:49] [SPEAKER_00]: destinations and that's the key difference right access is different from somebody who knows me
[00:18:55] [SPEAKER_00]: and can manage my care longitudinally as a true primary care provider most of the retail
[00:19:00] [SPEAKER_00]: clinics are really servicing as you know other versions of urgent care which there are plenty of
[00:19:06] [SPEAKER_00]: with plenty of access and so in the absence of what I call longitudinal access there's our
[00:19:12] [SPEAKER_00]: convenient options out there that are transactional if need be right including the er they aren't
[00:19:18] [SPEAKER_00]: the best places to get your care necessarily but those are other access points and so the
[00:19:23] [SPEAKER_00]: second point is really who is on the other side and what are they doing for me at this
[00:19:28] [SPEAKER_00]: location there's a separate issue just the economics of this when it's not your core business to run
[00:19:34] [SPEAKER_00]: a service operation it's hard to stand up a service operation and I think people don't
[00:19:39] [SPEAKER_00]: realize that service operations aren't a second job they should be your first job and I think
[00:19:45] [SPEAKER_00]: people tended to underestimate and I think still do how hard it is to run a service operation
[00:19:51] [SPEAKER_01]: particularly within primary care yeah I mean I have heard that in Walmart just to echo
[00:19:56] [SPEAKER_01]: this point they were looking at the square footage the clinic was taking up and deciding
[00:20:00] [SPEAKER_01]: they could make more money selling tires in that same square footage so yeah there's all
[00:20:04] [SPEAKER_01]: kinds of issues that were going on there but from what I'm hearing if we're thinking about
[00:20:08] [SPEAKER_01]: what is a value focused mindset that one of the first things to figure out like what are you
[00:20:13] [SPEAKER_01]: trying to accomplish and what does that look like and you're highlighting the idea of access
[00:20:17] [SPEAKER_01]: as a proxy for some performance metric but you also need to be really contemplative of
[00:20:23] [SPEAKER_01]: how do you become a longitudinal care destination it sounds like that's kind of like high on your
[00:20:27] [SPEAKER_01]: list to really think through what is a longitudinal care destination what does that look like I mean
[00:20:33] [SPEAKER_01]: probably relationships right like that seems to be a thing in and of itself that you sort of have
[00:20:38] [SPEAKER_00]: to get right yeah I mean it all depends on how you define primary care and for what reason the
[00:20:43] [SPEAKER_00]: reason why people like primary care conceptually is in theory again it offers a better way to
[00:20:52] [SPEAKER_00]: get value for your dollar in care that's true if primary care is delivering on its promise today
[00:20:59] [SPEAKER_00]: it's not delivering on its promise because it's been obviously low reimbursement and high complexity
[00:21:04] [SPEAKER_00]: overhead have really diminished the capabilities of most primary care offices in general but
[00:21:10] [SPEAKER_00]: if you were to say hey primary care's purpose is to be a general place of care
[00:21:15] [SPEAKER_00]: longitudinally to handle most issues that's the promise of primary care I think that's very different
[00:21:22] [SPEAKER_00]: than a minute clinic or some transactional system that's focused on convenience and so
[00:21:27] [SPEAKER_00]: that second dimension that we talked about after access is important and that is where the economics
[00:21:34] [SPEAKER_00]: really struggle you know open access is somewhat of an operational problem that doesn't cost
[00:21:39] [SPEAKER_00]: dollars that just costs management discipline you know open access is a concept that's been
[00:21:44] [SPEAKER_00]: based around for 20 30 plus years you just have to execute it but not many organizations execute open
[00:21:50] [SPEAKER_00]: access the second dimension is running a longitudinal primary care practice in a cost efficient manner
[00:21:56] [SPEAKER_00]: given the reimbursement architecture and that is challenging and what you include in the scope
[00:22:00] [SPEAKER_00]: of primary care not just kind of the label but the actual content matters and how you do it
[00:22:06] [SPEAKER_00]: matters and so that's where the service complexity starts to really take hold and
[00:22:10] [SPEAKER_00]: I think people tend to not really understand what that means in a traditional environment
[00:22:15] [SPEAKER_01]: so we're talking about the two dimensions that are super important to be contemplative of one is
