/*Accordion Page Settings*/

Fertility Practice Management

218 "The Clinic Operating System We've All Been Wanting" with Dr. Mark Amols and Elizabeth Lee

DISCLAIMER: Today’s episode is paid content from our feature sponsor, who helps Inside Reproductive Health to deliver information for free, to you! Here, the Advertiser has editorial control. Feature sponsorship is not an endorsement, and does not necessarily reflect the views of Inside Reproductive Health.


Ever wondered how much your fertility clinic could achieve with just a 5% increase in efficiency?

In this week's episode of Inside Reproductive Health, we explore this question with returning guest Dr. Mark Amols, Medical Director of New Direction Fertility Center, and Elizabeth Lee, VP of Wellnest Fertility.

Join us as we dive into:

  • The impact of your EMR on your clinic's performance

  • Where a 5% efficiency boost can generate 25% overall clinical improvements

  • How enhanced efficiency can unlock patient access to care

  • A brief demo of Embie, spotlighting its clinic-streamlining features


Dr. Mark Amols
LinkedIn

Elizabeth Lee
LinkedIn

Embie Clinic
LinkedIn
Instagram

Transcript

[00:00:00] Dr. Mark Amols: I think one of the reasons that everyone needs to demo this, regardless if you're looking for an EMR or not, it's going to open your eyes to realize that there's more to the EMR than what you've been looking at. You've always looked at the EMR as a system that just tells you the information that you want, but this system actually works with you.

It's a marriage where you're not working against each other, but you're working with each other. 

[00:00:20] Elizabeth Lee: This is really the clinic operating system that we've all been wanting, but never could find. Think about how, if we started to think about clinic operations like this, in this type of succinct, smooth way, think about how many more patients we could help.

[00:00:37] Sponsor: This episode was made possible by our feature sponsor, Embie Clinic. Is your EMR holding you back? Is an Excel sheet your one true source of data? Are you wasting your time with disconnected point solutions? Embie Clinic's unified solution for the clinic and patient provides a single source of truth. Our suite of tools helps you flex and scale your fertility practice from clinical care to the lab, administration, and beyond.

From onboarding to baby in arms, Enby makes sure your patients are informed, Educated and supported every step of the way. Say goodbye to the old and welcome a new standard of care with Embie Clinic. Visit embieclinic.com/irh now to book a demo and take the first step to modernizing your clinic. That's embieclinic.com/irh.

Announcer: Today's episode is paid content from our future sponsor, who helps inside Reproductive Health to deliver information for free to you. Here the advertiser has editorial control. Feature sponsorship is not an endorsement and does not necessarily reflect the views of Inside Reproductive Health.

[00:01:57] Griffin Jones: Could it be that this is the Chosen One? Is this the promise that has been foretold? The Slayer of EMR? The Trident of Triumph? That allows you to finally start getting some meaningful clinical efficiency and stop doing all that junk you hate? I have no idea. I'm not a clinician, remember? That's why you have to check out for yourself and why I brought on two clinicians.

It's worth it. Elizabeth Lee, who's been a fertility clinic nurse for many years and is now the VP of operations at a new fertility clinic network called Wellnest Fertility. And Dr. Mark Amels, who's been on the program a few times now, despite the annoying technical difficulties I've thrown at him more than once.

Thanks Mark. Before we even talk about EMRs, we talk about how a 5 percent efficiency in one area of your clinic can lead to a 25 percent efficiency or greater and have impacts. in every area of the clinic and the lives of the people touched by the clinic. Yes, including patients. Yes, including providers.

Yes, including staff. If you've already decided that you're only going to listen to half or a third of this episode and all you care about is what is this revolutionary EMR slayer, skip to the last third. I think this conversation about compounding efficiency is really valuable because whether it's this solution or another, this is what we've been asking for.

It's the direction that we have to go in. I did a teensy tiny baby demo with Elizabeth in that part of the episode. I can appreciate you're probably going to want something longer form. We're putting those links in with the show notes with this episode, in the places where this episode comes out. Click on that, schedule your demo with Embie, and let me know.

Because I'm not a clinician. Are Elizabeth and Dr. Amos just sugar high on pixie sticks? Or is this the technology that you have been clamoring for years? Your input really matters to me. Please. Let me know what you decide ms. Lee Elizabeth. Welcome to the inside reproductive health podcast Dr. Amos mark.

Welcome back to this darn podcast 

[00:04:01] Elizabeth Lee: Yes, thanks for having us really excited to be here 

[00:04:04] Griffin Jones: There's a particular angle that I want to get in today because of a previous episode that I had recorded where I had a number of REIs from many different parts of the world email me after that episode and I want to get into what that was about.

I first want to broached this concept of thinking about how marginal efficiencies can have a compounding impact and maybe like the efficiencies themselves aren't marginal, but I'm talking like if you make your clinic 5 percent more efficient, if you make it 10 percent more efficient, that There is a compounding benefit to that.

And, and so Mark, you are someone that I think lives it's, this is now your probably third or fourth time on the program. It's at least your third. The first time I had you on was during COVID. It was a live episode. We had over, We had maxed out the zoom limit for the people that could attend. And I was like, people are going to have to do things this way.

I thought that it was going to have to be, I thought it was going to be sooner because I didn't know how many trillions were going to get pumped into the economy. That bought people some time to not be crazy efficient. But now as I, but now where I see things are going, it's okay. The way that Dr. Amos and a handful of others are approaching this.

That's. Just the way it's going to have to be to expand access to care. So what about this idea that increasing efficiency by 5 percent or 10 percent or something, what you might consider small can have a much larger impact.

[00:05:45] Dr. Mark Amols: Yeah, I mean, absolutely. That's how I run my whole business is efficiency, getting rid of the bottlenecks.

I think one of the interesting things about this show is when it comes to this product MD, that is really the center of your entire. Practice, right? So everything goes through it. So when you talk about bottlenecks, even a 5 percent increase in efficiency, if it's at the EMR might actually lead to a 25 percent efficiency because now different departments can talk to each other faster, different things are happening versus like you're saying, if only a 5 percent or 10 percent efficiency occurs on one area, let's say at nursing.

That only helps at that nursing portion. So there's different things that have downstream effects that also make the full clinic more efficient. And so this is what's unique about this system, which I'm excited about. And we've been working with now for a period of time, is its efficiency for the whole clinic, not just one area.

And so most of my focus has always been on individual areas, how to make nursing more efficient, how to make room and patients more efficient, all those little things. I look at everything in time. So as the old adage goes, time is money, I look at everything as time. And so that is one of the efficiencies is time, because the one thing we all don't have is, is more time.

And so we're all working on the same rules there. And so the ones that can find a way to improve the time efficiencies are the ones who are going to come out ahead. 

[00:07:06] Elizabeth Lee: Yeah, it doesn't count. It doesn't take that long to count to a hundred. It really doesn't. And so I want to even posit that 1 percent efficiency gains over time are the reason why people like Mark are able to run his practice the way, uh, that they are.

Mark and I actually know each other really well, and I helped him build a, Getting things really going in terms of being very high volume. And what he and I found was that same thing. It was these little areas that really added up quickly, just the costs. And one of the ways Mark's able to offer the costs he is because he really cares about looking at each line item and saying, okay, these consumables are too expensive.

We don't need to be spending this much money on syringes or something. So I think 1% Little 1 percent gains are all that's needed. And I think people think about it in much bigger chunks and that makes it harder to swallow. 

[00:07:59] Griffin Jones: Why don't we talk a little bit about what it is that you do in helping other clinics?

And I understand you're the VP of ops for a brand new clinic network. And I want to talk a little bit about that because before. We started recording and you said that you and I had met. I didn't remember. And I'm, and I thought I would have, it seems like I would have remembered that because I know who you are.

Like I've heard your name in a lot of different places and people are like, Oh, you got to talk to Elizabeth Lee. Elizabeth Lee is over here doing this. And so I've, I've. I've seen some of the activity that you've had in a lot of different places, and more than one person, it's probably three or four, have directed my attention to you.

What is it that you're up to? 

[00:08:44] Elizabeth Lee: Yeah, thank you for that. That's having started as a little baby IVF nurse with Mark many years ago. It's very humbling that anybody would mention my name. I spent the last year or so really doing consulting and trying to bring this topic that we're talking about, this idea of minimal efficiency gains to create big change.

But working with some big clinic groups, some donor banks, just some different groups that were really looking to make that type of shift. In their thinking to realize some of their goals. And I really spent the last, like I said, year or so working with CEOs really trying to help to shift that mindset and to help see on the ground level or the direct level.

Patient to staff communication level where some of the improvements could be made. That's not an easy thing, right? To say, Oh, you need to make improvements here. No one wants to necessarily hear that. And it's certainly not an easy thing to tell people, but when, you know, this, some of the biggest successes I've saw from organizations was, were ones who said, Bring it on.

How can we change? How can we shift our mindset? But since then, I got offered the opportunity kind of a lifetime, which was to start a clinic from de novo, from scratch entirely. And so that is with wellness fertility, which you're right is a new network of clinics. And we're really looking to bring care to places that there is none.

So Griffin, you talk a lot about it. Mark talks a lot about it. We all three talk a lot about access to care, which I think has become a little bit of a buzzword. Something that I'm looking to tackle with my newest venture at Wellness Fertility is actually looking at how do we really do that? And part of the way we are doing that is we brought on a consultant from Johns Hopkins who actually wrote his PhD on how to improve access to care.

across the U. S. Like he and his wife went through fertility treatment, and he just so happened to be very passionate about this topic. And so he actually helped us do some really deep dive analyses to figure out where to put these clinics, right? Where are these white spaces where there are population densities sufficient enough to support a clinic, but there isn't a clinic there.

And then how do we show up Yeah. To serve communities like that. So that's really what I'm up to now. I thought I was going to just continue talking and geeking out about operational efficiency for the rest of my life. When someone says, Hey, you want to start a brand new clinic? It's hard to say no. 

[00:11:15] Griffin Jones: Yeah.

It turns out if you have good enough ideas and you can communicate them to people specifically enough, somebody is going to say, I want you to do that for us, and you decided to say, yes, Mark. Before you said that. In some areas, a 5 percent efficiency might just be a 5 percent efficiency, but in others, a 5 percent efficiency might actually lead to a 25 percent efficiency.

You mentioned the EMR as an example of that. One, why is that principle the case that a 5 percent efficiency can lead to a 25 percent efficiency? And then why is the area of EMR a good example? 

[00:11:56] Dr. Mark Amols: Cool. Yeah. So like anything, there's a central part, right? So let's think of like a computer, you have a CPU, right?

You can make, you can add on better parts of your computer. And the end of the day, if your CPU is slow, the computer is going to be slow, right? Everything has to go through that portion. And so my example would be like, if I went in and improve, let's say making calendars for a nurse, I might improve that 5%, right?

But it doesn't make me any faster. It doesn't make my front desk any faster. But if I upgrade my CPU. So now the central portion, which everything goes through, improves even just by 5 percent there. It could make the entire clinic increase in productivity because each department now improves. And that was my point.

I think we're a really good example of a clinic that will benefit a lot from a better EMR. I like my EMR. I don't want anyone to think I don't like my EMR. My EMR is not made for IVF. And so one of the issues that we deal with my EMR is that there's a lot of fragmentation. So like anyone who's in the EMR that wasn't made for IVF, there are workarounds you have to make them.

The workarounds usually add time. They usually create a second or third step. And so to become more efficient, you have to get rid of those steps. And one of the things that an EMR would allow me to do if I have one that was made for IVF. is we could skip those steps, get more efficient. And obviously I'll let me talk for themselves.

But one of the things we've been looking at is, and I'm sure if you ask anyone, no one's going to say there's the perfect EMR because just as it exists, because no EMR is made for just one clinics made for a bunch of clinics. But of all the EMRs I've looked at, most of them have one thing that's Not the focus, and that is efficiencies.

That's the one thing you don't see in most EMRs. It's more about documentation, which is important, all the important things you have to have, prescriptions, billing, all that, but they really don't focus on efficiencies. And that's why EMR we've used for a long time is it has been very efficient in certain areas, but it's definitely not efficient in others.

And that's why we're looking at this, and that's why I look at that as the CPU. I look at it as, everything has to go through the EMR, and if that's efficient, it makes everyone else efficient. Does it 

[00:14:09] Griffin Jones: have to be that way? Is the reason why EMRs don't focus on efficiency, it has to do with something that the other outcomes for which they're responsible precludes them from being efficient?

Or is it simply that they have other priorities and efficiency isn't at the top of the list? 

[00:14:29] Elizabeth Lee: Yeah, I don't mind taking that. I think, as Mark said, like his EMR, for example, wasn't made for IV, other EMRs aren't made for a specific clinic, right? And so what happens is, I think, I don't think that any of the EMRs don't necessarily think that efficiency is important, but clinics are having to back their process up.

Into the way the E. M. R. runs. For example, you might have something we're really looking to focus on. It must is trying to tee up our patients so that when they get to the R. E. I. They have all their diagnostic testing done right now. The E. M. R. S. Don't really entirely support that diagnostic front end. Why?

Because not a lot of places do it. I don't know. But at the end of the day, I think what we do have in common is that all E. M. R. S. Serve patients, Right? As different as our clinics can be, we all do the same thing, and that's serve patients in some way. I think that might be what makes Embie special, or have that spark that has caught both of Mark's and I, and my eye, is that it was actually created by a patient.

And it shows, it really does, does show in the flow, in a lot of the headaches that patients experience are, those things are gone. So if there's smooth communication with the clinic, there's ease of scheduling, there's ease of data portability, ease to see your data. You don't have to call the clinic and ask them to release your follicle count to your portal.

It's really a seamless two way communication so that the patient can actually be the center of the care team. I don't know if that answers your question, Griffin, but I think, I don't think it's a matter of not wanting to necessarily focus on efficiency as much as it is that a lot of the EMRs are just really set in the way that they work.

And you can either fit into it or you can do something different. I actually think a little bit different view.

[00:16:24] Dr. Mark Amols: I do think that they are set in their ways. I do think that one of the things MD has in any EMR coming in today is they now have the foresight of what's coming up, right? The one thing we all know is.

There's just not enough positions out there, right? And everyone's looking at different ways to fix that. Some of us look at efficiencies. Other of us look at, we'll just pull in more money and take another doctor. But at the end of the day, there's only so many doctors, so much time. I think Griffin, when you look at what an EMR is, you're right.

There's like a basic portion of EMR that says, okay, I have to be able to do this. I have to be able to do this. What the original EMRs came in with was looking at how do we make things fit better for IBM? For example, is, oh, we can make the partners match up. You can't do that. Most EMRs. So people, oh, that's great.

But again, that's not a very efficient feature. Sure. It helps a little bit. Right. But it doesn't really make you more efficient. It's just, okay, now I don't have to put in there a little note that the husband is this. EMRs used to be able to now track certain lab things that you would have in a lab. But again, doesn't make it efficient.

And when the EMR gets a bunch of people, at the end of the day, this is, these are all businesses. I think the thing we always forget about is everyone's trying to make money, right? We all, we're all just trying to make money. And so when these EMRs get enough customers, they're like, why do we need to make it more efficient?

Everyone's using the program. It's doing the job they need. That it's like a card. It's from A to B. But no one knows that there's more efficiencies there. For example, like a Tesla now, you don't have to drive it anymore, right? It just takes you there. So it's efficient. You didn't even know you needed, but you're like, I really liked this.

Now I can just pop in the location. It takes me there. I think MB is very fortunate. They're coming in at a time when there is this change in our field and this change of meeting efficiencies. And one of the things that, you know, that Elizabeth has, because most of them talk about the selfless and said it, she's extremely smart person.

So just so you know, when I met Elizabeth. I met her and she was, I think you were only a nurse in IVF for what, three months I think it was? I think it was only three months with the clinic you were at. I met her and she had more knowledge and more understanding of fertility in three months than nurses I worked with for, been in a year or two.

And when we met, one of the things that, Really, I got about Elizabeth. We both got each other. We realized that we had to be efficient to make this process work. I told her what the goal of my clinic was, what I wanted to do and the obstacles we're against. And we were coming up with many things. And I'll give you an example of efficiencies that you don't think of.

So back before there was programs like Clara, OMD, all these different kind of text to patient message things. When we first saw it, we were just like anybody else going, Oh, it's extra costs and help us. But then we started thinking about it and we thought about how long do we have to stay on the phone every time we talk to a patient because there's no such thing as a five minute phone call.

Every patient, Oh, it's five minutes. It's 20 minutes. And when Lisbeth and I talked about it, I said, Lisbeth, how long are you on the phone for? I'm on 15, 20 minutes, even for a simple question. And I'm like, wow, if we think about it, we look at the cost and we figured it out, we would save not just a ton of money, but efficiencies.

And so before we had this system, Liz would be there maybe till 5pm or something. We got this message system, and all of a sudden now, Liz would leave at like 3pm because the work was done. We were able to answer 50 patients in an hour. And so the point is, like I said, not everyone realizes, There's a benefit.

Just like we didn't that day. I didn't know there was a benefit, but I'm always looking for it. And that's where I think Envy is so fortunate. And like most companies, they're coming in at the right time. They're coming in at a time when we now are becoming like the primary care, where we have to see more patients in a short amount of time.

And it's the only, not everyone at CCRM can charge a million dollars for a cycle and get away with it. Most of us aren't going to be able to do that. And we're gonna have to do volume. That's how most are going to have to do, especially if it becomes a mandate, when you look at like a Boston IBM, right, they have efficiencies.

And so they're coming in at the right time when efficiencies 

[00:20:26] Elizabeth Lee: are needed. There's really something there that we don't think about our staff burnout levels and what contribution that. Our tech stack or lack thereof is making to those burnout levels. And actually some of the efficiency gains we've talked about earlier, where 1 percent actually may have more of a compounded effect, that's where I think this is because the EMR is every interaction you're having with a patient must be.

Put in the EMR. And so if we're able to create the efficiency gains in that Avenue, then I think our staff become less burned out. They become more engaged. Then they have more to give the patient. Yeah. 

[00:21:08] Griffin Jones: I don't think you can totally bucket efficiency just as this metric for productivity or profitability.

And, but I, and I encourage people to think about it, that your, your Team or your perspective team simply will not use the old fashioned tools over some time because it's asking too much of them. It'd be like asking a landscaper to do an entire football field with just it. a set of shears, right? It's like, we have giant industrial size lawnmowers for a reason.

And once you have them, there isn't any going back to saying, Oh, just use these shears. And, uh, it'll take you about four months, but, uh, have fun with that. It's the same for operations in the clinic too. How did Embie come about though? Which of you two discovered it first?

[00:22:08] Elizabeth Lee: I did actually, I was working with a client while I was doing some consulting work and.

They were getting a presentation over lunch of this new EMR and I was like, okay, blah, blah, blah. And then as soon as I saw it, I was captivated. I was like, wait, what is this and how do I get it? And then very shortly thereafter, I'm texting Mark going, have you seen this thing called Embie? You need to see this new direction.

This would make every impact on new direction. So then that he started to become excited about it at that time. at that juncture. 

[00:22:41] Griffin Jones: Why did you get excited about it first though? 

[00:22:45] Elizabeth Lee: Me, because I could see the drastic difference in, in efficiency, starting with just right upon login, being able to see this sort of bird's eye view of the, the clinical picture.

So Mark will probably start nodding his head here when a patient calls. He and I actually have really good memories as memories go, we remember some strange things, right? But not everybody is that way. And I'm a real believer that systems and processes drive behaviors, right? Things aren't going to happen by accident.

I need to be able to see at a quick glance what the picture is that I'm looking at, who the patient is, who their partner is, what sperm, eggs, uterus, tubes look like. And Embie immediately showed me that in one glance. I didn't even have to try. To find it. And then just as I started to go through it, it just, I could feel the intuitiveness of it.

And at the time when I first saw it, I didn't realize, I didn't know that it was made by essentially from a patient who had gone through eight cycles of IVF and ultimately found success in the cycle where she demanded, not demanded, that's probably too strong of a word, but she insisted on triggering at a different timeframe.

Then her doctor was indicating and why, because she had her own data set from all of her cycles and did some predictive modeling, right? Patients like Mark and I are, and we can remember things patients don't have all don't have that capability, but it just was very clear to me quickly. Not only does it have a beautiful aesthetic, but it's just so intuitive in terms of how to navigate.

And it finally, I found something that could templatize. The things that became very routine, but where mistakes become a big deal, for example, prescriptions. If I order something incorrectly for a patient, everybody's going to be okay. Everybody's going to be safe, but that patient might have spent an extra thousand dollars on a medication that she can't return.

And so Embie also really does a lot of that systematizing. Right? So if systems and processes drive behaviors, then we can build those systems in and Embie really seemed to me to be the first product that I've ever been exposed to that did that, that started to bake some systems into how the clinic should flow.

[00:25:12] Griffin Jones: Will you show me some of this? I want to do a little mini demo because after the previous episode that Embie did sponsor, but it was not a feature sponsor episode. So what that means to the audience is that this, for example, is a feature sponsor episode. If I say Embie’s meh. Embie can ask me to cut that out because it's a feature sponsored episode.

And we tell you the audience that in the disclaimer brought to you by sponsorships do not work that way. They are, we try to match advertisers with relevant topics, but they have no editorial control over the episode. So someone can say something's mass. Um, somebody could refer a competitor, even though that particular advertiser is advertising in that episode.

And after that episode where. And we just had the little mention and an ad in it, there were a number of people that scheduled demos with Embie. And then they emailed me telling me, this thing is awesome. I heard about it on your podcast. And then I booked a demo with them and I'm blown away. And so that kind of gave me the idea for wanting to see some of this today.

And, and I like the idea of having Mark on, because I was saying prior to our conversation that. Dr. Amos is the guy that will try everything and be impressed by not that much of it, is the impression that I have of him. And so, the fact that you're into this makes it intriguing. 

[00:26:45] Elizabeth Lee: That was one reason why I attacked him, because I was like, you know what, he'll bring me down from the clouds.

This is too good to be true. It can't. And so that was really one reason that I wanted to loop the bend, besides just seeing the benefits of his practice, was knowing that he really does have that sense of filtering things out. And I knew he would bring my head back down from the clouds if, if I was over seeing more in it than was actually there.

[00:27:08] Griffin Jones: Will you show me a little bit? 

[00:27:09] Elizabeth Lee: Yeah. Yeah. I would love to. Let's see here. This is your general patient chart. And this is what I was alluding to a moment ago about having all of the relevant data right in front of you. I need to know who this patient is partnered with, right? Cause that makes all the difference.

And then there's just a few key pieces of data that I need to see in order to form the clinical picture. Because Mark, Mark will nod. When you pick up the phone, you have such a brief amount of time to put that picture together before you start losing trust. Because the patient does expect you to remember everything.

And again, Mark and I are like, okay, luckily we remember things pretty well, but not everybody does. And you want to be able to convey trust to your patient that you understand what's going on with his or her picture. And this was really what struck me initially was having this high level overview, but then having the ability to dive under the hood where needed and have all that relevant data.

And Right at my fingertips, but that was a patient chart specifically. This is the clinic dashboard that sort of that practice management hub where. You can also get a bird's eye view of what your day looks like. Oh, I didn't know we had a monitoring today. Who is that? Oh, shoot. Who's the, let's say there's a transfer there and you didn't realize.

There's a lot of reasons that having these, these types of C's are really helpful and then it's just, it's really pretty and that helps, it helps. It's very easy to navigate. If I want to go dive into this patient, I can just double click her. There I go into her chart. If I want to hop on a telehealth with her, I can right there.

Click a telehealth button. I'm not looking for a zoom link. I can immediately. Present the option to just hop on a telehealth. Maybe there's something so you can see within here. I'm not sure if it's ultra mirroring it, but that ability to just right in the moment, hop on a telehealth with a patient. See here, sorry, zoom was covering the ability to exit out.

[00:29:12] Griffin Jones: Sorry, Elizabeth, I want to ask Mark, because I've never worked in a clinic before, right? Explain to me like what Elizabeth has shown us so far. What is the impact that it's having these different features? What is the benefit that it's having on the way your clinic operates? 

[00:29:34] Dr. Mark Amols: Yeah. And I think this is important to understand what area you're looking at.

So for what she was specifically talking about, and this is where I think it's huge is when a patient calls in. And you have to answer a question, even if it's not calling, let's say even just a situation where they send a message through the message system. In most EMRs, you have to go looking through the chart for things.

So maybe you don't see a cycle they did. And so you're talking to the patient and you say, Oh yeah, when you did this, they go, I didn't do that. You're like, Oh, you're right. I'm sorry. And then it makes me sit there and go, what else? 

[00:30:03] Elizabeth Lee: That moment in that moment, you lost a nugget of trust, right? 

[00:30:08] Dr. Mark Amols: Exactly. It's that meme where it says at that moment, you realize you effed up.

That's that moment where you realize. Crap. I just said something wrong. 

[00:30:17] Elizabeth Lee: And that's a lot of stress to put on your staff, right? 

[00:30:20] Griffin Jones: So that brings it up as soon as the person calls or leaves a message. Yes. All their information is right. I just, okay. So now I'm making the connection of what you're talking about, Elizabeth.

If I had the, it's almost like a CRM function, a customer relationship management function. If I had that, I wish that I had that for every time, you know, somebody, Texts or calls me, it's like, Oh gosh, what was the thing that we were talking about? Where's their information? 

[00:30:48] Elizabeth Lee: And I like to think about Embie.

What I think is so beneficial about it is it's really a suite of tools. So instead of having this CRM over here, and this is our telehealth platform, and this is our RCM tool, it's really aggregated all under the same roof because all of those platforms need to share the same data, but typically they don't do a very good job integrating with one another.

And so this is really pulling it, just allowing you to have really. One source of truth, one single source of truth without having to manually redo data. I know for me, one of the big bottlenecks that I saw in clinics was lots of spreadsheets, right? And why? Because it's, as Mark said earlier, it's, I think, I don't think you said a band aid, but it's a workaround, it's a workaround, right?

And Envy really took all of those workarounds and put them into, we don't need a workaround anymore, here's how you'll access that. So here's that overview that I was showing you. One of the things that Mark and I think is really cool about Envy is its ability to visually show data. In a way that really is syntonic with the way we think about it.

So we think about cohorts of follicles and we think about actually the stem sheet will be a little bit better. Um, we think of cohorts of follicles and we think about, um, those developing over time with, in relation to lab levels and just different assessment values. But usually those pieces of data are all in separate places.

Where Embie just brings it all together so that you can see at one glance, once again, this patient started stimulation here. She had her egg collection here. This is how many embryos we reach or eggs we retrieved. Here's how many were fertilized. Of those that fertilized, here was their ongoing culture development.

Uh, here's what was frozen on day five. It's just really this intuitive view of, Oh, what was her estrogen that day? I can hover right over and say, that was her estrogen that day. I don't have to go somewhere else. And look for it. So this was another area that really sold me on the efficiency piece because typically your staff are really left to put all these pieces together and this just puts it all together the right information for the right people in a way that's understandable and in a way that it clicks.

Do you want to say more about what you like about this piece, Mark? Because I know you really like the SIM sheet. 

[00:33:24] Dr. Mark Amols: So I want to make a couple points because I think Griffin was So I want to go stay here, but I want to talk about the last page was, so I was saying how the nurse could look at that page and now they don't have to say something dumb.

They take a look at everything. But as a physician, when you are going through a chart and trying to make a decision, having all that together in one page, your decision making changes. So if I'm thinking something, I look at the anterofocal count and I go, wow, that's a low focal count. I'm really worried about her.

But then I can see the AMH on the same page that says, Oh, our AMH is three. That might change my, my view now that may change what I may do. And so that's having all that in one place makes me more efficient and more accurate. But I want to show you one of the things I just, I was going to tell you, if you asked me, like one of my top things I think so great about this place is the intuitiveness of that.

So when I was at Mayo Clinic, we had a system very similar to this where it had dots and the dots were just a way you could watch everything grow. What's intuitive about that is we're not very good with numbers. Meaning like when someone hears, Oh, 22, 18, 16, 14, in our mind, we hear a cohort. But when we see it, it's so simple.

You look at this page, you go, there's the cohort, there's two that are hired. But they show you the intuitiveness of this program. I don't know if you even know this, but what do you notice about the colors? The purple represent the left ovary, and it's on the left. The blue represent the right ovary, and it's on the right.

They even positioned it anatomically correct. So when you look at it, you have to sit there and go, wait, is that the left or the right? Are those both of them? I You get to make that decision, right? That intuitive, that putting that thought into this is what makes it so great. And every step of the way, that's just how it is.

I love, like I said, to me, that little detail makes it so easy that I don't have to sit there and ask, well, which one's left, which one's right? I know I looked at the screen once on the left and left ones on the right are the right. Those are the type of things that, like I said, speed up the process. 

[00:35:13] Griffin Jones: Yeah, I wanted to ask you about how it normally looks.

And by normally, I mean in most EMRs. Yeah, not like this. Usually it's a number. 

[00:35:23] Elizabeth Lee: Yeah, it's usually a number in a cell, as Mark said. So you'll have the follicular size in a millimeter, and it's just in a cell. And you're usually having to look to see is that left? Is it right? Is it even different? So it's certainly not is not given in the, in a picture that actually just intuitively you can look at and go, okay, I have a really good sense of what happened in this cycle.

Can I show you something else that I think is really cool? It's. Something that the physician has done speaking with the patient, they're going to enter a plan. And that was something that Mark and I, we struggle with sometimes because there was no really great area to communicate a plan within the EMRs.

As the nurse, as the patient calls and reports their cycle day one, that's a, cascade that gets everything flowing. But in, at that moment, at cycle day one on the phone, I can't go find all of the relevant information that I need in a typical system without saying to the patient, let me call you back.

What's really neat about Embie is the physician can enter the plan. And then when the patient calls, I can click one button. That says activate cycle and then right within here I can begin making any adjustments that are needed. Maybe I've heard from Dr. Amels since the patient was seen that maybe they actually need PGTM.

They need something more than we thought or maybe, maybe she's actually going to be using some donor eggs. So there's the ability to craft or to, to fine tune. But then once we save the cycle, now this is another brilliant piece. The system knows. That we do monitorings on specific days relative to the start of the cycle.

And so all of this is baked in to where I can click one button again, systems processes, now I don't have to remember how does Dr. Amos like to do it? Does he like to see them on day five or day six? And then even within here. Being able to make adjustments to the lab orders for that day. Maybe we wouldn't draw a specific lab that day or something like that.

But these are the types of intuitive features that I know really were exciting to me because it was the ability to not have to think through all of this, but have a system in place where I can just let that cascade roll out. 

[00:37:45] Griffin Jones: And so how does this part normally look like? Is there, normally 

[00:37:50] Elizabeth Lee: there isn't, normally this doesn't really exist.

So what you would do is you would build a calendar for the patient somehow. Some people do it in Excel. Some of the EMRs have that ability, but you're going to build a calendar and try to put all of the relevant information that the patient's going to need. And then you have to transmit that calendar to her somehow.

But all of this that you see us doing is all being sent to her app right now. Okay. So this patient can right now see, Oh, my cycle's active. Here's my doses. Here's what I'm doing in the traditional EMR. Now, after the calendar's done, now I have to give the calendar to somebody to schedule all the appointments.

That's super inefficient, right? Who do I hand it to? And what were they doing when I walked up to them? So in the traditional EMR, there really aren't tools like this that allow you to, in a templatized fashion, repeat things based on protocols. Would you agree with that, Mark? 

[00:38:43] Dr. Mark Amols: Yeah, when I first saw this, I thought, did they steal this from our clinic?

Because basically what we do at our clinic is, Elizabeth and I came up with the idea to make all the calendars ahead of time. So when someone's going through IVF, we just pull out the calendar that they're going to be doing. We know the days where I see them, they walk up to the front, they make all the appointments.

And again, it's, it's efficient, but this is more efficient. And the thing that came from a, from a standpoint of, uh, someone who's inputting data, One of the nice things about that too was, I don't know if you noticed that Griffin, you can adjust things even on that page before you hit send. A lot of the programs I've seen, it's pre made and that's how it gets sent out, but there you can actually, even before you hit submit, you can change every little part to it that you want.

Delete things, add things, which now makes it a simple click and you're going. And again, it's just so many steps to remove. 

[00:39:31] Elizabeth Lee: There's just a lot of feeding the staff, the next step, right? Cause like how easy would it be to forget a step to forget to order the meds? This is prompting us. To actually go in and sign the various orders.

Let's say the patient wanted to she was going to go do outside monitoring somewhere These are all of her lab forms that I that are just auto populated The data is transferred over and now one click and this order is gone. I didn't have to write anything I didn't have to pull any data from anywhere else.

So it's really that Continually prompting you. Okay, what to do next and then bringing that information to the patient. Something else that I think was I really liked about this and I would encourage people go to the app store and download the patient app because I really don't think we can overstate That a patient created this and that it really speaks to the needs of patients.

So the educational needs, the mental health and emotional needs of patients. Go look in the app and you'll see that's a little bit of where the secret sauce on the patient side comes, but being able to integrate it across is. To me is a really brilliant piece. I

[00:40:44] Griffin Jones: want to, I want to jump on that for a second, because I've thought there have been apps in the past and maybe, and I think that there's still are that do add a lot of value to the patient in terms of information, in terms of even helping to a certain degree as concierges, but there's always been something missing.

And we've seen app after app come in and either have to change business model. Or they burn through tens of millions of dollars and without ever, like really finding what the business model is. And I've constantly asked, what is it like, how, what needs to happen in order to make this work? And it could be the case that the limit to those apps is that they just never connected to the other side.

Like never really fully integrated with the clinic that there was. It's okay. We can give you this information. And we can. Monitor stuff about your menstrual cycle and maybe even some of your treatment. But then there is a wall once, uh, once we're interacting with the clinic and we have to try and leap over the wall.

This to me seems to be two different sides to the same coin. 

[00:41:54] Elizabeth Lee: You bring about a great point. And it's just, I think It comes down to where is the value ad? And it also depends on what your clinic needs are too. Right? As Mark was saying, we haven't mentioned this, but this tool specifically, something else I thought was really brilliant was the customizability of it.

So the ability, like maybe Mark always likes to see, I don't know, a certain value, and it's not naturally displayed in the app. It's very easy to, to see. To pull that beta in and to customize it for how he works. So, so not only is it just very intuitive and efficient on its own, out of the box. But then you're able to further create refinements to, to make sure it runs the way that, that your practice runs.

We haven't shown this site at all yet, Griffin, but we, and Embie thinks this is really cool. I think this is really cool. Mark and I talked about. Implementing Clara, that use of the bi directional communication tool with the patient, but this bakes it directly into the EMR and it provides that remember that 30, 000 foot overview of contacts.

that matters when I reply to a patient, right? Oh, that's right. No, they're not using a surrogate or, oh, that's right. She's on her 21st cycle or something like that. On our side, on the clinic side, we can see it all aggregated in one thread. So we can see who sent it. And then each of the patient's responses on the patient side, however, they see it as individual conversations.

So they have that ability to send to financial team or send to maybe send Dr. Ams a question. So this is really, I think, quite brilliant in terms of, 

[00:43:37] Griffin Jones: so in a normal pa, in the typical patient portal, how would that look? Would it just be just that? 

[00:43:43] Elizabeth Lee: Usually it's message gets some individual. Yeah, it's usually like an individual message itself.

So if I want to go back and look and see, I may have to click in and out of 20, 30 messages to get the whole thread where I can just scroll up, go, got it. All right. I know what's been said off I go. And yeah, in a traditional EMR, you'd be opening up each individual message from all the different teams.

[00:44:10] Griffin Jones: This is almost like a group. 

[00:44:12] Elizabeth Lee: Yeah, yeah. It's like a WhatsApp group thread. Yeah. So on our side, I can easily say, see, Oh, fantastic. Finance has touched face. The admin has touched face. The counselor has touched face. I can see all of that. And the system allows for tasks to be fired based on the cycle that patient's doing.

So we know every patient is a financial consultant. Every patient needs to sign consent forms, every patient needs to do on and on. And this allows you, when we activate that cycle, it cascades all the tasks out to the right departments to say, okay, we know now she needs a financial consult. We know now she needs these things.

And that too is. I have never seen that in the EMR space. That's always what we're seeing here or what I have traditionally seen people build workarounds for. 

[00:45:06] Griffin Jones: I feel like for so long we've been saying, man, somebody ought to build this. Like somebody ought to I'm not gonna, I'm not a builder. And I think I've known Ravid and Josh for probably a year or so now.

And I don't think that I've fully appreciated what they've done until now. 

[00:45:28] Elizabeth Lee: Griffin. I don't know if you know this, but obviously it was started as a patient app and really looked, they wanted to join forces with the various EMRs and offer this, their platform as an overlay for the patient portal. Right.

Let us give your patients this really intuitive, pretty experience, but none of the EMRs wanted to play ball. And so they looked at each other and said, okay, let's just make it ourselves. And that's exactly what they did. And it's to look at this and to know that this was built less than a year ago and to see the progress with which new changes are coming about.

Something we haven't gotten a chance to mention yet, Griffin, is the AI component. It's not live yet, but it's still in, in, we're still working on it. It actually helped, we created an abstract to submit to Esri to show the data, the accuracy of the data from AI is there. So I'll give you an example. In Embie, we're going to have the ability to click a button and have AI generate the progress note for the day.

[00:46:30] Griffin Jones: You know, who's going to love that mark beyond your team, not having to look at your digital chicken scratch anymore, but your, your family is going to love it. My wife's a physician and she's not in, she's not an RAI, she's not in women's health, but she, it sucks. Like when she's on service week and she has to.

Come back and do notes. And she's just, should I stay at the office and do notes? Should I come back and put the baby down and then do notes? And that's how it would be a lot nicer if that could just go away. And I've been trying to tell her that it will go away someday. And finally, somebody is at least doing it.

[00:47:08] Elizabeth Lee: Well, now she should, now she should just become do be a fertility doctor and she's got a platform. 

[00:47:13] Dr. Mark Amols: I didn't know a step further. And again, this is where I go back to that point. We all think around us. We don't think about everyone else. I'll go a step further. It's not even just about my time. Now, notes are going to be more thorough, right?

I mean, when I read a note and I'm dictating it, I'm not putting every single thing that half the time patients get Dr. Emeril talked about this. I'm like, well, we don't see the note. Cause I can't put out. I got to get home and see my family now. Not only do I save time, but now a complete note is there.

Every little detail is there. And. What AI is going to allow us to do, and which is one of the reasons I'm, be honest, I'm mostly sold on them is because they want to add AI. Is it's going to make things just more efficient, but also it's going to be more thorough. And so I think it's not just about the physician saving time, it's the better quality of notes, the better documentation, the speed of it.

Now more time for the patient, right? So now it's not even just about me. Now I can spend a full hour talking to the patient versus having to spend 30 minutes and the other 30 minutes having to chart. You brought up a point earlier about. Programs. And this is taking everything in. There's a program. I'm not trying to diss on it.

It's a program. I think it was called Sal. I saw it at ASTM one year. I remember what I saw. I was like, wow, this is really pretty. And the reason it came around wasn't because no one could do it. It's because it comes back to that principle again, as an EMR. You have to make decisions. Am I going to make this?

Am I going to make this? People are already using our product. Right? Why do I need to make this? So South came in and said, listen, I'm going to solve a problem. I'm going to give this beautiful, interactive tool between the patient and the clinic. But the problem was, it's a workaround. You're still not going to the EMR.

So what's great about Embie is, they're taking all those things like you said about why don't they put this in a thing and they're putting it into a program, but they're always looking to go ahead. And I do. I think it's perfect. I'm not going to lie and say there's nothing that can't be perfect. But what's interesting is when I talk to them about things and they hear about the efficiencies, they make the changes or they at least think about them.

[00:49:17] Griffin Jones: I want to ask about that because we have, and maybe Dustin will make me cut this part out, but we have seen EMRs in the past come in and to your point, Mark, maybe be more in the time of this digital revolution, starting off with cloud based, starting off with a lot of the digital technology that we have now.

And you've even seen some clinics adopt them, but then some other clinics try to adopt them. And it's just, this doesn't work. There's way too many. Bugs and glitches, and they had to even go back. Imagine how much it sucks to switch in EMR and then having to go back. Yeah. So, so what are the glitches here?

What's the, what are the things that. Aren't ready for primetime. 

[00:50:06] Elizabeth Lee: Yeah. I think that the AI component is really still very much in production. It's not, I wouldn't say today, if somebody were to pick up and be up as their clinic tool, do not expect that's going to be available today. It's something very much still being massaged.

[00:50:20] Griffin Jones: But that's an add on that's being incorporated. What about the core functionality of this? 

[00:50:25] Elizabeth Lee: Is what the biggest opening for opportunity is really to pull their reporting capabilities together. Cause they're all there. But it's just, I think, about finding what are the reporting tools that are going to be really important and then extracting those out.

So I think that's the, in my mind, where I see the biggest area of opportunity is that the ability is there, the framework is there for all of the reporting, which is amazing. But I want to dig a little deeper on how am I going to get the exact reporting that I need to do my best work. 

[00:50:59] Dr. Mark Amols: There, there's a couple of things that when you're looking to look at EMR, right?

You mentioned about adding a product, right? So if you look like Windows, for Windows to be able to keep where it is now, they had to scrap everything and start from scratch. And you're right. A lot of these EMRs might not be able to do this stuff. The way things were written, the way it's coded may not be allow it to.

So this is actually coded in a way that is very HTML5, that's what I'm looking for. It's able to be adaptable a little bit better than some of the EMRs. But. Where the question you were asking is, I think we're the biggest drawback to going to the Amari is the amount of work that's going to it. And I know one of the things they're working on is ways that be almost a turnkey approach where you hit a button and it pulls all your data and goes into it.

And, and that's really the biggest. drawback of going to another EMR is, okay, these are great functions, but are those functions worth the headache of going into a new system? 

[00:51:53] Elizabeth Lee: And I think this is where I like to equate it to a marriage, Mark, right? You've got to be certain, for you, this is such a vital part of your business, that you really need to be certain.

And it is very much like a marriage, and the longer that you are with it, a certain EMR. The scarier it is to think about making the jump and is the data portability there? I think that's what you were speaking to, Mark, is how do I get, how do I not interrupt my clinic operations? And that's actually something I think is quite brilliant about Envy.

And it is, it's just very simple. It integrates with either your Google Calendar, your Outlook. So it's very simple in terms of getting implement, getting implementation up and running. There's not a lot of back end. I think the biggest thing is like customization, right? Where Ravid sits down and she says, okay, give me all of your form.

Give me all of your workflows. Show me all, show me at all. Right. And then she helps to create those little tweaks. 

[00:52:47] Dr. Mark Amols: And it's not AI, right? One thing is you're talking about, everyone can put AI in it, but how you do it matters, right? Just because something has AI doesn't mean it's going to be useful for you.

There is the potential here when you have a company that's really willing to integrate it to make efficiencies, that again, it's not going to be the same as someone saying, Oh yeah, you can get an AI to dictate your notes for you. Like I said, they're looking at it from a different perspective. Which is what makes me excited about them 

[00:53:14] Griffin Jones: to your marriage analogy Elizabeth prior to a marriage You typically go on a few dates a first date might be a demo Do you know the demo that I know reviewed does demos for perspective clinics that do you also do them for?

Perspective clinics, or am I just getting a special treatment right now? 

[00:53:29] Elizabeth Lee: You're just getting, it's you Griffin. But Tiffin, you really, what you have seen is just very much a scratching of the surface. And I do want to make that clear. This is not a full demo. There's so much more to see. And Mervy does an amazing job at walking you through really line by line, the magic of it.

Yeah. You're getting, you're getting me, but Mervy really is happy to give those, those demos. And then the second, third, fourth date is something like what you see here. And that's a sandbox. So Mark's had the ability, as have I, to really dig under the hood and play with it and look at, okay, for my patient flow, how will this work?

How will that work? Seeing what it looks like on the patient's side, right? So we can actually, through the sandbox experience, link, A patient to say Dr. Emil's phone. So he can actually see what the patient is seeing. I think that's really valuable because especially if you, part of your business model is an amazing patient experience.

I think that those kind of the information gleaned from those second and third dates as it were, it's really valuable for them for the overall 

[00:54:30] Griffin Jones: decision. So I'd like to conclude then is why someone should spend the time to do this demo, to go through this demo and probably tying back into the, where the conversation started in the first place of how some efficiencies in particular areas can lead to much greater improvements in many other areas.

And the whole time that you each have been talking about, I'm thinking of. We have to do this as a field, whether it's this particular solution, whether it's other particular types of tech solutions, we have to, there's no other way where there's no other way to get Gen Z's and millennials to, to get even the productivity that earlier generations of docs had been doing much more.

All of the rest of the patient population that needs to be served without these kind of improvements. And, and I'm thinking like, there's just, this has to happen. It's got to happen yesterday. But so I, but I'll let each of you decide of, of what people should be considering about what they test and why this makes sense to think about.

[00:55:42] Dr. Mark Amols: Yeah, I can go first and then Elizabeth and really summarize everything. But I think one of the reasons everyone should do this demo is to realize what they don't have. I think it's going to open their eyes, whether they decide to go with this product or not, it will open their eyes to realize, wow, I didn't realize how much I'm leaving behind of efficiencies, of benefits, just to name a few programs that this would get rid of.

Things like Clara, EngageMD, Salve, All those different things easily gone. Potentially billing. Potentially using AIs right now for dictation. It even gets rid of nurses in some ways. I hate to say that, but I may not need four nurses. Now I may only need three because I don't need someone to double check everything because the system's already double checking it.

So, I think one of the reasons that everyone needs a demo desk, regardless EMR or not. It's going to open your eyes to realize that there's more to DMR than what you've been looking at. You've always looked at DMR as a system that just tells you the information that you want. But this system actually works with you.

It's a marriage where you're not working against each other, but you're working with each other. And the part that we really have not delved into, and I think you just hit on Griffin, is the patient side. We're in a different world now. The old days of sitting down with a patient for an hour or calling them up and set up an appointment, those are gone.

Very few people want to do that anymore. Most people want to point, click, have an appointment, get their information via email. Text versus getting it through the phone. And so, you're right, these changes have to be made. But the problem is, no one realizes what they're missing because they've only seen it through one view.

And that's the view of the old antiquated EMRs. And I don't know if NV is going to be the best forever. There may be something else that comes ahead. But one thing I can tell you right now is, They are definitely far ahead of the other EMRs I've seen, and I work with what I think is one of the more efficient EMRs, and I'm even seeing it have progress over what we're doing.

[00:57:37] Elizabeth Lee: Yeah, for me, Griffin, I think why everyone should go book a demo is because this is really the clinic operating system that we've all been wanting, but never could find. And I think that it is this suite of tools that now finally brings the all of your clinic operations under one tool again, like that single source of truth.

And I think we talked a little bit about it earlier about Access to care being a really important sort of North Star for Mark and I both, I know, Griffin, you talk about access to care a lot, but think about how if we started to think about clinic operations like this and this type of succinct, smooth way.

Think about how many more patients we could help. Right. Think about all of the wasted time, like the massive efficiency tax of just clicking from program to program, just even reorienting yourself. There's a lot of studies that show that is, is very counterproductive. So having that single source of truth, I think allows because we can start to get rid of a lot of that.

That's yeah, that efficiency tax from our current systems. I think 

[00:58:48] Griffin Jones: the financiers would definitely like that topic, Elizabeth, as well as the patient advocates and yeah, and oh, I would love to have you back on in the future for another episode. I also think this is a segue for a topic that I want to have Dr.

Amos back on for which is talking about that top of license. being applied to every different role in the clinic, not just the REI. This has been a pleasure having this conversation with you. Thank you both for coming on the Inside Reproductive Health podcast. Thanks. Thank you. 

[00:59:20] Sponsor: This episode was made possible by our feature sponsor Embie clinic.

Is your EMR holding you back? Is an Excel sheet your one true source of data? Are you wasting your time with disconnected point solutions? Embie Clinic's unified solution for the clinic and patient provides a single source of truth. Our suite of tools helps you flex and scale your fertility practice from clinical care to the lab, administration, and beyond.

From onboarding to baby in arms, Embie makes sure your patients are informed, educated, and supported every step of the way. Say goodbye to the old and welcome a new standard of care with Embie Clinic. Visit embieclinic.com/irh now to book a demo and take the first step to modernizing your clinic. That's embieclinic.com/irh.

Announcer: Today's episode is paid content from our feature sponsor who helps Inside Reproductive Health to deliver information for free to you. Here, the advertiser has editorial control. Feature sponsorship is not an endorsement and does not necessarily reflect the views of Inside Reproductive Health.

215 Minimizing IVF Patient Dropout with Empathic Communication with Dr. Alice Domar, PhD

DISCLAIMER: Today’s Advertiser helped make the production and delivery of this episode possible, for free, to you! But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the Advertiser. The Advertiser does not have editorial control over the content of this episode, and the guest’s appearance is not an endorsement of the Advertiser.


IVF patients are dropping out and it isn’t just about the money.

Dr. Alice Domar, Chief Compassion Officer at Inception, discusses empathic communication and its role in minimizing patient stress and physician burnout.

With Dr. Domar we dive into:

  • Her definition of Patient Centered Care

  • How she measures patient stress (comparing against retention rates)

  • An example of a study she ran (the 67% difference in patient dropout)

  • Her format for teaching empathic communication

Common trigger points for patients (And their impacts on your reputation as a physician)


Dr. Alice Domar PhD
Chief Compassion Officer, Inception Fertility, Director, Inception Research Institute


Inception LLC
LinkedIn
Facebook

Prelude Fertility
LinkedIn
Facebook
Instagram
Twitter

Transcript

[00:00:00] Dr. Alice Domar: The clinics should worry because if patients drop out of treatment, they're not going to get the income. Pharma's not going to get the income. And I worry because the patient's probably not going to get pregnant. by the time she gets to IVF, and she drops that IVF, the chances of her conceiving spontaneously through sex are pretty low.

And so it breaks my heart to think that people get to treatment, may even have insurance cover for treatment. And find it so stressful they drop out. And that's, where we are doing something wrong. People should not be dropping out of treatment because they're too stressed to continue. 

[00:00:37] Sponsor: This episode was brought to you by Prelude Fertility, where top REI physicians find their calling.

Practice anywhere with Prelude. The Prelude Network is the fastest growing network of fertility clinics in North America. With more than 90 plus locations, we're ready to support you and your individual career aspirations, wherever they lead. To learn more, please visit rei.preludefertility.com. That's rei.preludefertility.com.

Announcer: Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the advertiser. The advertiser does not have editorial control over the content of this episode and the guest's appearance is not an endorsement of the advertiser.

[00:01:32] Griffin Jones: IVF patients are dropping out and it ain't just because of money. You can't help people get pregnant. You can't help people have a family. You can't scale fertility treatment. If people are dropping out for reasons within our control. If you own or operate fertility clinics, what does that mean for your business?

And if you're a fertility physician, how does it all come back to the way that you communicate? What does it even mean to train fertility physicians in empathic communication? My guest today has studied all of this more than anyone as far as I know. She's Dr. Alice Domar. Now she's the Chief Compassion Officer at Inception.

And she's working on reducing patient dropout by reducing patient stress. And she's working on reducing provider and staff burnout by reducing provider and staff stress. Allie talks about the studies that she's done and other studies that have been done on psychological interventions and patient centered care.

I make her define patient centered care. We talk about how she's measuring patient stress now and how she plans to compare those to retention and dropout rates. We talk about an intervention that she did in the past of a sample of 166 women where half were given this intervention, half were not. It's one variable and there was a 67 percent difference in patient dropout.

I ask her to describe the format and how she's teaching fertility physicians empathic communication. What does that training look like? And I push Allie a bit on the tension between alleviating patient burnout versus alleviating provider and staff burnout. I think there's a natural tension there and anybody who says otherwise is lying.

I'm not saying that it can't be managed. And I think Allie has a way of managing that. Tell me what you think about her suggestion and tell me what you think about physician communication as it relates to IVF patient dropout. Join my conversation with Dr. Allie Domar. Dr. Domar, Allie, welcome back to the Inside Reproductive Health podcast.

Dr. Alice Domar: So good to see you. 

I don't remember if this is your second or third time, but you were on one of the earlier episodes. You're someone that I've gotten to speak with at events before. I love seeing you speak at events. I love interviewing you. You're a chief compassion officer right now. And I am. One of the things about me is I don't like a lot of C titles.

I think C titles are way overused, but If there is a chief compassion officer and someone is qualified to be one, that is you. And so I want to talk a little bit about what it is that you do in this role at a network level that is a way of thinking about how we introduce things that are necessary for patient care and for patient retention.

But having somebody oversee at least some of the critical elements of that, Cross the scale of the organization. So what is it that you do at a, network level? 

[00:04:19] Dr. Alice Domar: Nothing. I'm just, I just goof off now. I, we really, when I went down to Houston to meet with TJ Farnsworth and the rest of the executive team, no one really remembers who came up with the job title.

I think it was TJ. He thinks it was me anyway, doesn't matter. But it really is a perfect title because, I've spent my whole career working to decrease the stress level of infertility patients and people who work in the infertility clinics in the sector. And so I've since added another title as I'm director of research for Inception, which probably adds another 50 percent of my life.

But I think to summarize it. I spend a lot of time trying to create and provide programs to our patients on how to decrease stress. So for example, tonight at nine o'clock Eastern time, I'm doing a webinar on, for family and friends of people who are going through infertility on basically do's and don'ts, like how can I best support someone I love with infertility?

And so I do monthly webinars. for patients. This is my first one for non patients, but I do monthly webinars for patients. I, if there's a patient in crisis, I talk to the patient. I write blogs on how to reduce stress. And I basically am just there for all of our clinics if there are any issues with the patient.

And as I said, I, talk to patients directly. And then another hat I wear is I try to provide programs to employees. Like in the last year, we've gotten a free subscription to the com app for all employees. I do this ask Allie column in their weekly newsletter. I'm starting a podcast this month for employees and how to reduce stress.

And if an employee is in crisis, either HR or their manager or the employee contacts me and I talk them through it. 

[00:06:16] Griffin Jones: So you've got these two different sets of programs, one for decreasing stress for patients and the programs that fall within that line, and then the other line being for decreasing stress for employees.

Are there indicators that you're ultimately responsible for or looking at that, that help you to decide that govern what those programs become and how you measure their success? 

[00:06:42] Dr. Alice Domar: Not yet, but that's in fact, I think one of the reasons why I'm running the Inception Research Institute because we're actually doing studies on the efficacy of different psychological interventions.

Although right now our research is mostly trying to understand. So for example, I have a study funded by MD Serrano where You know, for 10 or 12 years, researchers in Europe have been talking about patient centered care. And research actually shows that patients prioritize patient centered care over pregnancy rates.

women who are going for treatment right now really want to be cared for by compassionate, empathic physicians, nurses, and the team. And so everyone is always saying, oh, this is what patients want. But no one's ever really asked patients what they want. So we're doing a survey right now where we mailed a questionnaire to our patients to say, what are your priorities?

is it communication? Is it how to handle finance? everything. And so we will have the data hopefully released soon because I'm presenting it at PCRS. So we'll have the data soon. We're also on a LARC, gave the same survey to our physicians and asked them, what do you think your patients want?

