#JoinTheConversation with Brad Bostic, CEO of HC1
This #JoinTheConversation series is brought to you by our partner Experian Health and the episodes were broadcast live in Experian Health’s booth (#3503) at the The HIMSS17 Annual Conference and Exhibition. The interviews were recorded and published to the media player on this page. Please read more about why more than 60% of U.S. hospitals count on Experian Health.
Brad Bostic, CEO, HC1
Joe Lavelle 00:32 I am Joe Lavelle and I’m going solo for this great interview today. I’m so excited to be bringing you Join The Conversation from HIMMS. We’re going to get right to it today. We’re joined by Brad Bostic, CEO of HC1. Brad, welcome to the show!
Brad Bostic 00:47 Thank you for having me.
Joe Lavelle 00:48 Hey Brad, could you take the first minute or so and just give an overview of your background and how you came to be CEO of HC1?
Brad Bostic 00:55 Sure, yeah. I’ve been in the healthcare industry now for a couple decades and have worked in the consulting side of healthcare IT where I got exposed to just a lot of the disconnects that exists in all these different silos. And I also started a teleradiology company, which gave me the viewpoint of how the providers actually have to operate more effectively. And really it’s through these different experiences I saw this need to deliver a much higher level of service, and a better way for these healthcare providers to be able to grow profitably ,which is what ultimately resulted in starting HC1, where our tagline and our mission is really around personalizing the healthcare experience.
Joe Lavelle 01:35 Great and you teed up the next question perfectly, could you give us an overview of how you serve your customers at HC1?
Brad Bostic 01:40 Sure, our customers has really span medical laboratories, health systems and post-acute care providers. And the common challenge that these organizations face is that they’re so intensely focused on their internal clinical quality and processes and how do you code for things to make sure that they can get billed, that it’s difficult for them to rise up to the level of truly seeing the full picture of what they’re doing with their customers, and understanding holistically where do I have areas that I need to focus to be able to perform better financially? Where do I need to make sure I’m delivering a higher service level to make sure I maximize my referrals? Who are the customers I have that really are going to generate the most profitable business for us? And so we really help them grow profitably and deliver amazing service and specifically within the lab industry were we’ve got over a thousand lab locations that run on our HC1 Healthcare Relationship Management Platform, we’ve actually created this collaboration with Experian Health that takes our value proposition to the next level.
Joe Lavelle 02:39 Great deal. What can you tell us about the partnership, how does it work? How does it bring down value to you and to Experian?
Brad Bostic 02:45 What we find with medical labs, whether they’re in a health system or an independent commercial lab, is that they really have challenges around their fixed costs. They have significant fixed costs, and they have information systems that are disconnected that really don’t bring the information together. They’ve got a huge burden around having to manually track the payer policy changes that affect how they’re going to get paid, and they have a limited understanding of the financial risk levels of the customers that they serve that these providers that refer to them.
So what we’ve done is we’ve really built this partnership to bring healthcare relationship management together with the best of Experian Health’s products in the eCare NEXT and payer alerts areas, and what eCare NEXT and payer alerts do in combination with our HIPAA compliant HC1 platform is that we’re able to bring this level of financial risk stratification to the picture, so that if I’m a lab I can see across all the different providers that are referring to me and all the different patients that are flowing through, where are the places where I might be exposed to where I might not get reimbursed? And it’s doing this on the front end of the process rather than having it be an unpleasant surprise later on in the process that you haven’t gotten paid.
And so, if I’m a medical lab, not only can I deliver on this really high level of clinical quality, but I can run my business a lot more effectively by understanding which accounts and types of accounts generate the best return. So if I have an outreach program within my health system lab, I need to focus my resources on the kinds of providers that are going to refer profitable business to me. You want to know which relationships require active engagement and education to make it so that the approach is more financially successful. And this challenge of proactively monitoring changes in payer policy this happens automatically through our partnership. We have customers that are serving tens of thousands of providers every single day. To try to keep track of that manually and all those profiles, it just can’t be done. There aren’t enough people in the universe. So what we’re doing with Experian is it instantly identifies the payer changes and brings that information to the surface and aligns it with here’s the volume you’re doing, here’s the payer change that affects that volume, here are the providers that relates to, and so how can we proactively run our lab business more effectively to be more successful and more profitable? And so ultimately driving that action and engagement with these customers significantly decreases the risk for these labs who otherwise have been kind of flying blind before this. Again, they’ve been doing a great job with clinical quality, but the quality of the business and the customer service that they can run and the economics of that have been a big challenge until now with HC1 and Experian Health.