[00:22:21] [SPEAKER_01]: access and convenience and then the other one is this how do you be perceived as an execute on
[00:22:27] [SPEAKER_01]: a longitudinal patient journey and now i'm going to go back to something that you had talked
[00:22:32] [SPEAKER_01]: about before which was also it definitely sounded like making sure that amongst the employees or
[00:22:40] [SPEAKER_01]: those that are working within the practice there's a lot of untapped talent potential and checking
[00:22:46] [SPEAKER_01]: to see what percentage of someone's day is effectively utilized and how much of it is
[00:22:51] [SPEAKER_01]: busy work and then getting rid of the busy work another way to say this which i don't like
[00:22:55] [SPEAKER_01]: because it's become a euphemism for all kinds of bad behavior but this idea of working at the
[00:23:00] [SPEAKER_01]: top of your license just making sure that everybody is cognitively able to deliver at the level that
[00:23:07] [SPEAKER_01]: they know that they can and not get bogged down into just bureaucratic madness that burns people out
[00:23:13] [SPEAKER_01]: and is often so frustrating for really good people who understand what they could achieve
[00:23:18] [SPEAKER_01]: and just the latent potential that's kind of lost so like that's kind of like one side of this
[00:23:23] [SPEAKER_01]: but then the other side i know you've talked at length about like the one medical app and
[00:23:28] [SPEAKER_01]: other things that that you've created on the technology side and then processes also
[00:23:33] [SPEAKER_01]: is that kind of the sum of what you're thinking about as you think about how do you efficiently
[00:23:38] [SPEAKER_01]: and effectively within the current kind of crappy payment models for primary care actually
[00:23:42] [SPEAKER_01]: succeed in a primary pcp or what am i missing or what do you want to dig into yeah i mean i
[00:23:48] [SPEAKER_00]: think some of the nuances on a service business are challenging for a lot of quote
[00:23:54] [SPEAKER_00]: traditional managers when you look at a service business the human beings are the service and so
[00:24:01] [SPEAKER_00]: you really have to think about the dynamism of it what it means to be a caregiver a team member
[00:24:06] [SPEAKER_00]: that's interacting with a patient there's that human organic dimension and then there's just
[00:24:12] [SPEAKER_00]: the basics of operations and finance on running sustainable practice and those two sometimes
[00:24:19] [SPEAKER_00]: work against each other in some places you see humans doing work that machine should be doing
[00:24:24] [SPEAKER_00]: as an assembly line and you know that's not a great use and in other situations you have people
[00:24:30] [SPEAKER_00]: that are purely just ad-libbing and that's not great from an economic perspective so you have to
[00:24:35] [SPEAKER_00]: find that right balance of operations and human centeredness to create the best service
[00:24:41] [SPEAKER_00]: organizations otherwise they feel like a machine and soulless or they have too much
[00:24:48] [SPEAKER_00]: organic behavior and they feel chaotic so that middle ground is where the service businesses
[00:24:54] [SPEAKER_00]: at least from my observation the best ones tend to thrive but you got to find that right balance
[00:24:59] [SPEAKER_00]: and this is one of those things that capitalism and business school don't do a great job at
[00:25:05] [SPEAKER_00]: which is kind of finding that gray middle where you get a bit of both working well together
[00:25:10] [SPEAKER_00]: and I think that's a lot of what makes to me services businesses you know exciting and challenging and
[00:25:16] [SPEAKER_01]: and dynamic how do you start that if you were going to give somebody some advice
[00:25:21] [SPEAKER_01]: who's sitting here thinking huh I would like to check and see how I'm doing with this
[00:25:27] [SPEAKER_01]: what's step one to figure out where that sweet spot in the middle is number one
[00:25:32] [SPEAKER_00]: and I don't know if this can be taught but you kind of have to give it I don't know
[00:25:35] [SPEAKER_00]: I can say this but you have to give a shit you really have to care about people if you don't
[00:25:40] [SPEAKER_00]: then you're you're going to be losing that side of the equation and so you fundamentally have to
[00:25:46] [SPEAKER_00]: believe in supporting your team and supporting patients as humans that has to be innate or at
[00:25:52] [SPEAKER_00]: least very high on the list of things you care about if you don't start there then