And we're going to compare what the physicians think patients want versus what. patients say they want. And so once we know what the patient's priorities are, then we can make changes in the clinics to respect and reflect on what patients say they need, as opposed to you or I saying, Oh, I think this is a good idea.

This is what patients need. We're actually asking the patients what they need. 

[00:08:21] Griffin Jones: How do you juxtapose what patients say they want to need versus what their behavior suggests they want and need? And I'll give you an example that I'm thinking of. I remember, it was probably like 10 years ago or 8 years ago or so, Wash U Fertility did a survey of fertility patients.

And they might have done it in connection with Sirona. I don't remember who they did it in connection with. But they interviewed patients asking them what they liked and what they didn't. Want to see in social media. And what they said is we don't want to see pictures of babies. We don't want, we want tips on fertility, but then I could pull up all of our different clients, Facebook and Instagram analytics and say, it was almost like reverse alley.

It was like the pictures of babies did ridiculously well. And so you can say I don't want to see this, but then they're clicking on it. that's what they're, that's what they're paying attention to. That's what they're being driven for. And so I, I see. I've, seen this, with, employees, I've seen this all over the place.

It goes back to that Henry Ford quote of, if I asked my customers what they wanted, they would have told me they wanted a faster horse. Don't know if he actually said that or not, but, people can get the idea. how do you juxtapose like what people say they want versus, making sure that the, tail isn't wagging the dog.

[00:09:46] Dr. Alice Domar: first of all, I think a lot of the data that's been collected in the past was done in focus groups where you have, six or eight or 10 people meeting with somebody who asks them. And I don't tend to believe results from eight or 10 or 12 people. In fact, this morning I was asked to review a study that included 13 patients and they drew all these conclusions from 13 patients.

And I said, that's. That's insane. You can't draw conclusions from 13 people. And so we've already collected data, I think, from at least 500 patients. We're hoping to have at least a thousand. And when you have numbers like that, you can relatively safely assume you're actually getting real data. And then.

Before we actually implement these changes, we're going to do another study where we're going to take two of our comparable clinics, like maybe two of them in Florida or two of them in Texas, and take all the suggestions that patients said they wanted and make those changes at one of the clinics. And then compare patient satisfaction, patient dropout rates, things like that to see, yes, you're right.

People do say things that they want, but you also tend to get more. honest answers from these anonymous questionnaires versus talking to somebody, especially somebody who works at the clinic. 

[00:11:06] Griffin Jones: Yeah. I think that's a good way of looking at it too, is can you see from their answers how well do they line up to some of those numbers like dropout or conversion or retention?

Is there a way to do something like this, Sally, I remember there was a conversion rate Specialist that I follow in marketing, I think his name's Brian Massey, and I was at one of his workshops and we were going through this type of thing. And very often when people are trying to workshop a new campaign or a new website, they'll ask questions like, was this website clear?

Was this website appealing? Whereas he suggests. studies that show, show, did people buy it more or not? Or in the case of, if you're trying to get some kind of brand messaging over the line and it can't be tied to a particular conversion, he'll still suggest asking people what is it that this website does, or what is it that this company does after looking at the website homepage, as opposed to Asking people if the website was clear, is there any way to do that in your survey mechanism?

[00:12:18] Dr. Alice Domar: I think you're right. it's, tough to assume that people report exactly what they want. So for example, in all this research, because in Europe, they're way ahead of us in this patient centered care. But they did, I don't even know how they got the data, if it was focus groups or what, but they, said there are five things that patients want in terms of patient centered care.

And I don't remember what three of them were, but two of them were more information on the semen analysis and more information on the impact of a high BMI. I've been in this field for 36 years. I have never had a patient say, I want more information from the semen analysis. And most of my patients. don't want to know the impact of the BMI because they know that being heavy or too light, impacts their chances and they don't want to hear more about it because they already know it.

So I think we have to be very careful how we collect data. it's if you look at some of the old data from like before 2000 on the psychological impact of infertility, there were a number of studies that showed that women with infertility had the same level of anxiety and depression as did anybody else.

Yeah, but they were also. being asked to rate their anxiety or depression in their clinics, sometimes with their doctor present. And they would want their doctor to think that they were fine, that they could handle treatment just fine. Cause they didn't want the doctor to know how upset they were. Cause then the doctor would say, Oh, you're too upset to do treatment.

And so a groundbreaking study happened in 2004, where they actually had. a psychiatrist, interview, do a structured psychiatric interview before patients saw an infertility doctor for the very first time. And 40 percent of them met the criteria for anxiety, depression, or both. So sometimes these self report mental health assessments, let me rephrase that, many times these self report mental health assessments are not very accurate.

And if you go to countries like Scandinavia where People don't tend to talk about being anxious or depressed. You're going to get scores of zero from people who in fact are probably very distressed. 

[00:14:26] Griffin Jones: So you're working on getting some more of this data right now with the studies that you're doing.

In the absence of this data in the meantime, how do you decide which programs that you want to usher in and that you think will have the biggest impact? 

[00:14:43] Dr. Alice Domar: I look at the research. there's been, I don't know, a hundred randomized controlled trials on the efficacy of different psychological interventions.

obviously I started the MindBody program in 1987, so I'm a little biased towards MindBody, but in fact, there's been a group in Denmark who've done two huge meta analyses on the efficacy of psychological interventions with infertility patients on both psychological symptoms and pregnancy rates.

And both of their meta analyses have pointed to, mind body stress management interventions as being the most effective. and that's not me doing the research, that's them doing the research. It just makes me feel good because that's the intervention that I'm most familiar with. 

[00:15:28] Griffin Jones: tell us more about the programs.

What programs developed from that? 

[00:15:32] Dr. Alice Domar: So the MindBody program, it used to be an in person 10 session program. Obviously, now everything is remote. But we've also shown, I had a graduate student from UVM who took the in person MindBody program. And we've done a bunch of randomness control trials on it.

But she took the in person program and made it into an individualized online program. And this is before COVID, and this was her PhD thesis. And we found that women who did the MindBody program by themselves on their computers, not only had massive decreases in depression and anxiety compared to the control group, but their pregnancy rate was four times that of women who were on the waiting list control group.

I could talk for two days about The efficacy of these interventions. We know that our patients are distressed. We, know that a lot of them are anxious. A lot of them are depressed. Their partners are anxious and depressed. And, I was at a conference last year in Boston. I don't remember if you were at the same conference.

It was over Valentine's day. And it was on reproductive medicine, I think in women's health. And I actually got up at the end of the conference because they're all talking about all these technologies and all, AI and everything else that can be used in reproductive medicine. And I stood up at the end and I said, look, I'm the only mental health professional in this entire conference.

No one has mentioned. The emotional health of our patients. But if someone is really distressed, we know for a fact, they're not going to go see an infertility doctor. They're not going to start treatment. The more depressed a woman is before she starts IVF, the more likely she is to drop out after only one cycle.

all of us should be caring about our patient's mental health. I, as a psychologist, because I don't want these women to suffer psychologically. But the clinics should worry because if patients drop out of treatment, they're not gonna get the income, pharma's not gonna get the income, and I worry because the patient's probably not gonna get pregnant.

by the time she gets to IVF, and she drops that IVF, the chances of her conceiving spontaneously through sex are pretty low. And so it breaks my heart to think that people get to treatment, may even have insurance cover for treatment and find it so stressful, they drop out. And that's, where we are doing something wrong.

People should not be dropping out of treatment because they're too stressed to continue. 

[00:18:03] Sponsor: As pioneers in reproductive healthcare, Prelude Fertility invites you to join an extraordinary mission to transform the way fertility treatments are delivered. What sets the Prelude Network apart? It's the people.

We're home to some of the most skilled and compassionate fertility experts in the industry. Prelude Fertility Doctors have been recognized with numerous prestigious awards, including Top Doctors, America's Top Obstetricians and Gynecologists, and many others. Our culture is one of collaboration and shared knowledge, where learning from each other is just as important as learning from our experiences.

Prelude's facilities are a testament to innovation, equipped with the most advanced tools in reproductive science. This means you, as a fertility specialist, will have everything you need to provide care that's not just effective, but transformative for the fertility field. The Prelude Network is the fastest growing fertility network in North America, with over 90 locations.

This growth isn't just about numbers. It's about providing you with the flexibility and security to build a career that aligns with both your professional and personal aspirations. The impact you'll have at Prelude is profound. We've helped bring over 165, 000 babies into the world, and each day offers a new chance to change lives.

Your expertise and care have the power to turn hopeful dreams into joyful realities, crafting stories of hope and family. So why join Prelude? Because here, you're part of something bigger. You're at the forefront of a movement that's constantly evolving, pushing the boundaries of fertility care. Together, we can shape a brighter future for families and set new standards in healthcare.

Discover how you can be part of what's next in fertility. rei.preludefertility.com and take the first step toward a career that's as fulfilling as it is trailblazing. That's rei.preludefertility.com.

[00:20:17] Griffin Jones: I want to come into how this impacts dropout. I wonder if one of the reason why they didn't mention that at that tech or that innovation conference, perhaps two reasons.

What are people in that sphere obsessed with? One is measurables of certain metrics and they want very specific attribution. And we talked about some of that thing that you're working on. The other thing that they obsessed with is scalability. it's got a scale. And so are there. Technological solutions.

You mentioned that one of the things that you all are doing is getting subscriptions to the comm app for your employees. are there technological solutions that scale to reduce stress for patients? 

[00:20:55] Dr. Alice Domar: I haven't seen a whole lot of research yet. I know that Jackie Boyvan in Europe. is working on an app called Metaemo.

And the, at Esri a few years ago, she presented data that showed that women who use the Metaemo app were twice, who did IVF, were twice as likely to come back and do a second cycle than women who didn't use the app. We did a study, I, did it with Jackie. maybe six years ago, I don't remember how many years ago, where we recruited women, I think 166 women, who are about to do their first IVF cycle.

And we mailed half of them a stress management packet. So it was like cognitive behavioral skills. It was a relaxation CD. It was teaching them how to do mini relaxations. So we mailed them a half of them and then sat back for a year, didn't contact them, and then looked at retention rates. And the woman who got the packet, we don't know if they opened the packet, we don't know if they used the packet, the woman who got the packet in the mail reduced dropout rates by 67%.

Wow. And that packet cost 12. 

[00:22:00] Griffin Jones: And there was no other control? So we know that, 

[00:22:06] Dr. Alice Domar: no, we had a control group. We took 166 women. 

[00:22:09] Griffin Jones: but otherwise the groups were identical, like demographics, where they lived, and Absolutely identical. That 

[00:22:15] Dr. Alice Domar: was the only variable. Randomized controlled study. And then we just published a paper last year, and we tripped over this.

in my previous job, I was very interested in dropout rates. I'm in Massachusetts, six cycles mandated coverage. And we noticed that a lot of patients came in for a first visit and didn't come back. And I'm like why wouldn't they come back? They have insurance coverage. So we actually just sent them an email to say, Hey, we noticed that you saw an infertility doctor three months ago.

We noticed you haven't come back. We're just wondering why do you not like the doctor? Are you pregnant? are you taking some time off? what's going on? And we got a lot of answers, but. My research assistant noticed that a lot of the patients who got the email were coming back, like a lot of them said, Oh, I'll come back.

And then she went on maternity leave. So we didn't send the email out for four months. So we were able then to compare. When we sent the email out just asking, why didn't you come back versus when we didn't, massive increases in people coming back simply by getting an email saying, hey, we noticed you didn't come back.

So the conclusion I draw from those two studies, it takes very little to support patients to come back or to stay in treatment. And yet most clinics aren't doing anything. 

[00:23:41] Griffin Jones: There's a bunch of rabbit hole questions I want to ask you, but I'm making notes of them because we'll get to them if we get time.

The audience probably isn't as interested in those as I am. We'll get to the meat and potatoes first, and then if we have time, we'll, get to some of that dessert. So I, you're painting this picture for me. You've got 166 women in your mail. Half of them, stress packet, and half of them don't.

And then you have a 60 seven percent decrease in dropout for those that did get the packet. And then you've got this other, it wasn't a, it wasn't a study, but you could at least see in practice from the response rate that you were getting from emailing patients, asking them why they chose not to come back and.

Versus the time when your research assistant was out and didn't send that. So how does, what are the factors as far as you can deduce that impact patient retention? 

[00:24:41] Dr. Alice Domar: it's interesting because at my previous job, I spent about 10 years studying patient retention. And so we ended up interviewing maybe 250 or 300 patients who had insurance coverage.

for six IVF cycles and dropped out and didn't go to a different doctor. They just dropped out. And we asked them why. And most of them said because of communication, either from their physician or someone from the nursing team or whatever. They just had a conversation that just upset them so much.

They realized they couldn't keep up with treatment and they dropped out, which means, as I said, they're probably giving up genetic Parenthood by dropping out. And so then I got on my, my, whatever you want to call it. And I thought, okay, we need to teach people how to communicate more empathically.

And so one thing I've been doing at Inception for the last year is holding dinners for our physicians and teaching them empathic communication. And I do it in a, I don't want to say a mean way because none of them have, we go to dinner and it's, the physicians from the clinic and often the practice, the clinic manager, whatever.

And we, we're at like an ice steakhouse in a private room. And then I talk about empathic communication and all the things that indicate empathic communication. And then I give them vignettes. And I'll have a physician in a difficult situation practicing with either another physician or someone who works in the clinic.

And then I criticize them and it's gone over really well and they've learned there's some insanely easy ways. I, we, we're doing some training videos now at Inception where we just recorded last week training videos on how to communicate the six most difficult conversations that physicians have with patients.

And again, for both scenarios, I talked about how to. communicate empathically. And one of the easiest things you can do is to make eye contact. And so when I was trained in empathic communication, the tagline is never have a conversation with anybody unless you can walk away and tell anybody else what eye color that person had.

[00:27:00] Griffin Jones: Say that again, never make eye contact with anyone, never have a conversation with anyone unless you can walk away. 

[00:27:08] Dr. Alice Domar: So I noticed right away from what I can tell on the computer screen that you have brown eyes, right? Okay, that means I made eye contact with you.

[00:27:16] Griffin Jones: I barely know what color my wife's eyes are.

I'm thinking like, am I that crappy at talking? It's, something that wouldn't occur. Not something that would occur to me to pay attention to necessarily, or I guess better said, I would have to make a point to pay attention to someone's eye color. 

[00:27:37] Dr. Alice Domar: But that's one of the ground, the basis of empathic communication, that when you talk to somebody, especially if it's a physician talking to a patient, they need to make eye contact.

They can't be on their computer. They have to look at the patient and make eye contact. And that has enormous meaning. And if you look at the data coming out of Empathetics, which is an offshoot of Mass General Hospital, they've all this data on the efficacy of empathic communication. When you communicate empathically, patients perceive you spend far more time with them.

One of the number one complaints right now about physicians is that they don't spend enough time with their patients. 

[00:28:17] Griffin Jones: So is, with regard to eye contact specifically, do you find that older physicians are better than younger physicians in that particular regard? Or because I think very often it's said, the older physician is, might be the closer they are to.

[00:28:37] Dr. Alice Domar: That era where the doc was the authority and it was, it's really interesting 'cause I was in Dallas and then Nashville last week recording these physician training videos and we talked a lot about age, like our older reiss, better at communicating, better at being empathic than, for example, fellows. And I think you can't generalize because yeah, older physicians.

Don't tend to look at their computer screen as much because they are more, but some of them are maybe a little bit stuck in their ways. But, it was interesting. So the way we did these training videos, we had these six scenarios. Like one of them was, how to tell a patient that she was miscarrying.

she just had a prenatal scan. There's no heartbeat. And so for each physician, we had them record a non empathic interaction. Or an, a non compassionate one and then a good one. And we had, either, like usually it was an employee of the clinic acting as the patient. And even though it was fake, obviously the employees would say to me, wow, like I could viscerally feel different when the physician was talking to me in a cold, aloof way versus when they were making eye contact and leaning forward and not crossing their arms and things like that.

Millennials demand. Patient centered care. 

[00:29:59] Griffin Jones: Tell us a little bit about some of the gentle corrections that you made, some of those specifics. you told us about, about making eye contact and the way people pose, but what are a couple of specific things that you've said to people? 

[00:30:12] Dr. Alice Domar: I know, one of the most difficult conversations for physicians is telling a patient that she's above their BMI cutoff.

And the instinct for a physician would be to say, I'm really sorry to tell you, if, again, if I'm sitting behind them and they know they're being empathic, they say, I'm so sorry to tell you, but, your BMI is too high. I'm going to refer you to a nutritionist so you can lose weight.

and get your BMI below the cutoff, then you can do IVF. And that is an effective conversation. If I hear them do that, I would probably say, okay, so maybe we could do it a different way. how about, how would you feel if you said to the patient, something to this effect, there are a lot of things that can contribute to IVF success.

And we, I, the lab, everybody, we're doing everything we can to increase the chances that your next Psycho will lead to a healthy pregnancy and there are some things that you can also do that can increase or decrease your chances and one of the things that we look at is lifestyle habits and you're doing great with this and this but you know your BMI is a little high so how about we talk about ways that you can eat more healthfully to get your BMI below the cutoff so you can move ahead and do IVF.

No, which way would you rather hear it? 

[00:31:35] Griffin Jones: my, my preference is probably contrary to how a lot of people want to hear it. But it, the point is that it's not what you say. It's what people hear. And I remember when we were doing online reviews for fertility clinics or helping them with their online.

reputation management, I would look at the reviews and I would see very often she called me fat. He called me old. And I'm like, I wasn't in there. I wasn't in the consult room. I know that person. I don't think. I doubt, maybe she did, but I don't think she did. I think that she said something that in a vulnerable state was too close, too readily interpretable as I'm fat or I'm older, I'm not good enough in some way.

And, so I think that communication is clutch to be able to do. You have to be able to communicate in that way. And that was always something that And when we would help docs with this, it's I can't help you with that part. And so you're starting to. And so you're starting to do dinners. Is there plans to scale this, like beyond dinners and having this be like something that every doc goes through?

[00:32:44] Dr. Alice Domar: I think that's why we're doing the training videos because it's really, we have clinics. It's all over the US and Canada. And so having me go to every single clinic and do this and, not every physician can make every dinner. So it just seems more practical for us to do these training videos.

And I felt that, it was so interesting last week when we were doing them again, hearing the impressions of for one of the training videos in Dallas. the physician's MA was her patient. And she told us later that, she was faking it. She wasn't an infertility patient. She was probably, way too young for that.

And she said, when the physician spoke to her in a classic, somewhat detached, very factual manner, that she felt herself just feeling Like this doctor doesn't really care about me. And then when the physician followed through with all the empathic training and the skillset she has in communicating, the MA was like, I felt different.

I could feel myself reacting to how this physician was communicating with me. And it's, it's not hard. And it saves time, it's interesting because, Liz Grill, she and I once a year teach a course on a cruise ship for physician burnout prevention. And it's actually really fun. We get to go on a cruise together.

And one of the things that I, teach, one of the classes I teach for that course is empathic communication. And the physicians, these are not REIs, these are, all kinds of physicians and they come in yeah, blah, blah, blah. And then I list all the data on empathic communication. And it makes sense.

[00:34:26] Griffin Jones: It just makes sense. So I want to, bridge these two things because, and I don't want easy answers because sometimes people give me easy answers when I'm trying to reconcile the tension between patient burnout and, patient fatigue and, the needs that patients have versus the needs that staff and providers have.

And the answer that a lot of. Leaders give me ally is, oh, they're both, they both have the same interests. They both wanna do great. It's like bull crap that they don't have interests that are at odds sometimes. I'm not saying there's no way of being able to align their interests, but I'm saying that it, when you have patience that have certain demands that costs something on you when you're trying to, be able to deliver that.

And we could make patients really, happy if we answered their calls all at all times of the day and, like sped, didn't have dinner with our family to make sure we got them what they wanted. And, but then, Providers and staff are facing the burnout on that side.

And, you talked about inception a lot of who's your employer, but they are not a feature sponsor of this podcast episodes, which means they don't have editorial control. So you can say whatever the heck you want about them, your own consequences, consider those, but on my show, I don't have to do a damn thing.

I think one of their brands is, the brought to you by a sponsor, but. They don't get, they don't get editorial control. So how do you reconcile this, the needs that patients have versus the needs that the people providing those needs have? 

[00:36:10] Dr. Alice Domar: when I got to Inception, as I said, almost two years ago, it was a little overwhelming because they have almost 2, 000 employees.

And I don't know, at any given time, what, 100, 000 patients. And so I was trying to think through Where would I start? And it's, and I still say this, it's very obvious. You have to start with decreasing patient distress, because if you can decrease patient distress, patients will be easier to work with, and that decreases employee stress.

So I've spent a lot more time trying to design ways. To make our patients have less psychological pain because that will then have a domino effect and make it easier for the employees. 

[00:36:52] Griffin Jones: How do you incentivize the employees to do that when they're already feeling burned out? So if, one of the things that de stresses patients is maybe either more communication about finances or more communication about some of the things that you need and you could even come up with scalable ideas like Modules for the patients, but that takes staff time and provider time, and you have to take some of those staff and providers away to do that.

how do you incentivize the staff and the providers to say, listen, I know you've got needs here, but if we don't de stress the patients, then your needs are only, the burden on your needs is only going to get worse. 

[00:37:37] Dr. Alice Domar: it's, a separate thing because I provide a lot of entities for patients and for employees.

And so I feel like it's, on me to do that. obviously teaching empathic communication is a good thing, but for example, I've spent the last year and a half going to our clinics. I think I have three more to schedule and I do what I call a stress lunch at each clinic. And most of it is talking to them.

about where infertility patients are coming from, about how depressed they are, how anxious they are, how it impacts every area of their lives. And I talk about the unbelievable jealousy they have when anyone else gets pregnant and how agonizing that is and how hard it is to be part of a partnership.

where two members of the couple don't feel the same way at the same time and that puts them into crisis and their sex life goes to pot and they can't go home for holidays because their sister or brother has a baby and they can't be in the same room as the baby and you know I think when you explain to them where patients are coming from and why they seem so demanding and irrational and everything else it makes it easier to care for the patients because they then understand the patients.

It's different from pretty much any other aspect of medicine. You have a patient population who are as depressed and anxious as cancer patients and AIDS patients and heart disease patients, but they're young and healthy. And so when I talk about where patients are coming from and what their triggers are, I think it helps the employees because then you have compassion because you understand.

[00:39:16] Griffin Jones: I think that I could benefit from something similar in my own business and a lot of businesses could. benefit from something similar where you're training your team. This is what our user on the other side, whether it's a customer or a client or a patient is going through on this side, and I think that allows them to take better care of the patient that or the customer or the client That that reduces the burden on the team. I think that could be. I think that I think you have threaded the needle in that way. It still starts with the end user and it starts with educating your team. But if your team is educated on the needs. Of the user, then they can, in this case, the patient, they can reduce, the amount of stress that comes their way down the pipeline.

[00:40:09] Dr. Alice Domar: But it goes, I do a lot of couples counseling. I still have a small private practice. And I think the key with couples counseling is your partner can't read your mind. And you guys are not going to feel the same way about things. And you have to distinguish between what they. Can't do versus what they won't do and so the key to a successful relationship in any relationship is learning to understand Where the other person is coming from whether it be a marriage or a parent and child or being a nurse or doctor in a Fertility clinic you have to understand where the other person is coming from and what their triggers are 

[00:40:49] Griffin Jones: I think sometimes it goes too far one way and like in 2021, it was like, this is what employees need.

And, but then you had a bunch of employers get burned out. It's always, whenever you have more than one person, it's not just what wives want or what husbands want. It's wives and husbands or husbands and wives, whoever it may be, employees and employers. I think that's a really good point.

I guess some of the, I wonder, do you see. Is it helping in a way where you're starting to see turning the corner for reducing the stress in providers? Because I think of the companies that used to be really good at knowing what the customers needs were and servicing them. I think of companies like Apple.

I think of companies like Southwest. I think of companies like Trader Joe's. And I think with the exception of Trader Joe's. They have decreased. you go into the Apple store and they are not as nice as they were five years ago. And I think it's perhaps like what you're talking about. It's a two way street, and that niceness has been presumed upon too much.

[00:41:57] Dr. Alice Domar: But see, that's why every company needs a chief compassion officer. 

[00:42:01] Griffin Jones: Yeah, maybe. I really think so, because you're able to come in and balance this. And how are the providers responding to that piece of it? 

[00:42:11] Dr. Alice Domar: I have to say, I think I have probably met 95 percent of Inception's physicians, I'm guessing. And they've been lovely.

Like, really lovely. Like when I go to clinics, they hug me pretty consistently. And as I said, when I started doing these empathy dinners, I thought I was putting myself out there. I'm putting my neck on the chopping block and they've responded really, well. And it's been so much better and so much easier and so much more rewarding for me working with these physicians, because, as I said, they went into medicine to care for their patients and, some of them are, it's harder to work with millennials who are like, I was here at 730, where are my blood results?

And so I think, you They also respect the fact that I'm a researcher, and so when I talk about stuff, I don't just say this is what I think. I'll cite 16 different research projects that are randomized controlled studies that have been published in peer reviewed journals back up what I'm saying, and that's what you have to do.

You have to, you can't just pontificate what your thoughts and feelings are. You have to back it up with science, especially in this field. 

[00:43:26] Griffin Jones: Is the retention and dropout for third party a different animal? Does it all fold into this, but is, or is there something else that needs to be considered for retaining patients in such a way that allows them to then move on to third party IVF after failed cycles if they need it?

[00:43:46] Dr. Alice Domar: the transition from, for example, cycling with one who owns eggs to egg donor, when you transition from, treatment with each partner's eggs or sperm and the woman carrying that embryo that they've created, that's a different animal than third party because then you get into big bucks and a lot of mourning and grieving, excuse me, that is involved.

I think most clinics or all clinics follow ASRM guidelines. Or that those patients all have to see a mental health professional to, or hopefully they do, to help them process. Because you can't just say, Oh, my cycle didn't work. Let's do egg donation next month. You can't do that. So I think at some level, these third party patients can be more challenging to work with because the financial stakes are so high.

And because a lot of them have moved into it before they're really ready. And so they can be prickly. So there, there are a couple of things. On the other hand, they're highly motivated, but it's tough. I think third party is almost like a different kind of patient population. 

[00:44:56] Griffin Jones: Yeah, I think so. Are there special interventions that you've noticed for them, like, the sending of the email to, to ask why they didn't come back?

Is there anything equivalent to that you've noticed with third party? 

[00:45:09] Dr. Alice Domar: It's been very little research. It's interesting because I'm about to submit a grant for the first time. No one ever has looked at this, is what about patients who come in who want to electively freeze their eggs? Because when patients come in for that first consult, half of them don't come back.

And we're going to be doing an inter, hopefully if it's funded, an intervention site to see if we can better support them. Because what the research shows is women who freeze their eggs, very few of them regret freezing. Women who don't freeze their eggs, the majority regret not freezing. And so again, I as a psychologist want to see what can we do to support these women to make the decision that they are least likely to regret.

[00:45:54] Griffin Jones: I want to ask you the rabbit hole questions of where psychology meets neuroscience, but people would be less interested in that. And you got to go. But if people see us talking, sitting down at a bench someplace at the next conference, that's what I'm asking Allie about. Allie, I wanted you to conclude based on how you would like to conclude about empathic communication, about reducing dropout and increasing patient retention for either providers or staff or any of the threads that we talked about today.

How would you like to conclude? 

[00:46:28] Dr. Alice Domar: I think we all need to accept the fact that patients need to be cared for in a different way than they needed to be cared for 20, 30 years ago. That we have to learn, as you said at the beginning, what patient centered care is. But it starts with empathic communication. 

[00:46:47] Griffin Jones: Dr. Allie Domar, thank you so much for coming back on the Inside Reproductive Health Podcast. 

[00:46:53] Dr. Alice Domar: My pleasure. Always happy to see you. 

[00:46:56] Sponsor: This episode was brought to you by Prelude Fertility, where top REI physicians find their calling. Practice anywhere with Prelude. The Prelude Network is the fastest growing network of fertility clinics in North America.

With more than 90 plus locations, we're ready to support you and your individual career aspirations wherever they lead. To learn more, please visit rei.preludefertility.com. That's rei.preludefertility.com

Announcer: Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the advertiser. The advertiser does not have editorial control over the content of this episode, and the guest's appearance is not an endorsement of the advertiser. Thank you for listening to Inside Reproductive health.

214 Grow Donor Egg IVF Programs While Increasing IVF Lab Capacity with Betsy John

DISCLAIMER: Today’s episode is paid content from our feature sponsor, who helps Inside Reproductive Health to deliver information for free, to you! Here, the Advertiser has editorial control. Feature sponsorship is not an endorsement, and does not necessarily reflect the views of Inside Reproductive Health.


Capacity, Reach, and Concierge Service.

Betsy John, Business Development Manager at My Egg Bank, shares how these three systems are necessary to growing your 3rd party IVF program.

With Betsy we discuss:

  • What Concierge Service looks like when serving your patients

  • The burden 3rd party nurses have (And how you can alleviate that burden)

  • The diversity of egg donors required for fertility practices to grow their 3rd party programs

  • What fertility practices should avoid when working with a new egg bank

  • The trends she sees on the horizon for donor egg IVF (Including AI for facial recognition)

Why offering both fresh and frozen donor cycles is necessary (and how My Egg Bank helps with each)


Betsy John
LinkedIn

MyEggBank
LinkedIn
Facebook
Instagram
Twitter

Transcript

[00:00:00] Betsy John: To be honest, it is more one on one. So I guess more so in the vein of the concierge service, that it's not, something that we do. And it really is more so about to meet those intended parents where they're at in the journey. As I mentioned, some of them are coming to us, all of this is brand new. They feel so confused or overwhelmed by the process.

but I think that's where the personal touch really matters. That maybe a module or a video wouldn't be able to afford the same, open communication that a conversation with that person might have. 

[00:00:34] Sponsor: This episode was made possible by our feature sponsor, MyEggBank, the premier network of donor egg banks.

Enhance your clinic's fertility services with MyEggBank. By joining our network, your clinic can broaden its horizons, offering aspiring parents a diverse range of fresh and frozen donor egg options, each backed by our demonstrated success rates. Together, we can bring the joy and hope of parenthood to more families.

Discover the benefits of partnering with MyEggBank by visiting myeggbank.com/irh. That's myeggbank.com/irh

Announcer: Today's episode is paid content from our future sponsor, who helps Inside Reproductive Health to deliver information for free to you. Here, the advertiser has editorial control. Feature sponsorship is not an endorsement and does not necessarily reflect the views of inside reproductive health. 

[00:01:33] Griffin Jones: Capacity, reach, concierge service. Those are three themes that come to mind when condensing what's necessary. To grow your third party IVF program. And can you grow your third party IVF program, not just without straining your capacity in the clinic and the lab, but adding to your capacity in the clinic and the lab, I explore how fertility practices are leveraging these systems to grow their third party programs, particularly.

They're donor egg IVF programs. And I do so with Betsy John. Betsy is the business development manager of MyEggBank. She's worked there almost 12 years. And I think she's someone you'd like to know. I think she's someone that in some years time, you're going to enjoy saying. Oh, I knew her from that podcast episode.

I connected with her after she came out on that podcast episode. Here's what we talk about. We talk about what concierge service looks like when serving your patients. We talk about quality controls. We talk about the burden that third party nurses have, third party coordinators, third party directors have, and what you might be able to do to alleviate that burden.

We talk about my bank's massive capacity, nearly 200 egg donors in any given time. Not an application phase ready to go. We talk about the scope and diversity, the fertility practices need from their egg donor population in order to be able to grow their programs. We talk about how being able to offer both fresh and frozen donor cycles is necessary and how MyEggBank helps with each.

We talk about embryo banking. Being able to purchase all the eggs from a donor. And we talk about MyEggBank helping with embryo creation, which I found very interesting, because if you're growing your third party IVF program, you're taking away capacity from your lab. But if you have someone else that you trust doing the embryo creation, you are getting capacity back.

We talk about things that fertility practices want to stay away from when they're working with a new egg bank, when they feel limited. When they feel concerned about where other banks are recruiting their donors, about not having a commitment of how many donor eggs you need to order from. We talk about having resources that you can use to educate patients, help retain them, help convert them to third party IVF if donor egg is indeed a need of theirs.

MyEggBank has a starter kit that they use for all of their affiliate centers. We'll have a link to that. I would get it. It's free. It's useful for your patients. And we talk about the trends that Betsy sees on the horizon for donor egg IVF, including artificial intelligence for facial recognition and some other applications.

Enjoy this conversation about advancing your third party IVF program with Betsy John from MyEggBank. Ms. John, Betsy, welcome to the Inside Reproductive Health podcast. Thank you for joining me. 

[00:04:15] Betsy John: Thank you, Griffin. It's a pleasure to be here. 

[00:04:17] Griffin Jones: You're a person that when we were talking about having you as a guest, I was like, I want the fertility field to know who Betsy John is.

I've gotten to know you a little bit. I think five or six years ago, just via email. And then you meet it is, then, you keep in touch from making content and on LinkedIn and stuff. And then, you get to meet at a conference and I'm like, this is somebody who I think is. I want people to know who you are and to pay attention.

I think you're a rising star in this field and I've enjoyed getting to know you and I want to crawl into your brain today to really understand what's important to intended parents, what's important to donors. And then, and through that lens, What's so important in the relationship between an egg bank and the clinic because you've been at this for a little while and my bank has been a growing operation.

So what type of feedback do you get? from affiliate centers that you work with. What are they telling you that their needs are? What are you telling, what are they telling you that they like and don't like? 

[00:05:26] Betsy John: Yes, absolutely. Thanks again for the opportunity. And just to give you a little bit of background about MyEggBank.

So we really are the middleman between the clinics that give us. egg donors, egg donor profiles that we display on our website. And then we have a network of about 250 practices around North America that are purchasing those eggs from us. so our relationship with the two practices is slightly different.

The affiliate network, the clinics that are sending their patients to purchase eggs from us. I guess the key points that they really mentioned that they appreciate about MyEggBank is that we are a smaller team that we're able to offer a more concierge service to the clinical team there at the practice, but also to their patients individually.

we pride ourselves on really having a personal relationship with those patients. To us, there is a great deal of education that goes into the process when the patients are coming to us. They're further along in their IVF journey. They've tried it on their own most often, and at this point come now to realize that they need an egg donor.

And a lot of them honestly don't understand the process. They don't understand egg donation. What does that mean for the donor? What does that mean for me? So to us, having that relationship, having that level of communication with the patients really is. is what we prioritize in that process and they're with us for a shorter amount of time.

So truly when the patients come to us. find the right donor, they match, then they go back to their practices. So that short span of time that they're with us looking for a donor really is critical for us to establish that level of trust with the patients that they feel comfortable to ask questions and that we can help guide them through the steps along the way. 

[00:07:23] Griffin Jones: You mentioned that in that short span, they're looking for concierge service. They're looking for education. What does concierge service look like? What is it that they need special attention for? 

[00:07:35] Betsy John: Probably just in the donor search and just understanding the levels of complexity there that a lot of the intended parents come in with those general ideas of, I want to find someone relatable to me, a donor that.

maybe has my background, either racially, ethnicity, or looks like me, looks similar to me or my partner. And then also in the essays, I think to really feel that connection with the donor, that you get a sense of their personality, you get a sense of how would it be if this person was part of your family.

And then also the genetics piece, I would say that's probably very big in the patient's understanding of what's compatible, what's not, what do I need to look out for? Is there something with the blood type, something with the family medical history that I need to be concerned about? So there's various touch points through the process that I think we're able to really hone in and guide them through, walk them along.

We assign the majority of the clinics with a specific coordinator from MyEggBank. So it's a very fluid relationship. 

[00:08:43] Griffin Jones: How do you do that? Meaning when in these different touch points, because your user interface is such a way that it seems like it would be, it's pretty easy to find the donor that you want, that looks like you and to see the background from you.

But it sounds like they just need a little bit more attention, a little bit more where that concierge service comes in. So what do you do in those touch points? 

[00:09:07] Betsy John: So I think it's a good opportunity for us to explain to the patients what our screening for that donor involves. There's going to be various points through the process that we are educating the donors, go through a rigorous screening, but we're also following.

Our standard of protocol, along with ASRM, ACOG guidelines, we as my ag bank have our own guidelines that the centralized team that's reviewing all the applications that come through is really able to hone in on our gold standard of what's acceptable criteria. So getting the patients to understand that while everyone may want to apply, not everyone's going to make it to the point of.

Being able to donate was the reasons of what that exclusionary criteria might be, that if it's a question of health or their response to the medication, that we're doing everything we can from a medical standpoint to be sure that egg retrieval or that egg donation cycle is going to go seamlessly.

[00:10:08] Griffin Jones: How do you scale that education? Is it, it just an onboarding session with each patient? Do you have learning modules for them? Do you invite them all to an info session to do it once? Tell us about that. 

[00:10:22] Betsy John: Yeah. To be honest, it is more one on one. So I guess more so in the vein of the concierge service that it's not, something that we do.

And it really is more so about to meet those intended parents where they're at in the journey. As I mentioned, some of them are coming to us, all of this is brand new. They feel so confused or overwhelmed by the process. but I think that's where the personal touch really matters. That maybe a module or a video wouldn't be able to afford the same open communication that a conversation with that person might have.

So we really do. With every order that's placed, we're reaching out to those patients with a phone call or an email to start. Just, hey, I see that you've matched with donor 123. Did you have any questions that we can help you with? Let's talk about next steps together and see if there's any just general questions that we can answer.

[00:11:16] Griffin Jones: Tell me more about what the talking about next steps often entails. 

[00:11:20] Betsy John: Yeah. So even for the patients, it is a blurred journey. I feel they go into this, not really understanding the steps. So we really like to highlight, you'll get the access to the website by just signing up on our site, my eggbank.

com. once they create their patient account, they'll be able to see the full donor profiles, but we do leave the responsibility of granting access for patients to place orders on the clinics. Okay. So we want the clinics to say, Yes, Jane Doe is my patient, and she's cleared to move forward to make a donor egg purchase.

So once they've flipped that switch of a button, the patients will have the ability to place an order. They're making a selection of how many eggs they want to purchase and also which program option they want to purchase. So it's a level of a guarantee. Do you just want egg survival? Do you want an embryo blast guarantee?

And they can read through the different offerings that their clinic offers through us on our ordering page. Once that's completed, we have a 5 7 business day window of consent forms, payments that need to be made, and that's also the point that we look for any genetic screening. So if the donor is a positive carrier of a condition, we're going to request additional genetic testing for the sperm source just to ensure that there's compatibility there.

There's no, once that clearance takes place, then we would connect directly with the patient's IVF lab at their local center to coordinate for that egg shipment. 

[00:12:56] Griffin Jones: So it sounds like you're staying with them the whole time, which is useful because when people drop out of treatment. Very often it's just because there's nobody staying in touch with them.

I don't know if her episode will come out before or after yours does, but I just interviewed Allie Domar and she was telling me about one intervention of reaching out to patients where just reaching out to them, asking them, Hey, how's it going? Where are you at right now? had 67 percent less patients drop out than those that didn't.

And so it's about having somebody that can liaise with the patient the entire time. And it's just from a clinic standpoint, it's hard to do that with man hours. If you have a third party coordinator that maybe that's not even her only job. Sometimes, it's just too much. And so you, for patients. Coming to MyEggBank, do they have one case manager the whole time?

Did the, does, is there like a navigator? How does that work? 

[00:13:58] Betsy John: Yeah. So we do assign a coordinator per order. Of course, that person's going to have multiple orders at a time. We do just offer our general coordinator line. Either through phone or through email that if they're not able to reach their primary person, that someone would be available to help answer any and all questions that I would agree with you on your point that we're in this digital age that we're also trying to automate.

so many things, right? And so much of this process, but to us, it's very important that we've never compromised that piece of it, that sure, we could send the next steps via email, but we're also going to make that phone call as well, just to read all the information can be daunting. And that if there's any questions that we can answer along the way, just to make that smoother, that's ideal for us too.

[00:14:46] Griffin Jones: It changes even if your preference is email, like even if your preferences is, I'll read it on my time. And even if you never actually talked to the person, but you get a voicemail from a kind assuring voice that makes the email mean something more. 

[00:15:04] Betsy John: Absolutely. And I always joke, it's not the same as purchasing T-shirts from J. Crew, right? this is a pretty hefty purchase and it's an expensive one at that. So to know that your investment is coming from a trusted source mutation, all of that is so critical for us. 

[00:15:21] Griffin Jones: You were telling us about what happens in the middle of the process with how the intended parent goes through their selection and how does, talk to us about the beginning and the end of that short pathway between them coming from the clinic and then going back to the clinic.

How does the clinic interface with you when a new patient is, you're starting to work with them and then sending them back to the clinic? 

[00:15:47] Betsy John: Yeah, this is also a point that we really try to emphasize to the affiliate centers that we want to take as much of the burden off of their third party nurses to explain all of the options to their patients, that if they just make that referral, hey, here's an egg bank that we're working with one that we're comfortable with, feel free to reach out to them with any questions.

As I mentioned, we do have several program options. available and we can't expect the nurses to remember all of those things. So it is our preference that they would have the patients reach out. They're going to create the accounts. They would reach out to us directly with any questions they have. We touch point with the clinicians just to say, Hey, Your patient has created an account on our site, and now they've placed an order.

So there are several points that we would reach back out to the practice just to let them know the patient's made a selection, they've made this program option choice, and now we're ready to do the egg shipment. So we try to work with the patients all during those steps, but informing the clinicians on an as needed basis throughout the process.

[00:16:57] Griffin Jones: You talked a little bit about the burden that third party nurses have. Tell me more about that. Tell me, what are they struggling with? 

[00:17:05] Betsy John: Yeah, it's interesting in the last couple of years, I would say, we've had a lot of the centers that have newly joined with us just say, we can't manage the load, right?

We're just having more and more patients that are needing egg donation. Of course, we're one of. Several egg banks out there. So they have various options. Not one of us are the same. in instructing patients or guiding them in the process of where to go and what to do, I think it's a lot for those nurses to carry that, level of information they're referring to the best of their ability.

we also, don't want the patients to be running back and. Forth between us and the nurse to ask opinions or thoughts about their donor selection maybe. So as much of that as we can alleviate with the understanding their third party nurses, so they're likely not only dealing with donor egg.

They also have donor sperm, gestational carrier cases. Some of the smaller practices are just managing IVF patients in addition to third parties. So having a full scope of what these nurses are potentially dealing with and hearing it from them directly, it, it is a priority of ours to minimize that stress and how can we intervene and make this easier for you.

[00:18:19] Griffin Jones: Do you still liaise with practices or you're big time now? You got people for that. 

[00:18:25] Betsy John: No, you yourself. That is my primary role actually is the business development side. So I'm on the lookout for centers that need more help in this way. If we can be an option for your patients for egg donor, happy to sign up new clinics all the time.

And then with turnover as well. So if it's a nurse. at a practice that I signed up with two years ago, I'm still going to check in to say, Hey, do you have staff turnover? Do we need to do an onboarding call of our process with anyone? And then also setting up that training for our embryologist as well. So that's still very much my role in the process.

[00:18:59] Griffin Jones: So you're talking to clinics that are newly joining you as well as those that have been with you in the past, but for those that are newly joining you, what few things are they bringing up to you? that generally indicate why they're there having that conversation with you. Like back when we were doing marketing for fertility clinics, it would be a handful of things if it would either be, they had some need, like we're just not seeing as many new patients as we used to be, or we are seeing lots of new patients, but we need help converting more to IVF.

Or they would, maybe you'd say we're doing well in those areas, but we have an office or a couple of docs over here and we need help getting these particular docs up to capacity. That would be on like the proactive, need side. And then I would see a category of people coming from reactive needs. Like they were working with a different marketing agency and, would be usually they're not bringing us ideas.

they can't really report to us on the results that they're achieving, or we are asking for types of content or campaign updates, and they're really slow or unable to do that. So I would have these buckets, proactive needs, reactive needs. Let's start with the proactive, what proactive needs indicate to you why you're having that conversation with them?

[00:20:21] Betsy John: Yeah, I think for some of those clinics. that maybe have an internal existing egg donor program themselves. Internal meaning they're bringing donors in house and selling them to their own patients directly. Oftentimes in those cases they just don't have the diversity is what I'm noticing. That maybe their patient population isn't necessarily matching that of their donor population and they just simply need more options.

That would be one point. Secondly, I would say if a patient wants to do a fresh egg donation cycle, but they only have frozen or vice versa if they offer fresh donation, but they need frozen egg options. So the fact that we're all encompassing of those, I think is very helpful to them as well, that each patient's needs are different, as I mentioned.

If they are looking to do more embryo banking, they want to purchase all of the eggs from a donor. We have all of those different program options available. So I think having that variety is critical, the diversity of egg donor. And we also offer embryo creation programs. So sometimes it's that if the IVF lab doesn't have the bandwidth for these cases and they're preferring that MyEggBank would create embryos for their patients.

Send the embryos back to their clinics for them to just coordinate an embryo transfer cycle is Oftentimes just an easier lift for the lab versus doing the entire fertilization. 

[00:21:48] Griffin Jones: Is that something that has developed more in Recent years because I don't usually think of that when I think of egg banks Is that something that you've seen grow in?

Is it generally been steady since the time you've been there? 

[00:22:03] Betsy John: Yeah, I would say it has grown. So initially I think when we launched the egg bank and started the bank, it was generally egg sales that were going out, but as we launched this program, we were able to offer higher guarantees of embryo creation or embryo creation plus PGTA testing.

again, just. taking more off of their IVF labs were able to offer a higher guarantee because our lab is doing the work. And I feel like around COVID time was where we really saw a pickup in embryo creation. Again, it's probably a staffing concern or IVF labs just being overloaded with the cycles that they have.

And so having this external option, just. Really seem to benefit everyone. 

[00:22:46] Griffin Jones: Yeah, that would seem to me to be the motive that so many labs are, they're just, they're slammed. They don't have enough embryologists. They might have enough embryologists, but they don't have enough hours in the day. And so you have to, that's one way of, let's say you're 5 percent of your cycles or 10 percent of your cycles are donor egg IVF.

That would be one way to alleviate. Your capacity in the IVF lab by having that percentage, I could see some lab directors and then some clinical and medical directors. They're pretty picky folks and they're the best. So how could somebody else be as good? So you must have done something to assuage their concerns that you must have done something.

That says, okay, MyEggBank can rock with us. What is that? 

[00:23:35] Betsy John: So I have to say, I think it really goes back to a lot of our standardization. So in our training of the embryologist, as I mentioned, we do have these different donation sites that are giving us egg donors and those. 15 different locations are all thawing and vitrifying on the same protocols, where I do think that training is critical.

So we've really gotten to the point now that we're troubleshooting in real time often and able to really guarantee that level of success. And we stand behind our guarantees. So we're really confident in the work that we do. And if we're unable to meet that guarantee, we offer the patients a replacement cycle at no cost to them.

So we feel strongly enough in the products that we're offering. I think the practices that were willing to experience that got to see that and have built that trust over time. And more than that, our platform is also customizable. So for those labs that are rock stars and they want to do it all, they just want to do egg sales.

We can customize which guarantee options their patients can see. So when they're in our ordering portal, they All of the affiliate centers can have whichever guarantees they want to be in our program offering menu. That really helps out as well in those cases. 

[00:24:53] Griffin Jones: One of the other reasons that you mentioned is the scope of embryo banking and the scope of buying all eggs from a donor.

So does that mean that sometimes people are only able to buy certain batches of eggs from a donor and not all of that donor's eggs is, am I, what am I understanding correct? And then two, what's the significance of that? 

[00:25:14] Betsy John: Yeah, absolutely. So generally for our frozen egg purchases, the patients are purchasing them in a lot of six eggs.

So that's as a standard, what our process looks like for couples, a lot of same sex couples that want to do more embryo banking. They know they want a genetic. sibling match want to have more eggs to work with. So we started our fresh program that follows embryo creation. So it's still the same plan that the sperm is being sent to one of our labs.

We're doing the fertilization on the day of the donor's egg retrieval. And when we say all legs, we do define that as capping out at 18 eggs. So any and all embryos that are created out of those 18 eggs will be frozen for those patients for future use of embryo transfers at their clinics. 

[00:26:03] Griffin Jones: So it's for those folks that they know, Hey, we're going to likely want a genetic sibling in the future.

And, it sounds like that's a, an advantage that you all have to be able to offer that. What about on the fresh and. frozen side, like why is this, why is having both still important? And this is just my ignorance of embryology, because when I'm talking to two clinics, I say, Oh yeah, we're mostly using frozen.

And then others will say, yeah, but we have to have fresh donors too. And so why are both? still important? Why? Why are they both still important to clinics? 

[00:26:37] Betsy John: Yeah, it's an interesting question. And we talk about it often that in the IVF culture, we've just seen the pendulum swing both ways that when we first launched the egg bank, everyone was all about frozen eggs.

It helped make the process. wise, move much faster for the patients. So when they match the eggs are already frozen and ready to go. So it made the process quicker for those intended parents. They're purchasing the egg number that they want to use, or that's recommended by their practice. We ship the eggs out.

Generally, those orders are completed within two to three weeks. If. Genetics are all compatible, so it allows them to start their next cycle much sooner. And then on the fresh side, we just noticed that patients that might have had Not as good of quality sperm or as good of count of sperm that they tended to inseminate better We've noticed when it were they're doing a fresh insemination on the day of egg retrieval So we wanted to have options for patients in all capacities Wherever they're at in the journey, whatever their medical concerns may be and whatever their future goals are.

Are you just wanting one, maybe two children out of this? Are you trying to grow a larger family with potentially three to four? So just to be more all encompassing that we're meeting the patients where they're at, we're guiding them through this journey, and we just have all the options available to you.

[00:28:03] Griffin Jones: Frozen, asynchronous, patients can do it on their time, and clinics can do it on their time, and you can be a lot more adaptive with the schedule. Fresh seems a lot more logistically difficult, though there might be some reasons for it, like you mentioned, some malfactor reasons and perhaps others. How does FRESH work with you all being in different locations in all of your affiliate centers?

[00:28:26] Betsy John: Yeah, so it's interesting in that FRESH through donor agencies is very different in that the donors coming to you, to your local clinic, as I mentioned, our FRESH program follows our embryo creation models. So we're going to work with the intended parents to have the frozen sperm sent to our lab in time for the donor's egg retrieval.

We are going to thaw the sperm, inseminate. Fertilize culture, the embryos out to day five or day six, freeze them and ship them back to the practices to do a frozen embryo transfer at the time decided by their clinical team. 

[00:29:03] Griffin Jones: Good that everywhere flies direct to Atlanta, right? That's right. Couldn't do that in Buffalo.

I don't think it would be a little bit harder. And so then the first. Proactive reason you said when that clinics are talking to you about and the reason why they're having a conversation to perhaps become an affiliate center with you all is that they need more donors and They need a greater diversity of donors So is are those two issues separate or is there if for example?

If you only had one type of demographic of donor, would it still be important to have? A much greater quantity of those donors than not, I

[00:29:46] Betsy John: think so because it isn't necessarily going to be one item that the parents are looking for. I think when you look at our metrics and the analytics that we've compiled, it's generally not just one thing.

They may have started out. For the race, right? I want to find someone that's a similar race to me. But then I do feel the emotional piece, the personal piece, they want to feel relatable with the donor, that education may matter for some height, their interests, what their skills are. So things like that really do play a factor that I feel like people in general just want options, right?

They don't want to just be you. Here's choice A or B, they want to have the full gamut if possible. And we have had patients mentioned that some other banks don't have as much of a variety. And we just wanted to see what all do you have? How are you offering this and what, how, what makes you different? So to us, it really is important to be strategically placed around the country of where we're pulling donors from just to really cover all of those bases and try to hit those different demographics, those different metrics.

To really create the most diverse pool as possible. 

[00:30:57] Griffin Jones: A country of 330 million people, they're not always a perfect cross section in just one place. In one city you might have far more of this ethnicity, in another city you might have very different. Patient population and so you'd want to be pulling from multiple areas in order to be able to do that And so you've got production centers in different parts of the country and you also have donors coming from everywhere Talk to us about the scope like how many donors are we talking?

[00:31:30] Betsy John: Yeah, I think What I heard the other day was on average, we have about 175 to 200 donors on our website at any given time. 

[00:31:40] Griffin Jones: So that's probably several hundred over the course of the year that you're going through of different donors. Are there some, are there particular ethnicities or groups that you find that you tend to have more of that people are looking for?

[00:31:56] Betsy John: I do find lately, I think just, Again, with where we're strategically placed that something we've always struggled to have a healthy number of Asian donors, but it really has picked up in the last couple of years. And I don't know if that's efforts of marketing or education and just putting it out there.

It's probably become less of a taboo topic to do egg donation. I think it's more readily spoken about. Celebrities are talking about it. It's in the news. More often, people feel more comfortable and familiar with the idea. So we're, seeing an uptick there, which is nice. I think for a lot of those patients that have been struggling or looking for years are now really able to, meet those needs and find those patients.

So it's great.

[00:32:43] Griffin Jones: Is that as true for East Asian donors and Southeast Asian donors and South Asian donors? Or do you find that we have more of. These particular donors that are really hard to find or are all three of those subgroups Typically harder for people to find donors for 

[00:33:02] Betsy John: Yeah I would say all three of those subgroups are typically harder to find but I do think there's an increase So that being said, over the years, it's interesting how we notice that it's trending, that for whatever reason, it's just becoming more known, more acceptable.

I think maybe things that would have been a taboo topic to discuss in your families or with your friend groups, that maybe is now just becoming more acceptable. So we are seeing an increase in those populations. 

[00:33:32] Griffin Jones: And people are coming to you, practices are coming to you, because you've got 175, 200 of them at any given point of, different ethnicities, but you have, because of that, you're reaching, more of these.

Normally harder to find egg donors and sometimes they just need that. That's what brings you to them. So we went over these, what I would call like proactive reasons where the potential affiliate center is not unhappy with something, but they have got a need. We need more donors. We need greater diversity.

We need the opportunity to be able to do fresh and frozen. We need the opportunity to do embryo banking and to buy all the eggs from a donor. We need the opportunity to do embryo creation. And hopefully alleviate some capacity from our lab. But then there's also, there's the reactive side. So I mentioned like in marketing, people would say we weren't getting the reports that we needed to show the ROI or they couldn't show us the return on investment.

They were not responsive when we needed a campaign or content updates, or they weren't bringing us ideas. So when people aren't happy with an existing arrangement, what is it that they're typically not happy with? And people being. Fertility practices, several things. 

[00:34:45] Betsy John: So I, I do feel that we've heard from affiliate centers that other relationships they have had might have been more limiting that when they're signing contracts with other egg banks or gamete banks that they're only able to use that one bank, and that's something that we've never had an exclusivity.

We've always been, we just want to be one of the options. So I think that's very inviting to some of those practices that by signing to join our network, we're not saying you can only use us. We just want to be a choice. That was significant. And I think a lot of people really do appreciate that factor.

