What are the themes from healthcare leaders as we enter 2022. Labor Supply chains, customer centricity, strong balance sheets are among them. Today we look at the Baylor Scott and White presentation to explore themes around customer centricity.
Today in health, it working through the Baylor Scott and white JPM presentation and in doing so, we're going to look at some of the themes from JPM. My name is bill Russell. I'm a former CIO for a 16 hospital system. And create, or this week in health, it. A channel dedicated to keeping health it staff current and engaged.
We want to thank our show sponsors or investing in developing the next generation of health leaders, Gordian dynamics, Quill health Taos site nuance, and current health. Check them out at this week. health.com/today. All right today. Here's what I thought I'd do. I thought I'd take a couple of the presentations, break them down a little bit.
, and in doing so, give you an idea of some of the themes. I really liked the Baylor Scott and white presentation. I think it captured a bunch of the themes and I loved their section on strategy. So. I thought I would, , touch on that because I think there's some value to our community to hear this whole concept around the consumer experience and how they're approaching it.
So let me give you a little background on. , Baylor Scott and white. So the presenters are Pete McKenna, CEO, and Jennifer Mitzner. Who is the CFO? ,on the organization. , about:
About a million covered lives through their managed care programs and their insurance, , capabilities, 7.8 million patient encounters annually. 2.2 million digital accounts created. We'll get into that in a little more detail. 49,000 employees, 7,300 physicians. 11.7 billion in revenue. We'll give you a little bit on the financials, but not much to be honest with you.
, strategic foundation for their growth. They've a virtual platform that they're very excited about. Again, more details in a minute. , they are about personalizing the customer experience. They have a CRM set up, they're integrating their CRM with other parts of their, , technology foundation to ensure that they are able to personalize the customer experience.
, at 96 million in Medicare shared savings program, 96 million. That's actually quite an accomplishment. And. It's an indication of good operational performance. Standardization and digitization of core clinical processes, including clinical variation, primary care and perioperative. I love the fact that they're doing the things they need to do to make sure that they can scale. , they launched a share services transformation over the last couple of years for scale and efficiency. And they successfully deployed some customer centric, pilots around price transparency and home services. So all of those things indicate an organization that is pretty sound.
From an operational standpoint and pretty sound from a. , platform standpoint. So they're putting the right platforms in place so that they can. , participate in a let's call it a customer centric model. , more so than a patient centric model. ,
so the CEO, Pete McKenna. Made note, they look at technology to provide for, , care in a more effective fashion.
, either the communication. Or the delivery of actual care, making it more efficient for both on the patient side of the equation and on the provider side of the equation. And they are. , not shy about investing in digital tools to set that up. They are ready to partner at scale. And I think that's one of the important things. We heard a lot about organizations at the JP Morgan conference.
, partnering in key areas. You know, in the wellness area, retail, virtual care, primary care. Imaging acute care. Most organizations have a strong partnering. , foundation from a technology standpoint, from a business operation standpoint. So a partnership platform is something to look for, , in, in a healthy organization. Let me give you a little bit of the financials, 11 million in revenue we talked about earlier 10.8.
Percent operating margin that is extremely healthy. 300 plus days, cash on hand debt to cap ratio, 34%. So very strong balance sheet. , I'm not going to go into too much detail on the financials. , you know, a common refrain was that we have a staffing. Crisis. I think crisis is the right word.
, we heard it from every organization and a lot of the questions that came from the audience. , to these healthcare providers was about staffing. How are you addressing it? And what, what are you doing? So. , we have a staffing crisis right now, more than a COVID crisis. Right. So Omicron is impacting healthcare workers.
And keeping them out of work. So this is a significant problem. , hospitals are now canceling surgeries again and delaying care for people who need it. I think we'll see that next year. When we look at their financials, there should be a little blip. Around the January, February timeframe, it was going to be due to Omicron and really how it's
impacted the, the clinical staff at the various hospitals, you know, Omicron is less severe and it ranges from cold symptoms for vaccinated to a full blown infection for the Unvaccinated. , but it is impacting healthcare workers. So a lot of questions around that. I liked their answers
they said, even prior to, COVID, there was a challenging labor market and they had built out essentially a labor supply chain. , which they felt was critical. To success. Let's just go through some of the things I said. So there. Obviously about training new people and, , partnerships they've partnered with Baylor. They've partnered with, , TCU.
, they bring them in for residency programs. They take care of their existing staff. They have a strong culture. , built on, , commitments. , to, , each other, , compensation has increased significantly as they talked about in their presentation. , they do have some favorable labor conditions in Texas
, But for the most part, they, they improve this recruitment process. They improve the retention process and they continue to make investments in their affiliations and training programs. So all of that was, was key. This whole concept of labor supply chain is becoming , a foundational item for success.