[00:25:57] [SPEAKER_00]: you're actually working against yourself the second I would say is just understanding
[00:26:02] [SPEAKER_00]: you know math and operations and basic machinery and those are the two ends of the pole and then
[00:26:09] [SPEAKER_00]: the beauty is using the tools of math and science and whatever to shape ecosystems that are more
[00:26:17] [SPEAKER_00]: likely to produce positive outcomes for your team and the patients we care about and so that's
[00:26:23] [SPEAKER_00]: kind of the nuance that at least you know most of the work I've done have at least so far
[00:26:28] [SPEAKER_00]: resulted in you know pretty positive ecosystems I definitely hear what you're saying that on one
[00:26:33] [SPEAKER_01]: side of our axis here we have you have to give a shit and also understand people and by people
[00:26:40] [SPEAKER_01]: we're including colleagues and being a good manager and then also patients and what good
[00:26:47] [SPEAKER_01]: patient care looks like the healthcare is fundamentally a very human operation it will
[00:26:53] [SPEAKER_01]: succeed if there's relationships if there's trust and that has to happen very much at a level where
[00:26:59] [SPEAKER_01]: someone's EQ is high enough to be able to do that I had a mentor one time that would would say
[00:27:05] [SPEAKER_01]: repeatedly you can't legislate the heart and I think that might be what you mean by that on the
[00:27:11] [SPEAKER_01]: other hand it's also understanding how operations works and math and technology what can be
[00:27:18] [SPEAKER_01]: automated and is there an API for that that site also becomes incredibly important because if you
[00:27:23] [SPEAKER_01]: have a human doing something repeatedly that's where we get ourselves in tons of trouble you
[00:27:28] [SPEAKER_01]: know it takes 90 clicks to do the right thing for a patient even the most caring person in
[00:27:33] [SPEAKER_01]: the world could be undermined so finding that middle ground is certainly not something
[00:27:39] [SPEAKER_01]: that's easy but I can see exactly what you're saying that is really essential to be able
[00:27:44] [SPEAKER_01]: to do is there any other kind of summary advice that you might give to someone who's now thinking
[00:27:48] [SPEAKER_01]: to themselves hmm I gotta dig in here yeah I mean the only other thing would maybe be
[00:27:53] [SPEAKER_00]: you know especially coming from a medical world where it's like research validate and then do
[00:28:00] [SPEAKER_00]: a lot of you know real-world innovation happens from trial and error and I think people tend
[00:28:05] [SPEAKER_00]: to underestimate that in service oriented clinical cultures and so you kind of have to always
[00:28:10] [SPEAKER_00]: be tweaking and figuring things out it's a dynamic industry that that is the challenge is
[00:28:16] [SPEAKER_00]: how do you continue to innovate and learn and change given all the human machinery it's easy
[00:28:22] [SPEAKER_00]: to upgrade software you just upgrade the software and that's there but how do you continuously
[00:28:27] [SPEAKER_00]: upgrade the service operating platform a little bit more challenging especially at scale how do
[00:28:32] [SPEAKER_01]: you put together this enlightened leadership team then that is able to do that is there a certain
[00:28:36] [SPEAKER_01]: composition of who's leading is there you know like they gotta work with patients three times a day
[00:28:44] [SPEAKER_01]: maybe what advice do you have to put together a leadership team that is capable of finding
[00:28:49] [SPEAKER_00]: that middle ground it's challenging I don't know if I've got the right playbook I've only
[00:28:54] [SPEAKER_00]: done this now twice but when my home gala we've relied on different talent different pools of
[00:28:59] [SPEAKER_00]: talent different equations so I don't think there's necessarily a one size if it's all playbook
[00:29:05] [SPEAKER_00]: I think it has to be adaptive to the strategy the operations in kind of the people goals
[00:29:11] [SPEAKER_00]: it's just like anybody who's being thoughtful about architecting their org it's at some level
[00:29:17] [SPEAKER_00]: a bit more intuitive I guess and imagining how things should work and what talent types you
[00:29:24] [SPEAKER_00]: do need so it's a little bit like cooking it's like what ingredients do I need it varies depending
[00:29:30] [SPEAKER_00]: on what you're trying to cook up so the ingredient mix at least for me has changed between one medical
[00:29:36] [SPEAKER_00]: and gala on between gala early stage and we're moving into middle stage of the organization in