And also we noticed that a lot of practices within the last couple of years that may have had a robust internal donor. program around the time of COVID when they weren't having as many cycles. Oftentimes third party is the first program to pull back funds from, right? If you're investing a lot in marketing for donors, but if you're not able to manage that pull through of bringing them to the door, to the point of egg retrieval, some of the centers just don't want to invest as much in the donor population.

And their thought is if these egg banks are out there and they're doing it successfully, then maybe there's no need for us. to do that. I've noticed a trend of that as well. Just some of the centers not wanting to do that lift of finding the donors for their patients and just trusting us to be their donor resource.

[00:36:10] Griffin Jones: Are there any other common complaints that you think about? We don't like this about. A, and I'm not asking you to name a, but, or B or C there, imagine there might be some things where we, don't like this. What can you think a couple of things that they don't like about existing arrangements? 

[00:36:29] Betsy John: Yeah, there are several things.

I think some of the. Other options there will work with international programs. And, there's been a lot of buzz about that in the market that people don't feel as comfortable or confident using donors that are recruited in this fashion. And then also again, if, they're limited contractually with.

What they can do, how much they can do, or that they have a relationship where you have to bring us donors if you want to purchase donors from us, it's just an interesting dynamic of what that contract looks like, that it's putting more work on the practices, that maybe they just don't have the time or the staffing to invest in that, those are some of the points, I think cost is a factor, that if some of the programs are just highly important.

overpriced or for whatever their needs are, but if that's not what fits their patient population. And we offer a compassionate egg program where it's, donors that are proven with good success rates. They may not be as marketable with as many photos or not able to do any additional genetic testing, but we know the quality is there.

We're able to offer those at a discounted rate for patients who may be going through financial hardships. So in that capacity, I think, as I mentioned, we really do try to meet all of the patients in this, that they've complained about it on the flip side, that it's just more cost effective to be with us.

[00:37:57] Griffin Jones: Is that the case that some banks require that the clinic sends them donors in order to be able to buy donor eggs from them? 

[00:38:06] Betsy John: I've heard that such a relationship exists. Yes. 

[00:38:09] Griffin Jones: That's not the case for you all? That is not the case for us. Is there like a minimum that they, you know, we, that they sign up for, and we have to get, we have to use 20 donors from MyAgBank in the course of the year, is there anything like that?

[00:38:23] Betsy John: No, there's no requirement. We do probably have goals in place that we're trying to help some of these newer programs that don't have a donor program. Let's traject for 15 to 20 donors a year if possible, and we're going to help them along the way to really hone in on that criteria. What are we looking for?

What makes the donor marketable, saleable and to know that we're going to get quality eggs from that donation. So a lot of that is coaching in the beginning that we're helping them get to that number. None of it is a hard Pressed requirement, but again, a goal that we're trying to meet. 

[00:38:59] Griffin Jones: How does a new affiliate center start with you?

I'm guessing they're talking to you and it's starting with the conversations that you've been illustrating throughout this conversation. And then how does the process work? How do they go from, okay, we reached out to Betsy. We had a conversation with Betsy. Then what happens? 

[00:39:18] Betsy John: Yeah, so we do. It happens several ways.

So sometimes the clinics do reach out to us directly, but on occasion, It's the clinic's patient has found us and they go back to their doctor and say, Hey, I found a donor on MyEggBank’s website. I really want to move forward with them, but I noticed you're not in their network. Would you be willing to sign?

So that's a point that I would reach out to that. Physician, practice administrator, whoever it may be, I like to do an onboarding call to start just to walk through a screen share what our platform looks like, what is our relationship with you look like, expectations from the practice and also from our team.

and then once we send over those contracts, again, non exclusive, so it's still just establishing a business relationship between my ag bank and that practice. So once those are signed, we get a contact list of who our primary contact people will be. Then I set up an onboarding call with those people.

So we'll do a clinical onboarding call with whatever your third party team looks like. Same thing, we walk through the process, I answer any of their questions. questions. We talk about genetics a bit. What panel are you testing your patients on? This is what we use for our egg donor. And then we also scheduled to do that onboarding with the embryology team.

So that's also critical. We do that as early on in the process as we can, that our embryologists will reach out to their embryology team to do a virtual training. So it used to be in person, but now we do it virtually. It's about an hour to an hour and a half. where they just walk through our entire process.

We're going to reach out to you to coordinate egg shipment. These are our protocols for egg vitrification and thawing, medication protocols. This is how to enter outcome data into our portal. And they cover all of that during that training call. 

[00:41:10] Griffin Jones: I wouldn't be surprised if there's something in that training that is valuable, even Apart from the eggs that they get from you all.

I imagine that there's something in there that they walk away from that. And they're like, Oh, that's more efficient than what we're doing right now. I would hope you ever get that kind of feedback. 

[00:41:30] Betsy John: I do think in general, people feel we are a well oiled machine. We pride ourselves in being the first frozen donor egg bank in North America.

We've been at this for some time at this point, and I do feel like we've. things come up every once most part, we feel pretty process, understanding wh a larger university pract single practitioner in th country. So we know what for the most part ironed out those kinks and have figured out how to work with them 

successfully.

[00:42:04] Griffin Jones: What do you view as a couple of like different kinks that you see maybe that a smaller practice has that a larger practice doesn't have or vice versa? What are like a couple of the kinks that you're like, I would not have known that if I hadn't been working in this field for X number of years. But I do know that if I see a practice of this size or in this area or whatever, I've got to be on the lookout for X.

Can you think of any of those things off the top of your head? 

[00:42:29] Betsy John: Yeah. First thing that comes to mind was batching cycles. I had never really heard of this working with RBA previously. They hadn't done that. So in learning about that and how an embryologist comes in just for the times that there's cycles to complete.

That was something new to me that I hadn't heard of before. But even understanding that in educating our patients now, it's like we're shipping these eggs to you, but better check with your center to see when they're actually going to schedule to do your cycle. That piece was critical to learn and then also to understand from the bandwidth perspective that we spoke about earlier for those centers who were willing to offload the embryology piece to our team when they couldn't do the embryo creation cycle.

So That was interesting as well. And then probably the diversity in patients even just from what they're looking for, what their limitations may be in their personal cycles and journeys that we've really picked up along the way. 

[00:43:26] Griffin Jones: So you've been doing this, how many years? It's between RBA and between my bank.

[00:43:31] Betsy John: So June will be 12 years for me, 

[00:43:34] Griffin Jones: 12 years, which in millennial years is a thousand careers. You've been at this for a while and I got to believe that 2012 Betsy is not as good as 2024 Betsy. And there's a couple of things that you've implemented along the way that based on. working with so many different clinics, either process improvements or insights into the marketplace that you have taken some market feedback over those 12 years and you wouldn't have grown to the size that you have if, that wasn't the case.

You think of a couple of those things like over these 12 years, here's where, here was some of the lessons that we learned and here's what we did to respond to what the practices were asking us for. 

[00:44:19] Betsy John: We talk about our reach a lot, that we have these 250 practices in the network, but now being in the mindset of the post Roe v.

Wade era, that to be familiar with regulations as they apply state by state and staying on top of that, so that was something significant within our network in the last year to really push for that. State by state analysis, to be honest. So how is this impacting third party? How is this impacting egg donation specifically?

There's rules changing in Colorado and New York that we're trying to get ahead of that and really stay abreast of what's changing in that landscape and to be sure that Our consents are reflecting what's required that our patient education piece that we're counseling patients appropriately in the world of 23andMe, Ancestry.

com, just really educating patients that while we coined the term anonymous egg donation in the past, now we truly just say identity protected, that we in the best of our ability will protect you, your name, your identity, but what happens out there with all of these testing options. There's getting patients to under donation versus known.

It that landscape has some c So we're proactively talk groups about that. How ca but still compliant. So t That's really the significant things I think in the last couple of years that we've really tried to hone in on 

[00:45:55] Griffin Jones: You all have some resources for clinics to which I think is useful because there is a drop off point very often after a failed cycle or after maybe somebody's finding out that they need donor egg for the first time and they are thinking we're going to go in Using IVF with our own eggs.

And then somewhere between the first visit and the followup, they find that's not the case, or maybe they've done a cycle or two, there's a lot of drop off that happens there. And I think good resources are. are necessary to help people to help retain patients, keep them in the journey so that they can convert to third party IVF if it is something that they need.

And you all have some resources, like you have a kit. And I think we're going to be sharing that and the link to this episode. And I think we might share it some other places, but it's something that people can give to their patients that helps to educate patients. And I think it's probably a useful resource, no matter what egg bank that they're using.

Can you tell us a bit about that? 

[00:46:58] Betsy John: Yeah. So it, it's a starter kit that we implemented this year for affiliate centers that are joining us just with some materials in there. Talks about our different program options that I mentioned here. It gives them a sign up for our website that they can display on the nurse's desk, if that's where they're doing their console, just a quick scan of a QR code to get into our site.

and just more of these resources talking about genetics, some of those pieces that I mentioned from the education standpoint of educating the intended parents on various points of the journey are all included in the kit. 

[00:47:35] Griffin Jones: I've also. Got to believe that it's just useful to offer people that option to sign up for MyEggBank to get in for patients to get into your portal because then you have two different entities that can keep in touch with the patient.

We already talked about that. the clinic just very often times does they. don't have the manpower to follow up with patients in most cases, the ones that do, it really works for them. But so many people are treading water to begin with that they just can't provide that. And just by virtue of saying, okay, while you're thinking about everything, take a look at these guys, get involved, look at their donors.

And that way they're also in touch with you all. And, there's less likely for. The ball to be dropped because they're not, it's not just one party they're communicating with. They also have you as a resource too. That's right. Absolutely. Those little pieces for conversion. There's so much in conversion and dropout and retention that we can impact and some of it scalable and some of it less, but it all has to do with staying in touch with.

They, with the patient and continuing to educate them no matter where they are in their decision so that at least it doesn't drop off like it does in many cases. Do you yourself, do you hire people? 

[00:48:57] Betsy John: I do not myself. No, I'll help with the interview process, but I don't do the hiring. 

[00:49:02] Griffin Jones: Do you train some of the folks that, that work with practices now?

[00:49:06] Betsy John: Yes. So even for some of the onboarding, if it's something that I can't manage, then instructing team members on how to do that.

[00:49:13] Griffin Jones: So I got to believe that having been from having worked. For my going for 12 years that you're, you've built some relationships with centers and you're probably a little bit protective of those relationships and you want to make sure that whoever that's being passed on to is doing a good job.

I'm doing the same thing right now that we're really building out the team that works with our advertisers and we're building different structures of folks. Okay, I want. Account director that does this. I want account manager that does this and I want to traffic project manager over here that does this.

This person leads, they're responsible for A and B. This person's responsible for liaising. And this person's responsible for making sure all the deliverables are finalized. And we're building out all of our training and they require different types of training, but it's for years people have come to me and I want.

To make sure that they're getting the best attention from my team when you are working on this training What's really important for you to get across to new people on your team that when they're dealing with practices? They got to be good at this. They got to know this 

[00:50:27] Betsy John: Yeah, right away. The first thing that jumps out at me would be the compassion piece Because as we mentioned, most of these intended parents are coming to us closer to the end of their journey through IVF.

They're probably at the height of frustration and just feeling discouraged. So to us, In that concierge service is not just about, I'll be here all the time, but just really having the empathy to put ourselves in their shoes. Let me understand your journey, your financial burden up to this point, the emotional headache and whatever is going on with you, that we're going to take that minute.

extra minute to be relatable. Let me listen a little bit to your journey. Talk to you about my own journey for that matter and find that connection there. How can I help you? Let me make this be that it's a friend guiding you through, not just that I'm here to provide a service. So really getting patients to understand that.

And so personally, I feel having that, that compassionate. Mindset is critical in the roles of this of the egg 

[00:51:30] Griffin Jones: bank. You've got your finger on the pulse a little bit What trends do you see? Coming more of in the next couple of years, whether it's more or less of something or something new altogether, do you think we'll see more or less fresh donors?

Do you think we'll see, do you think we'll see more donors in general as Gen Z rises? And then as, and as Gen Z ages out, whatever generation is after them, do you think we'll see more or less and it will be harder to get donors? Do you think, is there some other trend that I can't even think of, like having AI case managers?

What trends do you think are coming? 

[00:52:06] Betsy John: I do think AI is going to be significant just from what we've seen Internationally people that have reached out to us and things that they're attempting to take off the ground. So I feel like that's going to be critical just even in maybe the matching piece of facial recognition things like that You truly want to find a donor that looks like you I feel like the technology is going to be there, if not already there of we can find exactly what you're looking for.

So that, additionally with the genetics piece, we know the panels have been growing year after year. They're probably going to end up doing a full genome sequence and having all the more scientific developments will be interesting. And then as far as fresh and frozen, I feel like it's, it's. probably still going to be both of them running closely side by side.

I feel like the need is still great for both options. So I don't see, I don't see one running ahead of the other necessarily. It'll be interesting to watch. But again, I think it's very positive that just as a culture, as a society, we're talking about IVF much more. We're talking about infertility. So for people to feel comfortable in that space to.

feel candid that they can discuss such things, proactively look into it. I always say that when I was in college, I never even heard about egg donation, but I really feel like that education piece is changing and we're heading in a positive direction of the needs are more. visibly out there and spoken about.

So I hope this is a program that's growing in that vein. 

[00:53:42] Griffin Jones: I think people should do two different things. I think that they should go to the MyEggBank link and that they should get the kit. And cause it's an easy way to start a conversation with you. It's also a free resource for their patients. I also think that people should go on LinkedIn, find Betsy John, connect with Betsy John.

And I think that most people don't watch the video for this, but we put it out there, but the most, the majority of people either listen or doctors are such voracious readers that they will read the transcript and, but I think they should go to LinkedIn so they could see who you look like so they can say hello to you and they can say.

30 years from now, 20 years from now, when you're one of the straight up OGs in this field that I knew her from way back when I think they should do that, but, and I'm not saying that just to, I'm not saying that for flattery one, I'm saying it because MyEggBank has grown as a company with you and in, and also in a part.

from that. It's what they've built. But to 12 years, one company, actually, it does mean something. And that was common in our grandparents era. It's not common today. And what it allows for is for someone to establish themselves as a seasoned expert, not what so many people in our generation have done, which is go do this for.

Two years, and that'll jump to a completely different vertical for three years. Not just a different sub vertical of this industry, completely different industry, doing a completely different job. And, I think so many people in our generation have been robbed from expertise by virtue of your tenure, by virtue of what MyEggBank has built.

I'm going to let you conclude though, Betsy, how would you, of all of the, topics that we've talked about of what clinics are looking for, what patients are looking for, where a egg donation is going, how do you want to wrap up? 

[00:55:36] Betsy John: Yeah, thanks, Griffin. Again, I sincerely appreciate the opportunity and just being able to speak on here about these topics and first and foremost, I do want to credit my team along with myself.

It's Deb Messarat is our director of clinical operations, one of the founders of the Egg Bank and truly with her guidance, I feel like we've made leaps and bounds progress, but I do feel that We're all in this together. So we're navigating these areas together as a team and also for the, for our network, for some of those legacy centers that have been with us from the beginning.

We respect you. We appreciate you. We're so grateful for you and for the new ones coming on. I know there are practices out there that maybe we haven't connected yet, would love an opportunity to do Feel free to click the link at the end of the podcast. If there's an opportunity for us to connect, I look forward to that.

[00:56:30] Griffin Jones: Betsy John from MyEggBank. Thank you very much for joining me on the Inside Reproductive Health podcast. 

[00:56:35] Betsy John: Thank you, Griffin. It was a pleasure. 

[00:56:37] Sponsor: This episode was made possible by our feature sponsor, MyEggBank, the premier network of donor egg banks. Discover the benefits of partnering with MyEggBank by visiting myeggbank.com/irh and receive our complimentary starter kit of resources. This exclusive offer provides a glimpse into how we can enhance your clinic's fertility services and streamline the partnership process. Join us in making a meaningful impact on the lives of aspiring parents. That's myeggbank.com/irh.

Announcer: Today's episode is paid content from our feature sponsor who helps Inside Reproductive Health to deliver information for free to you. Here the advertiser has editorial control. Feature sponsorship is not an endorsement and does not necessarily reflect the views of Inside Reproductive Health.

213 Projecting IVF Personnel Needs. Recruitment, Retention, and Training with Dr. Eric Widra

DISCLAIMER: Today’s Advertiser helped make the production and delivery of this episode possible, for free, to you! But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the Advertiser. The Advertiser does not have editorial control over the content of this episode, and the guest’s appearance is not an endorsement of the Advertiser.


The job market is red hot! There are more jobs open than people to fill them, true for the broader economy and just as true for the fertility field.

Dr. Eric Widra, Senior Partner at Shady Grove, talks through his experience with recruiting and training personnel, and how to project future needs.

Dr. Widra discusses:

  • The need for Human Resources (And the risks they mitigate or eliminate)

  • When to listen to what HR says you need (But also when to push back)

  • Redundancy and cross training personnel (The appropriate levels to have)

  • Adopting technology to automate and augment tasks (While eliminating others)

  • Individual job training (And when company culture training becomes important)

  • The “Godsend” technology solution that’s made the workload and workflow of his financial counselors a lot more efficient.


Dr. Eric Widra
Shady Grove Fertility
LinkedIn
Facebook
Instagram

US Fertility
LinkedIn
Facebook
Instagram

Transcript

[00:00:00] Dr. Eric Widra: We've often asked the question, should this be, should we outsource this or should we own it? And, outsourcing can be very effective, especially for medium and smaller practices because you just pay for what you need. And so you're not bringing on, long term overhead in terms of the staff and you're still getting, the, expertise that you need.

[00:00:24] Sponsor: This episode was brought to you by BUNDL Fertility. Fertility Clinics, ready to boost your online reviews? Our survey of over 2,500 online patient reviews showed that 30 percent of the negative experiences were focused on billing or finance frustrations. Improve patient satisfaction and billing experiences by using BUNDL with Medications™ services.

See the rest of our survey results by visiting bundlfertility.com/irh and downloading our exclusive report. 

Announcer: Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the advertiser. The advertiser does not have editorial control over the content of this episode, and the guest's appearance is not an endorsement of the advertiser.

[00:01:19] Griffin Jones: Hot. The job market is still red hot. There are more jobs open than there are people to fill them. True for the broader economy, you know it at a cellular level if you operate a fertility center. My guest is Dr. Eric Widra. Eric is a senior partner at Shady Grove. I should have asked him for the latest headcount in both doctors and employees for both Shady Grove and US Fertility. Shoulda, coulda, woulda. Suffice it to say, they've hired a lot of people. We talk about how to train, recruit personnel, and project future personnel needs. That means adopting technology to eliminate certain tasks, automate others, and augment others. And it also means good old fashioned HR. I take us a little bit more down the second bucket in this conversation.

Partly because Dr. Widra said something to the effect of, I never knew how badly I needed HR until I had it. That resonated with my own experience. Eric talks about the gaps in recruitment that HR eliminates. He talks about the risks that they eliminate or at least mitigate. It gives general benchmarks for shady growth, staffing ratios, nurse to physician, average IVF cycles, numbers for each.

We talk about redundancy and cross training. What's the appropriate level to have? When do you listen to what HR tells you need? When might you have to push back? We talk about individual job training versus at what organization size do you need a company? culture training. Think of the Disney example.

We talk about the downward pressure for reimbursement in healthcare, what that means for projecting the needs of advanced practice providers. Dr. Widra believes they should be the first line of evaluation for fertility patients, and he explains why. And finally, he shares a technological solution that is almost a godsend that has made the workload and workflow of the financial counselors a lot more efficient.

Enjoy this conversation about training, recruiting, and projecting personnel needs with Dr. Eric Widra. Dr. Widra, Eric, welcome to the Inside Reproductive Health podcast. 

[00:03:10] Dr. Eric Widra: Thanks. It's a pleasure to be here, Griffin.

[00:03:12] Griffin Jones: I was interested in having you on as a speaker because I saw two of your talks at PCRS. One was about negotiating a contract, and I had originally thought about approaching you for that topic for this episode.

But you also did one about projecting staff levels, about meetings, staff, and filling positions. And I Want to go that route first because I think people are still struggling with it. It seemed like this came on as it's always been a challenge, right? But, then, but, then 2020, end of 2020, it really became a challenge.

2021 was really hard for people. 2022 was really hard for people. You sit at Shady Grove, which is a large organization across multiple. Dates was, which is a part of a larger organization in us. Fertility is in even more states and even more companies in your estimation is, the, challenge in retaining and filling seats as hard as it was in the peak of 2022, is it starting to calm down a bit or not?

[00:04:23] Dr. Eric Widra: It depends on what category you're talking about. and I, the fact that we are, large and diverse organization in my mind doesn't limit the challenges, to just those types of places. I think everywhere, everyone I talk to is still struggling quite a bit with attracting, retaining talent in the right seats.

One of the things that I think we've seen ease a bit. post pandemic, if we're allowed to call it post pandemic yet, is that a little less transition and turnover. And some of the clinical staff, specifically nurses and medical assistants, things like that is still a challenge. There's a huge fight to get nurses because of what hospitals are, paying them.

But people seem a little bit more willing to Come to work and sit in their chair and not be looking at the next thing as much as they were. On the, physician and embryology side. Yeah, this market is hot. And I think that there are, there are real challenges for us to not just address this on the staffing side, but address it on the technology side.

Like what can we do to be more efficient and. Utilize the staff that we have without killing them. 

[00:05:41] Griffin Jones: So I want to talk about the technology solutions because that's where I've found the conversations going. Each time we talk about the personnel issue, because it seems like it's the only way to solve the personnel issue that you have to reduce workload.

You have to make things more efficient, that different people can do more things because more. They have the assistance of technology or you're eliminating workflow because it can be automated. It is technology. The only solution is there an HR or management solution to this? And if so, how much is at play versus how much of this is, we just have to figure out a way to eliminate more things and give people more automated help.

[00:06:35] Dr. Eric Widra: Well, I think it's both. And, for anyone who's listening here, who isn't part of a gazillion doctor practice, I make the comment all the time. I didn't know I needed an HR department until I had one. And while, practices of varying sizes may not have that in house, there is a whole group.

Body of work and body of knowledge around HR. That's developed over the years that helps to identify and measure the needs you have and how you fill those needs. And, as an intro to the answer to your question, I think that, yeah, I think there are management. Tools that can be used to rationalize, the people you need and retain them and attract them.

But I think healthcare in general, and because so much of infertility is still in smaller practices, I think we underutilize technology more than many other areas of commerce. the, I've signed up for product services and healthcare online where I've interacted with a bot and my needs were met.

In terms of, scheduling something or onboarding a, a patient to the practice. And in some ways it was more organized. Like we didn't go down tangents. It's Hey, do you need this or do you need that? Are you this or are you that? I just use that as a, as an example. And

I think if you look at every level of the experience of a patient coming through a fertility center and our Struggling to meet their needs. There are opportunities for technology, but it's not the only answer. bringing a patient in, that's one example. Sharing medical records and filling out the forms and the paperwork.

I think that's still a disaster in healthcare in the U. S. and I think it's right for people to come up with solutions to that. And people are working on this. It's just, how does it filter in, how do you use technology for education? I think that's a huge piece of this because so much education falls on the nursing teams and they've got to do their workflow, right?

Which is make sure the doctor reviews the results, make sure you communicate those results to the patients and that it's done with high fidelity and that they follow and they get scheduled. there's all these workflow steps that the more we can automate, the better we are. And I think it's coming, but it comes in.

And first it's a very long answer to your question 

[00:09:12] Griffin Jones: i want to go into some of these technological births that might be useful you said something that i don't think is a throwaway statement i agreed with it wholeheartedly from my own experience that you didn't know how important it was to have an hr team until you had one tell us more about that what do you mean specifically by that.

[00:09:37] Dr. Eric Widra: presumably we're all growing a little bit, whether that's, very rapidly or slowly and that growth comes with real challenges in, your people and your human resources and the ability of a doctor or two doctors or five doctors and a office manager or supervisor to manage that over time leaves a lot of gaps.

It leaves gaps in. Evaluating the credentials of the people who are applying because you're just you're saying, Hey, this is what I think I need, and you might be right. You might be wrong. Doctors are notorious for having an opinion about everything, whether it's correct or not. And in many cases, it's I think I need this.

in health care, there are measurements that people take about What types of credentials perform in what environment the best and that an infertility medicine is not Immune to that we can figure this stuff out the other thing that HR does is it is it takes away risk and we live in an environment where In good ways and in bad ways, we're very sensitized to how we talk to each other and having an intermediary there when that conversation might not be perceived on either end is appropriate, is huge.

And so I think that there are layers. I think layer 1 is the HR professionals can help you identify. By having a broader view who you need for what role they can help you recruit that more effectively, and then they can minimize. Risk and conflict later by making sure the rules are clear, right? So I don't care how many staff you have, if they think they're supposed to be doing X, you think they're supposed to be doing Y.

Somebody's got to reconcile that and having a good set of rules up front and job descriptions and things like that sound. Very pedestrian, but they make a big difference. 

[00:11:43] Griffin Jones: Some of the people listening will work for organizations much larger than yours. Some will work for teams even smaller than mine, but many of the people listening are somewhere in between.

And so for. Many of them, they might be listening and say, that's easy for you to say, Woodrow. You work for the largest fertility clinic group in the country and now one of the, largest networks. and so there you have this HR infrastructure. I would have thought that way. I, a little more than a year ago until I realized, wait a minute, we live in a.

part time remote world and I can hire a part time remote HR person and then I can hire more part time HR people and it has, it's been dramatically life changing for me and someday I'm going to write a book about delegating to outcome and the importance that redundancy and the HR support. play in that.

But people might look at me and say, that's easy for you to say, Jones, you're not in a physical office. You're, you have a remote company. You don't have the regulatory burden of being a healthcare business. What would you say to someone that, that feels that they might not be able to build the type of HR infrastructure that you and I have?

[00:13:07] Dr. Eric Widra: I think you're exactly on the right track there. And I don't think it just applies to H. R. By the way, I think it applies to many aspects of what we do. And in fact, even as large in an organization as we are over the years, we've often asked the question. Should this be it? Should we? Should we outsource this or should we own it?

And, outsourcing can be very effective, especially for medium and smaller practices because you just pay for what you need. And so you're not bringing on, long term overhead in terms of the staff, and you're still getting, the, expertise that you need. And the reality is we live in such a competitive economy that while there's definitely going to be some, mediocre and even poor, Performers in that over time, you're going to find good people who want to do this and are motivated to do And that was redundant, but anyway, you're going to find good, And I think this is true for marketing. It's true for billing. It's true for credentialing for insurance. And as well, it is, however, a very difficult landscape to navigate because everybody's going to tell you. they're best at this and that's where I'm contradicting myself a little bit, but that's the rub, right?

All this stuff is out there, figuring out who's really good at it and who's going to help you. It can be a challenge, but it can be done. And we've done it through our growth in all those areas at different times. 

[00:14:31] Sponsor: Is your fertility clinic facing billing and communication challenges? You're not alone. BUNDL Fertility's data from over 2, 500 reviews reveals that these are common pain points affecting clinic reputations. 

That's why we designed BUNDLGUARD with Meds to help improve the patient experience and alleviate the top drivers for negative reviews. Not only does the patient get a full refund guarantee, but they also receive a concierge team to handle all of their billing and financing questions! We unlock staff efficiencies so they can spend less time reviewing bills with confused patients and spend more time providing the best care possible. Visit bundlfertility.com/irh to learn more and download our internal survey of patient online reviews to analyze what gets clinics 1 to 2 stars versus 5 star ratings.

That's bundlfertility.com/irh.

[00:15:31] Griffin Jones: one way that I snipped through some of the people saying that they were the best is one of the things that I do now for every single seed is I really think about what that seed is to be responsible for, not just a job description, but what are the outcomes that I'm going to measure them against.

You can't quantify every last outcome, but to the extent that you can try to enumerate them, try to quantify them, try to make them as specific as possible for each outcome. I also identify here's what I think that I have for you to achieve the outcome. This software, this system, this process, this team member, et cetera, and here's what I don't have for you.

To achieve this outcome that you might need. I don't have this software. I don't have this process yet. I don't yet have these team members. And so I, for every single seat, I try to delineate what those are. And then if you do have the opportunity to do some outsourcing, there's, you can. Hire or contract people simultaneously and give them the same or similar assignments and you'll find out who's better at your outcome.

And so that's what I did. I just started with multiple HR folks and then ended up with one that was a good fit that took me to a certain level And then help me get to the next level that I needed for HR help. Is that realistic with fertility clinics when they need some when they have so many bodies in house and they have so many FTEs that are in a physical location?

Is it realistic for them to be able to try out part timers or independent contractors in that way? 

[00:17:15] Dr. Eric Widra: I think there's several things, insights in what you said that are worth touching on. And I feel like we're putting a little bit of a puzzle together here as we talk it through. I think one thing that we do poorly in healthcare is identify what the outcome from that person you want is.

Yeah, embryology is a little bit easier, but come on. The rest of healthcare doesn't have embryos, right? They have, nurses and MAs who need to Do certain tasks. And I think we fail sometimes by pigeonholing them into, skill sets rather than outcomes. And so when I think about onboarding nursing, one of the things I want to understand is, am I hiring somebody?

And I, for anybody who's listening as a patient on this, please forgive the operational nature of this. But, for any nurse that I hire, I want to know how many cycles she can handle, right? Effectively. So yes, she needs the soft skills and the nursing skills to engage with the patients and build those relationships, but she also needs the hard skills.

And if she's not at an appropriate level in terms of that throughput. you've got to make some hard choices. And so I think again, I'm answering the question a little bit differently, but I think both things are true that you should be getting HR that understands that. And I don't know whether it's reasonable to try more than one or not, but I, the, the, but I think that if we're careful about how we invest in this and ask good questions, we're going to make progress.

It doesn't mean you're not going to have errors or wrong fits or things like that. that's life in business. But I think if we're careful about it, just as you said, you're going to, you're going to kick some tires and you're going to figure out what the right fit is. Was that responsive to your question?

[00:19:08] Griffin Jones: Partly. It doesn't totally answer the question. if just by virtue, can you have remote? One of the reasons why I'm able to do this is because I'm an entirely remote company. Have been long before COVID. I've been remote. Since 2012, started building my company in 2015, finally zoom and the voiceover internet protocol videos infrastructure became viable in 2017.

And so we've always been remote. And so that. That I think allows me to play to this advantage where you can start people, you can start many of them as 1099s even when you move them to W2s. And is that, is, are you, is, that not realistic for brick and mortar fertility clinics that have to have bodies in house, even if some of their support staff might be able to be remote?

[00:19:59] Dr. Eric Widra: It depends on the seat, right? yeah, you're not going to draw blood remotely or do ultrasounds remotely, but we have a lot of remote nursing. We have mixed feelings about how effective it is and how to, manage it, but we have tons of remote nursing. I think that a lot of the back office stuff can be remote.

And again, for practices that don't have the size or infrastructure that we have, outsourcing that can be incredibly effective. Your billing, your insurance credentialing, your authorizations. one of the things that I think we're going to need to adapt to is, how do we do those functions?

Because those functions are going to become more important as there's more access to care and more insurance coverage. the rest of healthcare has mostly figured this stuff out and we feel like we have to reinvent it. But, there are software programs out there that automatically do benefits.

They're not perfect, but you don't need three people doing that. You need somebody who manages the software and, we're just starting to wake up to that because we've been in such a unique environment for so long. 

[00:21:05] Griffin Jones: Okay. So it is possible to have the HR support be remote. Oh yeah. That part. 

[00:21:10] Dr. Eric Widra: I, yeah, I think that those types of, I think HR is probably one of the easier ones to be honest because your measurements are easier.

It's I have this many open seats. Are you filling them? And I was, And to your point, are the outcomes from those filled seats what you need them to be? Billing is always nerve wracking because you don't know if you're optimizing it. 

[00:21:31] Griffin Jones: On the outcomes of those seats, you mentioned one example that you want your nurses to be able to do a certain volume of cycles.

Do you put that number in the job description? 

[00:21:46] Dr. Eric Widra: The way we describe it is we have benchmarks for, nursing output in terms of cycles, and we don't necessarily expect a new nurse, especially if she's not coming from fertility, it's almost always she in our specialty, to necessarily meet those benchmarks right away.

So no, we don't put them in the, contract, but it is part of their evaluation. Top of the pyramid nurse. And I actually Griffin don't know the number off the top of my head. So I'm embarrassed to say, but that's because I get to let somebody else do it. this is the benchmark for, a 90th percentile nurse.

This is the benchmark for a 50th percentile nurse. And if you're starting at the 30th percentile, we want to see moving in that direction. 

[00:22:33] Griffin Jones: So that's, I, don't put the numbers in the employment agreement typically, like it's not contingent on, like I'm not that sophisticated yet. Maybe someday there will be some sort of a performance for each of your, I'll do it for you.

Yeah, exactly. Yeah. But for the time being, I do have a separate document. It's not a legally binding document, but it is, useful for expectations that I have. Everyone. Look at and it's a, you're responsible for this many podcast editing, this many podcast episodes per month, you're responsible for this much billing under an account, et cetera.

and then when I can, I do try to put that in the job description and I'll, put. Up to in the, up to a certain amount so that I just want to set the table with anyone that I'm having an interview with that they know this is what I'm expecting of you. I want to set that expectation early and often not have them come in and be like, Oh, this is more than I thought.

And Even when there's a range I'll put the up to. And I find that really useful to start with in the job description while they're still applying. Do you see any reason why fertility centers shouldn't do that? Why they shouldn't put numbers in the job description? Absolutely 

[00:23:50] Dr. Eric Widra: not. And in fact, you just identified a hugely important function of HR, whether that's in house or outsource, which is evaluation and performance.

Reviews, we used to joke all the time that, if, nurse a wasn't performing, she'd go to Dr. X and complain and Dr. X would say, she's great, and you just got to get rid of that. And that's true. Whether you're two doctors or 200. 

[00:24:21] Griffin Jones: And so your talk was about also projecting for needs that I'm, hoping that because you were speaking at PCRS, yours is a little bit more sophisticated than mine is.

What I tend to do is I'll start at a part time level. Usually if it's a new, if it's something new that we're working on or a new area or a less mature part of the business, I'll start just part time and I'll usually Just get somebody at 5 to 15 hours. I'll make my outcomes more sophisticated as, that becomes developed and I'll start normally more junior on the accountability chart than senior and that's how I figure out what I, what, I need and, and.

how much it will cost me. And it's not the most scientific, but it does give me a bit of a measurement. how do you project staff levels? How do you know when it's time to hire a new person versus this doc just says he needs a new nurse when is it, this doc is doing more with less nurses.

[00:25:28] Dr. Eric Widra: And and I think the three areas that we're, we've focused on is, docs, when you need a doc, and I think there's some really interesting things to think about there as our system evolves, embryology nurses, some ways on the wind, you need somebody. Embryology is probably the easiest because what they, the, they, the measurements that they make are very.

it's not squishy. It's you do this many egg retrievals, you do this many PGT cases, you do this many ICSI cases. And over time you start to see, you develop a matrix, if you will, of how many people you need to do those things that does, however, need to be pressure tested with the rest of the world.

And I think that our professional societies actually do a good job on the embryology side of saying, Hey, we think this is a reasonable workload for an embryologist at this level or this level. And practices can take those data and then You know, massage them based on how, what their workflow is like and what their function is like and the capacity of their people.

and because it's the, risks are so high and the outcomes are so obvious, right? You get a baby or you don't. I think it really behooves us to, to be strict about those numbers. And, only adjust them or adapt them if we have really good reason to do And one of the things I see a lot in some of our smaller practices or newer practices are we sometimes make the mistake, it's a mistake.

We sometimes start with more people than we need. Based on those metrics, either because they were there already or we wanted to make sure it was as smooth as possible and then they struggle as with growth and managing that is really important, but I think if we're responsive to the data and the numbers embryology is probably the easiest way to easiest thing to do and nursing.

I think we've talked about a bit. It's Yeah, some docs do more with less and, at some point there's just going to be that human element that you can't measure perfectly because we're not going to turn the docs and, or the nurses for that matter, into robots. 

[00:27:52] Griffin Jones: Do you set a sort of standard as a company of this is how many, this is how many nurses one physician should have or is it, more by volume?

Oh yeah, and we have stuff that we, yeah. 

[00:28:05] Dr. Eric Widra: So it's, both actually. and a lot of our docs are coming out of fellowship. And so they're not bringing a patient base with them and we have, yeah, we have a standard approach to that, which will be okay. new doc is joining me and I'm just making this up, joining my office.

And so we'll hire another nurse and half of her old do Eric and half her new doc and his new dog grows. She can. do that or, cross cover other things, but yeah, we have a, again, it's not a formula I can recite for you and Griffin, but we, yeah, we have formula about that. and basically we start with the mean, and then we decide if somebody is, performing to the left or right of the mean.

So an average SGF doc, probably does, just, Plus or minus 200 egg retrievals a year. And they need two nurses to do that. But it's a pretty, it's not a very tight curve. it's pretty diffuse. 

[00:29:09] Griffin Jones: You mentioned embryology being one of the easier positions to look at the numbers to see where there's need.

Nursing might be in the middle of the road. What about support? What about support staff? What about medical assistants, phlebotomists, down to front desk? How do you, possibly project what you're going to need in those types of roles? 

[00:29:31] Dr. Eric Widra: I gotta tell you, that's HR's job. It's a struggle because there's high turnover in those positions, but, it's not that hard to measure.

You see this many people, between seven and 10 o'clock and, to get them through, you need this many people drawing their blood and doing their ultrasounds. it's not rocket science. 

[00:29:49] Griffin Jones: it might be HR's job to determine the levels that are needed, but there is a business call that's made on the appropriate level of redundancy.

I had David Burford, who's the CEO of Care Fertility on, and I talked about this bec And I thought it was fitting because he's in the UK, where they use the word redundancy to describe layoffs. If you were made redundant, that means you were laid off, and I think Ah, the English in their language,

[00:30:16] Dr. Eric Widra: I love it.

[00:30:17] Griffin Jones: yeah, there's, some poetry in there, and I, think it's a bit revealing because That is why you would do layoffs in a company as if you had multiple people doing similar things to become more efficient. You'd reduce your head count and you'd eliminate redundancy. I have found a necessary level of.

redundancy to, to, reduce burnouts, because if you have a, a certain number of people that are responsible for the total workload of the company, and then that number gets smaller, it becomes harder for the people that are there. And then you start to have more attrition because it's harder and you can't feel fast enough.

So that's one of the reasons why I think redundancy is important. Reason I think is that it's just it's easier to cover for people. It's easier for to plug people in when it's easier to cross train on. Then ultimately, if you have a big enough organization and especially if you have a wider layer at the bottom of the pyramid of junior people, you're, you have a feeder system for, senior people.

And if you, if your middle layer is a bit wider than you, then you've got another layer there. And but that's a business. 

[00:31:35] Dr. Eric Widra: People get sick and take vacation and have babies and all this stuff is just part of managing your business and you need that. Yeah. 

[00:31:42] Griffin Jones: And it's easy for me to make that decision because I'm a, I own 100 percent of the business.

I'm the only managing member. You're in a much larger organization where you have to consider different people's shares and you have fiduciary responsibility to the company and to each other. How do you make that decision at that level of what is the appropriate level of redundancy? 

[00:32:06] Dr. Eric Widra: To be honest, Griffin, I spend almost no time on that, as even in my leadership roles, we really do, we ask HR, what do we need to get this done?

Now, sometimes we'll see some 

[00:32:18] Griffin Jones: And you just do it, whatever HR says? 

[00:32:20] Dr. Eric Widra: Ah, within reason, yeah, but you don't I approach it like I do anything else. The hypothesis is HR is correct, and then we see the data, right? And if the data support the hypothesis, we're good to go. We have absolutely had times. That HR is seem to been just like on a hiring bench and you're like, guys, what are these people doing?

it looks like a lot of people standing around. yes, you need manage, you need input from the physicians and the managers and the office supervisors, but I, yeah, 

[00:32:48] Griffin Jones: I, I think you articulated it pretty well. 

[00:32:51] Dr. Eric Widra: Yeah, you. You are very well. Actually, you start out with what you think makes sense and if it's working and you add or subtract as needed.

I think that in health care, there's a real risk of being too lean in terms of the risk of errors per patient satisfaction. And so I think you're always going to see us error a little bit on the side of having some redundancy. But, we're very active managers at S. G. F. In fact, sometimes as physicians.

In fact, sometimes I think we're in too much in the weeds, but we push HR pretty hard to tell us why they're doing what they're doing and to prove to us that it needs to be done based on some metrics. 

[00:33:33] Griffin Jones: The default is that HR is correct and then you look at the data. What's an, and so most of the time you're going with the recommendations.

What's a specific example where you did push back against HR? 

[00:33:45] Dr. Eric Widra: Yeah. and it gets interesting and complicated, right? Because you and I might think that this job over here would be great for a part time person, but it may be really hard to fill that job with a part time person. In fact, the people who are applying for it as part time may be terrible.

And so you have to make compromises to say, maybe that person does something from 7 to 11, something different from, noon on. But sometimes you, need to really pressure test that we, what's interesting about the way our workflow in a day goes in the clinic is between seven and 11, we're seeing an enormous number of patients who are coming in for their IVF and IUI and other ultrasound and blood work.

And you need to be staffed for that. And these women want to come in and get out the door and get back to their jobs or their, lives. And. You need a lot of bodies to make that happen, but then one of those people do the rest of the day. And so that's been a great example. And one of the tensions we've had over and over again with HR through the years is, you I don't want to be paying somebody to be drinking coffee often, that's not.

That's not good business. And so I think that's one example. and, the reality is the solution to that ebbs and flows with the job market. 

[00:35:08] Griffin Jones: Have you developed a process for cross training to solve for that? Absolutely. Yeah. Tell us about that. 

[00:35:15] Dr. Eric Widra: Yeah, but not every, again, the, simply the volume demands are different.

So yeah, we will take, we'll take an MA who's in monitoring the call in the morning and cross train them to do the instrument prep for the OR the next day. but that presumes that the people who would normally do that are busy all day. So it's, a challenge. I don't have an easy answer for you on that one.

[00:35:40] Griffin Jones: as you're bringing on more folks and the companies get bigger, has there been a change, have you seen a change in, Shady Groves training of the Shady Grove way? So I'm not talking just about this is how you do this particular. role, but rather think of Disney. It doesn't matter if you're, a new VP of business development for a theme park, or if you're someone that washes the grounds of the magic kingdom, everyone goes through a certain level of.

Disney training. This is how we do it here. This is, we point with two fingers. Don't I, don't ever let me catch you pointing with one finger. That's so funny. I didn't know that one. Oh yeah. I still do it to this day, Eric. I point with two fingers whenever I'm pointing somebody in this direction. And so everyone learns a certain bit of Disney culture.

And I'm starting to do that with my company as well. Starting to, here's the inside reproductive health way. This is the fertility bridge way to, to have that cohesion. In addition to here's the training for your particular role. How much level of shady grove training is there? Has it increased? Is it remain the same?

[00:37:00] Dr. Eric Widra: It's big and it's a huge part of what we do. And for better or for worse, it still relies on kind of the ancient apprenticeship model, right? That, you're going to work with this nurse and she's going to teach you how to do this. You're going to work with this MA and this is, you're going to see how, the workflow happens and the way we talk to people and the way we escort them into the room and the things that we say.

And. Now we do, we have what we call it for nursing. We have what we call cohorts. So we've got a whole bunch of nurses that are starting between, month, between the 1st maybe that's 10 nurses. I'm just making that up, but they will all sit together in the same training and that training will be.

electronic and in person. And so we try to acculturate them that way. But then they're going to go and work with a more experienced nurse and, start to really see how to implement those concepts, as they grow their, practice, if you will, of, people that they take care of. we're really expanded our use of advanced practice providers.

And I think that's something worth talking about a little bit before we wrap today. And, we have a, whole protocol for onboarding. Advanced practice providers, and it still is very much here are the leaders of this and they've been here forever and they're going to show you how we do stuff. I can show you how to start an IV or doing all well, we'll teach ultrasound a little bit, but how do we approach problems?

How do we take care of patients? How do we triage? How do we fit in as that intermediary between the patient and the physician? So yeah, there's a lot of that. 

[00:38:36] Griffin Jones: But you're still getting away with doing it at the individual level where each individual mentor is doing that for their team as opposed to like having a cohesive Shady Grove University.

Here's the modules of here's how we do everything so that everyone and not just job training and not just handbook stuff, but like a cultural training. 

[00:38:58] Dr. Eric Widra: It's both. So yeah, like the nursing cohort and that stuff. And we do have, tons of manuals and online stuff that we used to actually call shitty good university, but I think we changed it because everybody called every, company at university after that.

We didn't invent it. Come on. it is, it's a combination, but, I think part of what we're trying to talk about today is, that's what works for us because of our size and complexity, but I think there's that it's critical in any corporation to have a culture that you can teach and transmit to your people.

[00:39:33] Griffin Jones: Yeah, I think I've found out how I thought we were such a small organization we had 20 people on team right now, and it's it's still really important and it would have been important when I had six, and, and I don't think I don't know, maybe two or three is too small, but for the vast majority of the people listening, I don't think it, they can be in too small of organizations in order to start building that cultural training and because they'll, find it very useful as something to point to later.

Yeah, I, agree with you that we should hit on APPs before we wrap. Is there an appropriate staffing ratio to? To, to APPs, how would one even figure that out in a formula because of the different variants of what they do? Is there, and especially as we move to utilizing more APPs, how, do you figure out when you need an APP versus when you need a nurse versus when you need a doc?

[00:40:32] Dr. Eric Widra: Yeah. And call me back in a year and I might have a better answer, but my, my, one of my projects for this year is to address the following pressures. We, have, to our credit, expanded access to care. It's got a long way to go, especially in vulnerable populations, but we're getting there. What that means is the reimbursement for the services is going to have downward pressure.

That's just the way the world works. It's not anything unique to us and the rest of healthcare has lived through this and probably much more. Disruptive ways than we're likely to, in addition, not just because of the price pressure, but just because of the volume pressure, you're going to need to, see more patients per unit time.

And because of the price pressure, you're going to need to do it more efficiently. And I think that the challenge for us is to find a way to get to that perfect or perfect is never going to happen to that correct ratio where you're still providing appropriate levels of service. But triaging that level of service based on what the patient is coming in for.

And so I think, and this is already being done in plenty of places. Bad thing about being this big is it takes time to institute change. But there's lots of places that are like, you use APPs, what do you do with them? I'm like, Whoa. Yeah. So I think. I think that the role of the APP in fertility medicine is definitely going to expand in some places.

They do all kinds of things now, but I think they're going to, they're going to triage new patients. They're going to see new patients and order testing before they get to see a doctor. I think they're going to continue to do more and more hands on stuff, ultrasounds, in office procedures. I've heard people talk about training APPs to do egg retrievals and embryo transfers.

That's a podcast unto itself. I think that's not going to be a very big piece of the puzzle, but the other pieces are going to be critical to maintaining the economics of what we do and the quality of the service we provide to our patients. 

[00:42:42] Griffin Jones: The APP topic is a topic in and of itself, but while we're still on it, you mentioned their role is going to expand.

What are some of the, what is maybe one thing that you feel many APPs are not doing now, or at least they're not doing in a great many places that they could and should be doing, and it's probably the first area in which their role will expand. 

[00:43:04] Dr. Eric Widra: I think that they should be the first line of evaluation for a lot of infertility patients, especially in underserved areas.

the fact that you live somewhere rural and have infertility shouldn't be such a massive burden because so much of what we do is not hands on. hopefully this joke will come across. Okay. I don't do physical exams on my patients. There's just no role for it. Yeah. They get an ultrasound eventually.

Sometimes the first visit, usually not. So I can, if I have an APPU seeing someone in, West Virginia, I'm in DC. And, they're in an underserved area, but the APP is happy to, they can order the stuff. The testing that we do is preliminary, is, straightforward. Anybody can do it. And then, and then I can have a virtual consult with that patient where I can be efficient and also provide a high level of care.

One of my associates, Edward Harton said something interesting to me the other day, we were talking about these challenges. He's the less I know about a patient, the more time I have to spend with it. And while our goal as physicians is not to minimize the time we spend with patients, that's not correct, we do want it to be efficient.

if you called a cancer doctor and said, I think I have cancer. Can I see you? They say, no. until you have a diagnosis and the pathology from the laboratory and all this test done and your imaging done, I'm not going to see you. Because it's not a good use of either of our time.

And so I think that as we move, as we expand access to care, I think you're going to see a little bit more of that. And I'm sure your colleague in the UK had some insights into this. in the UK, you don't see a doctor necessarily, especially in the private sector until you're pretty far down the pipeline.

[00:44:53] Griffin Jones: We're going to bring you back on in a year to talk about how you figured out those ratios, but you've at least given us a preview of what people need to project for as they start to expand their use of APPs. I'm jumping around a little bit, but we I had a thought pop out about training is have you learned any lessons about what absolutely needs to be in included in training?

So what we try to do is lay the process first. We use a project management system, and that's where most of our processes are documented. And then we'll use a software. We're called loom to do video documentation of it. And there's other softwares called train you all. And, other competitors to loom and train you all.

Have you found a bedrock of, about what absolutely needs to be included in every training or how it needs to be structured as, a framework, regardless of what specific role it is. 

[00:45:51] Dr. Eric Widra: It's a great question. And as you mentioned those things, I'm reminded how far we still have to go in terms of using these types of tools for that.

I think that's, that even though I'm proud of the way we train people, it sounds very primitive compared to what you're doing. And I think that's an opportunity for us to get better. But what I do think is the most important in healthcare, especially for what we do, is this acculturation.

That I don't think many of our skill sets are, so narrow that we need to like overtrain for those, the soft part of nursing is the same, whether you're, in a pediatric clinic or an IVF clinic, drawing blood and doing ultrasounds is the technique, the techniques, very little in the patient population, but their technical skills, but getting across the division and the mission and the culture.

Yeah. It's got, to be the most important thing in my mind because that influences not how you draw the blood, but how you interact with the patient and how you value that person's journey and the issues that they bring, that's the key. And I think that one of the things we've been successful at, despite the fact that we're, we were a business and we have to measure things and buy things and give services for revenue, is that we've been able to demonstrate.

That the patient comes first and I think if we can teach that and we can Live that because saying it and doing it are completely different things, right? you can be famous hospital X who says we're the best at this and you can get treated like dirt in the ER and it's all just talk. But if we can live that and show it and keep the people who are able to do that and redundant out the rest, that's the, that, to me is the secret sauce of staffing.

[00:47:46] Griffin Jones: We started the conversation talking about technology and HR as means of in, in being able to recruit more, being able to fill seats, being able to have longer retention. I took us down the HR route more deliberately. I still want to glean, a, second of a technological lesson if I can, is what's an example of in the, since.

Recruiting has gotten as crazy as it has in the last two years of a technology that you've implemented that has either made certain staff more efficient or just taken things off of their work entirely that has been a godsend to you. 

[00:48:29] Dr. Eric Widra: it's happening now. It's not quite at God's end level yet, but I can see it emerging.

So several years ago, we work with a vendor who does our consenting process and it's extremely thorough. It's video based. The patients have to answer questions along the way at the end to demonstrate they actually watched it. So both from a patient education standpoint, a consent standpoint, and a legal standpoint, it's awesome.

And, and, Mike Levy to his credit is like, why are we doing this for our financial counselors? Because we still have a lot of patients who are self pay and we have a whole menu of financial programs depending on the types of treatments they need and that can take a long time to explain.

Especially when you're talking to somebody with the anxiety they have about. Not just, am I going to get pregnant, but can I afford it? So we've made those modules, with our vendor for the financial counseling. And, it's, it was amazing, the resistance to it as there was when we did the consent thing, because people are like, are you taking away my job?

I'm like, no, we're making your job actually easier. 

[00:49:41] Griffin Jones: Because of what Dr. Harriton said, because the less you know, the longer it's going to take. That's also true for the patient. The less they know, the longer it's going to take. Yeah, and for the 

[00:49:51] Dr. Eric Widra: financial counselor. Yeah, a hundred percent. And so I see that as a great use of an adaptation of technology that, was staring us in the face.

[00:50:01] Griffin Jones: There you go, EngagedMD. That's your new slogan for your website. Almost at GodSend level, you can It's a free one from Eric Widra and I. you have the final thought, Eric, whether it's something from your talk at PCRS that I didn't ask you about. If it's just something else about how to train, recruit personnel, projecting personnel needs in the future.

How would you like to conclude? 

[00:50:26] Dr. Eric Widra: Thanks. I, it's great. I, the, horse that I've been riding lately is we have to adapt to the world is changing around. This is changing faster than we think. And we, need to be open to that. Physicians, especially hate change. What we need to do is get ahead of the things that are going to affect the way we deliver care.

And that means being open minded about the role of different providers. One of my, I stole this line from somebody, it's very businessy, but we want everybody working at the top of their license or their credential. I think that, but that makes a lot of sense, me explaining how the menstrual cycle works.

Probably not at the top of my license explaining how IVF and PGT works. Yeah, that's my job and being open to technologies that can streamline things for us. And that's a two edged sword because some technologies are better at it than others. But once again, your comments before left me like, Oh wow, there's still stuff out there we don't even look at.

So I hope that was a cogent closing comment. It

[00:51:30] Griffin Jones: was, and as much as there's more to look at, I'm still looking at more of it, too. I say that I'll write a New York Times bestseller once I'm a black belt at all of this. And I'm a yellow belt right now. I'm a yellow belt right now, orange belt at best. But someday you'll see it in the airport, and I'll send you a free copy, Eric, because I'm thankful to you for coming on the Inside Reproductive Health podcast.

Thanks for coming on. 

[00:51:56] Dr. Eric Widra: Thanks for having me, Griffin. Have a great weekend.

[00:51:59] Sponsor: This episode was brought to you by BUNDL Fertilty. Fertility Clinics, ready to boost your online reviews? Our survey of over 2,500 online patient reviews showed that 30% of the negative experiences were focused on billing or finance frustrations.

Improve patient satisfaction and billing experiences by using BUNDL with Medications™ Services. See the rest of our survey results by visiting www.bundlfertility.com/irh and downloading our exclusive report. 

Announcer: Today's advertiser helped make the production and delivery of this episode possible for free to you, but the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the advertiser. The advertiser does not have editorial control over the content of this episode and the guest's appearance is not an endorsement of the advertiser. Thank you for listening to Inside Reproductive Health.

204 Opening, Relocating, and Expanding Your Fertility Clinic and IVF Lab with Lindsey McBain

DISCLAIMER: Today’s Advertiser helped make the production and delivery of this episode possible, for free, to you! But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the Advertiser. The Advertiser does not have editorial control over the content of this episode, and the guest’s appearance is not an endorsement of the Advertiser.


Your fertility center is growing.Do you expand your current office or build a new one?

Lindsey McBain, Executive Director of IVI America, has overseen numerous IVIRMA office setups, relocations, and expansions, playing a key role when they relocated their headquarters to a new city.