Joe Lavelle 05:27 Good deal. What are some of the other challenges being faced by laboratories that keep them from not being successful financially?
Brad Bostic 05:34 Well certainly all the changes to the reimbursement, that’s a major challenge, and I’d say the other thing is like all parts of healthcare, labs are being asked to bring more value to the health system and to the providers they serve than just delivering a test result. They need actually bring to the table this ability to better manage the patient population. So with the holistic profiles that HC1 brings to the table, they can now engage in a much more strategic partnership with the providers they serve, so instead of how fast and how cheap can you deliver a test to me, a result, it’s about how do you help me better understand my patient population based on these diagnostic tests and results, make sure we’re doing the most appropriate tests at any given time, and make sure that we’re focusing in on those areas of our patient population that really need to be engaged proactively to avoid bad long-term health consequences. So this all ties into, how can I grow profitably and deliver amazing service as a lab business? So in spite of the fact that reimbursements are coming down you’re actually able to run a very successful lab organization.
Joe Lavelle 06:40 Perfect, have you seen a change in the lab business due the ACA in the movement of Fee for Value?
Brad Bostic 06:46 We’ve seen a big change in the industry and we’ve seen that the more progressive lab leaders are actually able to achieve great results and even build their success to another level when they’re proactive about how they address these challenges. So the conversations that they’re having with the providers and the health systems that they serve are much more strategic and collaborative around how do we make sure not just that we’re reducing unnecessary tests, but that we’re doing the right test at the right time, because a big part of these changes in healthcare, it’s not only related to who gets insurance coverage, it’s also related to how do we shift the incentive model to more of a value based concept. And so instead of just volume-based the providers are having to demonstrate value.
Well one of the places that the providers really get hurt financially is when you have a patient that goes through some kind of episode of care and then they get discharged and then they have to get readmitted back into the hospital within a certain window of 30 or 45 days after that procedure. That becomes a very bad situation financially because now the hospital has to just absorb all that cost. They don’t get reimbursed for that care. Well, diagnostic lab testing is a great way if it’s utilized properly in doing the right tests at the right time to avoid those readmissions, right? So one of the reasons people get readmitted they’ll develop a maybe an infection that they didn’t realize that they had when they got discharged. Well, if you’re really focused on the right test at the right time you can make sure that triage that, take care of those problems and avoid those readmissions.
Joe Lavelle 08:18 If we did a tag cloud on the words in everybody’s booth, one of the common terms would be analytics. Has analytics has been important to your business and how are you using them?
Brad Bostic 08:26 That is a very big buzz word, we’ve seen that as well. And I think when you look at data the first thing is you need to be able to organize it in some way that gives you the ability to generate some kind of information and ultimately some kind of insight. And so if you have data you really need a way to do analytics on top of that data, so you can visualize what’s going on with it.
A key component of the HC1 healthcare relationship management platform is that not only do we organize your information in our Healthcare CRM around these profiles, so you can see the interconnections between the healthcare organizations, the providers, the patients and you can see that in a way that’s very rich and user-friendly, so it’s not just a database it’s literally got a user experience that you could go search in a box and find any provider and see exactly what their volume is, who they’re serving, what organizations they order from, but in addition to that, what HC1 is providing is this really rich set of analytics. And so we say not only does HC1 allow you to report the news it actually allows you to make the news, in a positive way. So through the analytics you’re able to visualize here are some hotspots where you have issues but because we’re all busy in healthcare we don’t have time to stare at screen all day. What HC1 does is it generates to the healthcare CRM the activities and workflows and alerts that will engage the right person to go address the problem. You see what I mean?
So if I’m an executive I can go look at the heat map that shows, hey! Where are we doing well, where aren’t we doing well, where are the providers where we have an opportunity and so on. But in reality if I’m somebody in say customer service that needs to let a provider know that we’ve got a test delay, you’re not going to be staring at a report all day to make sure that you see that then you make that call. So HC1 in that test delay situation would automatically prompt that customer service person to reach out or even generate an automated message saying just so you know this test has been delayed, or maybe it’s something where you have a critical or urgent value that needs action taken on that. HC1 connects not only this analytics view but drives that action and accountability all the way through, which ultimately benefits the patient in terms of their care. It makes the lab run more efficiently and it also allows you to be more profitable because it doesn’t take so much manual intervention to try to communicate all these messages.