[00:29:42] [SPEAKER_00]: terms of scale so the types of people and the types of needs are different I guess maybe the only
[00:29:47] [SPEAKER_00]: the corollary is I don't see a lot of talent you can hire and suddenly you have a instant
[00:29:52] [SPEAKER_00]: voila you know there's just the industry is so immature from my perspective that you
[00:29:57] [SPEAKER_00]: can't just find somebody and just bolt them in very often it needs to be a skill set or a mindset
[00:30:04] [SPEAKER_00]: that's being added and it needs to be shaped within the org dynamically it's very rarely just
[00:30:10] [SPEAKER_01]: plopped in it feels like what you're saying it's super important to make sure the leadership team
[00:30:16] [SPEAKER_01]: is purpose built to achieve the goals which are set forth which are clear because it's not
[00:30:22] [SPEAKER_01]: necessarily like oh this person checks all the boxes relative to skills so it's going to
[00:30:27] [SPEAKER_01]: work out here it's also do they believe the same things do they care in the same ways as well so
[00:30:34] [SPEAKER_01]: it's definitely it's going to be a special blend depending I mean even on what part of the country
[00:30:39] [SPEAKER_01]: healthcare is local right so there also could be a consideration relative to what the needs of
[00:30:45] [SPEAKER_01]: the local community are so maybe yeah I just want to go back to this longitudinal patient
[00:30:51] [SPEAKER_01]: journey thinking about you know you've got the access part of the equation which may in a
[00:30:56] [SPEAKER_01]: way if you can figure out how to operationalize it be somewhat of the easy part the other part here
[00:31:00] [SPEAKER_01]: is how do you pay for and have a sustainable business model around this longitudinal patient
[00:31:05] [SPEAKER_01]: journey given just kind of this paradox here that you may not necessarily get the help that
[00:31:10] [SPEAKER_01]: you want from entities who are downstream that in a way you're eating their cheese so if you're
[00:31:15] [SPEAKER_01]: thinking about this longitudinal patient journey I was talking to Dr. John Lee the other day who
[00:31:20] [SPEAKER_01]: was basically he had gone to some seminars a summit and they discovered that one of the best ways
[00:31:27] [SPEAKER_01]: to get heart failure patients to report their blood pressure in between ER visits and subsequent
[00:31:35] [SPEAKER_01]: readmissions was to have a nurse call him on the phone and ask him what their blood pressure
[00:31:39] [SPEAKER_01]: reading was but nobody was doing it or they're having a great struggle figuring out how to do
[00:31:44] [SPEAKER_01]: this because it wasn't paid for I could certainly see that if we're thinking about a longitudinal
[00:31:50] [SPEAKER_01]: patient journey that examples just like that would come up day in and day out because it requires
[00:31:58] [SPEAKER_01]: outreach you know the reason why a patient has uncontrolled something or other is because
[00:32:03] [SPEAKER_01]: they're not controlling it and they're you know like the patients that most need engaged are
[00:32:07] [SPEAKER_01]: the ones who are not engaged how do you think about that especially in light of what you
[00:32:12] [SPEAKER_01]: were talking about before where a lot of this world is still fee for service like if you get a
[00:32:16] [SPEAKER_01]: value-based contract great but if not what do you do yeah you know a lot of the work we did
[00:32:22] [SPEAKER_00]: one medical and at Gallo is if you can be efficient wherever you can be efficient you
[00:32:28] [SPEAKER_00]: generate extra margin where you can make incremental investments in quality that
[00:32:32] [SPEAKER_00]: aren't paid for so a lot of quality based metrics unless you're an ACO or value-based
[00:32:38] [SPEAKER_00]: arrangements don't really pay for themselves but they're important to do so a lot of times I'm
[00:32:44] [SPEAKER_00]: investing in quality programs through the margin you can generate through reimbursable services so
[00:32:50] [SPEAKER_00]: that's why you know being lean allows you to do the quality based care regardless of payment
[00:32:55] [SPEAKER_00]: architecture but that level investment varies depending on how labor intensive the quality
[00:33:01] [SPEAKER_00]: investment is and or you know the systems you have to support it all of that kind of
[00:33:06] [SPEAKER_00]: needs to fit as part of the thesis on what kind of care system you're trying to build