Tune in as Lindsey reveals:

  • The differences between starting, expanding, and moving your office [And the unique considerations of each]

  • The difference between building a new office and moving into an existing building [With and without a lab]

  • When to Buy vs. when to Lease

  • The non-negotiables that should go into a letter of intent for a new lease

  • Building a Standard Operating Procedure for launching new locations [So organizations can do it at scale]

  • How she selects vendors for each new site

  • Some Pro tips for what small offices can do to save money [And simplify logistics]


Lindsey McBain
LinkedIn

IVI America
RMA Network
LinkedIn
Facebook
Instagram
Twitter: @thermanetwork

Transcript

[00:00:00] Lindsey McBain:
Typically, when your lease comes up for renewal. We look at economic factors. We look at location factors, you know, we make an analysis of what's best. We look in the market to see if, you know, it makes sense to move. Moving is an investment, but sometimes it's the right investment.

[00:00:18] Sponsor:
This episode was brought to you by LEVY Health.

Seeing more patients for a first consultation may actually decrease IVF revenue by 30 to 40 percent. To see why, download the numbers for free at levy.health/conversion. That's levy.health/conversion. Today's advertiser helped make the production and delivery of this episode possible for free to you.

But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health nor of the advertiser. The advertiser does not have editorial control over the content of this episode, and the guest's appearance is not an endorsement of the advertiser.

[00:01:03] Griffin Jones:
Opening a new fertility clinic, easy. Moving a fertility clinic location, easier. Expanding a fertility location. That's the easiest of all said nobody ever. And I brought in someone who has done it a lot. Is Lindsey McBain a household name in the fertility field yet? She ought to be, she better be after this episode.

She's the executive director of IVIRMA America. She's moved, set up, expanded. A number of RMA offices. She was a linchpin when they moved their big headquarters from Morristown, New Jersey to Basking Ridge, where they are today. We talk about the differences between moving an office, starting a new one, expanding one, which is the hardest.

And what are the unique considerations of each the difference between building a new office versus moving into an existing building with a lab without she talks about. What goes into scouting a location for site needs evaluation, including variances in site plan approvals. Talk about when to buy versus when to lease.

Talk about building a standard operating procedure for launching new locations like this so that organizations can do it at scale. We talk about the non negotiables that should go into a letter of intent for a new lease. Talk about considerations for square footage. For those of you not looking to expand all over the globe, Lindsey gives a couple pro tips for what small offices can do to save money and hopefully not be logistically impossible.

She gives pro tips for looking at blueprints ahead of time and as the site is being built. She talks about who's on her team, what their roles are each responsible for, and her outsource team when she goes into a brand new state. That's to hire new architects, new project managers, how she does that, and how she selects vendors for each new site.

I enjoyed this episode. If you enjoy it, let Lindsey know, because she gave us a lot of value for starting new locations, moving locations, and expanding locations. On to the conversation with Lindsey McBain. Ms. McBain, Lindsey, welcome to the Inside Reproductive Health podcast. Hi, how are you? I'm doing great after some technical difficulties and switching to an old software.

We're recording this episode on Zoom, so I want you, the listener, to tell us, does it sound better, worse, or the same than the last several dozen episodes you've heard? Better, worse, or the same? I want your feedback, the listener, to let us know. Because what I really want to focus on is the conversation.

I've known Lindsey McBain for seven, eight years. Probably I'm thinking we both have said and said on the board for the association for reproductive managers of which Lindsey. was chair. She went through that whole officer cycle and Lindsey, you're not usually the loudest person in the room, but when you talk to people, listen, and I'm one of those people, and one of the topics that I have clung to that you've spoken on over the years is about.

Building new offices, building new labs, launching new offices, whether it's Terranova or not. And so I want to go through that concept with you today and maybe we'll end up breaking them into categories of like brand new office buildings, brand new labs versus when you might put an office in an existing hospital facility or something like that.

And I've done it across a number of states. So I want to ask about some of those nuances. But I'm interested in. The first time that you ever launched a new office, tell us about what that was like, because if my LinkedIn serves me correctly, you started your career in fertility with with RMA at that time, RMA of New Jersey at that time, at pretty much the very beginning of the Great Recession.

So pretty much the worst time to start a new job is September of 08. If my records are correct. So tell us about what was the first mission that you were put on? Because it's probably a very different landscape than, than what it looks like today. 

[00:04:56] Lindsey McBain:
Yeah. So when I first started my first year at RMA, I did not do what I do now.

After about a year, year and a half there, I got involved into operations. And at that time, RMA was growing and we were in the best, we were in Morristown. That was our headquarters. That's where it all started for RMA. But we were outgrowing it. It was getting way too small. So they were looking, even before I got there, they were looking for a building.

They were looking to move their New Jersey headquarters somewhat in the same geographical area, but to move a new lab, new OR, and be on our own. In Morristown, we leased space from the hospital, Atlantic Health. We were across the street from them. But this was going to be our own building, everything. So I Um, Once I got in the field, I was started helping them go look at locations with Dr. Scott, Dr. Drews, and Dr. Berg. At the time, they were the three partners that were overseeing that. So we would go look at sites, we'd evaluate needs, we'd evaluate location, making sure that it was big enough that it allowed for some growth, and that it would be convenient. To our patients and fit within our footprint in New Jersey, my first construction, I will say, was not that it was a small satellite office for New Jersey was West Orange and Eatontown.

I did. And those were not labs. They were just office space locations for New Jersey, where those are the first two I did. I got involved in both of those. Probably I took them over from my predecessor. So those were my first two and then we started working on the Basking Ridge project, which like I said, I was involved from the search to negotiating the purchase to the construction with the partners.

[00:06:31] Griffin Jones:
So Basking Ridge is moving the headquarters from Morristown to Basking Ridge and that's about a year and a half into your tenure at RMA. So this is when it 

[00:06:43] Lindsey McBain:
started, but it was. I mean, it took a couple of years to find a location to negotiate everything to start construction. I mean, nothing goes fast when you're doing real estate construction permits. There's a lot of red tape anyone who's done this, 

[00:06:56] Griffin Jones:
I want to, I want to talk about that. I want to get to that of how it's, if you're thinking of a certain deadline, you should be tripling that in your mind. I want to talk about, Those expectations. So that's moving from Morristown to Basking Ridge. And that's process starts in ideation in 2010.

[00:07:14] Lindsey McBain:
I mean, like I said, they were looking before I even got involved. But yeah, I think 2010 is when it really took off. I'm trying to think. I got married in 2011, and I know we were in the thick of things, and I'm on my honeymoon because I was panicking being away. 

[00:07:27] Griffin Jones:
Delightful. So. It's a nice, it's a nice little honeymoon gift, worrying about what is happening with the contractors and everything else.

But the West Orange and Eatontown, that happened before you chose the Basking Ridge location? So you were cutting your teeth a little bit. Yeah. 

[00:07:44] Lindsey McBain:
Yeah, those, and those are satellite locations, which, with not having, you know. Oh, ours are labs or anything like that. And you're not buying a piece of the property.

It's a little bit different. It's a little bit easier when you buy property, you typically have to do well for us, at least we've had to go for variances or site plan approvals. It's a little more involved if you get town approvals, it's different than just normally when you go into a location for a satellite, sometimes you need a zoning permit, but the local town.

But typically that's something you can just handle with paperwork and fees at the local administration without having to appear before a board or getting a use attorney and putting a case forward. 

[00:08:22] Griffin Jones:
It's like minor league versus major league, but I think it does merit some discussion that some of the lessons from those smaller offices.

How much of a process did you have at that point? Like a standard operating procedure. This is how we. open new offices when it, when you were working on West Orange and Eatontown, how mature or not was that at the time? 

[00:08:44] Lindsey McBain:
So for me, it was brand new. We luckily had a GC that had done prior RMA builds with predecessors of mine.

So he had some basic guidance. The partners at that point were very involved as well. So they were still looking at plans and giving feedback as well. So it was very helpful to have their input and their expertise. So I worked with them closely. I worked with the GC and I just was learning everything.

Anyone that had been involved in prior. Offices at RMA. I was picking their brain. I was just learning anything I could to try to figure out what I was doing, how to do it the best way, how to do it better. And I was, I mean, I think I was just hands on with everything. I mean, I was doing anything and everything I could so I could learn every piece of it.

[00:09:29] Griffin Jones:
What do you recall a surprise or a harder lesson being from one of those first to the Eatontown? West Orange Satellite offices, 

[00:09:37] Lindsey McBain:
I think just the coordination of the people and expectations. So you do work on this whole project and The people that are moving in usually aren't that involved the staff everyday staff and then to get them on board and showing up and All those pieces to fall in is harder than you think.

You're so focused on the construction that you kind of forget how to embrace the people into the move and make them feel invested and that they should be happy for. And that it's the right layout for them 

[00:10:09] Griffin Jones:
With how do you make that decision to especially when you have a number of different options that People could go. It's not like you're in one city and then you're just opening one satellite office three hours away. It's like they're fairly close to each other.

There's at least, there's probably people that live in suburbs in between. How do you make the decision of who goes where? 

[00:10:32] Lindsey McBain:
For staff, I mean, we look at the geographical area. If we're moving an existing office, we're typically staying within the same area so that staff will move. If we're opening a new office, we look for typically you have your doctor first.

So Eaton town was a new location for New Jersey at the time. West Orange was a move of one of our existing offices. So they were both a little bit different with Eaton town. We were really building with Dr. Molinaro was the doctor there. She was. Very, very involved, but it was building a team there and building an office rather where West Orange we were relocating a team to a new location.

So it's a little bit different given the staffs. They are moving them and reorienting them versus seeking out new staff or sometimes their staff that wants to relocate that's commuting and it makes sense to relocate them. And then you have experienced people. And they're moving with it. So there's different variables, but definitely for any of the builds, even the ones we have now, when you're going into a new area, the doc is key and they're always very involved and very crucial.

I mean, to anything, obviously. 

[00:11:32] Griffin Jones:
How often do you find that you're hiring new staff for offices that are not so far away, let's say within 20 miles or so, are you hiring new staff specific to that area? Most of the time, or most of the time, are you bringing folks over?

[00:11:47] Lindsey McBain:
Sometimes. The nurses and docs will have them in the system already, or at least the lead nurse will try to have in the system.

But you're hiring new front desk, typically you're hiring, not always, but typically you're hiring new front desk, new clinical assistants, new phlebotomist, andrologist that are in that area. Again, sometimes you find someone who will move, but typically when you're opening a brand new location, like we recently opened in Jersey City, we did have to go to the local market and supplement the staff.

[00:12:15] Griffin Jones:
How much variance is there when you're, when you're. Opening, whether it's opening a new office like Eatontown or you're moving an office like West Orange. Do you find that, okay, this is typically the flow of this doctor is going to be here this many days. If he's going to do this many NPVs a week, then it's this many nurses, this many techs, this many, this many people for the front desk team.

Is that Do you typically have a formula that goes with each of those? Or is it so variant depending on the doctor? 

[00:12:47] Lindsey McBain:
Well, it definitely is on the, it's more variant on the volume. I mean, our offices are typically five days a week. So we staff for patients to be there five days a week. Whether we're staffing for, we, we do morning monitoring a little bit different in New Jersey than a lot of even our other locations, because it's a block of time where you just come in where it's not scheduled.

So, five days a week that is open and then there's new patient visits and stuff after that. Each department has its own staffing model and based on the volume that we're telling them, they kind of go from there to assert the staffing. We definitely try in a new location. To allow ramp up time. I mean, you don't want people sitting around doing nothing, but you also don't want patients not getting the care they need.

So it's a balance of making sure, but it's all volume based and every department kind of has their own metric for how to stop it and how many visits or how many rooms or numbers that they can fit for the staff 

[00:13:38] Griffin Jones:
Does that that tentative have. thing five days a week for who you're open. Is that like a minimum criteria for you all?

Is that one of your criteria for opening a new place that you just won't open a new place if, if you don't have a doc and a team to be there all five days of the week? 

[00:13:55] Lindsey McBain:
Right now in New Jersey, all of our offices are five days a week. And then we have some that are seven days a week because of the geography of New Jersey, you know, you need to be able to offer a weekend hours.

In certain key locations, we don't have in every office, but because we go from Marlton all the way up to Englewood, we do offer multiple locations with weekend hours to serve our patient population and help decrease their weight on a weekend and their drive time. Uh, but generally all our offices are Monday through Friday, uh, minimum.

And then we have the seven days a week because we're three inches, five days a year. We're always going. 

[00:14:31] Griffin Jones:
A lot of people that are listening to this are in markets much smaller than the greater New York Metro. And they're in markets that are a lot more sparsely populated. And so they do have satellite offices that might be open.

One day a week or two or three. And, but given that New Jersey is the most densely populated state in the union, it sounds like the juice wouldn't be worth the squeeze real all if you had to have open a couple of days of the week. 

[00:15:04] Lindsey McBain:
No. And even when we open our EBRMA offices, the original offices are always about seven days as needed.

And then when they open satellites, we generally aim for five days, but you try to make sure you have the volume. But I can understand if a smaller market, a smaller one doc office, it's much harder to staff and make it worth it. I do know there are offices where they also share space with other providers to grow their footprint, which makes sense.

At one point, we had a post and overlook that we were only there. Three days a week, I believe it was. It was years ago. We're, we're no longer in that area. But to get in that footprint, we had a doc go three days a week with a medical assistant who also was able to do front desk and it had limited hours, but they were scheduled and it was there for that patient population.

So it can definitely make sense. I mean, the idea to be at the right location for your patients, I think. 

[00:15:56] Griffin Jones:
Outgrow that location and overlook or was it this is a pain in the neck having a doc out here for three days and if we lose that medical assistant who can also double as the front desk, then we're in tough position because that person is going to be hard to replace with one.

And so what was it? Was it? 

[00:16:15] Lindsey McBain:
Yeah, we grew our foot part in New Jersey, so it didn't make sense when we added offices. We were kind of covering that area with existing offices. When we grew our IVF, with IVF New Jersey came part of Army New Jersey, we kind of grew our footprint and we were in different locations, so it didn't make sense for us.

[00:16:33] Sponsor:
Seeing more patients may actually decrease IVF revenue by 30 to 40 percent. Many REIs see patients that haven't had any testing and are not ready or suitable for treatment. Patients that don't need IVF often feel they're being sold treatment. And patients that do need IVF are choosing other centers because the new patient wait list is too long.

What's worse is patients often feel unengaged by the clinic because they have little to nothing to do between scheduling their appointment and the visit. LEVY Health uses precision diagnostics including lab testing, cycle data, symptoms, and medical history to triage fertility patients and prepare them for IVF.

The first consult can consequently be used to plan and discuss treatment. Increasing conversion to IVF. LEVY Health's clinical decision support software for fertility and endocrine disorders handles patient prescreening, diagnostics, and triaging for your fertility clinic to save your team valuable time so you can treat more patients.

Levee Health has estimates for improved clinic KPIs. Conversion to appointment, no shows conversion to follow-up, conversion to treatment and IVF treatment. Start download these numbers for free at levy.health/conversion. That's levy.health/conversion.

[00:17:58] Griffin Jones:
I wonder if there's any kind of rule for, for folks that, that if you're not planning to grow to a certain volume that maybe you don't.

Try to open a satellite office there for part time unless it's one of these locations where that's the only way they're gonna They're gonna get fertility treatment And there are many rural parts of the country where those are the only places Where that that doc coming out there a couple days a week is the only way they can get treatment.

There are docs that Have their own planes that fly to some of these rural locations that they go out to yeah, and 

[00:18:36] Lindsey McBain:
so if you can share a space, like I said, another MD like use it or a hospital space. I mean, that kind of lessens some of the burden on the cost and overhead. If you're able to do that and expand your footprint.

[00:18:48] Griffin Jones:
Did you ever share with? Another REI, because I have heard of groups doing that. 

[00:18:53] Lindsey McBain:
We, we have not, I don't have experience in that area. I mean, overlooked. There were other providers there, but not other reis. 

[00:19:01] Griffin Jones:
Were they all women's health? Like does it make sense to Yeah, it was all 

[00:19:05] Lindsey McBain:
there. Or it was women's health and it wasn't just a reproductive health either.

It was. But it was all gear. It was a woman's health unit, but it wasn't just all reproductive health. 

[00:19:15] Griffin Jones:
We got a lot bigger fish to fry than this place that used to be in an overlook. But I do think you've laid out a couple of good rules that can make life a little easier for people. One is the sharing space.

People might have thought about that. But I also think the having a medical assistant that can also double as the front desk person is very important in a situation like that, that can make life easier for people. Are there any other lessons that stuck out to you of when you had a place that was only open a couple of days of how you made it?

Not too logistically burdensome. 

[00:19:50] Lindsey McBain:
I mean, I think RIT infrastructure really helps us. We were able to remote into our network and remote into our EMR. So I don't think patients felt it. We also made sure that the ultrasound that our, we're most familiar with and worked her best imaging was there. So we didn't want our patients that were there to not receive the same quality that they would anywhere else.

You know, so we made sure that the basis of. The foundation of what we needed to provide the excellent care was still there. 

[00:20:18] Griffin Jones:
Oh, I think that's a pro tip. So you didn't buy the ultrasound machine there, did you? You chose the, the providers that were there had the ultrasound machine? 

[00:20:26] Lindsey McBain:
No, we, we, we brought one.

We brought our own ultrasound, but it was, it was ours. We was, we leased our ultrasound. So it was a lease that we put there. And when we left, we took it with us. But like the exam table was there for us, the exam light, the stools, the waiting room chair, the desks, all that stuff was there. 

[00:20:43] Griffin Jones:
Okay. Well then that pro tip is mine.

Then people are listening and they select a place that has an ultrasound machine that is like yours. So that that's one less thing. If you're going out to one of these places, we're only going maybe a couple of times a month or once a week. All right. Yeah. 

[00:21:01] Lindsey McBain:
You've been fine. That, that's great. 

[00:21:02] Griffin Jones:
But Lindsey's pro tip of leasing is probably more realistic in most cases.

All right. Bigger fish moving on to back to West Orange and Eaton Town, which were two offices. What are the, what are the considerations of, is it categorically easier to open a new office or to move a new office? 

[00:21:23] Lindsey McBain:
I think it's, well, from construction wise, I think opening a new office is easier. Usually moving.

Is you're running two offices in tandem. You have to worry about the coordination of the move. You have to make sure that patients know where to go. There's always that time to get them acclimated to the new location. You don't want anyone to miss an appointment. So make sure that you're communicating well and getting the word out that you're moving.

And also it's a change for people. So change is always a little harder than. something new. I think the hardest is expanding a location, quite honestly. I think that's the trickiest because you're have a practice going that you don't want to compromise, but you need to grow it. So coordinating that construction around people working, patients coming in, I think that's the trickiest, to be honest.

[00:22:11] Griffin Jones:
Okay. So we have, we got three categories when it comes to location, you're moving, you're setting a new one up and you're expanding on the moving side. Pain in the neck that we always had to deal with was the changing of the local listings, which is just not as easy as it should be. Still, I, I started this, I started doing this stuff like 13 years ago and, and it's not any easier really.

[00:22:35] Lindsey McBain:
Now, even to update your Google location as much harder than I ever thought it would be my poor marketing team. 

[00:22:40] Griffin Jones:
And it's, and it's critically important. It's one of the most important things. And, and you can send people to the wrong place. I've actually, we had a client where they. For whatever reason they Google was putting the pin in the wrong place of the new spot.

And so God bless her. 

[00:22:56] Lindsey McBain:
Yeah Our marketing team is very good and very proactive But I know it's hard for them because it's very hard to make sure that You're communicating the right way, that patients are hearing it, that everything's updated. And then there's always someone that misses something or referring data as an old had in their office or old brochure that they give someone.

[00:23:18] Griffin Jones:
So when do you make the decision of if you're going to expand or if you're going to move? So let's, let's stick with the example of West Orange because that's where you had moved, so where?

The previous location was no longer sufficient and now it's time to go to a new place. What, what goes behind that decision making process? 

[00:23:42] Lindsey McBain:
So typically when your lease comes up for renewal, we look at economic factors. We look at location factors. We make an analysis of what's best. We look in the market to see if it makes sense to move.

Moving is an investment. But sometimes it's the right investment. You have to look at your relationship with the landlord. You moved in 5, 10 years ago. Are they, is the building still in good condition? Is, if they're ahead of the bargain being upheld? Did the landscape outside the office, did roads change?

Is it not ideal? There's a lot of Pieces that happen when you're in a lease for five to 10 years that are outside of your realm of control. And there's other locations where that 10 year lease comes in and you're just like, Oh my God, I want to stay. This is the best location, like, let's renew, let's expand.

But it's definitely a conversation you have to have with the local staff and you have to be involved. And part of my role is also visiting these locations, going out, checking in, seeing how stuff's going, making sure. I have a team that runs day to day operations and is involved in all the day to day at these locations.

We're very aware of what's happening. Not just when we walk in to evaluate that we're involved the whole period so we have relationships with the buildings Maintenance the landscape we're out there. So it's important 

[00:24:55] Griffin Jones:
And how do you decide when to expand because that's got to be a hard decision maybe perhaps even a harder decision because it seems to me like all of the Considerations you just listed are still at play when you're thinking about expanding and you're ultimately deciding are we?

Do we want to do those things here? Or, or, or start anew? So when does it make sense to expand an office location? 

[00:25:19] Lindsey McBain:
So funny enough, we just, we, so 10 years ago when we moved West Orange, when I got involved in that project, remember it was started, I came in, we just expanded West Orange after being there 10 years in the newer location.

We're very happy where we are. We think it's a really great location. But we had thankfully grown with the doctors there have a very heavy referral base and they needed more space to adequately treat patients to make morning monitoring more efficient to add better space for our staff. And there was, the other thing with expanding is there has to be availability in building.

So we knew that there was adjacent space, which is vast, available, and we knew we liked the location. So we reached out and we started negotiating that deal. How long did that take? That one was a little, that was the trickier deal. It probably took me six months to get terms that we were happy with. I worked with Dr.

Drews, was very involved in that deal. And we worked together and negotiated with the building manager and got that deal secured. And then after that, construction started. What? I want, I want to talk. Some deals where you expand can be in two weeks. That was a trickier deal where they were going back and forth.

They had other people interested in the space. 

[00:26:34] Griffin Jones:
Sure. And then was there a lab at that location in West Orange? 

[00:26:38] Lindsey McBain:
There's an andrology lab, but not an embryology lab. 

[00:26:40] Griffin Jones:
Okay. So then, it's not like, it's, it's not the hardest thing in the world to move a location like that. Like you said, it's hard, but you also said it's harder to expand.

So why expand there instead of going to a new place? 

[00:26:55] Lindsey McBain:
Well, I mean, we like the location. We like the building. There is space available. It's significantly less, like, more economic sound to expand sometimes than it is to do a whole new location. You have to look at all the factors. If you're in a good location, and you're in a good building, and you think everything else makes sense, and there's that prospect to just add a little bit more.

Sometimes that's the better economic decision. 

[00:27:19] Griffin Jones:
Tell us about what goes into the negotiation process. What do you have to make sure that you're on top of? 

[00:27:26] Lindsey McBain:
I think one of the most important things for us is that we have very specific hours. So I want to make sure that there's no issues with the doors being open for my patients when we're open.

We like our doors to open either between 6 a. m. Most buildings do not, even medical, do not open that early, to be honest with you. So that's one of our key tenets. We also need to HVAC during that time period. We don't want people coming into a freezing cold building or a stifling hot building. We also need to be secure when they're coming in.

We don't want them going into a pitch black parking garage somewhere. So those are all kind of the basics. Basic stuff that, like, I think don't even, we can't even talk if we're not going to meet those basic pillars of access for our patients and safety for our staff. And then we need 24 7 access for MDs, but typically in our, like myself, that's really never an issue with any building.

If you're a tenant there, usually getting 24 7, that's not an issue for something critical. And then from there, we go into what makes sense economically, what they're, if we're going to do a tenant allowance, if it's a fit out, what they're contributing. To the cost versus and that's, I mean, that's economic decisions here, because it's really a T. You are paying that in your rent in some ways. So you have to weigh out all those factors and the timing and all that information for the lease allowing typically we negotiate some rent delay. Went to the lease to allow for construction, so. 

[00:28:48] Griffin Jones:
Do you have all of this, like, in an SOP checklist now? Like, like, here's our standards for HVAC, here's our standards for what the parking needs to be, here's our situation for how the badge access needs to be, and what time patients need to be able to get in.

Like, do you, is this all in, like, kind of a checklist that you're just, voom, that you can send to any landlord? 

[00:29:09] Lindsey McBain:
Yeah, now it is. Now, after many years and each year, I think we get a little more sophisticated and I've gotten better about documenting stuff. I'm really, and I try not to be one of those people that a lot of stuff stored in my head, which is not great for other team members.

So I've tried to get much better at documenting stuff for my team and Then everyone has to ask me a question, they can look it up and they'll have access to it. And it's much clearer also with working, not just the landlord. We're trying to very clearly our expectations with working with an architect or a general contractor, like this is what we expect.

We're laying it out. So we've gotten much better at documenting that stuff. I got it. And some of it, I'm just documenting. I'm getting from other genius people. Like I don't know everything, but. Gathered knowledge from people and I have a document so I know that this is what we need. So a lot of it is just taking all the information you learn and all the data of what the different departments and you know what we need to really function great and having it in one place.

That's not all knowledge that I developed or I know. I mean, that's key. I'm taking the wisdom from everyone else. I think that's important to realize. And I think that's one of the key things is that I spend a lot of time learning the different departments in different areas and learning from all the brilliant people I get to work with because that's really like where you learn.

[00:30:25] Griffin Jones:
You do deserve credit though for not letting it just go in your head though, because that does happen very often where someone does come, they benefit from the institutional knowledge that's kind of there in the ether, anecdotally talking to people, maybe they compile it for themselves, but they don't get it into an SOP for the organization.

And so that is, you deserve some credit for that because you want to be able to repeat and not have it. Be all you so that the next person doesn't have to think about it on their honeymoon. And so when you go on your, your anniversary, your 15th anniversary, you don't have to, you don't have to be thinking about all of this stuff.

People can access it from other places. And I've written, I've made a couple notes about your team because I want to ask about the team. I could jump all over the place. You've got so much. Gold in here. So let's stick with negotiation for just a second. Those are all really good places. Are there, is there any kind of phrasing that you learned to be aware of where there was some kind of phrasing that you, you, you were certain meant one sort of thing.

And then after you go through something like, Oh, that's not what we wanted or, or you, Oh, You promised us X and they gave you Y and is there any type of phrasing that that sticks out? 

[00:31:41] Lindsey McBain:
Not so much. I mean, I, an LOI, I don't need an attorney for like, we know our terms. We know our letter of, LOI, letter of intent.

We know the terms we want to go in there. I mean, when then we get to a lease, we, we are smart enough to bring an attorney in to look at like the legal jargon that could step us up. And like, I tell the attorney, these are the things like I need to make sure are in my lease. Is there any hidden? I mean some of these leases are 200 pages long.

Is there something hidden in here that I didn't catch that I need to be aware of that's going to make it so my HVAC isn't on or they're going to close every third Thursday or something crazy like or their holiday schedule is X and my holiday schedule is Y. Can I pay to be open or are they shut, shuttering the doors?

So I think it goes back to knowing you're operating non negotiables and putting that in your letter of intent, which is the. Framework for your lease, and then relying on your legal experts to make sure that there's no legal barriers set up. 

[00:32:34] Griffin Jones:
Is it always a lease? Do you ever buy? 

[00:32:36] Lindsey McBain:
No, we own a couple locations.

We do. So, I mean, then it's different. It's a little bit easier. But typically most people, especially new people into the industry, usually are leasing their first locations, I would say. It makes more sense. But yeah, we do own some locations. 

[00:32:51] Griffin Jones:
And, and I, I wonder what the breakout is. I wonder if it's like, I wonder if it's, if it's much less than a quarter that do that would be my guess is that it's a quarter of people that, that maybe it's less than that.

Maybe it's. Yeah. Well, we can add that to our arm team's surveys

too. Tell April, we've got one more survey for you. So when you all decide to buy, is it. What's the criteria behind that? Do you have to be the anchor tenant there? Is it like something that you did with your Basking Ridge location because you got a lot more people and then you can be the anchor tenant?

Talk to us about when it's time to buy versus when it's time to lease. 

[00:33:36] Lindsey McBain:
So definitely for us being the size we were in New Jersey, we were well established. It was, it made sense to have the entire building. We were going to need the entire square foot building and they wanted to make it a purchase. That was always the intent.

We really weren't looking to lease anymore because of the growth they wanted and the flexibility to really design it themselves. So that's what we did there. I mean, we did the original construction and then I think it was. Five years later, we added 30, 000 square feet to our Boston Ridge location. I don't know if you've ever been there, but it's our original 60, 000, 65, 000, then we added about 30, 000 to it five years later.

[00:34:17] Griffin Jones:
So you're talking almost a hundred thousand square foot building. 

[00:34:21] Lindsey McBain:
Almost. And that sounds a lot more because you have, you have to remember, you've got building areas, you've got elevator rooms, you've got loading docks. Like you, that's the one thing with buildings and you'll, even in leases, they have cam.

So there's different areas that you have to pay for, for like use, like your entryway. So there's a lot of lost space, even when you own a building that you have to be aware of when you lease, you pay for common areas. But when you buy, like, even though it sounds more, there's a lot of wasted, not wasted, but there's like lost space.

Like you need HVAC rooms, you need Duckworth, you need electrical rooms. Like it's not all clinic space ever.

[00:34:56] Griffin Jones:
The CAM, what is that? Common Amenities, Common Access something? 

[00:35:00] Lindsey McBain:
Yeah, it's Common Areas Maintenance. I believe that's what it stands for, but it's. You know, typically you have those fees in your lease because you're paying to have elevators, entryway, core bathrooms, all that stuff.

So you still need all those amenities when you own a building as well. And that takes away from the footage that you have in there. 

[00:35:17] Griffin Jones:
So it's, it's a big operation in, in Basking Ridge, but you are the only tenant there? Adding... 

[00:35:23] Lindsey McBain:
Even with adding these other genetics is out of there. But yeah, all okay. 

[00:35:28] Griffin Jones:
And so all right, then this is a good segue to go back to the when you were starting to move from Morristown to Basking Ridge, you had already done Eatontown and West Orange at that point, one was a new location.

One was a move. Now you're back at a another move. But at this time, it includes the clinic offices, but it also includes the corporate offices and a lab. And so did you leave a lab in a space there in Morristown? Or was it completely, we're completely getting out of here and moving into? Basking Ridge. 

[00:36:07] Lindsey McBain:
We kept a satellite there.

We did not keep an embryology lab, but we kept a small andrology lab and we kept a, like a satellite office there. So we downsized our footprint in Morristown. in the same building? We've now moved, we've just actually moved Morristown in August, but we were there for another, we were there for many, many years afterwards.

We kept in the same location. We literally just downsized our current space. Our waiting room was the same. The main entrance was the same into our office in Morristown. We had space on the first floor and the third floor. So we gave up the entire third floor. We gave up part of the first floor. But we kept a location there and we also phased our move.

It wasn't, we all moved on a Friday and opened on a Monday. Departments moved in different waves to help control and allow time for setup and. Make it more efficient. 

[00:36:52] Griffin Jones:
So at this time you're you're scouting the locations you're they had been looking around Prior to you even starting you start in 2008 you start getting more into it in 2010 of of starting the okay.

We're starting the moving process. What is What did the, the, the location scouting process look like? 

[00:37:17] Lindsey McBain:
I mean, you're going to look at location, like, how easy is it to get to, I mean, any time you go to look at whether it's a satellite, a new build, how easy is it to get to a location, like, and I'm horrible with directions, if you ask my husband, so I think I'm a really good person because I can get lost, like, going down the street, so if I can get there, I always feel, like, better that other people can get there.

So you want it to like be pretty easy to get to off of main thoroughways. If there's multiple thoroughways there, there are like highways, it's more ideal because people from different areas can get there easier and then you like want to have plenty of parking. You want to feel safe. Like I said, you. We like it to look like a place you want to go.

You don't want to be like an industrial shipping warehouse going to your doctor's office. I think that the building says something about, and then there's code requirements. Again, parking. We want to have enough, but there's also parking code requirements. There's sometimes having a covered walkway as a requirement.

The loading dock where you can put a generator if you need it. Like there's all those.

That's one of the key questions. 

[00:38:23] Griffin Jones:
We should put you as the person that goes to SRM conference cities before we have to go and you go through the airport and you point out all the frickin places where the rideshare signs don't connect to the other part of the rideshare sign. Oh my god. Cause I can't stand that anymore.

So you, you're doing a little bit of that recently. Yeah. It's going to happen. All of us, when we go to SRM this year and they'll happen again and again. And so you're doing this for the offices themselves, physically, how much. 

[00:38:57] Lindsey McBain:
Do the first, like, sometimes someone will see a spot and be like, I was driving past this.

Can you look into it? Or I think this building is really great lens. Can you see if we can get in there? And I'll typically do like the first run through, like, and then I'll shortlist it and typically bring someone else for another opinion or present my findings back to like the board or the doc involved, depending on who.

The right framework is all typically, but I'll typically shortlist it. We'll have, I'll get 15 locations with a realtor that we'll find and we'll get it down to like three or four, and then we'll get other people involved and them to see it and or review that on a map, even if there's different variables, depending on the undertaking and where it is, but we'll definitely get other people's input.

[00:39:39] Griffin Jones:
Well, that's what I want to ask about. How much of it has changed with new technologies coming into play? Like in 2008, we were still printing out MapQuest in 2008. We didn't have to really consider, Oh, can a ride share? Oh yeah. I guess you would consider, can a taxi pull up here, but there are different considerations for ride share sometimes.

And so now that's into play. We didn't have. The virtual tours that we have of all kinds of real estate. 

[00:40:07] Lindsey McBain:
Yeah, the virtual tours and even what when you're working with architects, they can map out and remove walls and you can walk through it is amazing. I mean, learning how to read a blueprint and really be comfortable and be able to guide yourself through that is very different now.

[00:40:23] Griffin Jones:
When did you do that? When did you learn how to read a blueprint?

[00:40:25] Lindsey McBain:
When I started doing clans, I had to. When I started, when I started this role back in 2009, I guess, then 10, that's when I just had to figure it out. I had never really looked at anything other than like a fire escape so much. 

[00:40:39] Griffin Jones:
I bet there's a lot of people opening offices that still don't know how to read a blueprint.

How, how critical is it and why?

[00:40:48] Lindsey McBain:
I mean, I think to really like visualize the process, you really have to think about the path and you know, how everything lays out and how patients are going to walk around and how staff's going to access. So I think it's really important. I know it's hard. I work with colleagues that this is not what they do.

And I try to show them a blueprint of like, oh, it's so great because the nurses are here and the docs right here and the labs over. And they're like, wait, where is so I get it doesn't come. But if you're going to be in charge of it, I think it's really important that you can look at it and really see the different pathways and be able to follow it as a patient be able to follow as an employee on really Grass that it's going to work because it's much more expensive to figure that out when walls are up than it is when it's on paper.

I mean, even when you're building, they spray paint, they'll spray paint the floors. So that's I found to be a key time to go walk your site is when the floor plan is spray painted on the floor. So then. And walk around and feel it and help. 

[00:41:43] Griffin Jones:
Well, that's useful to be able to do. So you could theoretically do it with the architect virtually beforehand, but then you can physically go there when they've got things spray painted and, and, oh, that's, that's, that's a good, a really good pro tip.

And so you, you mentioned that you're doing this with your team. Tell us about who's on that team. 

[00:42:05] Lindsey McBain:
So we definitely, now that we're across the country, I definitely utilize project managers, which will be contract based because I. We don't have team members everywhere. And sometimes it doesn't make sense to have a long term team member.

Like I said, the docs are usually very involved. And then I have my core team of operations folks that are based out of New Jersey, but that do travel. I'm also finding the right architects and engineers to work with. They're important. Um, typically they'll be local and do site visits. But it's definitely setting the expectations up front for everyone and knowing what you expect and knowing the right times to check in and see stuff.

I still think that it's important that I make certain visits or someone on my team that knows make certain visits. I don't need to be there every day. If it's, if I'm building something in New Jersey and I can drive to Phoenix to be there a lot more often, then I can go to like Houston. But there were still key times when I had to get on the plane and I had to see it in person, even having wonderful team project managers and people involved.

Me and the physician were both in New Jersey at the time. So we had to go there sometimes and really walk in and see stuff in person. Like when it was on the floor, we need to see that layout and really feel it and make sure that stuff was right. And we made changes. So, but it's, it's specialized and it takes people a long time.

To really learn and get understanding of what goes into it. It's a lot and some people find it very dull and some people love it. I mean, there's a lot of different facets that I've talked about. There's negotiations, there's the ongoing maintenance, there's the construction. So I likely have team members who kind of thrive in different areas and we all work together.

And I also think that's really important. Oh, sorry, I don't mean to cut you off. I think it's really important, like I said, to work with all the other departments. and understand their needs and constantly check in with them and make sure that what I'm doing is still what represents what they need in the field.

I can't just go on what worked in 2010. It's really what's meeting the needs of the team and 2023 2024 that we're planning for. I have to constantly be in contact with them and checking them and they're the experts. I'm building something for them to be able to use and really do the magic. So I have to make sure that I'm checking in with them and seeing what they need and what they want and how They want to portray it.

[00:44:09] Griffin Jones:
So it's working with the docs and the lab team and the nurses and getting input from everybody and you're bringing in people from new areas as you move to those areas beyond your local team. Do you ever hire? Consultants, or are you beyond that, right? You're hiring project managers. 

[00:44:24] Lindsey McBain:
No, for the project managers, they're consultants.

They're usually a contract, and they come in and help just for the projects. 

[00:44:29] Griffin Jones:
Do you use, like, is there, like, a vendor of project managers? Like, a company that, that they have different project managers in different areas? Or do you just go hire a firm that's local to that area? 

[00:44:41] Lindsey McBain:
So both, I mean, there are national firms that have offices locally.

I've worked with them. I've worked with people that are only based out of local areas, because even if a company is great, their L. A. person could be amazing, and their Washington, D. C. person could have never done healthcare, and not the right match for me. So we typically try to interview multiple vendors for anything we do, and get multiple quotes, and do interviews with people, virtual interviews.

I'm not flying out there to meet people just to do an interview. Thank God there's... These platforms where you can talk to people and see people virtually now, but it is important. You are. 

[00:45:15] Griffin Jones:
And so that brings me to my next question, which is probably more of my ignorance about what it actually takes to build.

A new edification rather than smart question, but I'm thinking like we had clients all over the place and we would do, we hire cinematographers or photographers in their area. And then eventually got to a point where I say, I don't want to hire a cinematographer in Houston and San Diego and Seattle and Toronto and all of these other places.

We got this person and maybe a backup that had been killer. I would rather just pay for that person to fly across the country and do that job. And it works for that person because they're, you're lining up their work for them for a year pretty much, or at least getting them way busier. And it works for us because we have one throat to choke.

It's like they're, that's a very familiar person and we can be a lot more predictive of the quality for the client. Building a building is a lot harder than that. So why not? Send an architect that has worked really well for you in a couple places in New Jersey out to California. 

[00:46:28] Lindsey McBain:
Are they licensed? They need to be licensed in the local jurisdiction.

They need to know all the local laws and regulations. And sometimes we have done that where we've had someone work with, that has a partner office in another location. Sometimes it's not possible. Sometimes there's not someone that we've worked with licensed in that area. And there's also a different cost sometimes if you have to have, if it's not the same office and you have to hire two offices and two architects.

That just financially doesn't make sense because you do need to be licensed in the area to be able to file. You need to know the local codes. And sometimes cities have codes and it's not just state just because you're in California. San Diego and LA may have different city codes that we have to adhere to.

So there's different things that go on and then general contractors aren't always national and they also have to be licensed and have staff and buying power and negotiating power in the area. So I would love to have one team. I just, hasn't always been possible or always makes sense. If in New Jersey, it's a little bit easier.

We can reuse professionals. But when we go national, it hasn't always been so easy. 

[00:47:29] Griffin Jones:
Speaking of those regulations now that you've worked in a number of different states, what do you find, who's been the hardest state thus far? 

[00:47:38] Lindsey McBain:
I think you learn your stuff with each time. I think... That more on more rural areas and it was a little bit easier than a city just because the unions and the different regulations and there's more building going on sometimes it's harder, but not always you get a town that's really difficult in the middle of nowhere where the inspectors and the takes forever or they have a lot of regulations.

So it really depends on the job and everything going on and also the quality of the documents you put forth and the team that did your work ahead of time is really important. And can we can be in the same city and I've done 2 projects and I'm 2 different realities because you had a really great GC or you had a really great architect who didn't need to make a lot of changes or another 1 who's missing the town and the town needed 30 changes.

[00:48:24] Griffin Jones:
Are there any regulations that stick out at you? It's like, well, I've done this 10 or 12 times. I've never seen that one before, like a municipal regulation or, or anything that sticks out of note. 

[00:48:37] Lindsey McBain:
No, I think it's just interesting. Some cities, the architect files the permit. Sometimes you need a GC to file the permit.

I think that varies, which is interesting that each town, each city has its own little special quirks. I would say they all really give you a run for your money in some way. It's just working with them and knowing expectations and you're kind of at their mercy to some extent because they can stop you from construction and inspections and stuff.

[00:49:05] Griffin Jones:
So you want to make it nice and you want to follow the rules. So now that you're expanding to now, RMA is now RMA New Jersey, you've got EVRMA, you've got EVRMA America, EVRMA Global, what's on the docket for you? What's the next big lesson that Lindsey McBain is going to have to learn? 

[00:49:24] Lindsey McBain:
To delegate. I think the more, the more we grow, the more I do have to trust other people to do stuff where I said, I've always been the mindset that I need to see stuff.

I need to make sure that it's okay. I need to trust these wonderful people that I work with that. And I know they can do it, but just trust them and really some of the control. 

[00:49:42] Griffin Jones:
So what, what did each of them do? You talked about the project managers and the architects and what they do, and then what your in house team, the one that's with you physically in New Jersey, whether they travel or not, what?

What do we, each of their roles do? 

[00:49:55] Lindsey McBain:
So I have another person that really just works on construction and projects with me across EV America. I have someone who works in New Jersey who really, she does some, she's amazing at moves. She's mostly just deals with New Jersey. She helps make sure all the day to day operations run.

Then we have, we also overseeing purchasing. So we buy all the equipment and furniture and everything for these new locations. So we added a purchasing specialist to our team this year because we were All doing it ourselves. There's a regulatory person who comes in and make sure it is the ASCs are meeting code and looks into the regulations for like you want to HST, she'll call the state and make sure that we are following all that as we set up and then we have an administrative team members that more work on credentialing and the paperwork behind the move.

I mean, my role isn't just this, I get involved in a lot of different facets, so my team's a little diversified, which is wonderful because they're all experts in their areas and they help me in the different areas that I need to be over instead of them all having to be experts in every area, they kind of help manage their.

Spheres of influence and they're all amazing and very, very lucky. And like I said, they all value you working with the other teams. I mean, I think that's very, like I keep saying, being constant contact with the lab. Is this the right equipment? Is this the right layout? Like we're constantly, we kind of put it out there.

Then we walk with them and we're like, okay, this is what we think. What did we screw up? Don't you like, what do we need to tweak? Okay, we just built this office. What did you hate about it? What would you have made different? And then there's certain things that we know we love and we keep trying to recreate that and put in different locations even if it might not be the ideal first thing.

[00:51:36] Griffin Jones:
What's fast and we added in and each time are you are you normally working with the same? Vendors now like we're gonna lease our ultrasound from the same folks. We're gonna buy our microscopes from the same people We're gonna buy PB from the same folks. Are you normally? Going to your current existing vendors, or do you find yourself going to new vendors when you go to new locations?

[00:52:02] Lindsey McBain:
Well, we try to use the same vendors across the network for economy of scale and purchasing sense that makes sense. You're, you have better buying power, but we're constantly looking at new vendors just because you were the best last year doesn't mean you're giving me the best this year. So we do constantly check and we quote stuff out.

Like I said, I'm big on getting multiple quotes for stuff just to make sure that we're still competitive. You, I think if you just rely on something, you're going to find that you are missing out. Even if you want to go back to your current vendor and be like, you are not competitive anymore because you have a great relationship.

That's a discussion you can have. And sometimes it doesn't make sense. I also won't hand over price lists to competitors. I don't, that's just not me. I'll tell you you're not competitive, but I'm not going to tell you what Mike down the street selling an ultrasound for. I'm going to tell you to sharpen your pencil.

So that's kind of the discussions that I'll have. But I do think you need to be out there and you have to be looking. You can't just say, you know what? McKesson looked good to me last year. So I'm just going to buy everything from him. Maybe Henry Schein or Fisher Lee. You have to shop around. You have to make sure it makes sense.

You have to. Make sure you're getting in the right GPOs. You have to make sure you're looking at economy of scales. 

[00:53:05] Griffin Jones:
I think that bidding out process could be its own topic. I think there were 10 topics we talked about today. It could be their own topic, but this will be sufficient for the day. And I will be very happy, happy to have you back on Lindsey.

How would you like to conclude to our audience about what. Wisdom they should impart when considering expanding, starting anew, or moving a location. 

[00:53:28] Lindsey McBain:
I think just to really look at what your team needs and talk to your team and make sure it makes sense for everyone. You look at the economic benefits, look at what your team needs, look what will be right for the patients.

And getting the big picture. And again, I've said I think multiple times about this podcast is that I always I've gotten to work with brilliant people. I've gotten to learn from brilliant people. And I take all that in and really value everyone's input. And I'm just making their ideas happen. 

[00:53:53] Griffin Jones:
Lindsey McBain, thank you so much for coming on the Inside Reproductive Health podcast.

[00:53:57] Lindsey McBain:
Thank you for having me. 

[00:53:59] Sponsor:
This episode was brought to you by LEVY Health. Seeing more patients for a first consultation may actually decrease IVF revenue by 30 to 40 percent. To see why, download the numbers for free at levy.health/conversion. That's levy.health/conversion.

Announcer:
Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the advertiser. The advertiser does not have editorial control over the content of this episode, and the guest's appearance is not an endorsement of the advertiser. Thank you for listening to Inside Reproductive Health.

201 Deconstructing the role of Chief Medical Officer with Dr. Neel Shah MD

DISCLAIMER: Today’s Advertiser helped make the production and delivery of this episode possible, for free, to you! But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the Advertiser. The Advertiser does not have editorial control over the content of this episode, and the guest’s appearance is not an endorsement of the Advertiser.


Dr. Neel Shah, Chief Medical Officer of Maven Clinic, deconstructs what it means to be a CMO and gives an inside look into his roles and responsibilities regarding reproducibility with clinical outcomes.

Listen in as Dr. Shah discusses:

  • The indoor vs outdoor cat methodologies of CMO (90% are outdoor cats)

  • Why resolving Medicaid constraints means putting your fees at risk for clinical outcomes

  • His system for qualifying providers (And how he gets product and protocol feedback from them)

  • Some examples of what he believes to be disinformation within the fertility space

  • The overlap between business and clinical operations (and where the CMO role converges and diverges with the CEO and Medical Director)


Maven Clinic:
Website
LinkedIn
Twitter
Instagram

Dr. Neel Shah
LinkedIn
Twitter
Instagram

Transcript

Dr. Neel Shah  00:00
The way that I look at the Chief Medical Officer job is that there's basically two kinds of chief medical officers. There's outdoor cats and indoor cats. The outdoor cats like sales for thought leadership, and the indoor cats are like product and operations.


Sponsor  00:14
This episode was brought to you by Embie. To see where your time is going, visit embieclinic.com/report. That's embieclinic.com/report. Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of inside reproductive health, nor of the advertiser, the advertiser does not have editorial control over the content of this episode. And the guests appearance is not an endorsement of the advertiser.

Griffin Jones  00:54
Are you an indoor cat or an outdoor cat? That's not a phrase I was expecting to talk about in this interview. But it was a fun metaphor that I took from my guest, Dr. Neel Shah, Dr. Shah is the Chief Medical Officer of Maven clinic. According to this CrunchBase profile that I'm looking at right now that may or may not be accurate, they've raised over $290 million in funding. They're a digital health platform that works with health plans and employers to offer virtual services for women's and family health. So they're also in that employer coverage game, but I spend my time talking today with Dr. Shah about how the role is constructed. Dr. Shah says there are two kinds of Chief Medical Officer outdoor cats who are more figureheads of sales and thought leadership in indoor cats who form products and operations, etc. He thinks 90% of CMOs are outdoor cats, where he was charged with reproducibility of medical outcomes. Dr. Shah talks about the economic constraints of Medicaid and how resolving those constraints means putting your fees at risk for clinical outcomes. So I asked him, what was his original mandate? What were some of the first things that he worked on to create reproducibility for those clinical outcomes. He talks about what he did to reduce the need for C sections. Dr. Shah shares which positions are his direct reports, he talks about where the chief medical officer and the Medical Director roles converge and diverge, where the CEO and ce o roles converge and diverge with that. And the chief medical officer, if you listen to this show, you know that I'm not convinced that there's a complete separation between clinical and business operations. I simply don't believe that there is I don't want to speak for him. But Dr. Shah seems to agree with me that there's a great overlapping area of the Venn diagram. And he talks about what that is specifically, he talks about his system for qualifying providers in getting product and protocol feedback back from them. And he gives a couple of examples of what he views as disinformation in the fertility space that I hadn't heard about yet, so I'm gonna go look them up. While I do that you enjoy this conversation with Dr. Neel Shah, Dr. Shah. Neel, welcome to the Inside reproductive health podcast.

Dr. Neel Shah  02:50
Thank you, Griffin. Thanks for having me.

Griffin Jones  02:51
I want to have you on because you're the chief medical officer of a very large organization. We have chief medical officers of varying size organizations listening, but I imagine we also have some folks that see that in their career path. And I've never spent an episode breaking down structurally what that looks like. I want to go through that with you today, what the duties look like what the corresponding roles look like. But perhaps we'll just start with Maven clinic as a large organization. I've read headlines where you've all raised a lot of money and you're growing fast. And how did you become the Chief Medical Officer for Maven clinic.

Dr. Neel Shah  03:35
It was a combination of the midlife crisis and Pandemic onwy. I think I spent the last decade most of it as a professor of obstetrics gynecology and reproductive biology at Harvard Medical School. And so actually, fertility was relatively far flung from my primary interest other than the fact that I did women's health, but I was one of the people who helped uncover the maternal mortality crisis in the United States and some of the underlying racial inequities and had been following Maven for pretty much the whole time since Kate Ryder founded the company back in 2014. And we Kate Knight, who's the founder and CEO had corresponded, you know, as a professor, you get to have hot, hot takes and just sort of pontificate. So she emailed me, I'd email her back. And then, honestly, I remember being pretty skeptical, not of Kate, or Maven, but just as digital health as a whole. I mean, there's a lot of hype in digital health, you also can't deliver a baby through a screen or do an egg retrieval through screen. So it's just kind of confused, you know, obstetricians are pretty tactile. But then in 2018, Mavin, started to increasingly convert from being a direct to consumer business to being a b2b employer benefit. In fact, there's a really good Harvard Business School case study. We're almost a canonical example now of how to do that conversion. And I remember when Maven signed up Bank of America as an enterprise client, and I was like Bank of America knows what they're doing. They've actuaries so it's probably valuable to them. Sorry to pay much more attention. Ultimately, I joined the Scientific Advisory Board of Maven. It was actually the first for profit board I joined. Because as an academic, you try to be pure, you know, and neutral and objective not have any, you know, profit driven interests. But this was a company that was doing really innovative things. So that's where I started. And then when Kate was looking for Chief Medical Officer, my plan was to help her go find one. And I was like, Hey, what is the Chief Medical Officer kind of like you're asking me now. And it turns out, there's many kinds Griffin, if you've met one chief medical officer, you've only met one chief medical officer, they're all different. So we converged on what the roll would mean for Maven. And then the more we talked about it, the more I felt like that's something that I wanted to do. So I was like, Hey, how about me? And here we are,

Griffin Jones  05:44
I want to talk about how that role converge. I do want to dig in a little bit more to your skepticism of digital health, because this is one means of you vetting, not just the company that you ended up going to work for. But the whole space that you ended up going into what were you skeptical about? Specifically? What are you no longer skeptical about? Either because you your skepticisms? were unfounded in that regard or something changed? And what skepticisms Do you still hold on to?

Dr. Neel Shah  06:14
That's a great set of questions. I'm skeptical that there's such thing as a pop up fertility clinic, that's any good, I'm still skeptical of that. I don't think that you can create a fertility clinic overnight. I think that there's a lot that needs to go into ensuring quality for people who are building their families. But I guess that relates to how I thought about the transition. My mentor is Atul Gawande, who is a New Yorker staff writer and a surgeon and innovator. And he had famously left his academic role just like I did to join Haven, which was the JP Morgan Chase, Berkshire Hathaway, Amazon, health care startup that lived for a couple of years, and then didn't, but he gave me a lot of really, really good advice about that. His own skepticism and what led him to do it. And what he told me to do was to be intentional about, you know, the hardest thing for me and joining a startup, honestly, was not the leap of faith on the company, at the end of the day, it was myself of identity, because it's an academic, your job is to be an honest broker of information. And you know, now when the CDC wants comment on, you know, new numbers that come out, I'm not the person they go to, because, you know, I'm at a startup, I'm no longer an academic. But what he told me was to be intentional about what I leave behind in the academic world, what I bring with me, and what I newly adopt and kind of make room for, and what I left behind was my objectivity when it comes to, you know, profit. But what I brought with me was my commitment to scientific evidence, I think that digital health has as much potential to improve people's well being as drugs and devices, but it's not regulated by the FDA. So there isn't the same standard of rigor to proving that things actually work. But when I came to me, but actually brought my whole Harvard research team with me, and that was a big part of how we formulated the role to

Griffin Jones  08:06
Let's talk about formulating the role. Did it start off as Kate asking you to help find the person in the same way that when people are like, do you know anybody that would babysit my kids this weekend? Like, well, you, they're just politely asking if they'll do the babysitting was? How much of that was at play?

Dr. Neel Shah  08:26
Yeah, that's a good question. I don't I think it was genuine, can you help me find someone because I mean, I've been pretty fixed in place, like, you know, like a decade into being a professor. It's pretty cushy, you know. And I think that was actually part of my own personal motivation, as I was a little bit too comfortable at a time where Honestly, I'd been kind of radicalized against the status quo. I mean, the pandemic for me, in 2020, there was a moment it's rare in life, that you have a cinematic moment that totally changes your worldview, but I was afford deployed physician, and there are pregnant people that were calling me. And there were no beds in the hospital. And if you weren't sick enough, I couldn't make room for you. And I've profoundly remember there was a woman who called me who had shortness of breath, she was pregnant, she was frightened. And I told her, she wasn't sick enough to come into the hospital yet, and she should stay at home and self isolate. And she was like, I can't because I live with my young children and with my parents. And it was very clear to me in that moment, that health is not produced in the four walls of my hospital. It's produced in people's homes and their communities and the workplaces. So, you know, I was already kind of thinking in that direction. But I think when Kate asked me, you know, she honestly just wanted to know who is out there that would be credible. And we really did have a conversation about what the role was that evolved. But, you know, the way that I look at the Chief Medical Officer job is that there's basically two kinds of chief medical officers. There's outdoor cats and indoor cats. The outdoor cats like sales for a thought leadership, and the indoor cats are like, product and operations and I came to the company with a public profile. And so I expected to be involved in our growth. But I didn't want to be the spirit animal Maven clinic, I wanted to make sure that I had a role in building the things that we were going to do, so that I could represent them and really believe in them.