, let me get into. The strategy section of their presentation. I thought this was phenomenal. All right. So he threw up a slide. It said trends leading to the future of healthcare. All right. Let me give you some of the quotes. , what is the future of healthcare or more specifically, what do the Baylor Scott and white healthcare customers? What are the services that they are looking for in the near future?
So he has this from, and to slide set up there and he said, I think we could all describe in our careers what healthcare was like and is like today. It's a frictional experience per predominantly focused on the physical facility of care. scheduled access. is a big problem. , it's a reactive model. We don't go out seeking to provide healthcare.
We react when patients come to us, it's very fragmented. It's not integrated. And they, they believe that they are capable and actually have an obligation. To, , set up, , assets and capabilities that can change this model.
And they expire to a frictionless experience that they believe, , they need to get to an omni-channel capability, meaning that they can provide care virtually. , they can provide care in home. , in facilities of various sorts that are convenient for our patients. And that was one of the. The key themes at the end of the year, last year that I said I was hearing from the C iOS.
Was the increased in the variation of care delivery models that they were being asked to stand up.
He also goes on to say that it needs to be anytime, anywhere access the pricing needs to be transparent and affordable. And that we're in constant contact with those over 3 million customers. , we're not waiting for them to contact us. We're using our digital capabilities and platform to keep, , in constant contact with them, particularly important for patients.
That have chronic conditions, but also just as important. For the general patient population. , they want it to be seamless where they're focused on health outcomes and we're moving
through data, digitization and AI. To an automated environment rather than an analog environment. And they think it's possible. , they believe that we're at an inflection point in healthcare and that they need to move quickly and decidedly in this direction. So I love that , from friction to frictionless to facility, to virtual,
and home care from scheduled and limited access to anytime, anywhere from opaque pricing and expensive to transparent pricing and affordable. , from reactive to preemptive early stage interventions. , data for care to data for personalization and engagement. Clinical quality to health outcomes, fragmented to seamless sick care management to health management.
Clinical services to segmented customer products. Manual to automated delivery. And
then they transitioned to a slide. That I really like, you know, it's traditional model versus future model. And they had the doctor at the hospital at the center. Of the traditional model and they have the customer. At the center , of the new model. And then they talk about the future. , strategies that they are driving.
There's really two aspects of it. There there's always customer centricity, but there's transforming the existing delivery of care system. To provide customer centricity and then there's building specific customer solutions. If you will, Greenfield solutions to provide for customer centricity.
And I really love this section. I like the strategy itself. In fact, I shot a note to some of the CEOs I worked with yesterday. Just talking through this a little bit. , of what a customer centric strategy might look like
and the foundational elements
from a technology standpoint from a customer. Centric set of tools standpoint, and also from an operation standpoint. , in order to move from this. You know, friction to frictionless and I care anywhere kind of model. , I think it's important to have this kind of high level strategy in place. So that the staff can put things in context, as you start to roll them out. When you come to them and say, Hey, we're rolling out CRM.
And they go, why are we doing that? What, what is that going to do for us? We already have ways of tracking the patient. We have any HR solution. We have population health tools. Why would we do a CRM solution? Well, a CRM solution is going to be able to pull in many more points of data. From a consumer lens rather than a care lens or, or a population lens, ,
the CRM thing is really interesting to me. , if you rewind about a decade, we were having arguments. In the boardrooms , of healthcare organizations on whether we should even call people, customers. Right. We were calling them patients. , they were patients and understand why we do that.
Fast forward 10 years. And we're trying to really understand the consumer. We're trying to understand what makes them tick.
When you think about a problem, like MedAdherence. You know, one of the, one of the things that we can do, if we have that personal information. Is to identify the stimuli. That's going to work to keep people on their medication regimen. Right. Is it a text message? Is it a phone call? Is it a message through a personal digital assistant that they have in their house? A.
An Amazon echo or a, , Google home or apple, , speakers or whatever it is, whatever they happen to have, and we can, we can tailor that to the specific individual. If we have that information, that's what a CRM is really good at. It's collecting those points.
Of information around that individual so that we're using the proper communication channel, the proper. , care venue for every individual. When we get to that level, we're going to be able to drive up health within our communities, because we're going to be talking to the individual as opposed to a population. And, when you're talking to a population, it's going to be hidden mess. We've got to get more granular and that's what a CRM does.
Anyway, I thought I would a thought I would go through this presentation. I thought it was a good indication of some of the themes that we were looking at. We're we're looking at this labor challenge. We're looking at strong balance sheets. , in general, we're looking at digital foundations.
A lot of people will talk about a building. , solutions around the consumer. And I think this presentation itself captured a lot of those themes. , we're going to continue to do this. So, , you know, keep checking back. This week and probably into next week,
as we look at other presentations from JPM, I find this to be one of the most informative. , conferences that I attend because I get these strategy presentations, I get the financial presentation. So I'm able to put things into context. And I'm able to get a good feel for what health systems are doing.
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