[00:33:11] [SPEAKER_01]: what I'm hearing you say is maybe you find services you can get paid for through fee for service
[00:33:19] [SPEAKER_01]: you figure out how to do those billable things as absolutely efficiently as possible then you
[00:33:25] [SPEAKER_01]: wind up with a couple of bucks leftover that you can throw in the pot of all right we're
[00:33:29] [SPEAKER_01]: going to outreach our heart failure patients even though we're not getting paid for it
[00:33:32] [SPEAKER_01]: correct does margin at a certain point start eating mission because I could see if you've
[00:33:37] [SPEAKER_01]: got private equity or you have entities in the mix here who are really really into value extraction
[00:33:42] [SPEAKER_01]: meaning get it making as much money as possible that they may not be super happy with that plan
[00:33:48] [SPEAKER_00]: yeah those are the trade-offs of mission and trying to achieve societal impact versus margin
[00:33:55] [SPEAKER_00]: whether it's third party capital or your own home equity loan to finance your practice it's
[00:34:01] [SPEAKER_00]: all the same thing financial incentives versus human and human factor dimensions and those always
[00:34:08] [SPEAKER_00]: are at some level traded off it's just an issue of what's the right ratio at what time frame and
[00:34:13] [SPEAKER_00]: can you make more of it work than less but yes true of almost all businesses at one form or
[00:34:18] [SPEAKER_01]: another how do you address that trade-off like if you are standing in front of a board of directors
[00:34:27] [SPEAKER_01]: who's basically saying make more money do you have any lessons to share yeah I mean I think
[00:34:34] [SPEAKER_00]: as younger innovators and entrepreneurs you just have fewer degrees of freedom to make that trade-off
[00:34:39] [SPEAKER_00]: on behalf of investors but as you get more experience and have credibility and frankly
[00:34:45] [SPEAKER_00]: you still need a financial equation on everything you can at least have a coach and dialogue with
[00:34:51] [SPEAKER_00]: investors but that is inherently the challenge and where more organically funded entities
[00:34:57] [SPEAKER_00]: have more degrees of freedom to do so I think that's just kind of the trade-off on
[00:35:01] [SPEAKER_00]: professional capital versus not professional capital allows you to you know scale quickly and and grow
[00:35:07] [SPEAKER_00]: and entity with one medical we knew there was inherently a trade-off by taking professional
[00:35:12] [SPEAKER_00]: capital but allowed us to scale the concept more rapidly and that was the trade-off we made
[00:35:17] [SPEAKER_00]: and same thing with Galileo at some level you're always trying to find that right balance
[00:35:21] [SPEAKER_00]: and dialogue it's the power of capitalism but also the the downside of it if it's unchecked
[00:35:27] [SPEAKER_00]: and so we always need to as humans try to find that right balance whether you're on the investor side
[00:35:32] [SPEAKER_00]: or on the operator side I think both sides need to find that right balance yeah it certainly
[00:35:37] [SPEAKER_01]: sounds like again we've got a situation where it's no binary right like there's no right or
[00:35:43] [SPEAKER_01]: wrong there's this gray area in the middle we've been talking about that earlier you have
[00:35:48] [SPEAKER_01]: to have people that have some level of autonomy and freedom but it can't be complete chaos also
[00:35:54] [SPEAKER_02]: you can't take your way out of a problem caused by tech a lot of times so there's a lot of edge cases
[00:36:01] [SPEAKER_00]: and yeah that's where the productive middle is we tend to underestimate that productive middle as
[00:36:06] [SPEAKER_00]: gray zone but that's where I think there's a lot of productive energy you know and not to make
[00:36:11] [SPEAKER_00]: it overly political but ideally the political system would be a little bit more actively
[00:36:16] [SPEAKER_00]: engaged in the middle as well to be more productive but these kind of binary states of the world are
[00:36:21] [SPEAKER_00]: just not productive for solving our problems and so we just need to kind of figure out ways
[00:36:26] [SPEAKER_01]: to find that right balance what's your message for payers and I'm thinking for example Medicaid
[00:36:33] [SPEAKER_01]: and I know a lot of your current work with Galileo I do believe I could be wrong is with
[00:36:38] [SPEAKER_01]: Medicaid and managed Medicaid maybe Medicare but you know a lot of the work that you're doing
[00:36:42] [SPEAKER_01]: should again if we're achieving the promise of primary care reduce the total cost of care