Griffin Jones  10:14
So the indoor cats our product, and operations in the outdoor cats are What did you say sales and business development?

Dr. Neel Shah  10:20
Yeah, the some BD, but usually just like thought leadership, you know, that kind of thing. Which, like, that's, that's important, too. But I would say like 90% of CMOs are more outdoor cats, and about 10% of them are focused internally on building the things that they're trying to sell. And, you know, it's not necessarily a criticism, I think that, you know, it's very clear with a CEO as some of the CFOs, I think, chief medical officers have space to design roles that makes sense for their company and their phase of business. But we were in a phase of our growth, where it made sense for me to have the remit that I have today, which is, you know, I'm responsible for designing our care model for delivering it and for proving that it works, which, for me, was sort of the ideal job. And I think that combined with the opportunity, you know, the the momentum of the company, but also just a window of opportunity in what I see as a movement, to try and improve the well being of people who are trying to build their families in America at this time. Like, I couldn't say no to that.

Griffin Jones  11:23
How much did Kate have in mind really specifically detailed before you started contributing to what the role would become? What did she come to you with it with what she viewed she needed at that time? Specifically,

Dr. Neel Shah  11:39
I think this is almost emblematic of our working relationship to the present, I think, you know, she can't always has a point of view, and a high level vision. And then, you know, and brings the perspective of both the business leader and a woman who's had multiple pregnancies while building Maven out. And I bring, you know, I'm the nerdy Doctor alongside that. So like, I was like, Okay, well, you know, we're a technology company, and a healthcare company. And those two things are sometimes intention, you know, and I had a point of view on that. And we sort of worked through like, for example, you know, the canonical product leader, their source of truth is always the end user. And if healthcare had more of that, it would be a lot better. Also, very few folks in the technology business have ever heard of the evidence base that we're discussing at the future IVF clinic, you know, like they're at BDM, epidemiology and product management are like worlds apart. And so oftentimes the job of the chief medical officers together the two together,

Griffin Jones  12:42
So talk to me about how you started to actually delineate the role and what it would become what did that process look like? Was it you starting to think of certain areas that you might be responsible for? Was it specific duties? How did you start to map it out?

Dr. Neel Shah  13:00
Well, honestly, the commercial impetus was that Mavin was increasingly successful as an employer benefit. At that time, we had just started to contract and develop formal relationships with a lot of the national health plans. And we were seeing a growth opportunity into Medicaid and fully insured. So I wrote a whole textbook on value based care, actually, and didn't understand until I came to Maven, how a health plan has multiple product lines, they have a product line that is kind of like their cash cow, where they're just doing administrative services for self insured employers. And this may be obvious to a lot of your listeners, but I didn't realize that, you know, they think about that business really differently than their fully insured business and their Medicaid business where they're taking a lot of risk. And so, you know, the willingness to pay of a Medicaid plan is lower than a fortune 50 company. And the only way to make the unit economics work is to put your fees at risk for clinical outcomes. And, you know, you're not really putting your fees at risk if your outcomes are reproducible, but the only way to do that is to have scientific rigor, the purpose of science is reproducibility. So I didn't come in as a business operator, but I understood science really well. And that was the focus of my role. It's like how do we do that? You know, how do we build the almost like Toyota precision reliability into our care model so that we can actually go and put our fees at risk substantially for both fertility and maternity

Griffin Jones  14:36
You brought your team with you to do that. Did you start working on this process and bring your team over little by little was this was you bringing your team contingent upon you taking the role? How did that work?

Dr. Neel Shah  14:49
No, I mean, yeah, it was more little by little, I mean, I made the jump first and with a lot of humility about how to build inside of a hypergrowth FISI Baxter Now, you know, the way I think about it in the public sector, there's sort of this classic project management triangle where you have time, scope and budget. And if somebody gives you two of those things that sort of fixes the third, you know, and in the public sector, I just squeezed resources out of stones, but you have a minute to solve a generational problem. You know, in this world, you have access to liquidity, you have, you know, revenue streams, but you've got to turn it into shareholder value in like two seconds, you know, and so there are different constraints. And so I came in with a lot of humility about how one does that well, and the team in place was masterful at moving fast. In fact, it's a company value. But yeah, there were opportunities to bring in more clinical expertise around me. And so yeah, it was bit by bit. And also, you know, when you're moving from, I think we three or 4x in size, so you just got to hire quickly. So you hire people that you know, are great, you know,

Sponsor  15:55
Your clinic might be seeing 1000 new patients a year. Do you know how many REI hours per year you're spending on patients that don't convert to treatment? Over 700 According to the averages, that's over 700 hours wasted. There is finally a technology that scales access to care while allowing you to serve patients at the top of your license as an REI. Embie is that technology. Embie enables fertility clinics to treat more patients with their existing staff and infrastructure. By improving workflow and patient communication. Embie enables you to generate over $1 million in additional revenue per year. Embie saves REIs hours per converted patient. Embie saves over two and a half hours of nurse admin time per cycle. Embie enables you to see up to 20% more patients per year. How do we know NBS calculated 23 metrics for Rei and clinic benchmarks. And we are making them available to you to see where your time is going visit embieclinic.com/report. That's embieclinic.com/report.

Griffin Jones  17:08
In order to be able to have a model that works you have to be put your fees at risk for clinical outcomes. In order to do that you have to have reproducibility. What was your mandate? In the beginning? What was the first thing or set of things that you were to work on that needed to become reproducible?

Dr. Neel Shah  17:28
That's a great question. So my initial attention was on people who are already pregnant. And it's it's since shifted, not shifted, but it's been balanced out with people who are not yet pregnant, where you know, honestly, Griffin, fertility is like the total Wild West. So we should get into, you know how we're starting to think about being honest brokers, they're in a sea of disinformation. But on the maternity side, that was where I had my real depth of expertise. And it was trying to consistently help populations, decrease the section rates, decrease the number of babies going to the NICU, improve mental health outcomes, and avoid emergency department use. And we built a whole ROI model around that. And then we built a number of programs to address specific conditions that people have. So you know, Maven isn't a condition based company were really a phase of life based company. And the chassis of the product that was already in place was we're very good at engaging people digitally, who, you know, they're not in a waiting room that can put their phone down at any moment. So you've got to be you earn the opportunity to make people healthy, if you can engage them all that already existed. And we were really good at sort of learning about the context of people's lives. So my job was just like, Okay, once you can engage them digitally, and you can connect them to a provider within 30 minutes anytime a day. How do you wrap that around a person to demonstrably make them healthier? That was the job?

Griffin Jones  18:54
What did you do to either reduce NICU time or to reduce C sections? What were some of the measures that came from that?

Dr. Neel Shah  19:02
Yeah, I mean, this was like, What made this a greatest job ever, right? It was like, Okay, I've got this awesome capability. And what do you do? So for example, how does an app decreased NICU utilization? answer is, it can't like an app isn't what's going to fix health care, what we did is we turned the device in people's hands into a portal that connected them with a human service on demand. So for example, if you're a Medicaid recipient in the Delta region of Arkansas, and you have gestational diabetes, you probably don't have a nutritionist anywhere close by. And you certainly don't have one on demand. But the difference between good glycemic control and bad glycemic control is having someone who can look through your phone at your refrigerator and help you plan a meal in real time. Because changing your diet is very hard. But, you know, if you're not able to do it, you might be induced in labor at 34 weeks, and that's months in the NICU, if you do it, well, you can get all the way to term. So it's like one example. It also turns out, you know, only 5% of Americans who are priding come to see a mental health provider, you know, it's very supply constrained. And there's all kinds, there's all kinds of reasons to slip stigma. Whereas depending on the population, 30 to 40%, of our total membership, say that we help them manage depression or anxiety. And that's just about like, showing up for people at the right time in the right way, and then connecting them in a timely way to the right service.

Griffin Jones  20:31
And then how do you make these into protocols? So is that the role of a chief medical officer as well? So your job is to discover the reproducibility to see what interventions are working, then how do you build that into protocols that the rest of the organization executes?

Dr. Neel Shah  20:49
Yeah, that's a really good question, too. I mean, so the way that my org works, I have an innovation team, that's sort of like a clinical product team, we work alongside product to design these care models, we have a provider group, and that team's job is to scale the care and deliver it and then to qualify the providers to write the protocols to QA it to make sure that people are providing the care that we expect them to. And then there's a team that measures the outcomes. But I mean, yeah, I mean, honestly, when I first joined, Mavin was growing so quickly, there were 1000s of providers across 30 different specialties. So a big part of my job was to make sure we're qualifying people credentialing them in the right way. And then because our care model was also rapidly evolving, making sure that we were training and engaging them in the right way to

Griffin Jones  21:39
What roles are your direct reports.

Dr. Neel Shah  21:43
So we're startup, which is sort of like being in a garage band, sometimes you learn how to play all the different instruments. So right now, it's I've got a Vice President of Clinical innovation who oversees a clinical product team, I have a senior medical director who has the whole provider group. And we have a large as I mentioned, provider group, including people who are fully employed for mental health, obstetrics, pediatrics, and other highly, highly utilize specialties. So it's a big team. And then we have our clinical outcomes team, which is both the academic research team that I brought over from Harvard, and an economics team, it does all the actuarial calculations for a health plan.

Griffin Jones  22:18
So that's probably going to be a lot larger than many, or at least in different areas. I don't expect a lot of chief medical officers having an economics team, but maybe some will. And maybe that's the future of of that more will, that you said earlier, you may have talked about something that many of my audience already know, I don't know if they'll know that or not, they might know the next question that I'm going to ask you. But I want to ask it anyway. Because I don't know, where does the role of Medical Director and Chief Medical Officer converge and diverge as a suspect, it'll be something like you said before, if you've met one chief medical officer, you've met one chief medical officer, and I suspect that that relationship is unique to every to every role as well. But in your view, where where do those two roles converge and diverge?

Dr. Neel Shah  23:05
That's a really good question. Because, you know, I've hired a couple of medical directors along the way. And I think that there's actually more of a clear delineation, and even consistency in these roles, what I've observed, I'll tell you what I've observed, and then I'll tell you what we're doing at Maven, because you know, I did a lot of benchmarking. And it's, it's hard to hire medical directors, you want to find somebody who is grounded in scientific evidence, but also not totally dogmatic, such that they can think progressively about the difference between the alternative which is a brick and mortar healthcare system, such that it is and what the future might look like. But I would say what I observed in out there is a lot of medical directors are not full time. And there's advantages and disadvantages to that. I think, actually, there's advantages to practicing in the brick and mortar world. And, you know, I still see patients not very often for two half days a month in my clinic in Boston, and it keeps me grounded and honest. You know, like, if what we're building at Maven can't work for the people in front of me that I'm eyeball to eyeball with. That's sort of my litmus test for developing a good product. So I actually encourage medical directors to spend some amount of time I think a lot of them are pure outdoor cats. And we have a mix of both at Maven, we have people to help on our commercial team. And we have people who are just embedded with our product team, particularly on the fertility side where there's a lot of building to do. I think one of the differences though, in my opinion, is that the CMO should really be, you know, an executive, somebody who can help run the company and drive it forward. And typically, I think for a startup, it would make sense to have a CMO at the point where you're, like in that hyper growth phase of the business.

Griffin Jones  24:57
Want to Talk about what driving it forward looks like. But in this case of a medical directors, is there a distinction between medical directors that maybe work for a company, whether it's a new tech platform versus working for like a group of clinics? Because if it's a group of clinics, I don't think the medical directors are typically part time. And I think they usually are also seeing patients. So is there a distinction in what type of company it is?

Dr. Neel Shah  25:24
I think that there might be Yeah, I mean, typically, management of physicians or clinicians is a little bit different from managing, like other kinds of business operators. You know, I mean, clinicians should have KPIs, but they generally have not heard of them. You know, and, really, in any setting, clinicians, generally speaking, are a little bit more self sufficient. They need performance management, they need accountability. But it's, it's just different, because part of the value of having a physician in particular is that they are able to use their discretion within certain boundaries. So I think there are differences, I mean, in let's say, a big IVF clinic network, probably the medical director would be responsible for like a region, right, and then their primary role is to ensure quality. Because there's not necessarily a product to be developed, right or there, there, there may not be there's a very clear revenue model, so not doing a lot of BD, or they're not doing a lot of commercial work.

Griffin Jones  26:29
Should the KPIs be coming from the medical director? Or should they be coming from the chief medical officer? If it's both, then where does the distinction lie between which KPIs should be coming from where?

Dr. Neel Shah  26:43
I mean, I think it depends on the company, the organization, the face of business, but I would imagine that it's the executive team that setting the objectives for the business. Right, and usually KPIs for a forward deployed clinician should be a combination of clinical quality related KPIs and, you know, efficiency KPIs, for example, or even just service level KPIs. Right, like we expect our clinicians to be responsive, show up on time finish, you know, things like that, like, you've got to monitor all that you can't assume it. But typically speaking, it'd be the job of the medical director to execute on those to enforce them to make sure they're actually happening.

Griffin Jones  27:24
Whereas it's the job of the chief medical officer to be an executive and drive the organization forward. So where does the CMOS role converge in diverge with that of the CEO or the CEO? Oh, if if the CMO was supposed to drive the organization forward, but that's really the that as a globally, that's the CEOs job, and then CEO is executing in a lot of different levels. So how does this the Chief Marketing Officers role in driving the organization forward look, and then how does that converge and diverge with other executive roles?

Dr. Neel Shah  28:02
Well, you said chief marketing officer,

Griffin Jones  28:05

Which is I'm sorry, I know, I misspoke.

Dr. Neel Shah  28:06
It's funny, because I can't even tell you how many times I've met chief marketing officers were like, I'm the CMO. I'm like, Cool. I'm the CMO, too. And then you have a conversation for 45 minutes. And like, nobody knows who the person is talking about. And they're like, Ah, okay, got it. That's a good question. You know, I mean, I think CEOs also have very different REMAX right, and really different roles, depending on the organization and how they partner with the CEO. But I would say, what's unique to the CMO is often they're like the scientific or even the moral voice of the company, particularly in spaces like reproductive health, where there's a lot of underlying injustice and challenge and things like that. So they have, you know, they're aspects of the role where they're your job is to sometimes be the keel sometimes be the kind of grounded scientific voice. But I would say it depends at our company, the way that I see the identity of my org, which is not just about the person, right. And so the org that they run, is that we're the glue between product growth and operations, all of which you hope are tightly tethered together, but may not otherwise always be the case, right? You want to make sure that product is building, what growth is selling, and that the ops team is operationalizing within the company. So the clinical team and even the way that I've organized my team is that there's a arm of my team that's directly partnering with product, a team that's directly partnering with ops and a team that's directly partnering with growth.

Griffin Jones  29:35
Talk more about how your team's interface so in some cases, you're you're developing protocols, you're developing reproducibility and other people are executing on what's currently in place. How do how do your teams interface with each other while you're working on something new. We're improving something that exists and is already being deployed at a big scale.

Dr. Neel Shah  29:59
That's it Question? Well, I think, and these are, these are all really good questions, and they're so deep in the weeds that you're not getting a canned response on anything, right? They're just like, you know, I don't have like a schematic diagram, because it's so dependent on the use case. But I'd say generally speaking, there's a team that's like delivering the services, right, like day to day, like, literally like 1000s and 1000s of visits per week appointment. And then underneath that, there's a team that's QA it, which means like, they look at every single interaction with a member or patient that's less than a four out of five out of 10. They go through all of the comments that we get back as free responses, and then they audit the medical records themselves. They do random sample audits. So that's happening in the background all the time. Right. And there's a there's a dimension of improvement, that's just QA, which is like, isn't the right service quality? Is it clinically appropriate? You know, are there product related things that are getting in the way, then there's okay, we're going to stand up a new program around conception, because we've decided that among a fertility population, we think that we can help a lot of people conceive naturally. And we think anybody who should should be able to conceive naturally, we should support them to do that. So we actually have to build a more robust program. So that, you know, for example, if what they actually need is a $5, thyroid medication, we can identify that need and get it to them. So that team will spin up that program. They'll pilot it with a limited set of clinicians, they'll demonstrate that it works, they'll learn a ton about it, we'll model out, like how to scale it up. And then we'll deploy it at scale. And then the sort of QA team will sort of take over from there.

Griffin Jones  31:52
You have mentioned a couple of times how important it was for you to be an indoor cat meaning to have influence over the product itself, the operations, as opposed to an outdoor cat, one that might just be there for the figurehead of sales and thought leaders. Yeah,

Dr. Neel Shah  32:08
I mean, I like being outside. I just didn't want to only be an outdoor cat, you know, you're outside today.

Griffin Jones  32:12
There's this there's a little bit of,

Dr. Neel Shah  32:14
Yeah, exactly. Yeah, towards the tribe. Meeting, that was great. That was a lot of fun. But, you know,

Griffin Jones  32:20
So but you want to have a role in development for you what were specific, can you think of what the deal breakers were specifically, in other words, if I don't have control over x, then I'm not an indoor cat, if I don't have ability to work on these areas, or hire these people, or whatever it might be as specifically as you can, what were deal breakers for you, that would have meant I'm not an indoor cat.

Dr. Neel Shah  32:45
Maybe rather than deal breakers, I would like kind of frame it as what are the pillars of my role? And I think it's really important to think about that with a lot of intention. Because at a startup, everything about the company is continuously evolving, including like org structures, right? So, for example, actually, and until relatively recently, I oversaw a big part of our operational teams like the shift scheduling, workforce planning, you know, and then we brought out a great operational leader, and I gladly handed that off, I didn't feel like that was a pillar of being the CMO. Right? I think when I'm in the market, I want my counterpoints our clients, the chief medical officers of health plans, the benefits teams, you know, among the employers that we work with, I want them to be able to know that they can hold me accountable for the quality of services that we're delivering. So I need to control that. That's really important. How we qualify our providers, like is, I think the job of any cmo in any organization. The other thing is, you know, Kate and I are very aligned in one wanting to differentiate Maven. And hopefully this will be honestly less of a differentiator as digital health enters the Pruvit era, and more people are developing an evidence base, but, you know, I wanted to make sure that it was when I, when I, again, like look at a client, and tell them the evidence for how something works. I wanted to make sure that it met my standard, you know, because it's, it's very rare that things are totally black and white and either work or don't. Right. And so like, as a scientist, you're always hedging. But in the market, it was important to me to say, Okay, this is why we think this is a good product and why we think it will be capable of making your population healthier. Here's how we did the study. Here's how I think it translates to your population. So that was really important to me.

Griffin Jones  34:44
I want to ask you about the qualifying of providers and how you interact with them and feedback loop. But while we're on this topic of developing things with the CEO and the CEO, I've argued for some time that I don't see I don't see A clear cut separation from what people might call business operations versus clinical operations. And that I think that there are things when people say, Oh, we we don't make clinical decisions, we leave that to the doctors. It's what you do. Because you might, you might choose what software they're using, or you might choose what vendors they're able to access or a couple other things. And there's some overlap. And I think even when people say that in good faith, in my view, they don't fully understand that these things are not perfectly surgically removable from one another. And so in your view, what what is where is the separation between clinical apps and business apps? Where it's like, okay, okay, you get to say this. But when it comes to this, this is, this is my area.

Dr. Neel Shah  35:51
Okay. Kate is the CEO. So she's, she's, you know, there's very, very few things where I wouldn't defer to her. But I think the way that I would answer that, first of all, it's a really good question. And it's one that we've thought about a lot internally, too, because there's not there's definitely gray between the two. What made sense for us, for example, is we've got this big, wonky, complicated provider network, one of the one of the wackiest math problems in the world is how do you connect a person anywhere in the world anytime a day, to the right provider within 30 minutes, wonky math problem. Network ops can have that we and we have we have input into it, especially when it comes to the booking flow and the logic for how the matching works. And that's where that gray is where the collaboration is so important. But yeah, I mean, ensuring that our providers are paid on time, doing the projections around what we think our capacity needs are going to be in a seasonal business, it's really tied to benefits, like all that stuff, very happy for that to live with the expertise that it should with a great operational leader. And then the the clinical piece of it, a lot of companies actually have a kind of dyadic relationship between the two parts, right, such that, and you need to separate KPIs so that there's clear lines of accountability, I really believe in single points of accountability. But yeah, when it comes to the standard for clinical quality, how we determine clinical appropriateness, how we credential a provider, how we write the protocols for which medications we can prescribe, and how, like that very clearly lives on the clinical side. So I think it's a Venn diagram, I actually think it's fairly easy to figure out what's on the two sides of the Venn diagram. The hard part is like that middle part, right? I think so too. And it's not even defining what goes in the middle. Because that can be pretty clear to it's like, to your point, like how you actually operationalize that. So for us, you know, it's how we actually define a clinical need and put into the booking flow is right at the center, and our product, if that Venn diagram, it's a very, very close working relationship and with product as well.

Griffin Jones  38:04
So how do you met that's in that in that specific example? How do you manage it? You know, it's close? It's right in the middle of the Venn diagram, how do you manage it?

Dr. Neel Shah  38:12
Yeah. So like, basically, to do it really well, you need a couple of different inputs, you need user research, which comes from product products, job to make sure their KPIs or like make sure we're engaging people in the right way at the right time. You also need to retrospectively like, look at, you know, your notes. So we looked at like 1000s, and 1000s, of clinical notes, and we continue to do that ongoing basis. And we're like, what are people coming to us for? How do we put it into categories? That makes sense clinically, right? And then, you know, the ops team is like, Okay, well, based on our network constraints, you know, and the requirements were being given like, this is how we think we can set that up. This is how many clinicians in this service line we have to recruit, it's their job to model that out. So when you get down into the details, it kind of actually pulls up pretty cleanly,

Griffin Jones  39:01
To talk to me about qualifying providers, or perhaps even more the feedback loop that exists between you and provider. So you you're working on protocols, you're working on scalable processes for the company, how do you get feedback from them? And how does it? How does it get down to them? How does it get back to you?

Dr. Neel Shah  39:24
Good question. So we are in the fortunate position of getting to be selective about the providers we bring on, first of all, so we've got a pretty rigorous recruiting process that I think is the first step of qualifying. Then before they can practice on our platform. They have to be credentialed. So we have to verify their identity, we have to make sure they've got the licenses that they say that they have. We look at all their dealt malpractice history and review it with the committee in detail. And then once they're qualified to be on the platform, they get scorecards every month that are quantitative that show whether they've met the service level or not. are minutes like setting their availability 30 days in advance showing up on time, things like that, that they're meeting the right member experience metrics. So we look at a star rating after every appointment. And then we do a review of their records. And we check for clinical appropriateness. So they get that every month as feedback. And if they're below benchmark, they get a conversation, depending on where they land or more. In addition to that, we make sure that we have a service line structure with clinical leads over each one. So the communication is bilateral, we're getting product feedback from them all the time, we're taking care of an increasingly diverse population. So it's not just product feedback, sometimes it's about the populations we're serving, we're learning about what their needs are, for example, we relatively recently stood up a menopause service, and came out of the gates with a strategy to make sure we're getting people HRT that needed it. And we very quickly learned that there's six other ways we can help people resolve their menopausal symptoms that don't involve HRT. And so we had to adapt our clinical protocols to be able to prescribe gabapentin, or to bring on board physical therapists for people who have incontinence related issues that, you know, we didn't realize we're going to come in that way. So anyway, I think on a principles standpoint, it is very important to make sure that it's truly bilateral. And that, you know, there's sort of two ways of designing a complex care model. One is to draw a schematic diagram and hand it to people to deliver it. The other way is to put your best people in front of it and actually learn what they're doing, and then scale it up. And Maven is honestly doing much more of a ladder than the former.

Griffin Jones  41:40
Do you have people that try to go outside of that communication framework, like someone that's got your phone number, or they're hitting you up on LinkedIn, or, you know, you have the clear systems for them to give you product feedback, but they're like, I'm gonna text, Neel. Anyway, I want to text. Yeah,

Dr. Neel Shah  41:56
Totally. I do want it to do that, honestly, yes. But my point of view is, if they're motivated enough to just reach out directly, I probably want to hear from them. So, you know, I'm used to having, you know, kind of most of my career, I was a public figure with a email address that everyone could see my Harvard page just came down a few months ago, you know, and so the entire world could email me whenever they wanted. And that was something I just sort of got used to. And there were things that were pretty wild, that would come into my inbox, and there were things that were really compelling. The same is true now. but to a lesser degree, I'd say the ratio is even more skewed towards things that are compelling. Like if a provider really wants to reach out to me, it's because they've really got something to say, I should probably hear it. So you know, my policy last two years is to try to be as successful as possible.

Griffin Jones  42:40
That's an interesting thought, how much of a pre work requisite Do you think it is for someone to have been a public figure before they decide to be a chief medical officer? And even if they haven't been one before? Are they basically agreeing to be one,

Dr. Neel Shah  43:00
I don't think it needs to be a prerequisite to be a quote, public figure. I mean, what, what that meant in my case, was that I was an academic, and I saw my job as being a teacher broadly, so to my students, but also to like industry and to, you know, other people out there and ended up really enriching my academic career. Because it turns out, there's a very diverse group of stakeholders that care about the well being of people building their families, you know, elected officials, people creating documentaries, and it was really compelling to me to be a part of that whole ecosystem. I think that aside, I do think it's the job of a CMO to be accessible. I think that's a hard requirement, in fact, so you know, my team knows that they can reach me 24/7 All the time. Part of that mentality, honestly, came from being an obstetrician. And, you know, that being kind of my disposition towards my patients anyway, but always on. Yeah, and I think part of a safety culture is that people have to not feel like their barriers to telling you something uncomfortable, you know, so I really encourage it, and it's, it's benefited us, right. You know, I think things happen when you're taking care of people at scale, recover 15 million lives. And so, you know, there are all kinds of things, cases of domestic violence things, cases of mental health acuity where there are people that are really in trouble, and we have to go the extra mile to figure out how to make it work for them. You know, we've taken care of Ukrainian refugees, where again, we had to we had to go like an extra couple of miles to make sure that person was getting what they needed. So I don't I don't mind being accessible.

Griffin Jones  44:37
That brings me back to your honest brokers comment that you made earlier in the conversation and you talked about a sea of disinformation around fertility. Tell me more about that.

Dr. Neel Shah  44:49
Well, people are anxious out there, Griffin. And I think, you know, in high school, a lot of people are told how easy it is to get pregnant. And then as soon as they get to be a certain age, maybe just post college, they're told their fertility is rapidly declining, and they're anxious. You know, and I think that we need to be thoughtful to make sure that we're not stoking that anxiety in order to sell things. And I see a lot of examples of that. This there's a difference between misinformation and disinformation. So misinformation is well intended, but it's not necessarily factually accurate. You know, and that's a lot of like, for example, what's on tick tock, where, actually the plurality of people today are getting their fertility information as a primary source, then there's disinformation, which is intentional, and it's for power, politics or profit. And in our space, that is, there's a Washington Post article yesterday about a prominent Rei in New York City who's Hocking, a supplement, a hormone supplement that's considered dangerous by the medical establishment but has a stake in the company. There was an article in New York Magazine this month about a company that is selling sperm freezing services, which could have a lot of value for some people, but it's doing it in a way that may make many men think that they have to do it in order to preserve their fertility. And so I just think that we've got to be careful about things like that.

Griffin Jones  46:31
How would you like to conclude with an audience of many people who might like to become chief medical officers someday, whether it's something that maybe I didn't ask you or something you'd like that, that you want to expand on further about the role of being a chief medical officer, the floor is yours.

Dr. Neel Shah  46:49
That's quite an opportunity, Griffin, I would say, you know, a title is this a title. But healthcare is messy. And there is no shortage of opportunity to jump in and try and make it better. I think that a lot of I assume a lot of chief medical officers or people who maybe today are working in roles as forward deployed clinicians. I'll tell you, Griffin, I have never seen the clinical workforce more demoralized than today. It's it's really profound. And I think it's sort of partially related to the pandemic, but partially related to a whole bunch of convert converging forces, and it's very clear that healthcare is in need of more leadership, and that we're better off when clinicians stepping on roles where they can work alongside business operators, technologists, and others to make things better.

Griffin Jones  47:41
Dr. Neel Shah of moving clinic Thank you very much for coming on the inside reproductive health podcast.

Dr. Neel Shah  47:48
You bet Griffin My pleasure.

Sponsor  47:50
This episode was brought to you by Embie. To discover where your time is going and how Embie can transform your clinics efficiency, visit us at embieclinic.com/report. That's embieclinic.com/report. Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of inside reproductive health, nor of the advertiser, the advertiser does not have editorial control over the content of this episode. And the guests appearance is not an endorsement of the advertiser

199 The Chief Medical Officer Behind Kindbody's Growth from 1 to 32+ REIs Featuring Dr. Lynn Westphal

DISCLAIMER: Today’s Advertiser helped make the production and delivery of this episode possible, for free, to you! But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the Advertiser. The Advertiser does not have editorial control over the content of this episode, and the guest’s appearance is not an endorsement of the Advertiser.


In this week’s episode of Inside Reproductive Health we dissect the successful rapid expansion of Kindbody with their Chief Medical Officer, and 25 year Stanford Professor, Dr. Lynn Westphal.

Dr. Westphal discusses:

  • How her role of CMO was constructed (As well as her part in designing it)

  • Her process of establishing protocols (And her process for amending them)

  • Where she believes, as CMO, it’s important to have input (Why staffing ratios are high on the list)

  • Her take on the difference between clinical and business operations (And if/where they overlap)

  • The major differences between REI business plans (academic institution vs venture backed enterprise)

  • One crucial thing she’s used to support her medical team (And why its effectiveness surprised her)


Dr. Lynn Westphal
Kindbody.com
LinkedIn
Instagram

Transcript

Dr. Lynn Westphal  00:00

I think it's really important if you're looking at next steps or thinking about other opportunities to, to talk to people who have lived on that. And it's really important to find good mentors to find someone who can help guide them in that process.


Sponsor  00:21

This episode was brought to you by The World Egg and Sperm Bank. Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of inside reproductive health, nor of the advertiser, the advertiser does not have editorial control over the content of this episode. And the guest appearance is not an endorsement of the advertiser.

Griffin Jones  00:52

One REI, you blink you open your eyes again, four and a half years later, you have 32 RBIs. Who knows maybe they'll have even more than that by the time this episode comes out, I'm talking about Kindbody and more specifically, I'm talking about their chief medical officer, Dr. Lynn Westphal. You may know Dr. Westphal from her time at Stanford she was there for 25 years and there's no way that an established academic REI center runs the same as a very fast moving venture backed enterprise that might IPO in the next couple of years. Rest assured I asked her about the differences of going from one to the other and I asked her about this chief medical officer role was constructed and how she constructed it chief medical officer is a role that some of you who are listening now do not currently play and you will play and even if you choose not to go that route a great many of you will be asked to so I interviewed Dr. Neil Shah of Maven clinic in a separate episode, I interviewed Dr. Lynn Westphal, of Kindbody here and now because I want you to have some insights for what these roles can look like. Dr. Westphal talks about her earlier responsibilities, helping to design clinics training and recruiting establishing medical protocols. I asked her how she got out of each of those seeds. As the organization expanded, she talks about how she organizes protocols and her process for mending them over time. Dr. Westphal talks about how the Chief Medical Officer interfaces with Cambodia's Medical Advisory Council she talks about decisions that are implemented broadly but sometimes require exception like telehealth for new patient visits, you know that I don't believe in a perfect distinction between clinical operations and business operations. And I load that question that Dr. Westphal with that presupposition in place asking her to point the parts of the Venn diagram where clinical ops and business ops really overlap. And where it's really important that she is chief medical officer has an opinion and an input her answer there is about staffing ratios. And she talks about why I asked her if the speed at which decisions come at her to make have sped up or slowed down is Kindbody gets larger. And finally I asked Dr. Westphal to think of something on the spot that she's used to support her medical team that's effectiveness surprised her so she talks about the different ways that she connects different team members and different leadership roles. The rest is for you to enjoy on my conversation with Dr. Lynn Westphal. Dr. Westphal, Lynn, welcome to the Inside Reproductive Health podcast.

Dr. Lynn Westphal  03:09

Thank you so much for inviting me, I'm happy to be here,

Griffin Jones  03:12

You are a well known figure and you're a popular figure you were known before you went to work for Kindbody, you have since joined Kindbody as their Chief Medical Officer. And that's the role that I'd like to deconstruct a little bit today both your particular role, but also how that works. As a chief medical officer, I've had the privilege recently of also interviewing Dr. Neil Shah of Maven Clinic, and I'm not sure which episode will air first but this gives the audience a bit of a career path tutorial of how they might construct a similar role or how they might follow in a similar role, how they might take some pieces from it, and be useful to them. But let's maybe just start with your own career path. How did you come into this role of chief medical officer for such a very large company?

Dr. Lynn Westphal  04:06

When I started, it was not a very large company at all. And my transition to Kindbody was kind of an interesting move. I loved my academic career, but wanted to work on improving access to care. And also, you know, wanted to learn more on the business side and to help build like a new a new company. I had always been a big institutions. And so being in the Bay Area, where there are all these startups, you know, I always thought it would be interesting to see something developed from the ground up. When I started at Kindbody in early 2019. We had half a clinic at the time, and I was the first reproductive endocrinologist currently we Have 32 reflective endocrinologists and are adding a few more. So it's grown very, very rapidly. As the first chief medical officer, at our brand new company, there wasn't, you know, like a specific role to follow. And so, you know, I had to kind of create what I was doing. And that has changed a lot over the time. So early on, I was involved in many, and almost all aspects of the company from, you know, helping design the clinics and going and getting the clinic setup and doing all the training in the clinics and recruiting and developing all the initial medical protocols. You know, getting all of the labs up and running worked very, very closely with the embryology teams. And, and then over time, as we grew, my work has had to shift right, because now I think we have close to 1000 people, and, you know, can't do everything that I wasn't in the very beginning. But it was really fun, being able to create a different model for health care. And I love that both of my daughters go to Kindbody for their, for their general GYN care and all their friends. So that's been really rewarding to see, you know, even my family wanting to come to Kindbody. And then and then seeing that increase in access to care has been, has been incredible, especially with the Walmart, being the health benefit for them and, and really having health care benefits for people who never ever thought that they would be able to do fertility treatments. That's been really incredible. A lot has happened in these four and a half years. Did I did I hear you correctly that you were the first REI? Did you say you're the first or the third. You were the first?  I was the first REI at Kindbody? Yes.

Griffin Jones  07:12

And now there's 32. 

Dr. Lynn Westphal  07:14

Correct.

Griffin Jones  07:15

Okay, so you're you're laying the groundwork for a lot of people that come after you, presumably that are now your colleagues when you started in 2019? Were you the chief? Was your title originally, chief medical officer? Or was it something else that grew into that see, title?

Dr. Lynn Westphal  07:37

I was the chief medical officer from the very beginning.

Griffin Jones  07:41

What did you think that your role was going to be in terms of being mapping out of okay, in a couple of years time, I'm going to have dozens of colleagues, and I'm responsible for laying this framework for them. What did you see your task was at a time when when you were the chief medical officer with one Doc, you being that one, Doc?

Dr. Lynn Westphal  08:04

Well, the first things I needed to do was hire other doctors. Right? Because those are the people that we need, you know, to have our clinics. So that was, yeah, one of the critical tests early on was was recruiting other people to join con con body and finding people who believed in the mission, and we're as passionate about creating this new way of delivering care. And we're as passionate as I was.

Griffin Jones  08:39

How did you make that case to them? So if I'm the if I'm Gina, if I'm an executive or a big investor came about and thinking, Okay, well, let's get Lynn because she's got some credentials, and we'll we'll get have her to help us with the recruiting of the docks and building this Rei base. But you've got to paint some sort of vision for people to come over and and show them okay, this these aren't just investors in business people they are soliciting My advice for how we're going to approach are our medical framework, and I'm the one that's in the leadership position for that right now. So even if you could paint a corporate vision of access to care and, and having a better aesthetic and expanding demographics in generations, there's that corporate vision, but then it still has to be brought down to something more tangible that Rei is could say, Okay, I'm gonna go work for this person. What was that vision that you painted?

Dr. Lynn Westphal  09:42

So early on, I think people did have to take a big leap of faith. I mean, obviously, I had to get started. But, you know, the healthcare space tends to not change very rapidly. And people have done things the way that they always have done and, and it takes a long time to change anything. So being in a new company where we were creating everything from the ground up, it gave everyone a chance to be involved in that, which is, you know, it's really exciting to be able to look at a clinic and say, you know, I'm going to be building this, and we're going to have this culture where we're, you know, going to make it easy, and very comfortable for patients to come in. And, and then there was the opportunity to really promote leadership in the people who are coming into the company, that was a big passion of mine. I loved being a fellowship director. And then after fellowship, I found that a lot of my fellows, you know, they still would call and text me. And I think there just are not people who are promoting or supporting people when they first wanted to practice, right, so there are different models and practices that people join. But, you know, I think a lot of people just, you know, jump into a practice and don't always have the support that they would like, or they need, and maybe don't see that they have the opportunities to grow, and be in a leadership position. Because we had so many places where we needed help, you know, so, you know, someone could be over the third party program, and someone could be over, you know, the PGT. And write that in there, just like so many places where, where we just needed people who could lead. And I really wanted people to think about what they were passionate about. And if there was a program that they wanted to develop 100% would want them to do that. So I saw my position as being able to maybe open doors and promote people in leadership positions.

Griffin Jones  12:24

You have these people coming in that you're helping to get to leadership positions, you're aligning them with their interests and their fields of study. What thesis did you have them entering into? Was it? Did you have a general thesis for them of this is how we're going to build this structure. And here's how someone that is interested in third party can contribute, or here's how someone that's interested in PGT can contribute? Did you have some guiding principles or systems in place when they joined? And if so, what were they?

Dr. Lynn Westphal  13:03

Well, so early on, right, the focus had to be to build up the actual clinics, and, you know, would promote them. So, you know, early on, we would focus on a lot of the marketing, you know, building the clinics, because you need to have the patients before you can build some of these other other programs. And so it was, you know, talking to them about things that we would need to do in the future as we get larger, you know, so for the very first clinic in New York, you know, we had our, you know, we were the people there were helping decide, like, you know, what PGT company we were going to use, and then, you know, eventually now we have our LM time labs. So there's just been this big transition early on with a small number of clinics, there wasn't quite the scale to have some of these bigger positions. But now that we have clinics all around the country, with that scale, there are so many leadership positions, because we have so many different areas that that need someone you know, to be the advocate for that program. 

Griffin Jones  14:24

Do you then see yourself as an arbiter at times? Yeah, if you have so many people that you can draw from with different areas of expertise, maybe this person's got really strong expertise and PGD. And this person's really got a really strong expertise in recurring pregnancy loss, et cetera. And and even if you break them into different roles, where they have influence over those domains there, those domains overlap. You have you have protocols that maybe you want to access as a company. Are you an arbiter in some way? Are you a referee and if so, how does that process to work,

Dr. Lynn Westphal  15:01

I'm really fortunate we have, you know, just an incredibly talented team. And when people come on, right, many of them will have an interest in a certain thing. And so, you know, if there's someone to, let's say, uncle fertility, and there are a number of people in the company who, you know, have experienced in that, but you know, had one person who was very passionate about that. So, you know, she's kind of leading that developed slide decks that we can use, you know, for the new patients. So she is the head of that, but then we have other people on that team, who are very experienced and have, you know, probably been doing it much longer than she has, but, you know, because she was so passionate and kind of took that on. So in these different areas, that there's usually been one person who has raised their hand and said, You know, I really want to do this, and then we find other people to kind of join a team. So it hasn't really been been an issue. And I think just the way that the culture has developed, you know, everyone just really tries to support other things that people are doing, and that people who are involved in, right, different different programs. So some people have multiple interests, and so maybe helping with this program and another program, but then you have kind of the the point person for a specific program.

Griffin Jones  16:34

Is there a source of truth for all of the programs? Like is there some kind of anthology? How do you organize it all of it? Here's, here's the different data sources that we pull from, in these different areas. Here's the our own rounding that we've done before, here's the points of view that we've written on before. Here's some of the abstracts that are different folks have worked on how do you organize all of that?

Dr. Lynn Westphal  17:03

So you mean, how do I organize these different programs are just organize? Just overall the medical piece,

Griffin Jones  17:11

like organizing all of the the literature and study that's been done in in different areas? Do you? Do you leave that to each person? Is there any kind of like central repository of where everybody is kind of contributing? And here's, here's all the abstracts that we've covered on this, here's all of the rounds that we've debated on these particular topics, is there any kind of like, I guess, I'm envisioning some kind of, you know, Kindbody library where all of this lives, I'll be at virtually, but that that makes it more easily accessible, so that you're not constantly having the same debates or that you're able to move things along. Because you're you're, you're revisiting previous conversations, and previous studies and previous decisions. So that, you know, it's not it's like, when you're in a meeting, and you're like, why didn't we already vote on that, who's got the meeting, who's got the minutes from the last meeting? Like, I'm just wondering if there's any kind of repository where all that kind of information lives.

Dr. Lynn Westphal  18:20

Early on, I developed just for the medical piece, like all the standard protocols, and you know, what to order in different situations. And then, you know, as we acquired other practices, and, you know, really expanded that in the last year and a half or so, we actually have what we call our kind ways. So there's a whole section, a drive where you can, you know, there's a protocol about, you know, x and, and then it has, you know, in that protocol documents that were used to develop that protocol. And, and we have someone who is frequently reviewing all the protocols to make sure that, that they're up to date, you know, in terms of the guidelines, you know, even things like, right, antibiotics for different infections, right, the the guidelines may change, so, so we'll have in the protocol, you know, where the guidelines came from, and we update them, you know, as as we need to. So we do, we're constantly revising our protocols, and we do have a place where, you know, if someone isn't sure, oh, how do I treat this? Or how do I do that? We have a document and it and it has, you know, all of the studies that were used to come up with that, and we're, you know, and then sometimes there are things that are a little bit less straightforward or something So we'll have these protocols and then, you know, there'll be some new study, and we'll have to revisit. And then if we're having a lot of debate, we actually have a medical advisory council. And so often those issues will come to that group. And we'll discuss it there and then hopefully come to some agreement and then present that to the whole group.

Sponsor  20:26

Did you know your practice and patients are vulnerable to using eggs from victims of human trafficking? Countless young women from developing countries have been coerced and deceived while being moved across borders and trafficking operations. Without proper safeguards, fertility clinics, like yours may unknowingly be selling the eggs of these trafficked victims, exposing your patients and your clinic to legal complications. There are precautions you can take to minimize your risk. The World Egg and Sperm Bank has created a free due diligence checklist that you can download now to ensure that your clinic only sells eggs from donors who have been safely and ethically protected. This comprehensive checklist will help you determine the source procurement process and traceability of biological materials while also creating higher quality best practices for your patients in egg and sperm selection. Protect your patients and your practice by heading to www.theworldeggandspermbank.com/protect. Again, that's theworldeggandspermbank.com/protect.

Griffin Jones  21:35

So, you wrote the protocols in the beginning you set all those standard protocols and and then that was an before you hired all the other Doc's.

Dr. Lynn Westphal  21:46

So I had a basic protocol book, that, you know, went through the basics of what you do, and you know, these different situations. So you know, I focused on all the fertility, there is a separate one, because we do some gynecology, too. But I wrote, like a basic just so you know, people knew what to order in different situations, and, you know, went through different IVF protocols, just so that across the different clinics also, like for the nursing, they knew that if someone was going to do this type of protocol, this is, you know, how that was done, and how to order the medications. So all of these things do do relate. And then now we have much more extensive protocols that, you know, go into more detail with, you know, the references for, you know, for why we've made these decisions. And, you know, so for things like, you know, endometrial biopsies era is right, the data on that has changed over time. So we've in our protocols kind of changed. And we put in there, the studies that that we think are most relevant and kind of our recommendations.

Griffin Jones  23:05

Tell me more about how you included other doctors in there or chose certain protocols. As that process evolved. The beyond just it got bigger. That's one thing that happened, more references were added. But in a different podcast episode, I had Dr. Murdia, the CEO of Indira IVF, which is a network in India that they've got 250, fertility Doc's, he says, I've got one set of protocols, I've got one protocol for every situation. And the way I get them into implement is that I hire Doc's that are younger than me, and I teach them this is the way we do it. And of course, he talks about his mechanisms for feedback and how he adapts it. But I know that that that's not Kindbody's trajectory, didn't just start a big network and then hire a bunch of Doc's that were younger than you and then and then have them come in to that. And this, these are the first protocols that they're practicing. That wasn't how it happened with Kindbody. So as you're growing from one Rei to 32, you start off with, you know what, template might not be the right word, but you have a starter with your protocol book, and it gets bigger, but how else did that process work, as you start to bring on Doc's that have a lot of experience and, and might be doing things fairly differently in different parts of the country.

Dr. Lynn Westphal  24:29

We did put together a group to review all the protocols. And, you know, obviously, there are many modifications that that people will do. So we have, you know, kind of the basics if you're going to do this type of protocol. You know, this is how you do that. If you're going to do this type of protocol, you know, the sleeves, you know, this is how you do that. But then there are always tweaks. So we do I realized, it'd be nice if everyone did everything exactly the same. But you know, the person who's in the room talking to the patient, and you know, in the US, there are people who go around to different clinics, and they've tried this, and they've tried that. And, you know, they sometimes come in with a very specific idea of, you know, what they want to try, or they say, Well, I've done, I did this protocol, at this other center. And this worked better than that protocol. So they're always going to be these individual variations. But I think in general, for, you know, there isn't an average patient, but for, you know, kind of a patient who hasn't done a lot of treatment in the past, you know, I think most people will do one or two protocols routinely. So I think the standard is, you know, pretty consistent. And then they're, you know, some of these outliers, people have done many treatments, other places. And so, you know, we're trying to work with them and tweak things. And I think, you know, the patients do appreciate that we really do try to work with them, Listen, you know, to what has worked and what hasn't worked in the past. And it really is a collaboration with the patient.

Griffin Jones  26:20

And with regard to collaborating with the doctors, how does your role interface with the Medical Advisory Council that you were talking about?

Dr. Lynn Westphal  26:30

So I made that meeting? And, you know, we all add things to agenda to the agenda. And, you know, I tried to listen to all the views, and hopefully, at the end, we can come to an agreement on what makes the most sense, you know, for all of our doctors around the country, because we're also right, we're practicing in different states, there are a lot of different considerations. Some clinics are, you know, much smaller than others. So, every clinic functions a little bit differently. So I have that perspective, since I, you know, tried to visit most the clinics. And, you know, hopefully that that perspective, can come to an agreement that works for clinics, and whether they're small or large.

Griffin Jones  27:23

Do you find yourself giving assignments to the Medical Advisory Council, like we want to you that some new literature has come out in this area, and we want to update this protocol? I want to put someone on the Advisory Council for it, do you find yourself doing any of that? Are people coming to you and saying, I think that we should revisit this or we should maybe consider a different protocol in this situation? How much of it is is? Is you doing some tasking versus things being brought to you?

Dr. Lynn Westphal  28:01

It really depends. I mean, there are, you know, issues that will come up and they'll either ask, you know, can we have someone kind of be discussed at the Advisory Council, if there's something that I know someone has a special expertise and, and that is just come up, then I'll ask them, you know, to give us advice. So we also have, which is really nice, a Slack channel just for the Irie eyes. So like if things are coming up, you know, in real time, or someone has a patient with something unusual, you know, then they can put in the Slack channel, and they can get a lot of ideas from people. And then sometimes if we see that there's certain issues that are coming up a lot, then you know, that may be something that we discuss it our advisory council.

Griffin Jones  28:54

You were at Stanford for 25 years. That's a, that's a better part of your career. And it's a very different environment, being in a known established academic center, versus what at the time was a startup, a venture backed startup, looking for national and global scale? And maybe someday IPO and all of the things that come with that two very different environments, what aspects and look, trying to get you to be as specific as possible beyond collegiality and evidence based medicine, but but try to think of the specifics of what are those specifics that you came with that you transferred to your new role in this very different space? And what did you have to dispense with?

Dr. Lynn Westphal  29:46

Well, the biggest change was having to move quickly. At an academic center, you know, any change needed to be discussed and would take a long time to implement. Here, there was a lot of right having to make decisions, and, you know, sometimes make a change, right, within a day or so. So the, the timing of making decisions, like vastly, vastly different. But, you know, practicing evidence based medicine, you know, I think is obviously something that was very important in my academic career, and has translated and, you know, there are a number of people at Kindbody who, you know, have been in academics for a number of years, and I think we practice, everyone really wants to practice evidence based medicine. And so we do try to make sure and we and related to that, like, we will have journal clubs, where we will review articles and discuss them. And sometimes that will be something that we may bring to the advisory council to see is it something that maybe we should change our practice, you know, our field, things are changing so rapidly. And, you know, being at a smaller company, we're able to make those changes more rapidly. Also, you know, able to kind of think about things outside the box a little bit more. And obviously, with the pandemic and COVID and telemedicine, everyone had to switch a lot and how they practice medicine. And, you know, the switch to telehealth has been a big change for for us, too. And so a lot of the changes that I'm seeing also, were just kind of related to allow the changes have just happened in the last few years, too, right. So, you know, when I was in academic medicine, we never did telehealth. And now that's primarily what we what we do. So, to allow these changes, I think we're have happened just as the world has changed too. 

Griffin Jones  32:16

Are almost all new patient consults still telehealth?

Dr. Lynn Westphal  32:20

The majority there, there are a few locations where there are patients who are not as comfortable with telehealth. And so they tend to have more patients come in. And you know, and I do see this, you know, I see patients in all 50 states, and there are definitely pockets where people are not as comfortable using telehealth. So, I think depending on the patient population, what I mean overall, most people find it much more convenient. And now people who are in these remote areas where they don't have much of an option, other than, you know, driving along distance, but overall, you know, the majority of our patients, I think, prefer telehealth, at least initially, I think people it's become kind of the norm and I think patients now, almost expect it, right? It's much more convenient, they can do it at home, lying in their bed. You know, it definitely has made access better for a lot of people.

Griffin Jones  33:35

The use of telehealth, is that something that you let each clinic decide or do you decide at at a governance level, generally new patient visits are going to be telehealth. And then you make a couple exceptions for those areas where it's been less receptive.

Dr. Lynn Westphal  33:53

We've tried in general to move to primarily telehealth for for most visits.

Griffin Jones  34:02

Is that Is that like a decision that you make as chief medical officer that that finally said, This is good or this is even better for access to care?

Dr. Lynn Westphal  34:11

It was done as kind of a group operations decision. So wasn't just just my decision.


Griffin Jones  34:21

I want to ask you about where Clinical Operations and Business Operations overlap in your view, because I'm not convinced that these two are totally separable. And I think even in good faith, he could say we let the doctors make decisions, but there's just some decisions that impact other areas of the business and a different interview. I talked with Lisa Duran and we analyzed the New York Times podcast about the incident that happened at Yale there's a very popular podcast that The New York Times has released about an incident with Yale and fentanyl and patients that didn't have didn't have fentanyl, they were getting saline instead, and why We talked about retention and recruitment as a risk mitigation factor. And so there's an example right there where you could say, well, our hiring policy or hiring software is purely a business decision. But if it ultimately resulted in them having fewer nurses than that B, that impacted a clinical outcome. And so that's just one example of where business operations and clinical operations don't perfect. They don't, they're not perfectly separable from each other, there is an overlap in this Venn diagram. And so what is that overlap in your view? And how do you manage it?

Dr. Lynn Westphal  35:39

So clinical decisions, clinical care? I mean, we always make the decision on what is best for the patient. Now, in terms of, you know, workflow, and hiring and who's, you know, in the clinic, and staffing obviously need to work with business development about, you know, kind of what makes the most sense, and, you know, also, you know, discussing, you know, with the staff, like, what hours, you know, do we need to be open, right, so they're all the like, logistics that, you know, in terms of, you know, retention of the clinical staff, right, you don't want to burn them out. And actually, you know, that's one of the things that keeps me up at night a lot is just, you know, worrying about burnout of the staff. And right, it's not just in our field, I mean, burnout is a is a huge problem. And, you know, many reasons for that. So, you know, working with the operations team, we need to make sure that you know, that their expectations of ours and how people are working, aligns with us being able to provide the best clinical care, and a lot of it is, is education. Now, we have some wonderful business people who, you know, understand, you know, how, how complicated the IVF clinics are, but it is something it's very different than almost any other type of care, right? Because you have embryos in the lab. So even if you do your last retrieval today, you're gonna have embryos in the lab for another week. So, you need to think about that type of staff. And so the staffing is is very complicated and, you know, trying to have kind of the right model so that you're efficient, but you're staffed enough so that your your staff are not burning out.

Griffin Jones  37:56

The staffing ratios might be an area of overlap. How do you view staffing ratios right now? Is it is it still as hard as it had been in that in like, 2120 22, for getting doctors in embryologists are in A League of Their Own with regard to recruiting them, but I'm talking nurses, med techs, phlebotomist, front desk people, is it as hard as it was in the peak of the great resignation time that started in 2021? And went through 2022? Is it? Is it harder, just as hard? Is it starting to lighten up? How do you see that?

Dr. Lynn Westphal  38:36

I think it's just as hard I don't see that it has gotten easier to staff, the clinics. You know, partly because, you know, every clinic is looking for talented and trained staff, you know, so if someone isn't happy one place, right? It's often easy to find a position somewhere else. And just, there aren't a lot of nurses who you know, who are trained is because it's a very different field. It takes a long time to train someone so that they're comfortable in the clinic. And also depending on the state, right. And some places do have noncompetes you know, California and they're no noncompetes and so people can move around easily. And I have not seen that, that it's been easier to recruit people.

Griffin Jones  39:36

I want to ask you about how you got out of some of the seats that you started in the beginning. So you mentioned that in 2019, you got to have a clinic, you're the only Rei you're helping with training and recruiting. You are working with the embryology teams, you're involved in designing the clinic and various aspects of the company. Now the organization is around 1000 People are getting there. What seats did you start to pull out of? Or roles, tasks responsibilities? Did you find that you had to pull out of earliest? And how did you get out of them.

Dr. Lynn Westphal  40:12

So, as we, you know, built up different teams. So probably one of the earlier ones that I got out of was involved with the whole enterprise and, you know, talking to employers about benefits. So it was really fun, I didn't enjoy, you know, kind of doing these pitches about benefits. But, you know, we built up a big team. And, you know, one of the physicians is very talented in that. So she's kind of stayed on that, but so I haven't had much involvement in that piece for for a while. And, you know, it just got very complex, that whole side. And then, and then as we had more labs, right, the compliance side, we had to build that up and have much, you know, have more people involved in that piece. So I'm involved, some in the compliance, but we have, right like a whole team, and they come in and set up the procedure rooms. And you know, make sure that the embryology labs and all of that are, are set up. So those are probably two pieces just because we have such robust teams. And then I guess, also, on the HR side, you know, we have actually a team that just handles all the recruiting and interviewing and all of that. So I'm not involved in usually any of the initial, so early on, I, you know, often did some of the initial calls and much of the discussion, and now with a larger HR team, and not so involved in that.