Joe Lavelle 10:42 We always bring our crystal ball here to HIMMS and we let our guests to look into it. Tell us how you see the overall lab environment reacting to Fee for Value and evolving over the next couple of years.
Brad Bostic 10:52 Well there are a lots of discussions going on around utilization of testing, and how do you utilize the most appropriate test at the right times? And then ultimately what is the downstream impact of doing the right test at the right time in terms of the cost, okay. So instead of just focusing on what am I spending on a specific kind of lab test, it’s more the focus on when I do that right lab test what is that downstream impact on cost? If I missed the test and I don’t do it at the right time or I missed it all together, downstream that could cost hundreds of thousands or millions.
Think about an example like identifying early on that somebody has prostate cancer, for example. Lab diagnostic testing done the right way can get ahead of that and figure that out and now you can go address an issue when it’s just a minor issue. Versus if you miss that think about the cost, and this whole shift in healthcare is about how do you possibly impact the overall cost to care while delivering great quality? Well, today we often times operate more a sick care. We don’t really engage with people until they’re sick. The whole idea of healthcare relationship management and the combination of that with diagnostic testing is to get way ahead of the curve, so that you’re engaging people properly with the right testing and then being able to clearly show to the payers, look it’s not all about just doing fewer tests. It’s about doing the right test at the right time, and this is something that lab will have to really master if they want to be a strong successful players moving forward.
Joe Lavelle 12:20 All right. Brad we are about to wrap it up. Before we do can you tell people where to go to learn more about HC1 and the things you’re doing?
Brad Bostic 12:26 You can visit us at www.hc1.com and on our website there’s a wealth of information about our laboratory health system and post-acute care markets. And then there’s also information about our partnerships and including. we can supply information about our partnership with Experian Health. And then there’s also a very easy way right there at www.hc1.com to request a demo and you can actually have somebody get online with a GoToMeeting or a visit in person to go through this is how it works, this is what it does. And we also did here at HIMSS a showcase presentation on our solution that we recorded, so we’ll have those assets available on our website as well.
Joe Lavelle 13:04 Perfect, thanks so much for being here. We appreciate you sharing your wisdom with us.
Brad Bostic 13:07 Thanks Joe, I really appreciate being here and thanks for hosting the show.
Joe Lavelle 13:10 Sure thing. That wraps this live broadcast from HIMSS. Again we want to shout out a quick thanks to our sponsor Experian Health. On behalf of our guest Brad Bostick, I’m Joe Lavelle and we hope you stay tuned for more of our live coverage from HIMSS in Orlando.
An ever-increasing number of patients, coordination with multiple caregivers, disconnected information systems, and decreasing payments…
There have simply not been enough hours in the day to provide personalized service in healthcare – until now.
hc1 was created to personalize the healthcare experience for providers and the patients they serve. Led by veteran technology entrepreneur Brad Bostic, hc1.com grew out of Bostic’s recognition that the healthcare industry fails to treat both patients and providers as individuals.
The hc1 Healthcare Relationship Cloud was designed from the ground up to enable healthcare organizations to deliver the level of unified, personalized, superior service that we’ve come to expect from other industries. He realized that, while healthcare entities store an abundance of data at both the provider and patient level, the challenge lies in quickly transforming massive volumes of clinical, diagnostic data into holistic profiles spanning providers and patients to foster a five star experience.
Fast forward to today:
hc1 has been adopted across more than 900 health system, diagnostic lab, post-acute care, and ancillary service providers around the globe and has processed over 2 billion clinical transactions to date, generating more than 30 million consumer profiles.
About Experian Health
More than 60% of U.S. hospitals count on Experian Health. These providers—along with thousands of medical practices, labs, pharmacies and other risk-bearing entities—are making smarter business decisions, boosting their bottom lines and strengthening patient relationships. Our clients have discovered the value of our revenue cycle management, identity management, patient engagement and care management solutions to power opportunities in the new era of value-based reimbursement.
Experian Health is powered by the strong healthcare heritage of our legacy companies, plus the deep data and analytics capabilities of Experian. This unique combination positions us well to help you succeed.
Revenue cycle management solutions automate orders, patient access, contract management, claims management and collections to improve efficiency and increase reimbursement.
Identity management solutions match, manage, and protect patient identities to enable accurate patient information and to safeguard medical information.
Patient engagement solutions connect patients with personalized portals to create price estimates, apply for charity care, set-up payment plans, combine payments to hospitals and physicians and schedule appointments.
Care management solutions organize and enable sharing of post-acute patient care information to help providers succeed in the new era of value-based reimbursement.