[00:36:49] [SPEAKER_01]: but there is kind of a short-sighted quarter by quarter thinking and then nobody's going to pay
[00:36:54] [SPEAKER_01]: for the nurse to call up the heart failure patient to keep them out of the hospital next
[00:36:57] [SPEAKER_01]: quarter right what would be your overarching message for them yeah so you know we work with all
[00:37:02] [SPEAKER_00]: program types commercial ACA Medicare Medicaid and operate within all the constraints on
[00:37:08] [SPEAKER_00]: reimbursement I think I understand the challenges in the sense that when you're running a state-based
[00:37:14] [SPEAKER_00]: Medicaid program there's a limit to what you can really do in shape you're mostly controlling
[00:37:19] [SPEAKER_00]: the reimbursement architectures and so whether through intent or not a lot of the reimbursement
[00:37:25] [SPEAKER_00]: on a fee for service basis in most states is unsustainable for most practices to achieve
[00:37:31] [SPEAKER_00]: any basic form of margin so when you do that you limit access to the upstream outpatient
[00:37:37] [SPEAKER_00]: medicine and then you have excessive utilization of more downstream resources like he ours just you know
[00:37:44] [SPEAKER_00]: everywhere we've under reimbursed in the upstream and the downstream is where most people
[00:37:50] [SPEAKER_00]: end up showing up so the constraints are harder frankly in a lot of these Medicaid programs
[00:37:54] [SPEAKER_00]: but we've been able to kind of innovate into that when we started Galileo the goal was to
[00:38:00] [SPEAKER_00]: service last small communities rural communities Medicaid communities because if we can do that
[00:38:06] [SPEAKER_00]: sustainably we knew we could take care of everybody else sustainably as well because it was
[00:38:10] [SPEAKER_00]: what we called the thinnest air and so that's been our North Star on innovation so if we can service
[00:38:16] [SPEAKER_00]: a higher quality model to all lives including complex Medicaid lives and rural lives then
[00:38:22] [SPEAKER_00]: everybody else serves to benefit so it's a harder challenge I wouldn't have done that
[00:38:26] [SPEAKER_00]: as my first company and doing one medical was hard enough but it allowed me the insight to
[00:38:32] [SPEAKER_00]: understand how to innovate into some of these more complex situations and what are the conversations
[00:38:37] [SPEAKER_01]: that you then have with these Medicaid plans who as you said have these unsustainable payment models
[00:38:44] [SPEAKER_01]: for fee for service obviously you've got some IP that's in this space so I don't want to ask
[00:38:50] [SPEAKER_01]: you anything untoward but how do you do that like as you said it's the thinnest air the
[00:38:55] [SPEAKER_01]: reimbursement levels a lot of times I mean not in some states but in others for sure
[00:38:59] [SPEAKER_01]: are incredibly thin is this kind of going back to what we were talking about before this kind of
[00:39:06] [SPEAKER_01]: people process finding that middle ground or is there something else going on here no it's a
[00:39:10] [SPEAKER_00]: it's the same mindset with more intensity how do we more effectively care for populations and
[00:39:17] [SPEAKER_00]: individuals more efficiently using tech and data we believe we have one of the most efficient
[00:39:22] [SPEAKER_00]: care models that can service lives across broad demographics across broad geos and then
[00:39:29] [SPEAKER_00]: we have high intensity services around high cost lives and so wherever we can get value alignment
[00:39:36] [SPEAKER_00]: or value arrangements we do that allows us to scale up our operations even in what we call
[00:39:42] [SPEAKER_00]: complex markets or low reimbursement markets so that's how we've generally operated it's still
[00:39:49] [SPEAKER_00]: early innings in terms of how do we validate this across every state but so far the early
[00:39:53] [SPEAKER_01]: data points seem promising and what message would you have for like cmmi or a policy maker who's in
[00:40:01] [SPEAKER_01]: this mix who may be hearing about these thin margins but also kind of stuck between a rock in a
[00:40:06] [SPEAKER_01]: hard place a lot of times there's not enough money to go investing in infrastructure paying
[00:40:11] [SPEAKER_01]: a lot for value-based care now to save money you know years down the line there's just not
[00:40:16] [SPEAKER_01]: this bolus of cash that's available right now so it is really hard but maybe through your experience
[00:40:22] [SPEAKER_00]: you have some sage wisdom i understand if you're at cmmi's position it's hard to watch all the