Griffin Jones  42:10

The whether it's employer benefits and talking to employers or the compliance side or HR, what resources did you have to put in place before you could exit those seats, I'm thinking of this now, in my own businesses, I want to exit a few seats, there are things that I need to have in place, because right now, it's been my judgment call. And I need to expand my I need to codify my judgment calls in some way so that other people can make decisions. They don't have to text me for approval for every little thing. Otherwise, I'm not in that seat at you for editing the News Digest. Right now, I'm still the one that's doing most of the editing, I would like to be out of that completely. Within some months time, one of the things that I really have to work on is okay, here's an editorial guide. This is exactly how we sound and how we don't sound I go through our own examples of this is why we chose this story. This is why we chose this editing of this story. I'll go through examples of news outlets that I don't like, I'll show you, here's what we don't do and which one of our attributes that goes against take examples out of the Wall Street Journal and said, Here's examples that do enforce our attributes. And, and then I'll do loom videos to show here. If I'm editing an article, this is why I'm taking this out. This is why I'm striking that this is an adverb, it doesn't follow our editorial voice. And so I make these resources and attempt to to get out of those seats. I do this for all kinds of seats. But this is one where it's just it's very close to me. And right now, my judgment is the one that is the body of governance right now, when you stepped out of talking to employers about about structuring employer benefits, for example, or whether compliance or HR, you had competent people, but you still had something that you needed them to be able to work off of, as opposed to your judgment, otherwise, you're not really out of them. What resources did you put in place?

Dr. Lynn Westphal  44:15

Well, the resources were right, from multiple places and the company, right. So, you know, the CEO, was great at finding great leaders for these different areas. And as those people came in, right, they just kind of took over. So it was and I guess, you know, there are only so many things that can be a focus. And so, you know, just as someone became the senior person in a division, I just, you know, kind of backed, backed out so I was, I think, a little bit different than than what you're doing. I mean, obviously, you need to find the right person. But, you know, I, and those people in those positions, often, you know, we're being mentored or trained by by someone else standing and the company

Griffin Jones  45:21

in some of those cases, because this isn't like the it's not like they're taking over the medical officer seat in which you do have your, your established protocols, you have your medical advisory council, in the other seats, it sounds like you are filling in, in many cases, do you feel that way? Like you you are filling in for other seats? Or did it feel like it was a part of your seat at the time?

Dr. Lynn Westphal  45:46

Well, early on, right, there were very few people at the company. So everyone was doing kind of everything. And, and, you know, it was interesting, I learned a lot being involved in all those different aspects. But, you know, then, as we grew, and there were people to take over those different divisions, then, you know, kind of back away from some of those roles and focus more on the specific medical aspects

Griffin Jones  46:21

you talked about as you came from Stanford, one of the things that you got used to was the speed of decision making very different in an academic setting, versus being in a in a venture capital backed enterprise. Now, that kind body is bigger, you're not quite a startup anymore, there's there's been at least a couple years of maturity and development. And it's at a much bigger scale, is that speed of decision making the decisions thrown at you that you have to make quickly? Has that sped up or slowed down?

Dr. Lynn Westphal  46:55

As we've gotten bigger, I think the speed has slowed down some, because, but there are more people who are involved in the decisions early on. Right, it was me and sometimes maybe one other person making some of these decisions, but now, you know, we, we need to get input and, you know, a decision in one area, we have to look at the impact on some of the other areas. So, you know, it's, it has slowed some of the decisions down

Griffin Jones  47:35

the manageable pace, perhaps finally, maybe you can breathe for for half a second, how does the Chief Medical Officer role interface with medical directors, in other words, when does the Chief Medical Officer role and in the medical director role begin.

Dr. Lynn Westphal  47:54

So the medical directors at each site are the ones you know, who deal with their specific workflows, you know, any issues that come up day to day, you know, kind of managing the staff there, if there's something that that they need help with, or, you know, something that is a bigger issue than that, then that will come up to me, but the medical directors, you know, do all the day to day management. And, you know, if there's something happening, they'll they'll reach out to me that they, you know, if they think there's something that I need to be involved with, or if there's something that I can do to help, and then I'll get involved, but I, you know, the medical directors are, you know, a very talented group, and, you know, and I want them also to, to be able to grow as leaders, right? So, you know, if I'm micromanaging everything in every clinic, right, they're not really going to grow as leaders. And that's really important to me, I want these people to feel like they're, they're developing these skills. And related to that we actually have a director of, of leadership or of learning and development and she has leadership courses. So we want all of our areas to do a leadership course, shall so we'll do like some individual coaching to help people build skills that they need for their particular setting.

Griffin Jones  49:42

What's the biggest thing to the extent that you can talk about it that you're working on that you really need feel want to get done in the next six months?

Dr. Lynn Westphal  49:54

There are so many things that that I would I'd love to see. I mean, I mean, in the next six months, we're opening more clinics, right? So that I mean, that's always a big, a big lift to get new clinics open, we get the staff trained, get everyone comfortable, you know, know all the protocols, the I don't know, if there's one specific thing, I think just trying to get all the clinics so that they feel that they have the support that they're as efficient as they can be. And then hopefully, the medical directors feel like they're able to do what they need to do in their clinics.

Griffin Jones  50:47

Does anything stick out in your head when you say, I want the clinics to have the support that they need? Does anything stick out to you in the last four and a half years that you thought, you know, I didn't realize that people would need this for support, I maybe didn't need it as as a clinician I, but but people seem to need this, or maybe I didn't need it before, but I need it. Now, what's something that sort of surprised you if you can, I'm putting you on the spot. But if you can think of something off the top of your head, that might not be obvious that people need for support, but has been very useful for you in supporting your medical team.

Dr. Lynn Westphal  51:25

So one thing that seems to really help people is to feel like they're making these connections. So I really try to find ways for people to connect different ways. And, and I love it when I hear right there little groups that will have like a little text chain, where they're discussing this or they're discussing that. And, and I don't want anyone to ever feel like they're like they're alone. So everyone knows that they can text me anytime I'm like, always available, I don't want anyone to ever feel like they're in a situation, and they're not sure what to do. And they just don't know who to talk to, I think making sure that everyone feels that they have someone to reach out to or, or know that there's always some available and having these these connections and feeling like they're really part of a team. You know, I think that's been, I think, really important for everyone mentally to feel like they they have someone that they can reach out to right, no one, I think feels comfortable, if they think that they're just isolated and in some location or don't have someone to talk to. So I think making it very clear that there's always someone that they can reach out to and, and helps them.

Griffin Jones  53:06

The floor is yours to conclude with your thoughts. And maybe we think of some of your colleagues that might be a few years behind you but are considering the next step and Chief Medical Officer, whether it's for a network of clinics, or whether it's for a tech company, or somewhere in between, but they're looking at this opportunity to be a chief medical officer, and whatever that might mean for the opportunity. They're assessing it. What maybe we just keep them in mind and and what how would you like to conclude?

Dr. Lynn Westphal  53:43

I think it's really important if you're looking at next steps or thinking about other opportunities to to talk to people who have lived on that. And it's really important to find good mentors. There are a lot of people who I think struggled because they just never found someone who could support them or haven't found the right support system. And and, you know, I have seen the difference it can make in someone's career to have right to have that person who is there to mentor them. And so I think for anyone who in any situation is either trying to move their career forward or think about doing something else to find someone who can help guide them in that process.

Griffin Jones  54:40

Dr. Lynn Westphal Thank you very much for coming on the Inside Reproductive Health podcast.

Dr. Lynn Westphal  54:45

Thank you so much for inviting me. 

Sponsor  54:47

Head over to www.theworldeggandspermbank.com/protect and download their free due diligence checklist to ensure that your program only sells eggs from donors that have been safely and ethically protected. That's theworldeggandspermbank.com/protect.

188 Comparing Compensation Models for Fertility Doctors with TJ Farnsworth


On this episode of Inside Reproductive Health, Griffin delves into the pros and cons of compensation models for fertility physicians in conversation with the CEO of Inception Fertility, TJ Farnsworth. 

Here are just a few key points to pique your interest:

  1. Different performance camps and metrics: In the realm of variable compensation, TJ highlights the various performance camps and metrics that can be used. 

  2. Two main compensation sides: TJ explores the two primary sides of compensation for fertility physicians, namely guaranteed income and variable compensation.

  3. Challenges with KPI-based compensation: TJ shares the drawbacks and pitfalls of tying compensation to KPIs.

  4. Simplicity and variable comp: TJ emphasizes the benefits of keeping compensation simple and honestly shares the mistakes made by Inception Fertility with KPI-based compensation. 

  5. Importance of physician ownership and other roles: TJ sheds light on the significance of physician ownership in calibrating incentives within the practice.


TJ Farnsworth’s LinkedIn
Inception Fertility

Transcript

TJ Farnsworth  00:00

So when we step in, we're, you know, becoming a partner with these doctors and I'm a big believer in the concept if it's not broken, don't go fix it just for the sake of changing and and so if it's working for them, then great and a lot of practices, you know, there's like there's different providers who did that are in different phases of life and have different different goals.


Griffin Jones  00:24

Let's get you paid a senior REI wrote in with this question, one of your peers wrote in with this question asking me to interview a CEO on this topic, and I do what you say so you the listening audience, when you want to know something deeper about a particular subject matter, let me know i'll try to find someone who will speak on it. And I'll grow them with a bunch of questions. This topic had to do with the pros and cons of different compensation models for fertility physicians. So I brought on a CEO I brought back TJ Farnsworth, you know him as the CEO of Inception Fertility. And because he's been on Inside Reproductive Health, many times TJ talks about the two main sides of compensation, guaranteed income and variable compensation within variable compensation, you have it tied to individual performance tied to practice performance within those different performance cam. So you have different figures to which you can tie those performance metrics. So which I mean to say you can tie them to KPIs like retrievals transfers, or you can tie them to a percentage of collections. TJ talks about the problems with tying them to KPIs such as who actually performed the surgery was the doctor of record is the EMR reliable, did the person checking in the person check them in with one doctor but was actually a different doctor of record is the accounting system getting the right information, TJ prefers to keep it simple. He talks about some of the mistakes that Inception fertility made in doing KPI based compensation, and why he likes variable comp as a percentage of collections. He also talks about what that variable comp doesn't sell for and why physician ownership is so important in calibrating the incentives. That's physician ownership in the practice. We talked about profit sharing, we talked about when it does make sense to have guaranteed income only and we talk about the division of labor outside of productivity roles. When you have an administrative role a medical director role I pressed TJ a little bit when we were talking about the incentives of five to seven Doctor practices, I seem to think they're harder to align than he does not totally sure I got on his page about that question, but TJ really did thoroughly answered that senior Doc's question. And that was the whole origin of this topic. You might have other thoughts on compensation, you might point out questions I didn't ask. So email me them. Tell me what they are. Give me more topics and questions so we can continue to build valuable content, Mr. Farnsworth, welcome back yet again, to Inside Reproductive Health, TJ. 


TJ Farnsworth  02:47

thanks for having me. It's always fun to be on here with you. You seem like this guy. And you're the only guy in the fertility industry whose hair I'm jealous of. 


Griffin Jones  02:53

Oh, well, right now is looking pretty similar. You know, the vast majority of people listen to the audio, they don't watch it on YouTube. But right now, but both TJ and my hair doing what it wants. But I think this is probably the fourth or fifth time that you've been on the show I always enjoy having you on. And I like the fact that you came on to talk about a topic that an audience member asked for. So to give the audience context, this was a senior Rei who wanted to know about compensation models. Now this person has exited their practice, I think, is practicing again, as an employee somewhere. So perhaps this is why this person asked, but they asked would you bring a CEO on to talk about the pros and cons of different compensation models? And and I said, I know a guy. And so I think the people like you TJ deserve credit. Because some people would say, Oh, I don't I don't know I don't want to say the wrong thing. It's like the people are asking for this. Come on, try to be generous with some darn information. 


TJ Farnsworth  03:10

And so there's not a right or wrong thing, right so it's it's there's there's there's 100 different ways to skin this and I feel certain that there's a there's there's only one truth to this. There's there's not really there's no right or wrong answer to this question. There's just different ones. 


Griffin Jones  04:16

So let's try to lay out all of the ways that one can skin this cat, like give us just an intro to the different compensation models that exist and then we'll start to explore them. 


TJ Farnsworth  04:28

Yeah, so I think I think all compensation models have one of one or more of a few components. One of which is potentially some type of a guaranteed income, whether it be in the form of base salary, or guarantee on on variable comp, some type of a variable comp program tied to a provider's individual personal performance, then potentially some type of variable comp program that's tied to a practice performance, which could include or be an addition to an ownership model that includes profit distributions. And so I think those are the there are various different ways to do multiple do each one of those components. And some, some called models will include all of them. And some will, would will include, you know, just just certain specific components of it. 


Griffin Jones  05:25

Is it rare nowadays to see any model that doesn't have any variable comp, or is there still, some of that may be in the academic sphere? 


TJ Farnsworth  05:33

Probably in the academic sphere, you know, we have, we're a little bit unique in that we do operate an academic fertility clinic, and in those in those in those we do have variable contractors in place. But so we think the majority of them are going to have some type of variable cost, because even in major hospital systems, and academic centers outside of fertility, you know, that they're, they're measuring productivity of physicians, whether it be on an RVU basis, or collections basis, or some other way. So I would be willing to bet that, that almost everyone has some type of a variable compensation flavor to it in some way. And, and you know, but there are some models like that, in our operation, I'd be happy to talk about, you know, even specifics around how we do it, Inception, there's no, there's truly nothing that's secret here. And there, we have some we have some practices that may not have an individual productivity component to it. But they have a ownership structure that allows for profit sharing. So obviously, as the practice grows, that they allow for that, I think it's important that we also consider not only the quantitative aspects of things, but also the qualitative because what, what is quoted the right or wrong answer, as we were saying earlier, might be right for one practice, but the culture of another practice, a different model might work better. Usually, even within an exception, for example, we don't have one compensation model we use across the US and Canada, or we have, you know, what works in one market, but each individual practice has some of their own personality to it. And so it works for that practice, from that personality. And some of them have their some of their own, like, just practical differences in terms of the size and scale and, and you've got some of the larger practices where physicians are specializing. And, and, and so it just indicates a need for flexibility. But I think ultimately, those foundational variables in terms of how you're getting compensated are always part of the equation in America, no matter what, no matter which, which worked recipe, you're going to combine those with. 


Griffin Jones  07:37

Walk us through two different scenarios. And then because then I want to explain, and then I want to explore that qualitative difference between those, but walk us through two different scenarios of two different practices that have different compensation models. 


TJ Farnsworth  07:49

Two wide examples. So in certain scenarios, you have more what I'll refer to as eat what you treat models, where there is no fixed base compensation, it's all variable. So, you know, unlimited upside, unlimited downside kind of a structures to them. And, and those work in certain communities in certain environments, and in all cases, at least with us, 100% of cases with us, all of our physicians are either partners with us in the practices or on a pathway to partnership. So even if they're already partner, or they're, we're on our way to partnership, and so on and 100% of cases, at least for us, the everybody either does or will have some level of stake in the overall profitability of the business. So in that scenario, where it's an eat what you treat model, that eat what you treat concept would be tied to their own individual personal comp, productivity, and then the, obviously the ownership share, which would take into account the overall profitability of the whole enterprise. And then you we have models where, where there is some level of base compensation, I think this is a more common model, where you've got a more some level of base compensation either in the form of a, of a guaranteed minimum bonus, or in the form of a salary, and you got a individual personal productivity component on top of that. And then in addition to that, you know, either their, you know, the more you having or being or on their way to having a share in the overall ownership with the practice. So it gives them the base salary, which I think most most physicians, you know, at least starting out want, so they have some level of predictability around their income. And then you've got the variable compensation that ties to their own personal productivity. And then you have the ownership component that would tie to the overall profitability of the of the, of their practice. 


Griffin Jones  09:30

So let's talk a little bit about the qualitative that makes one model fit for one group and not another. What is it about practice that has that it's all eat what you treat, it's all variable with the unlimited upside and the unlimited downside, what makes it a good fit for them that wouldn't necessarily be a good fit for someone else? 


TJ Farnsworth  09:55

Yeah, so a lot of it is history. So a lot of it is just the sort of a culture that's built there. So when we step in, we're, you know, becoming a partner with these doctors, and I'm a big believer in the concept, if it's not broken, don't go fix it just mistake of changing. And so if it's working for them, then great and a lot of practices, you know, there's, there's different providers who did that are in different phases of life and have different goals, right. So any what you treat model allows that physician who's who's more interested in a certain lifestyle, to make less, but balance that with with more time for themselves and for family and time outside of the outside of work, while at the same time you generate EMR. So you with the physician who is in the phase of their life, where they want to, you know, you know, maximize their productivity and thereby maximize their income. And so I so allows for that diversity of things. I think, though, that is, we see that model less and less often. But certainly, it's a model, we use us in several different practices. And then, you know, the other side of things is you've got practices where I bet you think some more common model where you have, you know, 5, 6, 7, physicians, that that that you're all aligned, all sort of were recruited, and, and built a culture around sort of a similar level of productivity. And as similar lifestyle goals, you have there on that for a base with some type of an individual personal productivity, and then obviously, a substantial component tied to the overall profitability of the practice. And then I'll introduce a third one for you, we have a scenario where we have a very large practice with 20 Plus RBIs, that has no variable compensation tied to the individual doctors productivity. And so everyone makes the same terms of base, and then they have their ownership of the practice. And the reason that practice does that is that they've gotten so large, that there's that they're their is specializing happening, and so whether that's specializing in certain regions of a market, or specializing in certain aspects of clinical care, where, you know, there may be somebody who is, is clinically passionate about certain things, but that's higher than that, that doesn't, you know, doesn't generate as much from a revenue perspective, but it's really important to the practice to have that component. And it's really important as the group to maybe be in a certain region or geography. And they don't want to penalize somebody for pursuing that that goal. And so the idea being that everyone is contributing to the overall benefit, and, and so they, their variable costs, so to speak, comes from the overall profitability of the business. So rather than everyone rowing the boat in the direction of their own personal productivity, they're all rowing the boat in the direction of the overall profitability of the enterprise. 


Griffin Jones  12:44

So in that case, so the third example you use with no variable comp outside of the profit sharing, and that was a 20 plus doc group, does that model only work in a group that size or larger in your view? 


TJ Farnsworth  12:58

I think the the the, certainly it's got to be a big group in order for it to make sense. And part of the reason why that group does that is that as they expand into new markets, as they expand into new regions, there's not, if they had a scenario where where where a physician was, you know, half their compensation was based upon their personal productivity that none of the doctors would ever agree to go out there, if so at that new office, and start sort of new and so they developed this culture, where where, you know, whether it was expanding to new geography or somebody who is going to, you know, focus on fertility preservation, and it's early days, where there might not be as much business for that yet until that practice is built, it was overall important for them to be building those aspects of the business, whether it be geography or that aspect of clinical care. And knowing that they want they didn't want to penalize somebody for going in pioneering that new business line or that new office. And this they developed this model do that with. And so I do think that it's unique that you have, you have, that you need a practice that's got a certain level of scale, to get to a place where in the world that's that that's necessary, but they started with a variable compensation structure, they just they migrate that over time. 


Griffin Jones  12:58

Are all the salaries the same? Or does that vary depending on seniority? 


TJ Farnsworth  13:49

Nope, salaries are all the same. 


Griffin Jones  14:20

So then how does profit sharing work in a model like that? If so, I would direct listeners to a book called Great Game of Business, which started off in the manufacturing sphere, but lays out an interesting model for profit sharing and the way profit sharing works in the great game of business model is that people get bonused a percentage of their salary, so it's not, so profit sharing is different from the person that might be make everyone in a company shares in the profit, but it's the person that's agreed or making minimum wage gets a percentage of what they make and then the senior executives that are leading their divisions get a higher percentage because it's a percentage of their salary. And so what how does profit sharing work in a model where everybody has the same salary? 


TJ Farnsworth  15:10

Yeah, so I think we're, I'm using the term profit sharing really as a placeholder, because in different markets, there's different in different states, there's different rules, different laws around how you can how physicians can be owners at a practice. And so in most cases, our physicians are just owners. And so they are taking profit share by virtue of the fact that they own a percentage of the practice, if they own whatever that percentage might be, they own 10% of the practice and the practice, you know, generated $100 profit, they're getting $10. And so in certain, in certain areas, we are able to do that because of the regulatory structure in that market. So you just use contractual park profit shares, you can give voting rights and all those types of things that come with with traditional art. 


Griffin Jones  15:56

And so in that example, of 20 plus docs, not every doc has the same owns the same percentage of the companies that correct some own more?


TJ Farnsworth  16:04

 Some of the more senior doctors own a little bit more. But it's not that it's not as big of a disparity as you might think. And over time, their model is that generally speaking, as us as a rule is, in the event that we do have, what I would refer to as more senior partners with more ownership that you want to migrate them to an equal ownership model, creating multiple classes of ownership is really not good for the culture. From our perspective. 


Griffin Jones  16:29

Really, we're talking about owners distribution, in this case, I should clarify that the profit sharing outline and great game of business is for the entire company. So even if you have 1000 people, and it kicks in after a certain net profit, threshold, yeah. So you know, if it's under X percent net profit then nobody shares in that bonus, and it's phased so that people can make it up in different parts of the quarter. But the whole idea is that everybody in the company knows what the target is, and they're all going for that. Do, is there, are you familiar with that model? Do you use that model anywhere where everyone in the company or everyone in the practice can share in the profit after a certain amount? 


TJ Farnsworth  17:12

We have the practice wide bonus structures in place in various different markets. But we don't we don't have, you know, company wide profit sharing plans in the way in which you're referring to it that is common in some industries? 


Griffin Jones  17:25

Perhaps it's because of the regulation that you were hinting at. But I wonder sometimes why don't some practices just do profit sharing with their partner docs as opposed to actually making them part owners of the business? What would be the con to doing that? 


TJ Farnsworth  17:40

There really isn't any pro or con, there's some some scenarios and some of the areas where there's tax advantages. So I think that the probably the biggest driver is tax advantages to it. But But I think generally speaking, physicians from emotional reasons want actual ownership rather than profit share, even though we can design structured profit shares to look and behave exactly the same way as traditional equity does. And our preference usually is just to do traditional equity. It's simpler. It's usually more tax efficient. But but it's oftentimes dictated by the regulatory rules around, you know, the corporate practice of medicine or statewide referral laws that might exist in any given market. 


Griffin Jones  18:26

Have you come across any funky state laws off the top of your head that you can remember that, oh, it's harder in this state, or people have to look watch out for this in this state? 


TJ Farnsworth  18:36

No, I mean, there's certainly there's their states that are more complicated. But the reality is, is that the, you know, the joint venturing, 


Griffin Jones  18:45

Did those complicated states rhyme with Alafornia and Zoo York? Or, or is it not always the usual suspects? 


TJ Farnsworth  18:52

It's not always the usual suspects, you might be surprised. Those certainly are complicated states. But even the state of Texas, which you think of, as you know, your way into the free market is one of the more complicated states. So it's not not quite that quite as straightforward. But I will say that any and all of those markets and all those states there I mean that there have been structures in place and have been in place for a long time to accommodate for physician ownership. And just like any, any regulatory environment, there's there's some group of attorneys that have that have constructed a very aboveboard and transparent clean way of doing it, that generates them some fees. 


Griffin Jones  19:31

Tell us more about the difference between variable variable comp tied to individual performance versus when it's tied to practice performance. 


TJ Farnsworth  19:40

Yeah, so we don't see the what I'll call just sort of traditional comp that's tied to practice wide performance very often. We do have it in a couple cases in our clinics only because they existed before we were there. And we prefer that the we as a company, I think most of the are this way as well. I would prefer that the way in which you participate in, in practice wide performance and improvement is is through profitability, because that I'm a huge believer in aligned incentives. And so if, if my incentives are the exact same as yours, it helps build trust, it helps build confidence in the decisions that we're all making, we all sort of we all win and lose together, that's, that's really, it's got a lot of value. So that's the way we lean on the practice wide accom structure, a variable comp structure. On the personal comp structure, there really are, I think, you know, two main models, one of which is tying productivity bonus to certain KPIs, whether it be retrievals, or adding retrieval being the most common, the other model, which I think is what we prefer, and which is some something tied to a percentage of overall collections of a productivity from that individual physician, that way, you're not tying it to some sort of clinical activity, I think, certainly, the intent of the bonus per VOR concept was likely never to try and drive some type of, of a clinical behavior, because obviously, we trust all of our physicians to make the right clinical decisions, you know, that's, that's, that's their specialty. But, you know, obviously, to do certain number of VORs, you got to usually you have to get through so much diagnostics, and so many IUIs and there's sort of some some mix of all that in there. But I do think that as you're moving more and more towards more managed care coverage for services, whether it be progeny are kind body or traditional Aetna, United, otherwise, you as well, as you see it, generally speaking, a an environment where you've got some physicians that like doing more surgical cases, you've got some physicians who like doing more for Brentford or fertility preservation in their practice, whatever it is, you know, a variable comp is tied to just collections, you know, allows for, you know, there not to be any, any environment where you're, you know, you're encouraging one behavior or another. And that's where we are moving to as a company, I think a lot of people in the industry are. Doesn't mean is that that's not to say, we don't have several practices that still operate off of, you know, what I call a KPI based model where they're using, you know, VR is or IUIs, or transfers or some other metric or combination thereof. But it's, it gets complicated. And I, I'm, I'm a sales guy at heart, and I'm a big believer in people's compensation program program should follow the kiss strategy, you know, just keep it simple, and make it easy for everybody so that there's no unusual complicated math to be done at the end of the month or quarter. 


Griffin Jones  20:11

So I started my career in radio ad sales, it was my first job out of college, which for anybody that's not familiar with that, it's here's the phone book kid. It's 100% commission, there's no training, it's a, you're a 21 year old kid, great, go figure out a way to have this 57 year old business owner who's been doing great in business for 30 years, give our company money, surely also had someone at our company who had burned that person in the past and it was 100% commission, I learned a lot from that. But the Keep It Simple was, that's what worked from It's Okay, if you want to sell more of this, tell me what the commission on it is. And but it sounds like, you know, just percentage of collections is a little bit different for so in my case, it was if you got this much new direct business, it was this percentage, if you could sell this much of our new online revenue stream, this much of our event revenue stream different commissions, is there that within that the percentage of collections or just percentage of collections just tend to be flat, because otherwise you'd be back in that KPI model? 


TJ Farnsworth  23:43

It is the flat otherwise, you're really back to a KPI model. That's just not fixed dollars. Yeah, percentage of collections tend to be, you know, maybe there's a sliding scale involved. But you know, in terms of thresholds of dollars collections, but but it's still just all dollars, not, you know, I just think it's from our my perspective, it's, it's adding a level of complexity to the to the model that, you know, again, I'm all about aligned incentives and trust. And if you don't ask, if I have to get on a spreadsheet to show you, how a calculation is done and take you take 45 minutes an hour of your time every month or every quarter to make sure the numbers tie out like you think they should. Yeah, it's just it's it's more administrative headache, and the fastest way we can burn out and frustrate our clinicians, which obviously include our physicians and providers. of all kinds then is its administrative BS. And so we prefer not to add another piece of that to the table. 


Griffin Jones  24:41

Aligning incentives makes sense but what's complicated about what's that where does the administrative headache come from? It seems straightforward number of retrievals or number of transfers or whatever, what complicates it? 


TJ Farnsworth  24:41

Yeah. So you know, it's, you know, I, you know, who performed the retrieval versus who was the doctor of record, making sure you can pull that out of the EMR consistently and reliably you know, and accounting is doing that from from Nashville, and does that actually align with what happened in the practice? Because just because somebody, you know, just because somebody at the front desk, check them in for retrieval, under Dr. Smith, when Dr. Jones was the doctor of record, and has a economic impact to that physician, it's just it from a, it seems simpler than it is from an from a from a, from a practical application perspective. And it's not overly complicated, look we do it, but it's just simpler to go, you know, you had $100 and collections, you get this percentage of it. And it's it's black and white. 


Griffin Jones  25:35

So it doesn't that that makes sense why you'd be moving toward that as a company. But doesn't some of that appear in the in the collections, you know, that if it was the doctor of record versus the visiting doc, how, how was it more clearly attributed with collection?


TJ Farnsworth  25:50

Because on the claims data, when we know when you submit a claims information, it's it's much cleaner that way, versus pulling out the EMR has a lot of impact on who's just charting it and otherwise. And look, ultimately you're solving for the same thing, you know, a certain number of these KPIs all add up to a certain, you know, on a blended basis, all at a certain dollar amount, you're, you're solving for the same thing, it's just how you get to that solution.


Griffin Jones  26:16

You said something earlier, in the when we were talking where we were talking about the different models, the blend of guaranteed income and variable comp, and you've got some that are almost all guaranteed income, and then you got some there, all variable comp, and then you've got the blend. And you mentioned, you know, sometimes you'll have a 5, 6, 7 physician practice where they've got similar productivity, they've got similar lifestyle goals. And I was thinking TJ, I've been under the hood of a lot of five to seven Doctor practices, and they never are aligned on on productivity and lifestyle goals. There's always one or two workhorses, that are a little bit grumpy, that they're doing a lot more volume, or, or they just, you know, they'd like their partners to pick up the pace or, and that's where a lot of the things that you come into, like was it actually my patient was? Were they using my nurse, etc? Come into to play? And so how do you align a group like that?


TJ Farnsworth  27:20

Yeah, I think that goes to not having the base comp be, you know, all that substantial from a from a I mean, it's obviously an important component, certainly, as a physician starting out, you know, they're fresh out of fellowship, that that's a more important component, the long term, you know, the variable and ownership components, I think are, you know, are always going to better align everyone's incentives. And not just, you know, I, you know, when I say better aligned incentives, I'm not just talking about Inception and the physician, I'm talking about physician and physician, a lot of times physicians are concerned about how does, how does this affect my relationship with inception, and who's got what incentive, and a lot of times, to your point, it's not us, they have to worry about, it's amongst the doctors, and I think that's mostly, it's mostly acute when you've got some generational differences, where you have some physicians that maybe are in the middle of their career that that, that kids are gone. And then they got some younger physicians that maybe have young children, and that want to be there for certain things. And I've got a seven year old and a nine year old, and certainly, it pains me sometimes when I'm on the road traveling, and there's a school play, and I understand the desire to be there for those things. And, and so it's always a balance, and, and it's never a perfect world, but I think you're trying to get to a place where you've got as much aligned incentives as possible. So that, so that, you know, the physician who is, you know, interested in a different lifestyle than another, you know, but they're both equally interested in overall profitability, the practice, you know, maybe one person is able to do one component of the business, maybe somebody is able to do cover the lab more often and do more retrievals earlier in the morning, so they could be done later in the day to look and be a little bit more of a division of labor that that occurs, so that I, you know, I could take some workload off you, or you can accommodate some component of my career, that alignment to the incentive allows for that. And then for the guy who wants to or gal who wants to just, you know, I mean, work seven days a week, you know, 12 hour days, you know, that, you know, having a component that allows for you're rewarded for that make sense. And, and so, we try and have a combination structure that allows for there to be as little animosity as possible, developed from those varying different places. And but I will also say that, you know, aside from those generational differences, most of our practices tend to recruit like minded physicians, so yeah, whether you know, whether it'd be somebody who's whose kids are now gone. They're, they're empathetic to the physician who's got up third grader, that hey, I was that place I was that place one time in my career. And, and people were empathetic with me. And and I'm going to I'm going to help them at this stage in their career. And so those are those are qual, those qualitative differences that exist from, you know, I call practice personality perspective that I think are important when you're evaluating whatever, comp structures,


Griffin Jones  30:22

I see the generational side go both ways, sometimes. On one side, you might have someone whose kids are out of the house, and they they're ready to work because it's that,  golf or their spouse, and they, they just, they'll go to work and, and sometimes you'll have physicians with younger kids that need more time with the family. But I also I see a lot of young ducks who, they they go home, they kiss their kids Good night, and then they go right back to work, you know that? 


TJ Farnsworth  30:49

That's absolutely right. That was just meant as one example. 


Griffin Jones  30:52

And then there's a lot of Doc's closer, who are a little bit older than say, Man, you are, you're traveling the whole globe, you're going everywhere. 


TJ Farnsworth  30:59

Yeah, and I want to I wanna play more golf or whatever. Yeah, totally. There's no question that goes both ways. And I don't mean to say that the one is, whose kids are gone, or is always more productive. That's not the case at all, we absolutely have lots of young physicians who are just absolutely be focused on the greater degree of productivity. It's really just, there's not one or one right or wrong answer, right? Like, I completely understand why I mean, I'm a workaholic with a seven and a nine year old. So I totally understand that that person is sacrificing something and, and there should be reward at the end of that for that. And I totally also understand, my wife just retired earlier this year, after 20 years. And because she wanted, both was want her to have more time with the kids. So yeah, neither one of those is right or wrong. So


Griffin Jones  31:44

You brought up something else that begged another question about the division of labor of things that are outside of productivity, different administrative roles, if someone is part of you know, they they are part of a committee that makes marketing decisions?


TJ Farnsworth  32:01

If someone could take more call. I mean, there's all kinds of things, 


Griffin Jones  32:05

But what about those types of things that the practice needs to run? But maybe they have an administrative role? Maybe they're the medical director, maybe they're running a fellowship program, if you've if you've added that on, but they're not aligned with productivity? How do you align incentives? Or how do you account for that? Because they're, they're still contributing to the overall group, but they're not as their collections aren't as high.


TJ Farnsworth  32:29

And that's why the ownership vote component is so important, right? That that aligns everyone perfectly, because, you know, and then all of those other things that you're doing that healthy overall practice on a more global basis, you see that benefit yourself and the rest of the group see that sees that benefit of that work you're doing and is appreciative of that?


Griffin Jones  32:49

Does it still tie it because if we're all sharing at the at the the overall level, but you're able to see more, folks, because you're getting a higher and you're getting a higher percentage of collections, but I have to do this? It still seems like Person A is winning out?


TJ Farnsworth  33:05

Yeah, I mean, look, there's not I mean, you know, perfect scenario, right? There's no one perfect answer. And so you have to look at individual situation and say, Okay, maybe there's something you need to change here. You know, there's, there's all these sort of guidelines and rules, and they're all made to be broken, so that so that you can make the right structure for that one group. But some groups might say to themselves, hey, this doctor is going to do make it, I mean, going back to that practice, I mentioned that it has no individual variable costs, because at this individual doctor is going to do more of this one thing, that you may generate less individual collections, but it helps the overall practice. And that's why there's certainly a more common structure in our in our world where, where a small component of things or smaller component of things is tied to very their individual variable, personal productivity. But still, a lot of their comp is tied to the overall profitability of the enterprise, because obviously, their individual personal productivity, and everyone's individual personal productivity impacts the overall productivity of the practice, too. So all this is tied together. It's, it's as you pull one lever up and down, it impacts the other levers.


Griffin Jones  34:07

How does overhead play into all of this? 


TJ Farnsworth  34:11

Well, I think that's what that's why the ownership component is so important, because when when physicians have ownership there, all of a sudden, as just as interested in all we are, and being efficient with our use of overhead costs, and why I say efficient, I don't mean, you know, as low cost as possible. That's, I know, there certainly are operators in the market, that sort of focus on low cost. And there's certainly a market segment for that, and a component for that, and that's fantastic. They're meeting the needs of patients in that segment. That's not our model. So, you know, we are, you know, but but at the same time, you're always trying to be cognizant of not spending more than you need to because all of that ultimately has to be passed on to the patient in terms of higher cost of services. And so, you know, or lower product or lower profitability for the for the owners and so, so I think It's it's in, it's important that it helps to align the incentives. Okay, we're gonna go expand and build a new satellite office and invest in that. And that's going to reduce our profitability for a little while, but at the same time, it's going to long term grow our profitability, and it starts to get everyone thinking, longer term time horizon versus just what are my collections next quarter. And, and it really gets us more aligned in terms of what the strategic goals are, for that practice.


Griffin Jones  35:30

So it the two balance each other out their collections gets them thinking about what they're doing in the present, but the ownership accounts for all of the things that that collections might not account for, or you simply sometimes need to counterbalance both things like if I have, like, if I had an employee satisfaction score only is it well, that could come at the cost of just letting my employees do whatever the heck they want, and not having any accountability to the business or not having any accountability to the customers. So you might want two or three and this sounds like two you have ownership and you have individual bonuses on or individual comps somewhat tied to collections. So how do these so So then how do you make some of these decisions involving partners is that some decisions are going to be made at the executive level? Some you involve them more? How does that work? If someone says, Well, I think this is wasteful, I think we're wasting money on this supply that we could get from a cheaper place. How do you make those kinds of decisions?


TJ Farnsworth  36:38

Yeah, I think it depends on the individual decision. I mean, clinical decisions, we obviously rely entirely on the physicians, when it comes to business things, some of which we make on individual practice basis, we discuss it as a group and make it a decision together, some of which has to be made, you know, on a on an enterprise basis, and we wouldn't choose different accounting systems for different practices, for example, that just doesn't make practical sense. Yeah, we uniform, you know, health benefits, right? We buy. Inception is 2600 employees now in the US and Canada. And we buy health as health insurance for everybody at once, right? So we are not we're not we're not sitting down with practice individually going here, our options between United and Cigna and that decision is being made globally. But that that alignment of incentives builds the trust to know that we're making the right decision because it impacts us all equally, I'm not going to, you know, we're not going to we're not going to make a short term decision, then have terrible employee benefits that ends employee ends up in the end bad employee satisfaction, so that we have high turnover, just to just to benefit the bottom line. But we're also not going to go out and you know, purposely pick the highest benefit choice for no reason.


Griffin Jones  37:53

I thought of another question that I want to make sure I asked you before we're done. But to clarify, we're going back to the the the way that collections is tied to comp that it's not collections minus overhead is it's 


TJ Farnsworth  38:08

No, no,no, off the top. Otherwise, everyone starts to wonder what that overhead means. I mean, the the collections minus overhead is their ownership component. That's that is. That's, that's that piece of it.


Griffin Jones  38:21

Tell us about the difference in equity at the practice level equity in the parent company level, and how each of those can work.


TJ Farnsworth  38:31

Yeah, I mean, it can be the equity and the practice level, you know, the, the, the physicians, and everyone that participates in that can see, hey, I do X, and it impacts y. Right. I mean, you know, ownership and the inception level. Yeah, it's, it's, it's, you know, any individual activity is diluted by the same by the scale of the business. Right. So it's, it's hard to see how your individual participation impacts the overall whole. In addition, the our practices all make profit distributions on a monthly or quarterly basis. Inception doesn't do that Inception invests reinvests its earnings in in growth. And and so the only time that physicians would participate in the profitability of their or their or their ownership at the inception level, is it a liquidity event, which obviously has got a lot of benefits to those physicians, but you know, it's there's not like the new one is not as a right or wrong, it's just they're just have different different positives and negatives versus, you know, the monthly or quarterly profit distributions that happen at the practice level, that obviously impact the lifestyle of that physician in terms of their ability to support themselves and their family.


Griffin Jones  39:44

Can that misalign incentives between practices though, if people are bought if they if they share in the profit of the at the practice level, but not at the parent company level that that makes one practice Want to go in one direction or another in a different?


TJ Farnsworth  40:03

We don't see that? No, I mean, we have, we have both. So we have scenarios where physicians are ownership at the at the parent company level. And but in all cases, physicians are either owners at the practice level or are on their way to be owners at the practice level, because that's where they can see the impact of the profit distributions. And obviously, that profitability, the local level impacts the profitability of the parent company level. So that's where the alignment of incentives happens between the practices and the parent. 


Griffin Jones  40:35

I've asked you quite a lot about different schema that can be used for compensation. What haven't I asked you? Actually, before I asked you that question I want. Are there any examples that you think of that you're comfortable sharing of? Hey, that was a mistake we made earlier on that we we did something and it it misaligned what we wanted, but is there any example that you'd share?


TJ Farnsworth  41:00

Yeah, I think that, absolutely. I think I think, I don't know about you or your listeners, but I Oh, we learn a whole lot more from the things I do wrong than from the things I do right.  Because it hurts. Yeah. And yeah, I think, you know, going back to an earlier comment I made, you know, we have certainly our past created compensation models and structures that we thought drove alignment of our interests, through the through compensate through complicated variable compensation structures, you know, you know, complicated sliding scales of percentages, complicated thresholds, of hurdles, you know, separating, you know, revenue associated with certain services, from others and complicated KPI models, and it always breeds a certain level of like, or somebody, you know, are you are you playing with the numbers are you gaming in the system, you know, are you and it it, it creates some a level of mental gymnastics that, that is brain damage for both Inception and then also for our physician partners, that it's just, it was unnecessary, and it was a it was, and we, and we created a scenario one time, where, you know, we we segmented once the ownership of the business into the physicians, and inception. And those physicians, you know, all a shared in the profitability of the business after the compensation of the physicians using this as an example, the second example of things we did wrong, and what it ended up doing was an unintended consequences. It made those physicians, you know, an incentivized to hire new doctors, because those new doctors would only impact their side of the profitability. And that just made no sense. And that's why, you know, we've gotten to a place where we're real big on, you know, we there's no, there's no, there's no classes of ownership, while certain state states might say we've got to, we've got to create, you know, create that call them super separate things, because one's a physician and one's not, you know, we don't get money, we, you know, Inception doesn't get dollar one, and the doctors get dollar two, we all share in dollar one. And we all share in it the same exact way. And it just creates a scenario where there's a level of transparency, and a level of trust that's developed from that, that I think, you know, we we, in certain instances, frankly, screwed up at various times in the past, you know, that in code in combination with screwing up the variable comp structure through various overly complicated models that I think, again, when it gets so complicated that everyone's got to get an Excel spreadsheet out to understand it, it just creates a scenario where you just naturally breed mistrust. And that's not what we want.


Griffin Jones  43:43

Well you've certainly answered the original question from the doctor who wanted us to cover this topic. I'm gonna let you conclude.  How should we conclude about compensation models for fertility doctors?


TJ Farnsworth  43:55

You know, I would tell you that I think it's important for everybody to realize there's not one right or wrong answer, that the individual dynamics of a specific practice might drive the there might be really good reasons why something's been done that way. And And certainly, if you got a physician who  is evaluating a job, I think, oftentimes asking the why question like, why do you do it this way? Like, you know, and why have I take this job over here? Is the structure different than the job over here? I think it's really important, because, you know, I think, in most cases, I think there'll be a really good explanation for why and it'll make sense and it'll, it'll give you the sense of confidence in making that decision. And I think, you know, whether it be like the geography or the size of the practice or the individual culture of that individual practice, you know, it's really important to find the right answer for that right practice. Not, you know, hey, there is one right answer for all practices.


Griffin Jones  44:52

TJ Farnsworth, it's always a pleasure having you back on. I look forward to having you again. Thank you for coming. 


TJ Farnsworth  44:55

Thanks, Griffin.


Sponsor  44:55

You've been listening to the Inside Reproductive Health podcast with Griffin Jones. If you are ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society, visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic Thank you for listening to Inside Reproductive Health.

186 How Fertility Centers Can Save (Patients’) Money, Line By Line with Dr. Mark Amols


Let’s save you and your patients some money!

From the materials you buy to the software you invest in, it can be difficult trying to find where to safely and effectively reduce, replace, or eliminate to save money and maximize your practice’s bottom-line.

We talk with Dr. Mark Amols, founder of New Direction Fertility Centers, and he walks us through his low-cost affordable IVF model. He reveals where and how he invests, or doesn’t, to keep his practice thriving.

Dr Amols breaks down his four categories when purchasing materials and services:

  • Which line items can be completely eliminated

  • Materials that can be reduced or replaced with cheaper alternatives

  • Finding cost-effective versions of necessary commodities

  • How to know the expensive must-haves to pony up full price

Dr. Amols opens up his playbook and gives specific cost examples from his own practice, so listen in and see where you can cut your bottom-line.


Dr. Mark Amols’ LinkedIn
New Direction Fertility

Transcript

Dr. Mark Amols  00:00

There's nothing special we're doing. I mean, this is typical supply and demand type of economics and in when it comes to the vendors, I think one of the most important things that I do as a business person is I don't look at it as me trying to get the lowest price. I don't try and get the best deal. I kind of look to the vendor, I say, how can we work with each other?

Griffin Jones  00:28

Let's save you some money. Let's go through your income statements, fertility doctors, let's go through your costs and see how we can save you money by eliminating, replacing, reducing, negotiating. But before we do that, I have to fess up to some technical difficulties that messed up this interview a little bit. It was my part I know that breaks your heart, you're not going to get to hear all of my witty insights the same as you would if the recording for the audio went properly. But Dr. Amols who was our guest, Dr. Mark Amols from New Direction Fertility in Arizona, gave us so many good insights. I was late to the interview to begin with, but no good excuse just my carelessness, I didn't want to have to bring him back on for his time for the audio issues that were on my end, but my audio stopped recording about a quarter of the way into the conversation. So I re recorded my questions, I tried to do my best to match them up with how the conversation went. And the answers that Dr. Amols gave, if any of the answers seem off, blame it on me. But the insights in this episode are terrific. I asked Dr. Amols to walk us through his low cost affordable IVF model that he's had a lot of success with in the Phoenix area, I have him go through those things that he spends less money on things that he doesn't spend less money on in his system for approaching that I definitely wanted to have him back on for another conversation about top of license, not just the REI, but everyone in the fertility practice, going through the accountability chart and what that would look like. But today, we focus mostly on materials and services. And we break those into four categories. The first is those materials and services that you just don't need, you can eliminate those costs altogether. The second, which ones can you reduce or replace with cheaper alternatives? Because you're reducing them in some way? The third is those commodities that you need them. But there's a wide range of prices and not a wide range of quality. So how do you get the cheapest? And then the fourth, maybe there is a wide range on prices, maybe there isn't, but there is a wide range on quality. And you really have to pony up sometimes. So we break into those four categories. We also talk about things like software and professional services. And Dr. Amols is very generous. In this episode, he gives specific examples, he gives specific costs, he opens up some of his playbook very transparently. And he shares that with you. So if you talk to Dr. Amols, please tell him thank you because I want him to come back on and share more. But I also want everyone to come on and share a little bit more. And it always pushes the envelope when somebody's willing to just share a little bit more makes that episode that much more popular, more valuable. And then people want to mimic that and they tend to share more valuable information and give more value to the audience when they come on. So enjoy this conversation with Dr. Mark Amols, Dr. Amols. Mark, welcome back to Inside Reproductive Health.

Dr. Mark Amols  03:28

Thank you, I greatly appreciate it.

Griffin Jones  03:31

I thought to invite you back on because I was in a meeting not too long ago, with an older physician who was expressing distress in their voice, I could hear how troubled this person was that they wanted to reduce costs at their IVF center because they wanted more people in their area to be able to afford treatment. And they legitimately did not know how to do that they're already being squeezed on the margins, I could see their numbers. It's not like they're raking in a whole bunch that you know, it's just coming out of a inflated top line for them. And there's been a handful of people that have been able to do a lower cost affordable IVF model in the country, only a handful. And you're one of them. You've been on the show to talk about that for and that's still one of the most popular episodes. And I remember at that time we did it live and it was during the COVID shutdown and we had more people than we had capacity for in the Zoom Room we had we had to you know upgrade our our account. And so I wanted to have you back on and I wanted to go through with you how you select your partners, meaning your strategic partners, your vendors, because a lot of people would like to be able to lower costs and they just feel like they're getting squeezed everywhere. So how do you think about this challenge?

Dr. Mark Amols  05:06

Yeah, you know, it's interesting when you told me about the topic, I was kind of confused when he said, How do I choose my vendors, but it actually does all come together? I think the question isn't so much how we do it. But why other people can do it, there's nothing special for doing I mean, this is typical supply and demand type of economics. And in when it comes to vendors, I think one of the most important things that I do as a business person is I don't look at it as me trying to get the lowest price, I don't try to get the best deal. I kind of look to the vendor, I say, how can we work with each other. And so for example, like I understand the vendor has shipping costs. So if I want them to send me something every month, I realized that's gonna cost them more money. So I'll work with them say, hey, whatever, I just take like two large shipments a year, I'll take a huge volume, you give me a lower cost. Now you're not paying shipping all the time. And I'm, you're guaranteed dismount every time I'm again. And so that helps kind of like, you know, look at it as a relationship in that standpoint. But the other thing is, is I understand the point of volume. So when you're talking about low costs, I mean, it to go like Target and stuff, you have to have more volume, if you don't do more volume, you're going to lose. And the way that traditional IVF is set up is really this kind of, you know, we're gonna get 1020 patients in per month to do IVF. And so they rely on making a lot of the sale, and they don't have the volume. And so when you do have the volume, or at least if you're going to have that volume, you can go to these vendors and say, Hey, here's my volume, here's my projected volume, you can see how much growing each year. And I tell them I say listen, if you make a deal with me, and help me, I will stay with you. You know, even your prices go up a little bit, I'll stay with you. And so down to the vendor pick, like we were saying, so getting back down to how do I pick my vendors, you know, it depends on your product. So there are some products that are made by multiple vendors. There are some products that are not right. So if you think of, let's say, fairing, or you go up at the end of the men's out there, that's like the electric company, you really don't have a choice, right, you only have a choice between Gameloft and follistim. But when it comes to manufacture, you really don't have a choice. So for those type of companies, there's really not much you can do that the relationship is really just them being nice to you and your stuff to keep buying their product, but with Folsom and go limp off, so you can work with them to try to get better pricing for your patients. When it comes to things like product for the lab, you're a little bit limited, because there are quality differences. Luckily, it's been very standardized in their industry now. So you know, most we're using the same products now. But with those vendors, it comes down to, I think building some type of loyalty with them. So you know, you work with a company every single time they know you're going to come in and buy, you know, six ultrasound machines, you know, 620 incubators the same time, they're going to, you know, keep giving you better prices through the years because they know you're gonna stay with them. And again, building that relationship with them, you know, always sending stuff that way. And then the other vendors are going to be your vendors that have multiple vendors that do the same thing. So when you talk about things like speculums, or you talk about things like drapes, you can get drapes from multiple companies, there's stuff I buy off the Amazon, because it's cheaper for me to get them off the Amazon than it is through my suppliers like Henry Schein, they have tegaderm, which goes on the skin after you put an IV in. Bye bye for them. It's like 100 bucks for 100 of them or 80 bucks. I got off amazon for $15 the exact same things. So when it comes back to choosing the vendors, going back to that question of how do we make it work? So one of the things is, is I tried to find those strategic partners. And and I talked to them like they're a business, I don't talk to them, like I'm trying to buy their product. I taught them to say Listen, how can we both help each other? What do you need me to buy? How much have you need me to do? Because like there's things I want a lower price, I'll go to come I said I need this at a lower price. And they said, we can't go any lower, it's okay. But if you buy more of this, then they'll offset I can lower that price. And so again, it still ends up the same, right? We're still looking at the same thing, which is overhead, which is your expense versus what you make. And that's really all it is. It's just the differences. It's harder to do. So I'm not trying to say that about most doctors, most doctors don't want to do business. I mean, why would you still want to become a doctor, you want to go out and just make money. And so for most people, they see money in their bank account, they're happy, they're like, it's going up, I'm happy I see the numbers going up. But that doesn't mean they're efficient. That doesn't mean that they've actually at the point that they're getting the most amount money they make. I can almost guarantee you that if they went and got a person like you know, Scott Robertson, you know, from practice up, they got him to go through their practice, I guarantee they'll make more money just by him going through and finding out where they're wasting tons of money. And so in those situations where you have those practices that already have this high overhead they're trying to do this low cost model, but they're not efficient. And that's really that the main thing is you have to be efficient, and there's more to it, we'll go over that in a little bit more detail. But that's really the biggest thing is when you're looking at vendors, you're trying to make sure that, you know, you pick vendors that you can build that relationship with. So you can get lower prices and be able to offer things you know, better cost. So things like speculums. I mean, I, my spec homes costs, I think some like 10 cents. Whereas like, when I was at another clinic, it was a buck 50 per speculum, and it wasn't needed. And so again, there's things you can do to get better pricing, that doesn't matter. No one's gonna have a bad idea of cycle because respectable isn't great. But they aren't going to bear the IVF cycle, if they're incubators bad.

Griffin Jones  10:47

So I do want to go through those different categories of what's more interchangeable versus what you think is less interchangeable, and I want to break up those different categories. First, I want to think about how do you approach looking at this systematically? Or do you like do you do you just start to negotiate and look for different options? When you're ordering something? Do you go through your p&l at different points of the year and, and go line by line and say, How can I start with this and go all the way down the spreadsheet? How do you approach it?

Dr. Mark Amols  11:21

Yeah, every three months, I go through and I look at everything that we order. And I find out if it's one of those categories of where we can't change, right, there's no option. It is something that we can change, but we can have very little room because it might be something like an incubator, I'm like, I can't go for the crappy incubator, or is it something that's easily changeable, like a drape or something like that. And then what I do is I always go through and look for the best price. And so for example, like propofol is one of the drugs we use for anesthesia, I found a way for us to get propofol at 20%, the cost we originally paid. And again, it doesn't sound like a big deal. Because most clinics, if you're only doing 10, 20 cycles a month, you're not going to notice a couple of dollars here and there, when you started doing 100 Something a month. Now all of a sudden, that becomes several $100 Every month in that one product. And so those little differences make, you know, make a big difference. And so yeah, I go through every every three months, I look at things, I'm always looking for ways to reduce costs. Here's example. So one way we reduce our costs for bloods by 50%. So we made more margins was I know this, we were buying 10 milliliter tubes to fill the bloods up. And then one day, I was wondering, they make smaller tubes that cost less. And we went and found that they make like four milliliter or five milliliter tubes. And so we went and got five milliliter. And then later we found even made a smaller tube when we run like six tests in our clinic, so we realized we could use less blood, it costs half the amount and we reduced our costs overhead for those supplies by 50%. So just things like that, looking for things, looking at what do you need? And what are you getting, and you may not need what you're getting, 

Griffin Jones  13:04

I would love to have you back on for another topic to talk about top of license throughout the accountability chart. So you and I can go through the accountability chart of fertility center together, because we often think of top of license as just the REI. But the whole purpose of getting someone to practice at the top of their license is to get the next person to practice at the top of theirs down to the person that is checking someone in and bring someone to their room.

Dr. Mark Amols  13:32

So it means a culture, right. So as a culture as a clinic, we all believe in the same thing, which is making this affordable. So everybody knows that the better our overhead is the lower we can keep costs for patients. And so my lab, you know, will always look for the best price and other times they'll come to me and say this is all we can do. And I say okay, let me look at it, I might look into a little bit more. I have to be very nerdy. I love numbers. Like a dat in there. So I love that stuff. So I enjoy doing it. But yeah, I have other people who will do a lot of that for me. And then when they can't, they'll come to me and but I'm I'm always thinking of ways that we can reduce costs, just because our field I do believe has a lot of fluff and a lot of overhead. It's not needed. You know, we made some big changes just recently on just even staffing away I thought the box of we have staffing our clinic different where you know, medical assistants are very difficult now to find. And you know, I kind of looked into the legality of like, do we really need medical assistants for every little thing and so we found out that we could even just put greeters out there who can help us just you know, put patients in rooms and then again, that brought cost down so it's just it's not resting on your laurels and just saying hey, this is what we're gonna do. It's always gonna be this way we're always changing and adjusting. Same thing with vendors, you know, always looking at different things. Now, there's the point where again, once you have that relationship, you know, if you're constantly just changing for the lowest price, well then no one's ever gonna work with you. So I mean, there's a little bit of flexibility you have to have right so if someone's give me a great price now and then two years later that go up a little bit. And they're a little bit more than next one, I'll still stand with them. Because at that point, I know I've built that relationship. And again, that's an I'll talk to them and just say, hey, it was a little harder than we need. Is there anything we could do to get that down? Can we can we purchase more at one time? Can we do this stuff like that, but things like there was little things like shipping all those different things working with your vendor, you can get better pricing by just working with them and ordering more and committing them more. So

Griffin Jones  15:25

For the sake of this topic, let's break it into four categories, those costs which you can cut, eliminate entirely those which you can reduce significantly, either by replacing them with something else or reducing them by a lot. Third, that which is a commodity, you need them. But you can find a wide range of prices for not a wide range of quality and that fourth category, those things that really matter, there might be a wide range of prices. But there might not be and there certainly is a wide range of quality. And it's too significant. 

Dr. Mark Amols  16:01

Exactly. 

Griffin Jones  16:02

What are those costs that fall into the first category that you can eliminate entirely. 

Dr. Mark Amols  16:06

One of the things I when I was in other clinics, you know, obviously did this with one person training and then prior business I was with, is there was a lot of stuff we did to make, like a few dollars, but wasted a lot of our time, I think the thing that's most important understand is there's only so much time in the day, right? As a physician, I only have so much time, I'm probably when you think about when it comes to resources, the most scarce resource in the clinic. And so what happens is, is that there was a lot of stuff I was doing as a physician that made absolutely no sense. So we used to do what are called IVF consults, where we would sit there and go over the whole process with the patient of the IVF, we used even do a surgical visit the day before then make an extra dollar or two through the insurance. The problem is that same hour and a half being used for retrievals could do three retrievals. Or I could do two consults. And so one of the things that can be thrown away is really using people who can do things in their category. So for example, there are things no one else can do that I can do right as a fertility doctor. And so those are under my license, any nurse can do those things I was doing before those other clinics. And I can guarantee you there are claims out there today, where the physician is still doing a ton of stuff. And there's no reason to do that. It's a waste of money, it's a waste of your time, you'll never build do this low cost money, because you're looking at going, I gotta spend all these different employments eight payments, before I get to this point. Now you don't you have a team that that can do this stuff. And so part of what's important is, is you want to utilize people to the max they can be what's the most are allowed to do as a nurse. And then but you also don't want to waste their time doing things that you don't need to right because you're paying them too much. So when you look at overhead, so when you talk about what can you get rid of, it's for not getting rid of it, but adjusting it to out of the wrong hands instead of the doctor bringing it to the nurse, bring it to maybe you have a specialist, that's all they do is bring in someone, let's say off the street, you pay him 16 bucks, Darren, you're like, you teach them everything about IVF, you say this now is our IVF consultant, and they're just going to tell them about IVF. And you know what, they're gonna be pretty damn good at that job. You don't have to pay someone $80,000 a year as a nurse to do this every day when someone else can do it. And they'll do just as good because that's what they're specialized that that's kind of the way I look at things when you're looking at these models. I think one thing that's really interesting, though, about our clinic versus some of the others is that I think it's really important, though, to stay a high quality clinic, you know, not seeing other claims are bad, and I won't name the clinic. But there are a lot of people who do what I do, and have very poor pregnancy rates. And there are clinics like me who have very good pregnancy rates. And I think that's really important in this big thing. So when you're doing all these things, you're making these adjustments, you don't lose being a good clinic. You know, it's not about just getting low cost and having bad service, you have to stuff that service. So all these things I'm saying when they take them out. It's not that they're there's none important, like I said, so one of the fluffs I always talk about is like, most people don't want to sit there for an hour and hear about the idea of like, you know, the prepper rather read it on paper or give it to him in a text or something like that. So just stuff like that is how I've taken those things out product wise, is more just choice. Some physicians like use an iodine, you don't really need iodine. There are other changes you can do, but those are very small.

Griffin Jones  19:24

How about the second category that which you can reduce quite a bit or swap it out for a much less expensive alternative?

Dr. Mark Amols  19:31

Yeah, I mean, a lot of the things it sounds crazy, but like going from four by fours to two by twos for certain things, you know, we just did it away. We we always did it one way needles. You know when I'll give you example, one thing that a lot of clinics use, is they use other fine needles. Butterfly needles are really expensive. I mean, the best price you're gonna get for them. It's maybe a buck, but usually they're like a buck 52 bucks. You go to a regular needle mean the pennies and so Oh, you know, you think about your doing 1000 or 2000 needle sticks, you know, every few months as 1000s of dollars versus a couple $100. So that's something where, you know, we still had those if needed, but any phlebotomist knows what they're doing does not need to use a butterfly. But yeah, clinics use up you can get skinny needles that are still butterflies. So another example, too, was not only going from the five milliliter tubes was a big difference. But we actually found out that there are other brands of the tubes. And so a lot of people when they use like tire top tubes, most expensive from you know, Beckman, but you can actually get these ones caught we call McDonald tubes, or they look like a McDonald's franchise, too. And those are when I say lower costs, like 1/10 of the cost of the other tubes. And so again, something as simple as that can save a ton of money.

Griffin Jones  20:56

And how about that third category? Those things that you definitely need, but they're commodities, you can find them from enough for a number of different vendors for a wide range of prices? How do you find the best price for those?

Dr. Mark Amols  21:08

I think one is, obviously you have to have a company where you can keep looking at you have to look at see if they have multiple companies that sell that product. Now, here's an example of drapes, the pads the patient's sit on. So we were buying a certain size, but they were kind of too big. And I found if I just get a size, it was like two inches smaller, we see it like half the amount. This is like little things like that, and always ask them the question of do we need that, we obviously need the purpose of protecting the patient so that you know, but not sitting on a drape. But if it's falling over the sides, well you can wear when there's two inches smaller. And now you see a cat and mouse like little things like that that we look at. One was a male stands we used to use Mayo stands all times when you do surgery thing called Mayo stand up, put up a sterile drape over and then that way it protects anything on which you obviously want to have is sterile. But then one day I was I was wondering why why are we putting a male stand that we put a sterile thing on top of already when we open up the instrument. So instead, what we did is we took our instruments by a slightly bigger kind of like the truth that we cleaned it with, put it on there, we opened it up, and now that becomes kind of our sterile drape. And we saw at the same benefit, as if we were being the man stamp, but we're paying a fraction of the cost. And again, we're not losing a sterility, everything's still the same is that we just use the drape that it came with that we have everything cleaned in sterile area. I think of other things where we've we've made some changes to sorry, is that there's a lot of things I mean, but you know, those are kind of some of the big examples of you know, things where we would just look at everything. Here's another one, I just thought one was a probe covers. So when you buy pro covers, if you buy them in bulk, you get a huge difference in costs. If you just buy like the 100 pack every time you pay a premium, but you can buy like 1000s of them in bulk, and they're clean. And then that way you just put those in into your rooms and then use those. So again, another place you can save a lot of money. I think the big question for speculums is you have to ask what what your volume is. So if you're only doing let's say, five a day, you're probably going to save more money than using something like a reusable one and just you know, clean them but that takes money cleaning those it takes a person cleaning them in a busy clinic like mine, that could never happen. You have to use disposable. And like if you use the common disposable, you'll pay a lot of money. So here's one I'll give away. This is a good one people really like so if you buy Welch Allen lighted speculums they're very expensive. The light that goes in them are very expensive. Everyone loses those all the time drives me nuts when my nurses there were some because they're like 300 bucks for those lights. The speculums themselves cost about once you about $5 Each speculum. So Henry Schein makes another version of it. But the problem is, it's a wired version. So the problem is you have to put a wire into it which is which is horrible. You want to have it you know portable. So there's a company that actually makes a little light that fits into the Henry Schein when I figured it out. And so we were able to buy all the lower cost Henry Schein lightest speculums and use a disposable light. So the best part about it is, is that if a man loses a light, it was just 10 bucks on that light. And the second thing is we reduced the cost by half of our speculums. Just another thing I found by researching things though, it's not always just the supplies you use, but also the time committed to it. So for example, like a Sano histogram, way most clinics I've seen do it, they by saline models, they pull the ceiling up into a 10 cc syringe. And then they go and they do their solo histogram pushing with the st lame. When we used to do it that way. We had to do solid histograms about every 15 minutes. And then I found prefilled syringes, and I thought well if they're more expensive, we're gonna pay more, but then we'll have to To time into it and said, How fast can I do it? We're using everything prefilled we end up doing them every eight minutes. And so again, one of the things you also look at is not just the cost of them, but you're also looking at, does it make it more efficient. So we switched over now completely to prefilled ceilings. And back to that thing where I said about the 10 CC's. So we were just buying 10 CC's for everyone. And then I went spoke to the nurses, I said, Well, how much do you use, they go, Oh, we only use about three or five. So then I went looked up and found out they make three or five milliliter ones, or those lower costs, and they were so at that point, okay, oh, by the lower cost ones. And the same thing with like propofol, people, when I got the better price, one of the things I found out was sometimes when they're given propofol, they open up a whole nother bottle for just a tiny bit. I thought, well, one of the really tiny bottles so that way, we don't waste so much medicine. And they did. So we bought those. And so then and this is all just these need a little bit more use smaller bar, which cost less. And so it's not always just about getting a different product, but finding out are these these little areas that you're not using so much, you know, and stuff like that is really how you do it, even on the pay what you do each ESGs for, there's several bottles, and you'll find that there's one bottle, it's about a third the cost. So so back to that fourth category. Yeah, you know, again, I think it depends on how you look at your clinic. And that's why I made that point. They were the biggest difference or clinic, we have, we have to have high quality, I feel like what good is do they have a lower cost, and you're just gonna have bad rates. And so the things that I feel like you can't come away from are some of the main products, you know, good incubators, you know, you really have to be up to date on their incubators, I think there is some adjustments you can make between them. But you know, I feel like, Sure, you can get a cheap pair cell incubator, but it's not gonna be the same quality as a benchtop incubator. Same thing with things like gases, you know, I would love to be able to use cheap gas. But you know, you're not able to if we're using mix gases, we, you know, we have to have it certified, that we did find another company again, for cost again. So we always are working on that. And we're even looking at now mixing our own gas to save money. But but the point is, you can't, you really can't do much, you know, now there is like, like I said, when it comes to medicines of it, you can't change that. There's nothing you can do the company. But when it comes to things like incubators, you know, we look at a lot of things, we buy a lot of them so we're able to get good deals. But there's really not a lot of like I said adjustment. I mean, other than when you want to be one of the top, you have to use some of the top stuff.

Griffin Jones  27:29

What about other costs, particularly related to your tech stack things like your EMR, your payroll, software, other software, your billing and scheduling software?

Dr. Mark Amols  27:38

So EMRs I feel they all suck. I don't think there's a good one. If anyone says they have a good one, I want to know about it. But I don't believe there are any good ones. So when I looked at I said, well, listen, there's no good ones, I'm just gonna go with something that gives me the fastest speed. So we went with a system called Dr. Chrono. And what's unique about it is is you can do the whole thing on the iPad. And it's very fast. It's not made for fertility, we're actually trying to make a component for for fertility. But so we went with that, but it's free, doesn't cost me anything. So my EMR costs nothing, they do my billing for me as well. And take the same fraction amount and take it from any other biller. So we just use a company, sometimes there's some things that are cheaper to do when you outsource until your volume gets high enough. So obviously, like a big company, like Pinnacle or CCRM, right, forgive them when they charge and stuff. But for smaller places, it's actually cheaper to just find the company that will do it, than hiring someone to do it. So we do all that outside. 

Griffin Jones  28:36

How do you approach paying for professional services? Things like business consulting, marketing, consulting, accounting, financial consulting, legal expertise? How do you pay for professional services or think about costs, like, associated for those?

Dr. Mark Amols  28:53

So because I like the business side, I do a lot of it myself. Honestly, I only have so much time in the day, I do have a CPA. So my CPA does all my bookkeeping does that. We do have a legal firm that we work with all the time if needed. Luckily, we don't have to use them a lot, except for all the expansion we're doing right now. And through the other cities, when it comes to financial stuff like that. I do a lot of that myself. We don't do much for marketing. Luckily, we're very fortunate that we don't have to, but I do do my own marketing when it comes to things like Facebook, my podcast.

Griffin Jones  29:25

My recommendation for professional services is to separate them into sporadic engagements whenever possible. So sometimes you need professional services for execution, some marketing services, some things that you might need for legal help in terms of drafting documents that are pretty easy to do here and there. Just the drafting part of it. I'm talking about things that you might need accounting services like bookkeeping, those ongoing things. Try to minimize those costs as inexpensive as you can and then be willing to pay for professional services as at a high hourly rate. That's something thing that I do now I charge at a higher hourly rate. And I could do packages and things, but that allows people to engage us at a rate that works for us because they're paying high by the hour, but also works for them because they don't have to lock it in every month. So go ahead, pay for expensive business consultants, expensive legal consultants, but try to separate that from the ongoing costs of monthly implementation when possible.

Dr. Mark Amols  30:25

Recurring costs are one thing that can kill a company. And so you know, you're hitting right on your right things like consultations, you don't need recurring forever, but it's worth getting the best when you do it. And usually, that does cost more. And you know, now that we're doing all this expansion, we use lawyers more. And so we've been looked at potentially going to have an in house lawyer, but again, recurring costs get expensive. And so I agree with you 100%. on them,

Griffin Jones  30:50

You're still independently owned, I sometimes see independently owned fertility practices having more leverage because of consolidation. Because there are fewer people to buy services, there is more emphasis on those buyers that remain. And so even if you're not the size of the networks, as an independently owned, Fertility Center, do you have more leverage, because everyone else is consolidated? And people have to make deals with those that remain? Or am I fantasizing too much about this? 

Dr. Mark Amols  31:23

You know, I think, again, comes back to that slide the man or thing, right, so if you have a clinic that's not using a lot, I mean, I don't know how they're gonna be able to really get best prices and things like that. I think clinics that do more, you give example I see and why and you see why it's humongous, or I'm in the summer, like 4000 retrievals a year, they're able to get the best pricing just as big as like a pinnacle or CCRM. You know, and so I think I would tell someone, if they're trying to do what I'm doing, is I think the most important part is explaining, show them your growth, right? If you can show growth every year and say less number grow in play in expanding, then you become kind of your own group, you know, Purchasing Group, and you say, Listen, every client I opened up, I'm gonna still order from you. And that helps it one of the things that you I think you and I spoke about one time is why not all the little guys teamed together and make one group you know, and then that way, we'll be our own Purchasing Group. I think it's a little bit fantasizing, I think, as a company, if I was a company, and symbol was so low, and they were doing a lot, I wouldn't give them lower prices, you know, because that's the only reason you're given the lower prices at the bigger companies is because of the volume they're doing. And it just wouldn't make financial sense to give it to someone who is using very

Griffin Jones  32:33

Giving us really specific examples. You've also given us a framework for practice owners to go through their own books and see how they can lower costs, how they can increase profit for themselves and ideally pass on a lot of those savings to patients. How would you like to conclude?

Dr. Mark Amols  32:52

If anyone's ever interested in learning about this, I mean, I don't try to hide at this you know, I'd love for everyone to make fertility more affordable. And I think there's always going to be those niche, you know, offices that offers you know, that one on one the whole time process with with a doctor and those are going to do great, but if anyone's ever interested, I'm more than happy to talk to you if they want some of the ideas. I have the reduced money costs, you know, on their overhead, more than happy to talk to you about but hopefully I was able to help some people.

Griffin Jones  33:20

Dr. Mark Amols, owner of New Direction Fertility in Arizona. Thank you very much for coming on Inside Reproductive Health and I look forward to having you back on for another topic very soon.

Dr. Mark Amols  33:31

I look forward to it.

Sponsor  33:33

You've been listening to the inside reproductive health podcast with Griffin Jones. If you are ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to Inside Reproductive Health.

181 Increase Your Worth: Fertility Nurses’ Negotiation Strategies, Featuring Dayna Hennessy, COO of Extend Fertility



Do you know your worth as a fertility nurse? How strong are your negotiation skills? Griffin hosts guest Dayna Hennessy, Chief Operations Officer of Extend Fertility, to discuss her tenacious journey from nurse to executive, and how you can learn from her experiences.

Listen to Hear:

  • The merits, and lack thereof, of getting an MBA. 

  • The highlights of Dayna’s experience to get to the position of COO of Extend Fertility, and what advice she has to share with nurses who are advancing their careers, at any stage of their career.

  • Why it is so important to increase your worth to make yourself more marketable, and how that worth is not necessarily linked to formal education.

  • Specific negotiation strategies, like anchoring, and avoiding negotiating against yourse.

  •  How nurses can secure their first job, those win a promotion, and negotiate with vendors and strategic partners.

Dayna Hennessy’s Info: 

LinkedIn: https://www.linkedin.com/in/dayna-hennessy-mba-msn-fnp-c-392434b5/
Company Website: Extend Fertility www.extendfertility.com

Transcript


Dayna Hennessy  00:00

Say what you want. Ask for what you want, say it with confidence. The worst they can do is say no.


Griffin Jones  00:12

increase your worth a lot of you fertility nurses and a lot of people in the workforce in general are being told to know your worth. I don't think enough people are saying increase your worth. And that's a message that I get from my guest today. Dayna Hennessy. She was a nurse, then she became a nurse practitioner, she went on to get her MBA. She's the Chief Operating Officer of Extend Fertility in Manhattan. And so we talk about how important is an MBA really, and Dayna has some opinions on how important it actually is, should you get an MBA if you're a nurse, or, or how necessary is an MBA to begin with? Are there other things you can do like increment your knowledge as opposed to taking that plunge? And then we dive deep into negotiation, not from what Dayna learned from her MBA because it didn't sound like she learned a lot about negotiation from her MBA, but rather what she has learned as director of clinical operations then CEO, going from nurse to NP to executive and we talk about increasing your worth, the difference between the positioning behind negotiation that gives you leverage, and then the presentation, the discussion, the fact finding, etc. So we talk about how fertility nurses increase their worth. We talk about the difference, parts of negotiation, discussion versus positioning, Dayna gives specific strategies like anchoring, like avoiding negotiating against yourself. Anchoring by the way is a lot easier when you have increased your worth having the people on the other side of the negotiation table, do some of the homework to help you. And we apply this to fertility nurses that are applying for their first job. We apply it to fertility nurses who are looking for a promotion looking to take on more of a business role. And we also apply it to fertility nurses who have taken on that business role. And now they're not negotiating with prospective employers so much anymore. They're negotiating with vendors and strategic partners. So in giving strategies for each of those situations, Dayna actually also gives us some examples real life situations where she has COO of extend fertility negotiated on behalf of the practice and times where it was successful, and then some examples where it was a lesson that she had to learn from. So I hope you enjoy this episode, the school of hard knocks episode for fertility nurses, with Dayna Hennessy, Ms. Hennessy Dayna , welcome to Inside Reproductive Health.


Dayna Hennessy  02:48

Hi, thank you for having me.


Griffin Jones  02:50

I am increasing the number of nurses that I interview this year at least I'm being intentional about doing that. Recently, we had Lisa Van Dolah, who was a nurse by trade and then went on to get her MBA, like you did, and then became the CEO of Ivy Fertility and it was a useful program for nurses who I think often don't get a lot of business education. Often I hear our guys reach out to me because they say they don't teach us business in medical school. Well, they definitely don't teach business in nursing school. So if doctors are at a dearth for business, education, then nurses all the more so so maybe we start with what was it that came first for you? Was it an interest in nursing or an interest in business?


Dayna Hennessy  03:33

For as long as I remember how I was going to be a nurse, since I was a little girl, and I stuck with it. And it was always nursing. Business School was never even a thought, in my mind, to be completely honest with you. It's my current role that put that thought in my mind. But nursing, I always knew I was going to move on to getting my master's in nursing to become a family nurse practitioner, which I did complete in the early 2016. But beyond that business school was never, never a thought. So


Griffin Jones  04:06

it was your role and that's Chief Operating Officer at Extend Fertility.


Dayna Hennessy  04:10

Yes, currently, I am the chief operating officer there. I started out as the director of clinical operations when the role was presented to me.


Griffin Jones  04:19

So you're in an operations role and I know you as a very operationally minded person, you function like a system and you're good with systems. So you could have pursued and MHA, you could have gone and and studied health administration for the upside at least I presume, why did you decide the MBA route over the MHA route?


Dayna Hennessy  04:42

So when I when I was finishing my practitioner, my masters to be to do practitioner, I was offered this opportunity with extend fertility almost simultaneously. And I was living in Florida at the time, but the opportunity came along To help build this new fertility practice from ground up with a physician that I had previously worked with at another fertility clinic that I thought I really admired and enjoyed working with. And when that opportunity came my way, it was something that you don't, you don't get those opportunities very often. So we jumped on it, we moved to New York pretty immediately. And I just think the role that was being developed, because again, this was a brand new practice, I felt like, I continued down the path of putting my foot in marketing, putting my foot in clinical operations, it wasn't just clinical ops. And when you, when you experience so many different facets of a business, you realize maybe business school will help me. Also I was surrounded by a bunch of people who had their business degree, and I kind of just felt like that was necessary for me. And then once I put my mind to it, I knew I was going to do it. And I graduated with my MBA at the end of 2021.


Griffin Jones  06:10

I want to talk about what you learned while you got your MB, but you said you were surrounded by people that had their business degrees, who were these people,


Dayna Hennessy  06:20

the Chief Marketing Officer, the CEO, you know, we, as the company grew, we brought in more people from the marketing department, many of which all had their business degree, our rent our CEO, original CEO, she was also a nurse, and she, she I admire her so much. She became an entrepreneur, and she just started, you know, becoming the CEO of many practices. And you when you're surrounded by you feel like that's the right the right path? 


Griffin Jones  06:54

Was it because you're just surrounded by them? And you're like, well, these people are successful and smart. Therefore, this is a precursor? Or was it because they were speaking a kind of language that you didn't totally understand, and you wanted to get some of that knowledge? How much of it of each of those was it?


Dayna Hennessy  07:11

I think it's, I think it's a little 5050, you know, to be honest with you, you're my drive and desire to, to grow as an individual, and, you know, make it at the top, I'll use those words, is very strong. And there's the component of feeling like, I need this to be able to get there. But at the same time, I didn't know anything about marketing or branding, or terms that were being used like leads and conversions. And you know, all of these different things CRMs, Salesforce, coming through and HubSpot, and all these different pieces of a business that I had never heard of or experienced in my nursing career. And so it was interesting and intriguing. And so I feel like it was a little bit of, yes, I want to know more about how to run a business, and then also feeling as if it would help me along the way.


Griffin Jones  08:16

So it sounds like some of the marketing terminology was the Greek for me, a lot of the Greek is the financial side, especially the investment, especially as we start to cover news on the startups that are raising, you know, $20 million here, and I need to go back into Investopedia. Look at Oh, what are you allowed to do in a series? A, I recently asked somebody, I said, Do you have to be an accredited investor to to raise money in a in a seed round? Like, I don't know the answer to a lot of these things. And so, so that's Greek to me, it sounds like the examples that you gave, were the marketing, were you stronger on the financial side? Or was that even more Greek,


Dayna Hennessy  08:53

I was even more Greek. When I first started with my position here at Extend Fertility, the financial part of it wasn't as much a part of my role. You know, I was hiring people. But the investments and the funding was not really in line with what I was doing, as I grew with the company that became more a part of my world. And so I think now it's even better that I got my MBA, but I didn't go originally because of the financial aspect of the business.


Griffin Jones  09:31

I'm putting myself in the shoes of a nurse that would be listening to this podcast and thinking, does he or she want to take the next step in business education, from what I'm hearing kind of sounds like you took a plunge? Was it a plunge? Like I'm wondering if someone's thinking, well, maybe I just take a master class in marketing online or maybe I take this one course about finance or I read the this series of books about financial reporting, or whatever it might be you It sounds like you, you had the exposure, you're like, Well, I've got this job and, and I'm doing the clinical operations, but I'm also being exposed to a lot more than just clinical ops and I see a pathway for more business ops. Was it a plunge for you? Did you consider more incremental steps?


Dayna Hennessy  10:18

Now? I was going all in?


Griffin Jones  10:22

Is that just the nature of you like? Yeah, you know, you and I know each other on a deep personal level, but I do get the impression that you are the type of person that's you're you're you're all in or you're not is, you know, I have the impression,


Dayna Hennessy  10:38

it might be a fault of mine. But when I put my mind towards something, I will do it. I will say, though, that I spoke about going back to get my MBA for probably a year, or a year plus, before I actually took the plunge. And I would speak to my chief marketing officer, and I would I would talk it out with him, you know, get his advice, see what he felt about it. I even went to our investors at one point, because I respect him and what he's done and said, What do you think about this? Do you think this is worth it? Do you think I should do this? So and I got mixed reviews, to be completely honest with you, I think nowadays, you can do a lot with experience, you don't necessarily need the three letters behind your name, to allow you to succeed. For me, it was just in my mind for so long that I said finally, I'm doing this, I want to experience it. And I did it. Whether or not I actually needed it to get to where I am now. I'm not sure. To be completely honest with you.


Griffin Jones  11:43

Well, let's examine let's let's put the whole concept of higher education under scrutiny, which I'm a big fan of, in general, putting the whole institution of higher education from undergrad to grad under intense scrutiny, maybe sometimes it's absolutely worth it. And but I would, I would blow my nose with my college degree. And we have an audience of people who they need their degrees, because they learned something very specific, they applied that specific knowledge to a trade. For the rest of us that have humanities degrees, we're on the other end of the spectrum. And then there's probably some areas in between. So what did you start to learn? And I don't mean, like, how was the material presented to you? I mean, what did you notice yourself starting to observe in terms of light bulbs going off as the material was being taught to you?


Dayna Hennessy  12:38

I think for me, I enjoyed the classes that I already knew some content, because when that was being taught to me, I was like, Oh, I know, I know about this, and I keep going back to the marketing piece. Because marketing, I knew nothing of marketing as a nurse you that's just not something that you're exposed to. And it was something that was very big to extend to us to extend fertility when we were first becoming a business. And it was amazing that I was a part of that. And so being in those classes, where I understood all the terms, and kind of seeing other ways to look at branding or ways to market yourself and first to market and second to market and the advantages and the disadvantages of these things. Was was interesting for me, and it was cool to to actually learn that and have also been exposed to it. You know, some classes light bulbs don't go off, because it's just not the way that you're going to use your MBA, you know, with all higher education, you take classes because they're required, whether you're going to go down that path or not. So capital, you know, financing was a class that I knew, you know what I'm going to get through this class, but this is definitely not my specialty and what I'm going to use my MBA for. So I tend to go to the side of classes that I was a little bit more familiar with. If that answers the question is 


Griffin Jones  14:19

Does any of those courses deal with negotiation did that come up in the course of your


Dayna Hennessy  14:25

negotiation was not a particular subject that I can recall, to be completely honest with you. It was mainly you know, how to become an entrepreneur, how to understand the finances of becoming an entrepreneur, how to market for that. We had two simulation classes, which were really fun where you get with you know, five other classmates and you basically open a business run it virtually, and we all had our titles, you know, there was the finance person, the marketing person, the CEO, that type of simulation And those were always really fun to understand supply and demand and what you need to do to be able to successfully run this business. They were never medical practices, which is very different also, by the way, then, you know, selling goods somewhere. But negotiation was not not a topic.


Griffin Jones  15:19

I want to talk about how you learned it through the school of hard knocks then but while putting higher education on blast, which they should be if negotiation doesn't appear, and MBA, want to ask of how, how much do you think it is? You alluded to a little bit of, well, are these letters necessary be beyond my name? Perhaps they are? Perhaps they aren't. I wonder how necessarily do you feel they are for an entrepreneur? I don't have an MBA, I own a business. I've done fairly well for myself. But I think a Bill Gates, Steve Jobs, I don't think I don't think Jeff Bezos has an MBA, I think many of those historic founders don't. And not just the historic founders, but the lady that owns a nursing recruitment company that she built from scratch. Does she own a does she have an MBA? Usually not does the guy on Long Island that owns a successful chain of H vac repair truck, like a fleet of H vac repair trucks? Does he have an MBA? Almost always not? And so how necessarily do you feel it is for being entrepreneur versus being the operator?


Dayna Hennessy  16:32

I think it depends on who, who you're trying to become a part of your business? I think with all things it, it's 5050 Some people care about it, and some people care nothing about it. It depends on who you're dealing with who you're talking to. Do I think it's necessary to open your own business. No, not at all. Do I think some people might respect the person more because they have those three letters, probably, even though they're not proving you know, that those three letters is why they got to where they they got, I'm a person, as a nurse, who I've always believed, I hated the term. And hate is a very strong word, but I'm going to use it when when you would try to get a job. And you're told I'm sorry, you're new, we need people with experience, because where are they going to get that experience? It has to start somewhere. So I am a firm, firm believer, especially at extreme fertility. If a new nurse comes my way, I almost always will give them the opportunity. Because I want to teach them and allow them to grow and learn. So same thing with this question of do you think it's necessary? I don't think it's necessary, per se, but I do think some people would care about it. And to, you know, invest, maybe, maybe the MBA is a criteria for investors to come along and say, You know what we think you know what you're doing. But trust me when I say I've worked alongside many people with MBAs, that didn't make it very far. And so three letters behind your name is not the only thing that gets you where you need to be in your career life, or otherwise.


Griffin Jones  18:19

The real is coming out, Dan, I love that. And it's because I just think that there's so many people that they watch Shark Tank, they watch Gary Vaynerchuk videos on YouTube, there's been a culture of entrepreneurship for the last decade. And it's put this emphasis on appearing like an entrepreneur, it's just execution, and it's so effing hard. And I am not discounting the knowledge that you could get an MBA because a lot of people listening to this episode, are putting their MBAs to good use. I'm just, I'm just writing it off as a categorical prescription like that everybody needs it all the time. And, and I did take a note of something you said about experience, starting without experience, because I want to talk about the operational systems that are necessary in order to be able to advance people that don't have experience. Let's, let's stay on the topic of negotiation. So if you didn't learn it as a course in your MBA, what have you learned about negotiation in your career? And at what points did you pick each lesson up?


Dayna Hennessy  19:30

I reflect on this question a bit, because negotiation in general is quite intimidating. And it's more so intimidating at different stages of your career. I believe you know when you're first but and we'll talk about since we're on nursing, fresh out of school, going to get that first job. Your negotiating power is probably not as high as someone who is a seasoned nurse with 10 years behind there with behind their back and that's just the way Reality. And so when you're a brand new nurse, you're kind of just excited to get the job at that point, and I think you don't, you don't learn much about negotiating quite. When you're fresh out of school, it's as you pick up the experience along the way. Now you know what you're worth, you know what you're walking into, and, and you know what you want. I think one thing that many people don't do is just ask for what they want, there's usually a beating around the bush or you undercut yourself, because you're worried you're not going to get the position, when in reality, you probably could have got what you wanted. So I, it's definitely a learning learning curve. And you become more confident as the experience is there, for sure.


Griffin Jones  20:48

So you alluded to two different things that I see in negotiation. One is the actual positioning behind the negotiation, that leverage that you have the number of opportunities that you have, and what you are really worth in a transaction or in a relationship, and then there is the presentation of it, the fact finding of it, where the discussion of it, where you're asking for what you want. And so in the beginning, what you're talking about a nurse coming out of nursing school, well, frankly, they're not worth a lot, in many cases, depending on what we're talking about, you know, it, but even that depends on who's on the other side of the table, right? Because if we're a nursing home in rural Montana, and we have to have a nurse, then all of a sudden, the person out of college is worth more,


Dayna Hennessy  21:43

I also really believe that it all comes down to particular circumstances, there's probably 100 Different examples we can give here, you know, let's let's just bring COVID to the table, you know, when COVID hit, they were desperate for anyone that they could get to help in hospitals. And I can guarantee it didn't matter what level of nursing you were, you, you had a lot of leverage there, you know, but also a different perspective, let's take a nurse who has been working in a facility or not even a nurse, it's you know, you're in school, you've you've chosen to work in a hospital or a private practice, maybe you know that this is the place you want to be when you finish nursing school, you are going to have a greater negotiating power, when you become a nurse versus the new nurse that these people know nothing about to get that position. And potentially, you know, the money you desire, because it's not just experience, it's also you've just proven to this management team, that you're reliable, that you are a great hard worker, and I can guarantee that they're going to take you over that new nurse, and now your negotiating power is a little bit different. So I think the question about negotiation is definitely a very big question. Because I think there are so many different avenues for where and why your leverage for negotiation becomes greater. You also can, you know, when you are somebody new in a company, what you know, hospital, nursing, whatever you can do, you can do other things to make yourself more valuable. You can go get certifications in other departments, you can learn how you know, as a nurse, I became a pic nurse. So I placed PICC lines, that is a total different avenue as a nurse that now I can put that out there that this is something else I can do a trade that not many people can do. And now I just made myself more valuable to be able to negotiate higher. So you kind of immerse yourself in all facets of the place in in the ways that you can. And now your negotiating power just keeps going up.


Griffin Jones  24:02

So I like the way you're laying this out in terms of increasing worth because we've established that there's at least two sides of the spectrum of the negotiation that there's the presentation, discussion, fact finding part of it, and then there's the actual positioning part of it. And you're talking about the positioning, part of it increasing worth, which I think tends to be under emphasized in today's Social Media LinkedIn world. You mentioned the employee crisis of 2021 and 2022, when there was an inflated worth, but I hear the advice No, you're worth often being given his bad advice. And it's not that it's bad advice just by itself. It's what it's really saying. Pretend you're worth a lot more than you are. Because eventually that comes to have consequences and you're talking about in Investing in oneself so that you actually have more bargaining worth to be able to work with. And so in the sense of those folks that they say, know your worth, well, when is it the time to say, No, I'm I am worth this, and I should be getting more. And when it is, when is the time to eat crow and actually build actually increase your worth?


Dayna Hennessy  25:30

I don't think anyone should try and say they're worth something more than what they actually are worth to be honest with you. I think, my


Griffin Jones  25:39

that's what they're being told Dayna. That's what we're all being told on social media. And it's, but but it doesn't say what we're actually it just says, You're worth more. I hear marketers being to charge more, like I hear employees being told, you know, ask for the raise. And it's in May, and there certainly times when those things are true. But it's like, that's the it's like, that's the standard default advice. And there's nothing behind it saying, here's how you actually measure, here's how you you weigh increasing your worth versus just trying to negotiate in the present.


Dayna Hennessy  26:15

So unfortunately, I think the the way society is is turning as far as the workforce goes is very different from when I came into the workforce. And I'm going to keep my values and principles of of what I grew up knowing. And I wish we were teaching more people that you know, right now, the yes, you're right, the employees believe that they deserve everything in anything, regardless of how hard they're working. And I don't agree with that. Because you are worth what, what you put out there, and how hard you work and the things that you do to prove that you're a hard worker. And there are plenty of places out there looking for hard workers. And it's actually harder than you think, to find hard workers. You know, I grew up my father owned many pizza restaurants and bars as as a child. So I grew up being around hard working individuals, and I would go and help my mom clean tables. And, you know, I just found it fun. And this was this is what I did, for as long as I can remember. And so my work ethic to always improve and do better, and make myself the best version of myself that I can be to show people that I was worth it. That's just a part of who I am. And I think I think everyone shouldn't be doing that. If you have a way to improve yourself in, you know, whether it's school, whether it's, you know, certification programs, whether it's just volunteering somewhere, do it that the social media stuff that you're saying, I'm not a fan? I'm not. I don't know how to say it.


Griffin Jones  28:08

I'm zooming in on this. And it because all of those things that you talked about increased your worth. And I very often see the social media debate focus on when they hear something like increase worth. They think it's like, oh, that's in the benefit of the employer. It's the benefit of the other party. No, in the long run, it isn't it is increasing your worth. And what I worry about when I see the things that we saw last summer, a lot is people would say, finally employees are starting to realize their worth. And then I've been on both sides of it. I was a commission only sales rep in the Great Recession in a poor city when I was 21 years old, and had zero leverage whatsoever. And the employers did treat them even the good players like garbage. I've been on both sides. I've also been an employer that's really trying their best to accommodate people and trying to compete with the market and trying to advance people, which is all really hard. So I've seen both sides. But when I see people say things like in a historically a typical time, like the summer of 20 to say they finally know what it's worth. It's like, are you really going to say that your house is worth what it is now in this ridiculous seller's market? Or do you really do want to bank on that? Sure. There might be times to take advantage of it in both the labor market and the housing market sell now get that job now get that promote? There might be times to take advantage of it on it. But do you really want to measure your worth on that? Because when it goes back down, then you haven't built the the actual staying power that that you talked about? Yeah, agree. And so it sounds to me like you've focused a lot on worth building part in a little bit less on the presentation discussion? factfinding part? How much of that have you gone on to focus on in later years, the actual way that you ask the questions you ask beforehand? Like, how much of that do you focus on nowadays,


Dayna Hennessy  30:17

I definitely grown in this past seven years in this role. You know, you start out, this isn't a new thing for me, I'm learning, there's always a humbling moment where you have to learn what you're doing and understand what you're doing. Before, there's some other forms of growth with being able to negotiate in different ways. I, you know, me a little bit Griffin, and I am pretty straightforward. Black and white, I just asked for what I want. I think that that's become much stronger for me over the years, you know, I am so used to having to reach out to pharmacy companies or certain vendors, and I'm actually dealing with one right now. And, you know, what, if they want your business, they're gonna probably work with you. And I learned through this business, that it very much so kind of works. That way, you don't always get what you want, don't get, don't get me wrong. But I just go out there. And I'm very confident, and I just say, look, here's what we need, here's what I want, you know, it's for the patient, or it's for whatever it might be for. And they're usually always willing to work with you. If you show any bit of lack of confidence, or, you know, I'm trying to think of another word here. But


Griffin Jones  31:48

what you're looking for is negotiating against yourself, which I see nurses do a lot. Yes, I think that's what you're looking for.


Dayna Hennessy  31:56

I mean, if you show them that you're kind of nervous to ask for what you want, they're going to take the upper hand, and they're going to be the one now in the power seat, to say, well, you know, whether you sense it or not, that's just what happens. And so when I just say, Look, this is what I want, they kind of know that there's no budging for me. And I gotta say, I've done very well, with my negotiating, I believe for our patients, essentially, for this, you know, within this practice.


Griffin Jones  32:31

Yeah. So you are talking about the strategy of anchoring, by the way. So there's different strategies in negotiation. One, sometimes people will say, don't anchor don't say what you want. First, don't say, Don't name a price, don't do any of that kind of thing. First, let the other person decide. And it seems to be more circumstantial than, then you could just say it should always be a or it should always be B. But in many cases, I think anchoring does work better. And I think that it especially works better, once you've established your own worth. And you're showing in this a willingness to walk away. So you're laying out what you want, are you Are you really willing to walk away from it if you don't get something? Or how much are you willing to come to the middle on things.


Dayna Hennessy  33:24

So I think it depends on what reference it's for, you know, obviously, if it's for a position or a job, and you can't lose your job, I think there's a lot of flexibility there, because you're in a position of needing to keep what you have in some way. But if it's vendors and things like that, I can promise you, there's more than one. And so, especially nowadays, people want your business in one way or another. So you don't have to just negotiate with one at any given time, you could have three negotiations going on at the same time. And I've used negotiations against one another to get the better deal. And you just learn these things as you go. And they work. So you know, there are circumstances where you can't back away and you meet in the middle. But generally speaking, there's usually always more than one opportunity.


Griffin Jones  34:19

Well, you use the example of being in three negotiations that you do have options you can walk away, and that is leverage. And the person with the most leverage is the one most willing to walk away. And, and so you talked about an example where you're negotiating with three different parties. Have you ever been on the other side of it, or at least perceived that you are on the other side of it? So you know, maybe you're one of multiple people negotiating with one for a deal or something that you really want? Can you think of an example like that?


Dayna Hennessy  34:55

I mean, I think the closest example would be you know, let's say a dinner nurse comes to us, and we're looking to hire and we really need this nurse. But she openly tells us that she's looking at other places at that moment, you know, okay, how badly do we want this person with us, and then you kind of are on the other side doing this, back and forth with them. And they have the upper hand, and that if we really need this person, and we we think she's, you know, she's great. And we want her to join. But we know that she's potentially going to go elsewhere. Now you're kind of at her mercy. So to think, what do


Griffin Jones  35:40

you do when you're negotiating with somebody that has the upper hand so that you say, okay, they've got the upper hand, I know this, I know what our need is, but you could suffer indefinitely, you could let it drag out? And definitely, so do you suffer indefinitely? Or do you do something when you know, the person has the upper hand is like, alright, you know, I know that I'm going to have to stretch here. But I'm also not going to let them just hold me Oh, over the fire, like a cat holding a mouse over the flames. Like for a prolonged period of time? What do you do when somebody has the upper hand?


Dayna Hennessy  36:17

Yeah, I don't, I don't think we've ever had, I would never allow somebody to dangle something over our head to make it be some indefinite indefinitely. Ron,


Griffin Jones  36:28

did you when you were younger, when you were fresh out of nursing school did because I let people do that, to me all the time. It was a commission on the salesperson I was 22 years old, I was walking into businesses selling a crappy product in radio advertising. And I learned some good habits of resilience and how to do everything and take accountability. I also learned some bad habits of, of just letting yourself stay in that low end of the totem pole for too long. And I definitely let people a hold me over. And it was like, you know, start just kind of coming of age thing meet starting to rebel against it a bit mid 20s and late 20s? And, you know, by the time you're in your late 30s, like, yeah, you built that worth that you were talking about building? So did you do it more in your, in your earlier career?


Dayna Hennessy  37:17

So I think there's two different sides to this question. If I'm the one in the seed of the new nurse reaching out to the employer, and the employer is, you know, kind of dangling me and not letting me know, as a new nurse, I'm very eager to get that position. And I'm going to follow up, and I'm going to follow up, you know, Send immediately after the interview, you send your email to them to thank them for the interview, which doesn't happen very often. So let me tell you, when it does happen, it's quite impressive. And whoever's listening can take that for what it's worth. But many people don't do that, because they expect that they're going to get the job, and you should never go into something expecting that you're going to get it you need to work for it and work hard for it. So I would reach out, and I would follow up to let them see that I'm interested in this position. And eventually, you know, you have your own inner timeline, if you're, if you really need a job, you you're, for me, I'm only going to sit on that for so long. And I'm going to be looking for other things. In the meantime, if I find something in the meantime, but I really wanted this first job, I will reach out to them and say, you know, I'm really interested in this position, I did find another place. So please let me know, in the next X amount of days, whether or not I'm gonna get this position, or else I'm gonna go over here. And I think that's completely fine for you to do. And that kind of gives that that reverses the upper hand a little bit back into your court to say, Look, you either want me or you don't want me. And some you kind of just have to be okay and comfortable doing that. Otherwise, you are going to just sit there forever, not not knowing what's going on. On the flip side as the employer, if I have an employee, not giving me a response, I can do the same thing. You know, hi, we would really like a response by the end of the week, because we are interviewing other candidates. And that kind of lights the fire for them to either you either want to be with us or you don't want to be with us. So it's it's kind of both ways.


Griffin Jones  39:26

In each instance, you're talking about going back and increasing your worth. So I love that when you're talking about I'm in a position where I want a job and I'm a younger nurse and they've got the leverage and they're kind of dangling me. You're still talking about increasing your worth. You're still talking about increasing your leverage. It almost solves for the challenge that you have it starts you said it starts to turn the tables the other way it starts to have a bit of a balancing effect. And that's a that's a good point. We got you've given re The good advice to nurses for that are entering the workforce and maybe going for the next job in their career. What about nurses that now find themselves in positions where they have to negotiate with outside? They've got to negotiate with vendors. And what was that process? Well, how did that start for you? What were the first things that you were doing? And let's talk about that for a bit.


Dayna Hennessy  40:26

If you're referring to when I first took this position as director of clinical ops, and at coming from a nursing background, now having to speak to outside people, luckily, I had fertility experience already kind of under my belt, before I took this position. And it's kind of a group thing, when you're such a small company, I think there were six or seven of us when we first started, extend fertility. And when people hear of you and know you're coming to market, you don't always have to immediately seek other vendors out, a lot of times they find you. And before you know it, you have emails coming in from these people who want to meet with you, because they see that you're about to enter the market. That's how it happened a little bit for us in certain parts of the company. In other ways, you know, you had to go get furniture, and you had to. I mean, it was it was very interesting building a business from the ground up. Not many people get that experience and I'm very thankful for it. We you just do your research. And you just it's it's cold calling these places saying hi, we need we need to set up a meeting and kind of review what services you have to offer and see if it's the right fit for us.


Griffin Jones  41:48

How much prep do you have to do for something where you've never negotiated before? So something like maybe meds or or other things? Maybe you have more experience? Because you had the fertility experience, but something maybe that you're doing for the first time office furniture, I have no idea what your the furniture in your lobby costs, like you could tell me it costs. He told me it costs two grand, you could tell me it cost 20 grand, I have no idea like so. So how much when it's something that's brand new to you? How much research do you need to do? And what research is it?


Dayna Hennessy  42:21

I don't think you have to do a ton of research. You know, depending on what market you're in, you take that information, there's going to be limited information on certain things. And you do a little bit of cost comparison, you know, let's use fertility medications. For an example. You have two main manufacturers for the main drugs. So when you know know that or don't know that going into it, you quickly learn it. Because there were people on our team that did not know fertility. And so there's not much research there, you find out what are they selling these medications for at all these different pharmacies, and then you go in seeing what you can get better. There's, you know, you do some research on additional programs or other things that can help patients along the way. And then you you do your best when you're negotiating those prices. But I think it depends on what practice you're in or what your business is on kind of how much research you need to do before negotiating stuff.


Griffin Jones  43:24

Well, it sounds like you're putting some of that research homework on the other party too, especially if it's something that you're putting out a request for proposal for you're putting out a quote for, let's just see, let's see what we can do for office furniture, you're contacting a couple of vendors, and you're putting some of that research on them, because they're bringing the ones and then you're comparing them. And so this for those of you on the other side, that this is where you can when you're in a lower level point of need. When you have less worth when you have less leverage, you can find yourself doing unpaid consulting. And sometimes it's worth doing that because sometimes that is what helps to increase your worth. But consider it in terms of increasing your worth over the long picture as opposed to something that you need to do in this particular case. And I think that was a mistake that I made all the time when I was young is that it was like it's either this deal, or this this job or this thing, or I'm a complete failure. And then I remember shifting gears, being in a business meeting with people that were way over my head and I was is maybe my late 20s or something and I was like, You know what, I'm probably going to look like an idiot here. I'm going to go into this meeting as best prepared as I can to not be an idiot. But the best way for me to not be an idiot is to do a bunch of these. And so, so when I stopped looking at, okay, it's got to be about this deals. Alright, you can get your butt kicked and embarrass yourself in this meeting. But you take a little piece of that to the next one. You're like, oh, that's what they were Look at that question. I didn't have an answer for that. And, and so it's about increasing your worth over time. So you talked about the the, the research that the other party can do for you, when you position when you're when you're in that form of position, what about how to things differ when it's like an ongoing relationship versus transactional. And I'm not an artist, and I've never worked for a pharmacy. But I know that there's a lot of commoditization to pharmacy, I also know that there's definitely some relationship where you want to make sure your patients are getting their meds that they're taking care of well, and so, and you're probably working with a pharmacy for a prolonged period of time versus office furniture, it's like, we're not going to need office furniture for another 10 year, and there's a million vendors and I can just beat him down to the to the best possible price. How does how does negotiation differ when it's singular transaction versus ongoing,


Dayna Hennessy  46:00

I think the original negotiation is always kind of singular, right? Because you're trying to get that deal and you're locking it in for furniture, actually, it's it's not, this is going to be the same deal one time, because inflation supply and demand, you're actually almost guaranteed to pay more now than we paid seven years ago, you're still looking for the best deal. But that's kind of just what it is, as far as the pharmacies go. Since we're using that as our example. The deal that we made with our pharmacy seven years ago still stands. Now there are certain aspects of it that you can't control. You know, if the marketing, the pharmaceutical company that supplies, the meds is going up a little bit in costs, they may have to go up a little bit in cost, and there's really not much you can do about it. But once the deal is in place, again, the it's not so much on me to do any negotiating with them. It's them trying to please us. So we get the, you know, monthly bi weekly, everybody's different outreaches how's everything going? Is everything okay? Do you have any concerns, because they want our business. And if they see businesses dropping a little bit, they're going to even more so reach out? What can we do for you? And you know, oftentimes, it's, they're doing fine. There's there's not usually issues or anything like that. But I think once you have that initial negotiation down, and you're now in business with these people, they want to make sure that you're happy.


Griffin Jones  47:42

How valuable is that those checkups, by the way? Like, are they actually valuable? Or is it just like, yeah, Hey, Dayna . Like,


Dayna Hennessy  47:51

I think it's like, Hey, Dayna . I mean, I love I love my reps, they all know me very well at this point. And they know how I operate. And so you know, I've gotten a lot of good feedback actually, with with my straightforwardness, because who wants to sit here and spend 45 minutes just talking about nothing, you know, I have tons and tons of new pharmacies coming through my email, weekly. And it's almost overwhelming at this point. It's like, once, once you're this far in, yes, you could have a conversation just to see if they happen to be, you know, they're able to do anything better. But I kind of know at this point, whether people can go better. And I know that I negotiated really, really well when we first started. So I'm happy with who we have. And you know, it's kind of being that whole first market second to market you guys are like 15 to market. And we don't need 700 pharmacies to do the same job. And especially when we have the reputation with let's say, the pharmacies that we have, we know that they're going to do the job, right. They've been doing it for seven years. They know how we operate, they've learned our ways. And now it's just a nice, simple relationship.


Griffin Jones  49:14

That's one benefit of anchoring in negotiation is the time savings that can happen in time and negotiation. Some times go against each other you can have time as an ally in negotiation time can be an enemy in negotiation. And there are times where it's like I don't want to find the best price for something I want it now and you you're willing to okay you're talking to a couple other people here's what I've got for you and then you see who gets the closest and and you move on quickly as opposed to seeing what where they're at and trying to tease that a little bit out and and so anchoring can absolutely save time and which is money and you're in a position to anchor better because you've Increase your work, you can anchor more when you have more work, it's a lot easier. And you know, the hottest movie star can say, I'm only going to do this role if I get $45 million in the international royalties. And I get to work with these co stars and this director, and There better not be one yellow F and Eminem in my trailer and a freak out versus the aspiring actor that's going to do voiceover commercials in order to be able to get there.


Dayna Hennessy  50:31

One thing that I noticed in that example, that I want to not necessary, clarify, but just comment on. It's interesting that sometimes there's an immediate increased worth with being an a hole a little bit is what you just described. And just to put it out there, that is not necessary. You know, and I know you're just using a funny example. But I want to make it clear that you can increase your worth and still be a very humbled person, because there's always something more to learn. And to be that person is just also not right.


Griffin Jones  51:13

So that's such, I'm glad that you brought that up. Because it's kind of tempting to sometimes drift into that person. Like maybe Mick Jagger was always the type of person to walk in and demand whatever you want. He could be, it could be that part of the reason why he rose to where he did is because he's that type of person, and that that cult of personality. But then there also is just as you as you start to get more than as you start to expect things a certain way, I think there's a bit of a temptation to drift into that. And if I'm being honest, I have to be cognizant of it. Because I'm a person that is a dog on a bone for whatever the bone is. And I need to remember that people in the way are not, they're not like obstacles in life. They're not things to be climbed over. There's polite ways of saying I'm so sorry, I can't talk to you right now. I'm so like, I wish I could or maybe we can set up 15 minutes later, or, because when I'm in dog on the bone mode, it's not that I was ever trained. I was I was taught that I could be in a hole or that I think it's okay. And I don't think I've ever ever been close to the worst offender. But I have noticed things where it's like, No, dude, six years ago, you if you saw yourself as a stranger, that would not have been acceptable. And I start to start to notice that. So are you willing to admit to ever having drifted into that? Or do you feel like you're really conscious of it?


Dayna Hennessy  52:43

In my position here, I'd like to think that I'm very conscious of it. I, I know that I for sure drift there in certain situations where somebody's just not, you know, let's say at some random vendor, I shift there when I get an email from a person who believes that they can help us fix the world. They can't even say our company name right. You know, instead of extend fertility, they're saying extended fertility, which is one of my biggest pet peeves. And they spell my name wrong, you know, in the title, and then they're like, let's have a discussion, I can help you with everything. And I drift into that meet like that, that kind of mean zone when I'm like, okay, buddy, you know, you didn't get anything right email. So


Griffin Jones  53:35

it was copied and pasted. And it may have even been copied and pasted by a robot too.


Dayna Hennessy  53:40

But that shows me that you don't actually care about our company, and I'm not wasting my time on you.


Griffin Jones  53:45

I think I think that's where it is. In other instances,


Dayna Hennessy  53:49

I like to think that I'm very conscious of that. Because I think things go a long way when you're in leadership and management, to be able to get what you desire or wants by being firm and confident, whether it's a vendor or something internally, but also being humbled enough to know that there's always you're not always right, or there's always something new to learn. And you're you're a mentor to many of the people that are watching you and look up to you, and you want to be there to support them. So I think it can go both ways. But that's what I that's how I would respond to that.


Griffin Jones  54:32

Are there any mistakes that you made when negotiating with fertility vendors? That one you can think of off the top of your head? And two, you're willing to admit to actually, you know what, I


Dayna Hennessy  54:43

will say one, and this is a big one so well to I have to whether I should say them or not, I don't know. But I will. I'll name this one. So when we first started, we thought Salesforce would be a great CRM for our company. Salesforce isn't, is an amazing platform, I have nothing bad to say about Salesforce itself. But it is a monster of a CRM platform for marketing. And I think they promised a lot of things that that Salesforce could do, that we thought would be valuable to extend fertility when we were first becoming a practice. And it took a little bit of time, I mean, we did use it for a year and a half, we built custom scheduling systems in it, we spent, you know, a good amount of money to build the systems and make it work for us. But then you kind of get to a point where you realize this is not actually working. And you have to kind of cut ties, and you're like, you know, that kind of sucks. The a lot of time and effort went into it. But it's not ultimately going to be a good thing for us long term. So you just have to end and ties with it. You know, there's other examples like your fertility, EMR, you have to pick one, and not all EMRs are good EMRs. But once you're kind of elbows deep in the EMR, it's never easy to make a full change, even though you really want to because, you know, there's better out there. But that that's two quick examples.