[00:40:28] [SPEAKER_00]: different kind of machinations and translations across each state particularly on the medicaid
[00:40:32] [SPEAKER_00]: side but there are operators that are working within the system to innovate on quality and
[00:40:39] [SPEAKER_00]: affordability as broadly as possible it does take time we should continue innovation grants
[00:40:44] [SPEAKER_00]: and other experiments but at the same time allow enough stability in the marketplace to
[00:40:50] [SPEAKER_00]: continue to evolve a lot of these innovations just take time more importantly is just the lack of
[00:40:55] [SPEAKER_00]: what i call operational understanding and operational wisdom in the broader industry that
[00:41:01] [SPEAKER_00]: that's where we need to you know even consider reinvesting our insights it's just a it's
[00:41:07] [SPEAKER_00]: a very challenging business hospital operations are complex outpatient operations are complex
[00:41:12] [SPEAKER_00]: insurance operations are complex they all need to kind of work together now having gone down the
[00:41:18] [SPEAKER_00]: rabbit hole and partnered with almost every type of institution you just have empathy for all the
[00:41:23] [SPEAKER_00]: different organizations and how everybody wants to do the right thing but they're trapped in
[00:41:28] [SPEAKER_00]: their own economics and the architectures and sure a radical reimbursement change and policy
[00:41:34] [SPEAKER_00]: might change things but politically that seems just untenable so we just have to figure out how
[00:41:40] [SPEAKER_00]: to operate within the system and ideally figure out how to you know get more collaborative
[00:41:45] [SPEAKER_00]: partnerships in place so that organizations can really validate what's possible we've been
[00:41:51] [SPEAKER_00]: partnered with a variety of different types of entities to validate this further so we can
[00:41:54] [SPEAKER_00]: make sure that we all are working cooperatively together from health plan to you know we view
[00:42:00] [SPEAKER_00]: ourselves as a provider group to employers and hospital systems we're all key parts of the
[00:42:05] [SPEAKER_01]: ecosystem I was just talking to Dr Scott canard and Pat done from the AHA and they just did a study
[00:42:10] [SPEAKER_01]: that showed if a patient has a advanced primary care visit and when I say advanced primary care
[00:42:17] [SPEAKER_01]: visit there was a bunch of specifications for what that constituted it took two years for there to
[00:42:24] [SPEAKER_01]: be any significant impact in health and cost savings but after that two-year mark it was
[00:42:33] [SPEAKER_01]: statistically significant so it's just interesting that knowing that you have to be working with entities
[00:42:42] [SPEAKER_01]: who can think in terms of two-year timelines and that's rough yeah some of those areas are
[00:42:49] [SPEAKER_00]: challenging obviously because the internal incentives are misaligned where there's
[00:42:54] [SPEAKER_00]: clear public goods where there's very little economic interest for the entities themselves
[00:42:58] [SPEAKER_00]: there's a way to help offset the costs of those types of services I think that could go a long way
[00:43:05] [SPEAKER_00]: to kind of improving on the long-term quality and long-term health of society but again even
[00:43:11] [SPEAKER_00]: that alone might be challenging to push through legislatively so you're the point that you're
[00:43:16] [SPEAKER_01]: making there is great that we know that but still you're going to have to figure out how to
[00:43:21] [SPEAKER_01]: operate within a context that values the short term to a much greater degree so figure out
[00:43:26] [SPEAKER_00]: how to do it within a fee-for-service model yeah that's our bias I mean we're trying to do more
[00:43:32] [SPEAKER_00]: within the ecosystem and it helps our providers feel better about our organization the fact that
[00:43:38] [SPEAKER_00]: we do focus on quality even regardless of how it's paid that's a positive thing as a provider
[00:43:44] [SPEAKER_00]: organization to be focused on especially in today's world where you talk about you know the
[00:43:49] [SPEAKER_00]: challenges of being a primary care physician today half of it's the busy work but half
[00:43:54] [SPEAKER_00]: it's just the realization that you're not really doing high quality work because of the constraints
[00:43:59] [SPEAKER_00]: of the system and I think that's what creates what we call moral fatigue or this kind of challenge
[00:44:05] [SPEAKER_00]: of purpose for a doc so many docs you know I just got back from my med school reign and it's just
[00:44:10] [SPEAKER_00]: like we went into the profession wanting to care for patients and this kind of vision is
[00:44:16] [SPEAKER_00]: increasingly eroded as just the operations have made the practice not just kind of
[00:44:21] [SPEAKER_00]: lifestyle unsustainable but just at some of them morally unsustainable yeah that's really
[00:44:26] [SPEAKER_01]: interesting that you say that and okay so now I'm connecting a dot back to what we were talking
[00:44:30] [SPEAKER_01]: about at the top of this conversation relative to the people are really important like you can't
[00:44:34] [SPEAKER_01]: process your way into amazing people who really care so if you're trying to recruit and attract
[00:44:40] [SPEAKER_01]: great doctors who really care which can solve for a lot just having people and colleagues who
[00:44:48] [SPEAKER_01]: are thinking about things in a really innovative way and able to build these patient relationships
[00:44:55] [SPEAKER_01]: etc so if you want to attract a great staff then doing some of this stuff may not be in air quotes
[00:45:01] [SPEAKER_01]: financially immediately rewarding but it could wind up in a very significant way contributing
[00:45:09] [SPEAKER_01]: to getting the right people who actually do in a direct way contribute to all the stuff
[00:45:14] [SPEAKER_01]: that we're talking about that is going to make a primary care practice a pure play both financially
[00:45:19] [SPEAKER_01]: sustainable but also in such a way that delivers on the promise of primary care yep exactly do you
[00:45:27] [SPEAKER_01]: have anything that you want to sum up here with any words of wisdom or advice just having done
[00:45:33] [SPEAKER_01]: and been as successful as you have been in the industry I do feel like a lot of people are
[00:45:39] [SPEAKER_00]: pitching value in an easy to consume way and I would just be sanguine and wary about anybody
[00:45:47] [SPEAKER_00]: pitching quote-unquote ROI or cost savings in a turnkey fashion I just think it's much more
[00:45:53] [SPEAKER_00]: complicated and challenging to truly do mean we're all interested in long-term total
[00:45:59] [SPEAKER_00]: cost of care reduction while improving quality I think it's harder to achieve than most people
[00:46:04] [SPEAKER_00]: realize and I think we should be somewhat humble by the opportunity and also the ability to get
[00:46:11] [SPEAKER_00]: there quickly that being said we're learning a ton and we're starting to see the needle moving on
[00:46:16] [SPEAKER_00]: a lot of populations from total cost of care and quality and so on the bright side I do think
[00:46:22] [SPEAKER_00]: it's quite possible for organizations to get there and I do think that the American society has
[00:46:28] [SPEAKER_00]: the potential to get there in a reasonable time frame let's call it the next five to ten years to
[00:46:34] [SPEAKER_00]: really validate improving of the cost trend while improving quality and hopefully the long-term
[00:46:41] [SPEAKER_00]: livelihood of our population and so I do think that there is light at the end of the tunnel
[00:46:46] [SPEAKER_00]: but we have to be patient and somewhat committed to working together on solving this thing but
[00:46:51] [SPEAKER_01]: I do think it is solvable great advice is there anywhere that you would direct our listeners
[00:46:56] [SPEAKER_00]: to learn more about your work Dr. Tom Lee? Yeah I mean outside of our website I don't have anything
[00:47:01] [SPEAKER_00]: else to point you to I tend to be kind of heads down so if anything this podcast and others but
[00:47:07] [SPEAKER_00]: that would be kind of a circular loop if I had you referred back here so listen to the show
[00:47:12] [SPEAKER_02]: again and again and again Dr. Tom Lee thank you so much for being on Relentless Health
[00:47:18] [SPEAKER_01]: Value today thanks Stacy so let's talk about going over to our website and typing your email
[00:47:23] [SPEAKER_01]: address in the box to get the weekly email about the show that has come out sometimes people don't
[00:47:29] [SPEAKER_01]: do that because they have subscribed on iTunes or Spotify and or we're friends on LinkedIn what you
[00:47:36] [SPEAKER_01]: get in that email is a full and unredacted unedited version of the whole introduction
[00:47:43] [SPEAKER_01]: of the show transcribed there's also show notes with timestamps just a prize in you of
[00:47:48] [SPEAKER_01]: the options that are available thanks so much for listening