Griffin Jones  56:21

So the lessons they're being watched, be willing to walk away from sunk costs. Sounds like the first one. And the second one is, when it's not actually sunk cost, it's your it's you really are in a position where mobility isn't that much of an option, there's a greater cost to potentially switching. The second lesson sounds like it's live with your decision.


Dayna Hennessy  56:45

Yeah, or or you, you make the change, which I think will happen very soon, eventually, because it's been my mission for seven years. So when I get my mind to something, like I said, I will, I will make it happen. That is, that is my thing.


Griffin Jones  57:02

It was one night and seven years in the making that that it happened so well, you've given us a ton, I would rather I would recommend to the vast majority of nurses to instead of taking a business class on negotiation with 75% of the business professors in this country, I would go if you can shadow Dayna , for see if they need to travel nurse, do they need to travel nurse and just go to Manhattan for a month and see if you can be under Dayna’s tutelage. And you've given us a lot to think about the difference between the presentation and discussion and negotiation versus the positioning behind it, increasing one's worth, and particularly how to do that as a nurse, not just know your worth, but how to actually increase your nerve. Anchoring, avoiding negotiating against yourself, having the people on the other side of the negotiation table, do some of the homework, ignoring sunk cost, and then either living with the decision or making living with the decision if you can't correct it, or correcting it, if you can. So you've given us a ton. What would you like to conclude with?


Dayna Hennessy  58:13

Oh, man, I would in spirits of the topic, I think I would definitely recommend for new nurses to try or pre nursing, I keep saying new nurses, but try to seek employment in the place that you want to be, so that you have the most negotiating power to get the position. Once you finish nursing school there. Say what you want. Ask for what you want, say it with confidence, the worst they can do is say no. But at the end of the day, you will likely be in a negotiating spot at that point. And always do research on the company. You can find out through platforms Glassdoor. Indeed, what starting salaries might be so you have a starting point. You know, don't even if it's not even within your range, don't go there and maybe find something different. That's what I would say as far as negotiating power. As far as the NBA situation goes, I, I don't want to discourage people to get their MBA, if it's something that you've had your mind put on and you're like me, and you're just going to accomplish what you put your mind out to do. Do it, you're gonna learn some valuable things. But I think it's very situational on what, what you want to do. Ultimately, with your career. If you're a clinical person, an MBA is not for you. Go go into different clinical certificates. But if you're looking to run a medical practice, maybe it's something more worth looking into. I don't think it's entirely necessary.


Griffin Jones  1:00:03

Well, I've enjoyed learning from the school of hard knocks with you today and I imagine that our audience has as well. And if you are going to email or LinkedIn connect with Dayna after this episode, it's Dayna with a Y, Ms. Dayna Hennessy. Thank you very much for coming on inside reproductive health.


Dayna Hennessy  1:00:22

Thank you so much for having me, Griffin.


Sponsor  1:00:25

You've been listening to the inside reproductive health podcast with Griffin Jones. If you are ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society, visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health

180 Quality Of Fertility Operations vs. Financial Efficiency: Solving For The Trade-Offs, With CARE Fertility’s CEO, Dave Burford

DISCLAIMER: Today’s Advertiser helped make the production and delivery of this episode possible, for free, to you! But the themes expressed by the guests do not necessarily reflect the views of Inside Reproductive Health, nor of the Advertiser. The Advertiser does not have editorial control over the content of this episode, and the guest’s appearance is not an endorsement of the Advertiser.


This week, CARE CEO, David Burford, joins Griffin to discuss what goes into the operational and financial decision-making process behind CARE Fertility’s business model.


Listen to hear:

  • The tension between financial and operational divisions of a fertility center.

  • Examples that look good (or bad) in a financial model, but then have good (or bad) consequences in operations.

  • Certain elements of operations that served the clinic, but not the patient.

  • When staff needs are at odds with patient needs, and the trade-offs that need to be solved for. 

  • CARE’s HR machine and the concept of necessary, if not immediately efficient, redundancy.

  • The mass retirement of physician CEOs, and what that means for the fertility field as they are replaced by business people without medical degrees



Care Fertility Group Limited: https://www.carefertility.com/





Transcript

David Burford  00:00

First and foremost, finance is very good on spreadsheets operations is very bad on PowerPoints and spreadsheets operations is about people. And it's about process and you only really can deal with one when you understand the other.



Sponsor  00:14

This episode was brought to you by Univfy. Download Univf;y’s free IVF conversion and revenue calculator at univfy.com/IVFpatientretention. 

Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of inside reproductive health, nor of the advertiser, the advertiser does not have editorial control over the content of this episode. And the guests' appearance is not an endorsement of the advertiser.


Griffin Jones  00:54

Redundancy, is it time to start laying off some of your fertility center staff or is it time to hire more because you need duplication in order to positively impact their performance management? This is just one of the topics that I cover with my guest Dave Burford today Dave Burford is the CEO of CARE Fertility. That might sound familiar to you because we recently had their chief scientific officer Allison Campbell on the show to talk about embryologists owning equity and fertility clinics taking equity in startups, you should listen to that episode if either of those two topics interest you. And you may have read an inside reproductive health article a couple of months ago about how care fertility recently made an acquisition in the United States in North Carolina because with their financing from Nordic capital, they're expanding beyond the UK and Ireland into Europe into the United States and possibly other parts of the world. Dave and I talked about the convergence and divergence of the financial and operations divisions of fertility center. I press him for examples of when something can look good or bad in a financial model, but then have good or bad consequences in operations. When Dave took over as CEO of care some years back, he said that there were examples of operations that serve the clinic but not the patients. And I asked him for specific examples in patient intake and in call center reception and scheduling. And then I pressed Dave a bit because there are examples where staff needs are at odds with patient needs. And the trade off has to be solved for I asked Dave to describe CARE Fertility’s Human Resources machine because with 1200 employees, I asked him to talk about the balance between efficiency and profitability and on the other side overlap and duplication so that you can support your team and support performance management support the advancement of employees, I asked because this is something I've really been working on as a business owner very deeply for the last six months. And it's funny to have someone from the United Kingdom on because layoffs in the UK are called redundancy, someone who is laid off is redundant. And I observe this tension where you might want to have efficiency and profitability and only have a certain staffing ratio. But if you lose someone that puts a tremendous stress on the staff, it makes it harder to hold people accountable because they end up having to do other people's work. So it's a lot harder to hold them accountable for their original outcomes, it's harder to advance them, it's easier to burn them out. It's harder to get rid of a cancer when a cancer comes into the organization. And worse the cancer has bone dry tinder to set ablaze because the rest of the workforce is burnt out and not supported and doesn't feel like they have the autonomy and doesn't feel like they're able to grow in their careers. So we spend some time on that topic. And then Dave gives examples where he has to pitch to the board or pitch to investors reasons for making certain investments that will be good in the mid and long term but don't necessarily look great. In the next quarter. I asked him what data he uses to make those arguments. I then asked him to talk about the balance of when you start something new and you test the concept versus how much needs to be invested in and built ahead of time so that the deliverable is positive. I asked Dave, now that we're starting to see the original CEOs of many fertility groups, who in many cases were physicians start to retire and they're being replaced by CEOs who were not the founders of those clinic companies and who very often are not physicians, they come with a business background, how temporary or not should these new CEOs be? Should they be around for a really long time? Should we expect to see a revolving door of them? Are they going to be a symptom of cutting fertility clinics to the bone and selling them at a higher profit and that churn just repeats? Finally, we part with Dave's thoughts on what he perceives to be the cons of a more process driven sale in the United States than in the UK in Europe. I asked him if he feels that it is more process driven in the UK and Europe. Why that is the case in his view, and if it is true, what makes it a bad thing? Please enjoy this episode with Dave Burford. Mr. Burford Dave, welcome Inside reproductive health. Oh, hi,




05:02

thanks for having me.




Griffin Jones  05:03

You're now the second leader of the care fertility leadership team that I've had on the show recently, your colleague, Dr. Campbell had joined me. And that was a very popular episode because we did a little more content for the lab folks than we usually do. And they were very interested in her talking about the career path for embryologist. There's a whole lot of places we could begin our conversation today with you being a CEO of such a large group, but one that I'm thinking of is probably germane to many people that are at a point where the founding physicians, the founding CEOs, or the earlier CEOs are starting to retire, and now CEOs from the next generation that are taking over. And that seems to have been your case, it seems that you worked for care at a higher level for many years, and then became the CEO in 2018. Is that right?




06:04

That's right. Prior to that, I was the CFO. And then I moved into the CEO role. For a short period of time, I did both the operations director role and the finance director role, and then moved into being the CEO in 2018. So I've had a kind of broad view of fertility and wearing a few different hats, but obviously a very different experience than somebody that has been a clinician or an embryologist.




Griffin Jones  06:30

Sure, that broad view I want to talk about if is how much of an advantage that is in taking over an organization at the top being able to see it from different vantage points. But to make sure that I've got my history that was Professor Fishel. That was he the the original CEO.




06:50

That's right. Yeah, he founded the business and was the CEO for all since 1996. right the way up to sort of 2015. And then there was a short period of another chap that was the CEO, and then me from 2018.




Griffin Jones  07:04

Okay, so you're the the third CEO total in the company's history. That's right. And so did you know that you are gone? Was this a track that you are interested in from the beginning looks like you started with the company in 2014. Was that in the finance role?




07:22

That's right. So prior to this role, I was at KPMG. So I'm an accountant by background and was looking to get a real job if you like outside of outside of accounting and moved into care, fertility not knowing a whole lot about IVF. But knowing that care was a respected good business in the Nottingham area, and it was a it was a job that I was very happy to get. And then really progressed through finance into operations, mirroring the challenges of the business, I think so the financial challenges of an IVF clinic, or a small group as it was then, uh, not that big. But the operational challenges were quite significant. And so my role morphed into operations, which then set me up quite nicely for being the CEO when, when that role became available.




Griffin Jones  08:13

Had you thought about that? It from the very beginning, did you know that you wanted to be on a track for CEO leadership, whether it be a carer or some other company?




08:25

I mean, that was ambitious insofar as I wanted to go as far as my career would take me, but I wouldn't say I set out to be the CEO, I set out to really understand business, my passion is really understanding what makes a business tick. How can you improve it? How can you take it forward, and that tends to be operational improvements. And so it became clear that my finance role would only take me so far. And if I really wanted to change the way that the business was performing, I needed to move more into operations. And that naturally led on to being CEO because you get a really good grounding, particularly if the businesses, private equity backed, you get a really good brand grounding in both the finances and in the operations. And really, that's the meeting there have a kind of corporate CEO if you like,



Griffin Jones  09:17

it sounds like it was a smooth transition from finance to operations. But in my view, it seems like more of a jump. So was it what kind of transition was it how did you go from a financial role to an operations role?



09:32

Where the it was really mirroring the challenges that the business was facing at the time we've we've always been a really successful so we've been going for 25 years and we've always been a very successful clinical business. So very strong success rates really good clinical innovation, as I'm sure you heard from Allison when she was with you, but the challenges of the business were that the founders were extremely good doctors and embryologist and good business people. But the challenges of running a multi site operation are, are different to that of running an individual clinic. And we had increased competition in the UK, and some of our operational processes needed improvement. And rather than just being a finance director that was happy to throw a few stone, shall I say, my, my director, colleagues saying, you know, why don't you do this? Why don't you do that I was very happy to roll my sleeves up and, and get involved. And I really enjoyed that side of the road, the ops director that we had at the time was looking to move on. And so it became a natural progression. And I did both roles for a short period of time, the CFO and the CFO role. And then that became unsustainable, and we recruited in replacements for me really to allow me to move on to the CEO role, but it was really reflecting the challenges of the business and my passions really for operational improvement.



Griffin Jones  10:57

Well, your passion maybe came from wanting to throw stones, but them saying back to Yeah, well, if you think it's so easy, buddy, why don't you come over here and try it? And he said, Okay, maybe I will



11:09

use funny you should say that, because we actually had a board meeting where the private equity investor at the time, was not very happy with some of the operational performance in London, and said exactly that way. You've just said to me, Well, if you can do better than Dave, why don't you do that? And so I said, Okay, I'll do a I'll do a month secondment to London to improve London's performance. And that really was the audition for being the ops director or the CIO, as it was at the time. So yeah, that was exactly what happened.



Griffin Jones  11:41

Well, there's a lot to dig into here. Because one of the biggest criticisms about so much external finance entering this field of medicine is that there is a financial pressure and sometimes an oversight on operational quality, there's operational improvements to be made. For days in this field, there's, there's no shortage of those. But there is also the reality that there is a way of looking at things where it can be just looked at from a spreadsheet without the consideration of actually making the operational improvements. And you had to at least experience some of the other side. So what were a few of the surprises that a way to do.


12:28

I think first and foremost, finance is very good on spreadsheets operations is very bad on PowerPoints and spreadsheets operations is about people. And it's about process, and you only really can deal with one when you understand the other. And so if I take this back to care's challenges, at the time, it was very much around a business that was geared up to serve the clinic rather than the patients. And that's okay, when you've got a lot of demand and not much supply. But when when that dynamic changes slightly, and you've got more competition in town, then you've got other people that are doing things in a more dynamic way. And actually, the challenge is bringing in supply or patients, then you've got to change your processes to adapt to that. And you've got to be more patient friendly. And you've got to be more adaptive and fluid in the way that you deal with things. And so the he only really do that by talking to the people on the ground, talking to the staff and understanding what their challenges are, and then adapting the processes to meet the demands of patients and the needs of staff. So it was for me, it was nice to get away from the laptop and then the PC, and to actually talk to people and understand what is it that is the challenge here. And that's best supported by a bit of data, if I'm honest as well, because sometimes anecdotal conversations only take you so far. And you need to have a bit of skepticism about what you hear. And then you need to look at the data and say, well, actually, look, we've got 1000 people call in is it that seven o'clock at night? You're telling me that patients don't have a demand for late night calls. But why have I got 1000? Why have we got 1000 people ringing me when when the lines are closed, and it's just tweaking that some of those operational processes to meet those needs? Generally not that challenging, but involved. You


Griffin Jones  14:25

mentioned that at the time, there were some things that were serving the clinic but not the patients. What were examples of that.


14:34

So you know, people set up processes often to meet the needs of either themselves or at the time the needs of patients or customers but things change and it takes sometimes longer for processes to change. So a good example of that where it's really important for doctors in this field to understand the medical history of patients so that they can give the patient the most informed consultation that they can give them so that the patient is getting best value for money. But there's a line there commercial or operational line, if you like that judgment between getting as much information as you can to make the consultation effective, but not putting patients off from coming to see you because you've made that process so difficult or more challenging. And so we really went through a process of thinking about where's the balance here? How do we get the information that we need to make sure that consultations and appointments are as effective as they should be, but not overwhelming the patient with requests for information that either put them off? Or made them think about going elsewhere? Because if you ring up two clinics, and one Clinic says, Yeah, you can come in tomorrow, don't worry about it, we'll see. And the other Clinic says, Well, can you fill in this 60 page questionnaire before you come in? There's a lot of people that will just choose to go to the clinic, with no information just simply because it's easier and quicker. And particularly when you put that in the context of most IVF patients between the ages of 25 and 45. And so that those people have grown up in a generation of technology and ease of access, not filling in lots of forms and ticking lots of boxes. So it's about mirroring that, that really and changing those in those demands. And that's a practical example of some of the things that we've done as an organization to make that access to patients, informative to our staff so that it's meaningful and productive, but slick and easy from a patient's perspective so that we can attract as many of them as possible.


Sponsor  16:44

Fertility Centers have unique and unmet business needs. Univfy uses AI and machine learning to improve IVF conversion, growth and patients experience. Providers who counseled patients with a support of the Univfy pre IVF report see a two to five times increase in IVF conversion. That means if you make $10 million in IVF revenue today, you can make $3 million more with Univfy. Univfy provides AI white glove platform services to IVF centers, including business analytics IVF, live birth prediction modeling to support provider patient counseling, and using AI and machine learning to support IVF pricing strategies that optimize clinical outcomes and profitability. Fertility Centers can expect to see ROI from using Univfy within one to two months. Univfy’s methods have been published in top peer reviewed medical journals, HIPAA and GDPR. compliant, Univfy is being used by fertility specialists in the US, Canada, EU and the UK. Download Univfy’s free IVF conversion and revenue calculator at univfy.com/IVFpatientretention, that's Univfy.com/ivfpatientretention.



Griffin Jones  18:11

I want to talk about how those two things reconcile staff's needs and patients needs. You also mentioned that you were talking to staff and finding out what their challenges were, what did they tell you? Their challenges were?



18:25

Most of the time its challenges with the systems. And we've we've got our own in house system that we've spent 25 years developing, but in IVF, as I'm sure you know, there is lots and lots of different systems out there. But none of them are amazing,



Griffin Jones  18:39

referring to electronic medical records, correct?



18:43

Correct. Yeah. And so, you know, clinical staff want to do what they love doing, which is treating people clinically and talking to patients, and they don't want to spend hours in front of a computer and ticking boxes and moving pieces of paper around. And so it was really listening to them in terms of how can we make the system as slick and effective as possible, to make their lives easier. So that's how we fulfilled the needs of the staff. And there wasn't really much of a conflict between the needs of the staff and and the demands of the patient. The there was the only thing I would say where there's a small conflict is staff would typically want to have as much information as absolutely possible about the patient in advance. And we wanted, as I said, Put to put a bit of balance to that. But that's nothing more than you know, just communicating with staff, explaining to them the reasons for why we're making some of these changes, and then them seeing the benefits of those changes.



Griffin Jones  19:43

And so what about times where there are there is a bit of a conflict and I couldn't think of an example if the patients who want evening hours for reasons that you mentioned, they're in the demographic that they're in the demographics of their working prime and they would love to, in many cases to have a 7pm consultation. And then you have a call center team that says, yeah, right, Dave, I can barely get enough employees right now to staff, my current team. And they're telling me they want more time off. And they're already asking me for a raise. And I'm at risk of losing these other two. And we've had this opening for eight weeks. And so how do you reconcile those two?



20:25

I mean, one of the advantage of being a large group is that you can have more sophisticated processes in place. And I guess one of the things we're used to in the UK, and it will take us a little bit of time to establish this in the US is, we have centralized teams to do this and virtual teams, so they can work anywhere, and have calls with patients from anywhere. And so you then fishing in a much wider pool of employees to be able to satisfy that need. And actually, for some staff working, what were for some people we considered unsociable hours is perfectly fine. That's what they want to do. They want to work those hours. And so enable it, as long as you've got the right mix of people, you can do that. I mean, to be clear, out of ours, we tend to focus on just making sure that patients can contact us rather than having full blown clinical consultations, because that would be more challenging. But we we provide services to them out of ours, just in terms of contacting and talking to us, which often is enough.



Griffin Jones  21:27

So you need a well oiled Human Resources machine in order to be able to accomplish that though, don't you?



21:33

That's right. Yeah. If you ever



Griffin Jones  21:35

read the book, traction by Gino Wickman, or heard of the Entrepreneurial Operating System, you've probably seen some version of different accountability charts. But their version of the accountability chart is that you have the CEO on top and CEO is what they who they would typically refer to as visionary integrator, and then having three core functions of the business that they would call operations, which in our case, you might have lab operations, clinical operations, you have sales and marketing. And then you have finance. And they often lump legal in with Finance, any thing that has to do with compliance, they put with the finance side of the accountability chart, and they put human resources over there. And I'm not convinced that it goes over there. I don't know if it goes in operations, I don't know if it belongs is it's for thing and its operations, sales and marketing, finance, and then human resources. How do you think that it relates into an operational system,



22:34

specifically for human resources, I would argue that there's a sort of foundational layer that sits across those pieces, because you've you've got to get the culture of the business, right, you've got to get the, the quality of the staff in right in all of those three functional support layers. And so HR needs to sit across that I mean, from a technical reporting point of view, Human Resources report in to me directly. So I work with the group, human resources director to and literally tomorrow, I've got a three hour session with her around succession planning, and the quality of the senior management team making sure that we're developing the senior management team. So I think, you know, people like business such as healthcare, Human Resources can't be a module of finance, if you like, that's down there with reporting, that it needs to be high on the agenda, with, in my opinion, direct access to me as CEO, because we employ 1000 people. And we need and our business is very much around people interactions with patients, whether that be virtual or face to face, it's all about interactions with patients. And so the staff, the quality of our staff is critical. So I would see it as being a foundational layer really sitting across those those functions. I would also argue, by the way that in a business, such as as that sales and marketing, plays second fiddle to customer services, and you've really got to have a really high performing. We bucket that all together sales, marketing, consumer services, all as one big department because there's no good having a really hot marketing department and then having terrible customer service because a lot of our business comes from reputation, word of mouth, repeat business, and that is much more effective than spending millions of dollars on marketing Pay Per Click adverts. It's so having that one view of the consumer journey the consumer lifecycle is really important.



Griffin Jones  24:48

The customer service piece of sales and marketing is that which latches sales and marketing on to operations and makes it fluid and the sales and marketing Beyond that overlap piece should really be the activation of that piece. That is the activation of that experience that they're able to achieve. On the on the HR side, you have to have a system for advancement, you got to have a system for retention, you have to have a system for recruitment. Otherwise, things can buckle, and then you can start to have a lot of challenges delivering to the patients and then you can really start to have conflict between what the patient's seen what the the employees need. Did you find that balance harder? In late let's let's call it mid 2021 or early 2021? Perhaps to let's call it mid to late 2022, than any other time in your career? Or is that just me?



25:54

I think we've posed COVID, we've all had significant challenges, right. And I think we as a business have gone from predominantly work in the clinic, culture, head office function based in one city, everybody turning up to work to other than the clinical staff, obviously, having a lot of people working from home, a lot of people, and we're seeing now, some of that coming back, we literally had a conversation with a staff member this morning about feeling disconnected from the business, and feeling quite upset about that. So we have a big meeting on Monday with the senior team were one of the topic, one of the topics is how do we keep the efficiency of the working from home model because it's undoubtedly more efficient, but made sure we don't lose our identity and people's connection to care. Because we believe ourselves to be, you know, the care family. And it's really difficult to maintain that when people are working from home as much as they are. So I think we staff retention culture, it is more difficult now, undoubtedly, because of some of the dynamics that have been created in the post pandemic employment



Griffin Jones  27:06

market. So you might be the perfect person to ask having an operations background and a finance background. And being from the United Kingdom, where they use the word redundancy in the labor force. Because one thing that I had been considering a lot as, because I really struggled with meeting client needs without driving my team crazy in late 2021 and 2022, when it was so hard to recruit, and I've been completely, I've since completely revamped my human resources system and, and now really have a system and I tell people that I'm, I think that I'm a yellow belt at it right now. And then when I write a black belt, I will write a best when I when I am a black belt at it, I will write it in New York Times bestseller, you'll see it in the Heathrow Airport, you'll pick it up off the news rack and whatever the digital version of that in the meta verse is, and I really believe that I will be able to knock it out of the park. But right now I'm a yellow belt. And one of the the or two of the opposing forces that I'm really trying to master that with efficiency, and that with redundancy. And I'll lay the premise that I believe that recruitment is a retention strategy as well, for two reasons. The first is, it's really hard to hold people accountable to their seat, if you're asking them to do more and more things outside of their seat without that which they need in order to be able to accomplish it, you have to have more people coming in, or at least a replacement level to come in so that you can maintain that level of accountability. And second is that if you get people in that are not fit with the culture, or they are not able to achieve their outcomes, and you're not able to replace them that that can turn into a cancerous environment real fast, and they can barely and why not take a vote of no confidence? Because if the other if the great people are feeling stressed out and and not getting the resources they need, then they then see. Yeah, so that premise is that retention it recruitment is a necessary strategy for retention. And I see redundancy as being somewhat necessary in order to make sure that we constantly have people coming in so that that people can be accountable for their seats, they can be supported, and that we don't have the stress of it being several months of people having to bear a burden that they shouldn't have and then all of the cultural issues that come from that. And then I've been thinking about this also a lot because we say layoffs in the United States but when people are let go in the UK it's often let go to redundancy is that so? You coming from finance Were in a perfect world, we don't want any of that redundancy versus operations were having to you have to consider the needs. What's redundancies place? And all of that?



30:12

I'm picking that question, I would say there's two elements to it. One is performance management. And one is redundancy. And I think the lack of performance management is really corrosive in an organization. And, and, and that's holding people to account for their performance. And if you don't do that, and if you allow poor performance to prevail, then it's really corrosive to good performance. And it's really demotivating to those people that are doing a good job, when they see people doing a bad job, not being held to account. It really is a it's a very corrosive part of the business, and it can be very demotivating. And so I think performance management is critical in any business, and particularly in a in a people led business, such as ourselves and a decentralized business as well. So having having really good performance management systems and processes in place is critical when you're running multiple sites, because you can't manage that from the center, you have to delegate that down to the managers, and you have to provide them with good tools, good systems, and good training to be able to know how to do performance management. So we, we follow the kind of bell curve of performance management and that we would anticipate that in any given clinic, any given department, you should have some people that are poor performance, and people that are exceptional, and the majority of people in the middle, and really try and educate our staff on how to use those tools. So I would say performance management is is a main part of what you're discussing. I think redundancy comes in different layoffs come in different different packages. So we have very rarely resorted to redundancy. And even during COVID, we didn't really do much of it. But it is from time to time, unfortunately necessary. And I would say it's necessary, really in two main ways. One is the roles just change. So you know, the world moves on and you no longer need people in a certain role. And that role becomes redundant. And it needs to progress because you now need people that are doing chatbots, rather than answering phone calls, you know, that kind of evolution of the business. And if you don't evolve with that, then you might be doing somebody a favor in a very short term, but the business will suffer in that in the medium to long term. And so you've got to do what's right by the business, which ultimately is right by the staff, as well. And the only other period of redundancy that should be considered is in a downturn of trading. But you know, Touchwood, IVF is a pretty resilient sector to be in. And there's not that much need for redundancies as a result of downturns and trading, but never say never.



Griffin Jones  33:04

How about redundancy in the form of overlapping roles, or perhaps additional roles that you might not exactly need that person. But I've coming to see that as a necessity for performance management. So one of the ways that we have been onboarding our new folks, and even with the the team that's been here for a little bit, we've created an outcome hub so that each person has their own outcome hub. And so there's outcome hub for your seat. Okay, David, here's the three to seven main things that you're responsible for. And then we have rocks that which are like quarterly priorities or priorities that take several weeks to accomplish. And each of them are associated with one of those seat outcomes. And so when you start, we go over them in detail. I'm as explicit as I can be on what the outcomes are. And, and then I delineate what we have, and what we don't have for you to be able to achieve the outcomes. And we do that from the very beginning. And so it's okay, David, your your job is to grow the LinkedIn audience by 10%. By the end of second quarter. Here's what I have for you. We have these former campaigns, I have this designer on your team. Here's what I don't have for you, I don't have a, b and c. And then we agree. And so what I've found is that I need to have those things in place, which are very often people that can be moved from one scene to another if need be, or if one of those things, if we lose one of those people that we can replace them very quickly, so that I can hold my people accountable. And the further I get into this, the more I see the two as intertwined. So if redundancy is something that often means layoffs, what's the necessity of an overlay? app that might not make financial sense on the immediate line and in the spreadsheet. But that is absolutely necessary for keeping the operational machine going.



35:12

I think overlap in the way that you describe it comes into two ways. To me, I think you've got succession planning. And when you've got some really great people at one level, and you can see a role for them in a higher level, where they can add more impact into the organization, if you, you've got to go with that. And you can't be selfish insofar as or cautious insofar as well, they're doing a great job, let's leave them there and bring somebody in above because it demotivates them, and also the person you bring in above might not be as good as they would have been. And so there's a real need, when you get that situation, when you see these rising stars, when you see these amazed at this amazing talent, that you've really got to let them shine. And the only way you can really do that is to have a bit of overlap and bring in some resource at the lower level, to work alongside them to then enable them to elevate up into the, into the higher position. So I would say there's definitely a need for overlap is I see it in that situation. And, and the prize, then is that you've got talent from within growing up in the organization. And that's one of the things that we've very proud of. And we've done in many, many situations, our current director of integration was our previous IT manager who's been with us for 25 years, and we've moved him into a new role. But to enable that to happen, we we brought two people in to succeed him in his it role, we had a bit of overlap, they hit the bottom of the line for the p&l for a while. But we're now reaping the rewards because our integration director is got such a wide variety of experiences. That one, he helps us with integrations, he can help with all sorts of challenges. And he's a great guy as well. And we've invested in him. And he's he's moving on. So I think you in business generally. But specifically, in your point here, you've got to take a midterm view on these things. And the way to convince investors to take that view is to demonstrate to them that you're making the short term quick wins, you're taking them. And you allow them to use some of those short term quick wins to invest in the medium to long term growth plans, because they want them to but they'd soon lose interest if that's all you were talking to them about. And you'd be ignoring the current p&l, let's worry about tomorrow, they would not like that. But if you can demonstrate to them some good performance, some quick wins, you buy your freedom to invest in the medium to long term, and overlap, as you call it, or succession planning is critical part of that.



Griffin Jones  38:02

Well, that succession plan, as you described, it makes filling senior positions a lot easier for two reasons. One is that if you're continually bringing junior people in, if you're continually bring lower level positions in, some of them are going to grow to be great senior leaders. So you, you have that pool to begin with. But then secondly, if for those times, when you don't have a senior leader to take from that pool right away, you still have that team in place that is much more attractive to recruit a senior leader if you have those folks. So it's it's a lot easier to recruit that talent for two reasons. You talked about that it can hit the p&l for a little bit. And you need to make an argument to the investors that it's beneficial for the midterm. So what are a couple of examples where you've done that, and you'd say, Hey, I've sat on your seat on the finance side. And I know that it's going to be it's not going to look great on the p&l for the next four months. But in two years, it's going to be amazing. And what are a couple of examples of that and what data did you use to make your side of the argument?



39:23

That's good question. The The best example I've gotten to that is when we centralized call handling, and patient inpatient handling. So this is patients that are currently patients of ours, where they would previously ring or contact each individual clinic for updates on test results or whatever it might be that they were, they were ringing for. And we were providing an okay service, but we know it could have been it could be better. And the reason for that is is the clinics. It's the laws of small numbers, right? So each clinic I only have four or five people that are dealing with that kind of request. And small teams have vulnerabilities, vulnerabilities of succession, sickness, you name it poor performance, they are exposed to small fluctuations that lead to a big impact on on on their patient service. So we decided that look, it'd be a lot easier if we centralize this, because then one or two people being off sick, or it can be covered quite easily by a much bigger, broader central team. And we can share best practice better, etc, etc, etc. So we decided to make that change, excuse me, we decided to make that change. But the, the way to do it in the most impactful, least risky patient friendly way was to actually build 80% of that central team, before letting any if the local team go for moving them into position. And that obviously came with quite a significant cost, because you're building up a team before you've replaced the other team. And then you're running them in parallel, and then you make in the final changes. And that was really about articulating the benefits to the board and saying, look, the ultimate benefits here are this. And it's going to cost us this much. And these guys are very smart people. And if you treat it in the language that they understand, which is I need to invest this much. This is my investment. And this is my return, then they can visualize that. And they just want to know, when's it going to happen? How do we measure it? What are the milestones, and that's very, then that's a very easy business decision to make. And I would argue that it's all very patient friendly as well, because not only are you ensuring that the experience whilst you're building, the team is a good one. But ultimately, we did this not to cut not to save money, it was done, really to provide a better quality of service to the patient at the end of the day.



Griffin Jones  42:05

My second New York Times best seller is going to be about pre selling and, and to what scope pre selling should fit into what constraints pre selling should fit into for the reasons that you're talking about. My first business fertility Bridge is a client services firm and was very much we're selling, delivering, selling, delivering, it wasn't it's not like a crazy, huge business. So we're able to do it. But gosh, it you know, it's it's a lot to do to sell, then deliver. And now building inside reproductive health into a trade media company, I can take my time more. And I'm building out a lot more of the delivery capacity ahead of time in ways that I wouldn't have in years prior where I would have tried to had that immediately funded. And for a couple reasons established, I feel that the concept is proven and other ways have built up that cash reserve to do it. So I'm the board that you're talking to. I'm the investors that you're talking to, in this case, because it's self funded, but I am really seeing the value of it, you know, we'll just sell a couple advertisers at a time here, we'll continue to build this system. And it there's no rush to, I shouldn't say there's no rush, we're moving quickly. But it isn't like we're having to fulfill something and we're building really building a delivery capacity is much greater advance than we would have in the past. And that's what you're describing. But it's very antithetical to, if you remember, oh, gosh, what's the Eric Ries the author of The Lean Startup, and that whole school of thought of don't ever create anything until the concept is totally proven? And so do you? At what point do you feel it's sufficient to say, okay, the concept is proven, but I really need to build out the delivery capacity before I start selling it there before I start having paying customers go through it. I think it really depends



44:04

on what it is that we're talking about. In the case of what I'm describing. We were able to trial, the service in one clinic first for a six week period to really hone in on the way it was going to work, what the pain points were, what the SOP should be, and then launch it multiple, multiple clinics wide. So I think have it in having the concept is going to be a combination of data intuition and, and feedback. And then you did try then for me, you run a trial period of whatever that might be low touch trial period. It could be that if it's a clinical service, you've heard Allison talk about care maps AI when she was on. If it's a clinical service that you're launching, there may be you do it for free for the first month just to get feedback and you understand how it's working. And then when it's working And then you start charging for it. It might be in the case of my example, a patient services change, where you do it in a small way to start with just to get that, get that feedback, get the get the process perfected, and maybe also to prove some of the business case, because it might be that the business case says that we're expecting 50% of people to do this. And if it's only 20%, then maybe it doesn't work anymore. And so you get that feedback, you get your prove or disprove some of those myths. And as part of that, and then you go with a bigger rollout. So for me, it's all about limited, limited trial periods to really then perfect what you're doing. And that becomes even more important, the bigger you get. Because the bigger you get, what would be a challenging one clinic becomes critical in multi site operations. And if you if we were to roll out a new system or a new process across 20 clinics, without really understanding the impact of that, we could have a big problem,



Griffin Jones  46:02

I want to let you conclude with the thoughts you'd like to conclude on. But before I do that, I want to tie back into the theme that I opened with of a new generation of CEOs, in many cases taking over for the previous generation who had founded their groups. And it's happening everywhere as that's happening in the UK, it's in India, it's in the United States it probably in most of the countries of the world. And so I was thinking of Gilbert Godfrey, you remember the comedian Gilbert Godfrey with the funny voice from Saturday live, but he was on the second generation of Saturday Night Live. And he said they were the cast right after the original cast of Saturday Night Live and everyone hated them because they weren't used to Saturday Night Live cast changing at that point, it would be like if somebody just replaced the cast of your favorite TV show with a new one that people weren't used to it and, and so they they got fired within like a year or two. And they said nobody liked them. And, and the the, and then the next cast was able to really take off and become the classics of Eddie Murphy. And the that whole cast of the, the early 80s. That's probably more famous than the first one now. And so you're the third CEO. I, you, you the Eddie Murphy and what's what's it what's it like to be the Eddie Murphy after? What's it like to to try to resume a legacy, I guess in leadership?



47:28

Look, I always think of myself as the custodian of the care brand. And I'm temporarily carrying the brand to the next stage. And I'm always incredibly respectful and in awe, really, of the of the bravery and the foresight of, of my founders, you know, they did an amazing job. And I kind of carrying on that legacy. But I think the challenges are different than what there were for them when they founded the clinic. And certainly the challenges of running a private equity group, over three countries were tiny clinics, is very different to found in a one clinic, in a new city. And so I think it's different skills for different challenges, different areas and different periods. And, you know, there's some uncomfortable truths that are, you know, it's really difficult when you've got 1000 people to know everybody's name. When you're, when you're the founding doctor of one or two clinics, you will know everybody's name, you probably even know what their kids names are. And so the the environment is different, and there's no getting away from that. But then it's about changing some of the things for the better as well. So one of the things that we are very focused on you talked about it earlier, is HR and making sure that we share in some of these benefits of being a bigger organization with staff and then I think people do accept the cultural change that's, that's going on. They understand it. And then yeah, and it's about remaining visible, despite the fact that we're 20 clinics, 1000 employees, absolutely trying to remain visible so that you are accepted within the organization is not just somebody that's running the business that no one ever sees, but actually they know me as as Dave, and that's really important



Griffin Jones  49:25

to me. What level of temporary is appropriate, it's a temporary custodian and and someone that is brought on as an executive of whoever the CEO of Mattel is now wasn't the CEO 20 years ago and likely won't be the CEO 20 years from now and that's fine. Then there is a tenure that seems to be just too short to make any kind of meaningful difference. So you see, lots of CEOs I look on LinkedIn is like, Oh, they're the CEO there for 10 months. What are they like a Gen Z intern? How Probably the CEO for 10 months, and then the CEO for 11 months over there, or, you know, two years and, and one of the concerns that people have with private equity with publicly traded companies with venture capital in the field is that there's churn, and there's the stripping of assets and selling it at a higher price. And then and then being gone. And five years, you've been almost five years at care. And that's, that seems like a pretty good tenure, what level of, of temporary is appropriate,



50:29

five years and three private equity firms. So, you know, I've survived survive that long, I think, I think for me that, you know, in any job you go in, and I think most people would feel that within six months of starting a new job, you've got a good idea of where you can add value and what you can do and how you can and how you can do that. And, and I've kind of been through two phases that I would say, you know, I came in as finance director, I had some really good ideas about how I can improve things. And I did that within the first 18 months. And then as CEO, I've kind of been through that period as well, where it was like, right, these are the top five things that I want to achieve as part of being the CEO of for care. And then I'd say, I've been through that. And now my, my period I'm going through with care now is we've we've got a really, really good UK business, and how can I establish that on the international stage? And that is given me growth and drive and enthusiasm to see how can we take what is a one country really successful model, then see how that adapts into other countries and other successes, and then one of my other big passions is building the team around me? And to answer your question directly, I don't think there is a prescribed time. But I, myself would feel that when I've achieved that international growth, and I've really got a strong team around me, then it would be right and proper for somebody else to have a go really, because I think no matter how good you are, there is a period where you've done the things that you wanted to achieve, and you maybe get a bit stale. And and I think I don't know what that lead time is. I hope it's not six years, but three years



Griffin Jones  52:14

after that. And that's when you're gonna retire. We'll see. Dave, our audience is fertility practice owners, physicians and executives increasingly from around the world, how would you like to conclude on the topics that we discussed today?



52:32

Thanks for giving the opportunity and, and hopefully, people have listened this far. So thanks for listening. But the way I'd like to conclude is that the US is very exciting market. And that's why there's a lot of private equity interest in the US. I think there's some really good players out there and some really good firms. But they've all got their differences. And what I would say is, it's really, I've worked on nearly 10 acquisitions of clinics now talking to doctors, spending time at their houses, spending time getting to know them, and really understanding them, every single deal is different. And every needs, people are different. And so it does worry me occasionally in the US about how many sales are being really process driven sales because it for me, I would say that if you're a doctor, you should really think about what it is that you want, or unknown, or I should say, what it is that you want. And if that's the biggest check, that's fine. That's totally acceptable. But in my experience, that's not always the case,



Griffin Jones  53:37

process driven sales not happening to that degree in the UK, in Europe. In your view, though, what do you think are the main differences? The main,



53:47

it depends on the process, first and foremost, but generally, yeah, in a process, you don't get a very tailored deal. It's a very off the shelf deal. And in my experience, you you often have clinics with three or four owners, and each one of those owners might have different desires for the future. Some might want to retire straight away. Some might want to be with a business for 10 years, some people want to do research and development. Some people want to be just business people. And it's really difficult for a buyer to be able to present an offer in a structure that's really tailored to the those individual people's needs and desires when you're kind of held off, but a distance with an advisor in the middle, not necessarily with those same motivations. So it really it's horses for courses, as we would say, in the UK and it you've just got to think through what it is that you want from a sale and and we pride ourselves, really and I personally pride myself so I'm really trying to understand what it is that the sellers want, and then try and come up with a structure and a way of working that that satisfies those needs.



Griffin Jones  55:02

Why do you suspect that that type of process sale is more common in the US than it is in the UK, in Europe,



55:07

I think the pace of change in the US is faster. You know, we've been going through a consolidation process in the UK for over 10 years, I did my first acquisition in the UK back in when I joined 2014. And we're still doing them now. So it's been a much slower process in the UK, whereas the pace of change in the states seems to be a lot faster. And I think maybe clinics are getting not forced, but are feeling the pressure to settle and move on. And that maybe leads them to stay where they are going with these very fast six week advisor led processes, which, like I say, it's horses for courses that might suit some people, but this is advisor



Griffin Jones  55:53

being the person that represents the sell side. Yes. And so normally, that they the Steelmen argument for that would be you need somebody to advocate for you. And, and so what's the drawback? No, no, it's



56:09

not saying that you don't need sell side advice. It's, it's the type of sales. So sales side advice is critical. And these advisors do an amazing job. But it's when it's a very fast six week process and pious beard winds kind of thing might be perfect for some sellers. But in my experience, what you'll find is that there's sometimes a misalignment after the sale, because you didn't really get chance to talk about what it is that you want and what it is that they want. And how can you it was very quick. It was a very quick process. And so this is quite often somebody's Lifetime's work, right, they spent 20 years building this business, why not spend a little bit longer, just getting to know who it is that you're going to be partnering with after the after the deal would be my main advice, really, to people. And then, as I say, my passion and, and cares passion. And having done lots and lots of these acquisitions over the years is to really understand what it is that people want, and then to try and tailor that deal to suit them.



Griffin Jones  57:12

Dave river CEO of care fertility, thank you very much for coming on the inside reproductive health podcast.



Sponsor  57:18

This episode was brought to you by Univfy Download Univfy’s free IVF conversion and revenue calculator Univfy.com/IVFpatientretention. 



Today's advertiser helped make the production and delivery of this episode possible for free to you. But the themes expressed by the guests do not necessarily reflect the views of inside reproductive health, nor have the advertiser, the advertiser does not have editorial control over the content of this episode. And the guest appearance is not an endorsement of the advertiser. You've been listening to the inside reproductive health podcast with Griffin Jones. If you are ready to take action to make sure that your practice

174 The Rise Of In-House Genetics Counselors At Fertility Centers: Featuring Amber Gamma



 In-house genetics counselors may be on the rise among fertility clinics. Amber Gamma, genetics counselor at IVI RMA America, discusses why the profession is trending toward in-house positions, how to address the challenges of funding their placement, and why you might want one of them on your side when it comes to litigation. 

Listen to hear:

  • Which genetic counseling are more suited for in-house vs. external genetic counseling telemedicine companies.

  • How much these in-house positions earn, and how much they cost.

  • Tips on how to bill insurance for genetic counseling.

  • Amber’s response to Dr. Norbert Gleicher’s criticism of the overutilization of PGT-A.

  • What AI will take away from the genetic counseling field, and what will remain in their control.

Amber Gamma’s Info: 

LinkedIn: https://www.linkedin.com/in/ambergamma/

Transcript


Amber Gamma  00:04

One of the biggest barriers, I think, to having an in house genetic counselor is that genetic counselors are not recognized as providers by CMS at this point. So that can make billing pretty challenging. That being said, we do still see that genetic counselors across the country bill, if you're working in a state that has licensure for genetic counselors, you're going to have, you know, a higher chance of success with billing and with significant reimbursements. 


Griffin Jones  00:29

Does your fertility center have an in house genetic counselor? Are you thinking about having an in house genetic counselor? I talked with Amber Gamma. She's an in house genetic counselor for the RMA network. She has been in house elsewhere in the fertility field. She's been on the industry side. She has a master's in genetic counseling from Sarah Lawrence College. She is a board member of the genetic counseling professional group that subgroup within SRM. So I asked her what percentage of fertility clinics have their own in house genetic counselors, that number appears to be on the rise. She talks about the total number of genetic counselors there are in the field, I have her detail what those specific roles are versus which roles are better off for an external genetic counseling telemedicine company. I asked her what kind of revenue and in house genetic counselor brings in and how much they cost. She gives us tips on how to bill insurance companies for genetic counseling. I asked her to comment a little bit on Dr. Norbert Gleicher’s, criticism of the overuse of PGT-A. I don't get too deep into that, because I'm not qualified to but I wanted to see if she thinks that having more genetic counseling in house will utilize less testing or at least different kinds of testing. And then I needed that clarification from her that you may not need of the overlap between genetics counselors and genetic testing labs. I thought there was a lot more overlap. Maybe you do too. So I asked her to delineate that we talked about the advantages and disadvantages to genetic counselors, career mobility being in house versus with a much larger company. And then she concludes with the functions that artificial intelligence will probably take away from the genetic counselor in the next year or two. And what will have to remain within the genetics counselors purview enjoy this episode with Amber Gamma, Ms. Gamma. Amber, welcome to inside reproductive health.


Amber Gamma  02:16

Thank you. Thanks for having me.


Griffin Jones  02:17

I'm trying to think if you're the first genetic counselor that I've had on the show, and I'm gonna feel really bad either way, I guess that I haven't had one over 180 episodes, or that there have been one or two that I'm forgetting. And then I'm going to feel really bad. But welcome. I want to talk to you about genetic counselors in the field. And I want to talk to you about their role in external companies versus being in house for a fertility center, you are in house for e vrma. And can you give us some context about how many genetic counselors there even are in house in fertility centers in the US?


Amber Gamma  02:55

Yeah, so it is around, I would say 20, at the moment. So the National Society of Genetic Counselors does a professional status survey every year. And so in the latest professional status survey, there were about 50 genetic counselors that reported working in this field entirely. So that would encompass your in house genetic counselors, your PGT, labs, your gamete. Banks. So that is growing, it was about 40, a couple years earlier, so we're growing pretty rapidly. But in terms of the in house, GCS, that's definitely where I think we're starting to see a bit of an inflection point and some more growth


Griffin Jones  03:33

of those 20. Do you how many are with IE vrma? How many colleagues do you have at your own company?


Amber Gamma  03:40

So two, as of today, I was the only one before that.


Griffin Jones  03:44

And so the other 18 that might be out there? Do you have an idea what the kind of distribution is between if they're at large group networks? Or if that among independently owned Fertility Centers? Do you have any idea,


Amber Gamma  03:57

you do tend to see a fair number that work in academic centers? So within I'm based in New York City, within the New York City area, a lot of my colleagues are based at, you know, large academic Fertility Centers, you definitely will see genetic counselors in privately owned groups as well. So specifically on the West Coast, within the Seattle area, I have a few colleagues that work, you know, kind of in more private practice. And I will say it does tend to be pretty distributed to the coastal areas. At this point. I definitely do have some colleagues in South Dakota, Missouri, but largely, you'll tend to see that we do kind of fit along the coast a little bit more.


Griffin Jones  04:36

So we think that there's 50 in the field based on the National Society of Genetic Counselors survey, you mentioned that you've thought there's an inflection point going upward for in house Janet concert. That is say you think that there is a trend of more genetic counselors being brought in house tell us more about that.


Amber Gamma  04:58

I think that we're really reaching a point where reproductive genetics and genetics generally is becoming so important in the field of fertility medicine. And that is because of the technologies that are picking up steam within our field, but then also genetic testing technologies and other areas of medicine. So things like pediatrics, you'll have, you know, a lot more genetic testing that goes on for kiddos that have pretty complex medical issues. And then you may find a genetic cause for that child's medical issues. The couple still wants to have more children. So they're coming in for fertility care to be able to reduce that risk. So I think that we're starting to come across some more complex genetic situations where providers aren't necessarily feeling so comfortable dealing with those situations, and feeling confident in their counseling abilities to be able to guide that couple appropriately.


Griffin Jones  05:50

That makes sense why we would expect to see more genetic counselors in the field, you mentioned that it's up fifth, the from 40, a few years back, but why in house,


Amber Gamma  06:01

because for me thinking about an in house genetic counselor, it's really all about, you know, what you really deal with improving the patient experience, right? When we have a couple that comes in, and they've had previous genetic testing, for example, the genetic counselor that works at the PGT lab isn't really going to be focused so much on the appropriateness of the testing, how the how the results will be handled, what we would be thinking in terms of embryos that are eligible for transfer versus not eligible for transfer, the conversation that really happens with the genetic counselor, the PGT lab is more going to be focused on, you know, this is how we set up the PG TM testing this is the process that we're going to go through this is what's needed. But there is always a discussion that needs to happen about how is the couple wanting to use these results. You know, if you're finding things like variants of uncertain significance that are not black and white on genetic testing, how are we going to be handling those? Are we going to be testing for them? Are we not going to be testing for them? What are the couple's goals and testing for them? So those are all things that an in house clinic based genetic counselor can really explore thoroughly with a couple that may not necessarily be part of the PGT lab conversation.


Griffin Jones  07:18

How do you envision it being structured because if there is a an inflection point, and we start to see a growth there, then I guessing we would start to see divisions departments, or at least teams of some kind right now, you're with a really large company, RMA does several 1000 cycles in the US. And there's you said you have two colleagues right now. So there's three of you for this very large company, what will the structure go on to look like?


Amber Gamma  07:48

So there's just two of us at the moment? My second one is starting today. Yeah. So I think that's really going to be dependent on the company. And, you know, for example, obviously, working for such a large company, it's not like I've just been able to come in and take on all of the genetic counseling that happens, it's really been focused towards things that we feel like are more important to be in house versus things that could potentially be handled by genetic counselors that intelligent addicts companies, for example, right, those supporting the supporting organizations that can help bridge the gap if there are not in house genetic counseling services that are available. So over time, what we're really hoping to do as we build the team is be able to bring more in house to be able to provide a better patient experience that continuity of care. Because also in house GCS are very familiar with the clinic policies and how we do things and tele genetics companies, when you're working for multiple different clinics. Those genetic counselors don't feel like it's their role to really be able to say, well, this is what study your particular clinic. It's more this is the information that we have about this genetic testing results and the possible avenues that can be considered. So we're definitely hoping to build a team that can help improve, you know, the genetic counseling services that we provide by you know, potentially bringing more in house and be able to have the resources for our providers to go to you and for nurses to go to when they encounter situations and they need


Griffin Jones  09:22

guidance. Tell me more about those roles specifically and how you see them differentiating from the help that you might be augmenting with at Tella genetics companies, you talked about being a resource for the providers, being able to have more background for the processes that you're running at your clinic as opposed to here's just a particular type of tasks but as specific as you can be talk about what those roles will do versus what the external roles might do.


Amber Gamma  09:57

So for example, I think what a lot of people Little are facing right now is the issue of mosaicism on PG TA, right? So if, as an in house genetic counselor, I'm aware of what our philosophy is when it comes to mosaic results, what our transfer policies are, and our workflows. So things like consent forms that need to be signed, what needs to be in the patient's chart for our embryologist to say, Okay, this embryo is going to be transferred. And so it's a much more seamless process for our patients, right? They meet with me, I handle the consent form, everything is in the patient chart. And there's no questions along the way. If you're talking about, you know, an external genetic counselor at Atella genetics company, they're obviously working with many different clients. And as I said, as a separate entity, a lot of those genetic counselors report not feeling comfortable speaking to that particular clinics policy. So they're going to be saying, well, this is the information and this is the data that we have about transfer of these embryos, go back and speak to your physician and talk about what their clinic policies are, what pre transfer requirements may exist. And so as I mentioned, it just kind of creates that more seamless process for the patients, and having, you know, more of a way that they can feel, I think, supported through that process.


Griffin Jones  11:15

That makes sense to me, I'm trying to think of it in terms of economies of scale, and I'm comparing it to something that I know better, which is marketing firms, marketing agencies, and some corporations have in house marketing agencies, and some do it for reasons of cost effectiveness. And it's almost never more cost effective. So even if you think of very large agencies and very large corporations, you think of a Pepsi, and maybe they're with Saatchi and Saatchi, or universal McCann or group M, or one of these really large Madison Avenue agencies, there will be an entire division that's just on Pepsi, but they're employees of the agency. And so what about a genetics company that has a dedicated rep for a particular clinic or particular network where they are trained on that clinic groups philosophy that clinic groups, workflows, has access to put things in their chart notes, their transfer policy? Why wouldn't something like that be able to work?


Amber Gamma  12:23

I think that there are some questions to be asked about, you know, as a, as a healthcare entity, how much access you want to be able to give to external companies about things like patient information, etc. Right? So usually, in situations where we are referring out for those services, it may not be the case that that service has access to the entire patient chart, right? Because is that really appropriate? Do we really want to be giving that access just from like a HIPAA point of view and a regulation point of view? I think that this is more related to patient care as well, right. And so I know that having the relationships with nurses and physicians within the clinic and them knowing that they can come to me, and having spoken with patients and them knowing that I work for the clinic itself. Again, I just think provides a better patient experience overall. And we do see this reflected, you know, I there was a survey that was done at practice managers that was presented at ASRM last year about people that had hired in house genetic counselors. And the majority of those participants said we did it to try and improve the patient experience. And they felt like it had done that, you know, so we do tend to see that there is this feeling within the field as well that, you know, having the in house genetic counselor is beneficial to be able to improve patient care.


Griffin Jones  13:51

Are you working with all of the different offices of RMA right now, all of the providers across the United States? Yeah. How is that workflow managed.


Amber Gamma  14:03

So we have a very clear list of indications for which patients will come to see me and then we have workflows for other indications, you know, when May a patient be referred to an external service? And so we train our staff really, and we have resources available for the staff, and then it's just habit building over time, right. So, over time, the nurses and the physicians have learned, they can always reach out to me with a question, I'll always direct them in the correct way.


Griffin Jones  14:31

Well, that's how I mean so even if you have a policy of which patients you see and which patients are referred to an external agency, if you are the only person who this is their sphere within a very large organization, are you not getting pinged with emails constantly about what about this? What do you think about these things that aren't even part of your, your ticketed workflow?


Amber Gamma  14:54

Yeah, yeah, I do get a lot of those emails. And so that is a large part of my day as well. Well, it's just being able to provide that support to our providers and to our nurses. What are they asking you? They're asking me about carrier screening results. They're asking me about, you know, what do you think about this history or this genetic counseling note that we got? What do you think needs to be done for this patient? And yeah, I mean, depending on the day, it can be a lot of emails, right. But I think that's one of the beauties of having an in house genetic counselor is that those individuals know that there's someone that they can reach out to that they trust, and that they know is going to be very responsive to be able to get that answer.


Griffin Jones  15:34

You talked about There are criteria for which patients see you and which patients may be referred to an external company. What are the criteria for patients that are a good fit to be referred to me an external to an external company,


Amber Gamma  15:49

it's going to be your more routine things. So things like carrier screening results that don't show an increased reproductive risk. The it's the more complex things that come to me where those clinic policies really become important. So things like mosaic embryo transfers, segmental aneuploid, transfers, complicated PGGM cases. So your more routine stuff is going to be referred out and it's the more complicated stuff that we keep in house.


Griffin Jones  16:16

What kind of revenue does one in house genetic counselor bring in?


Amber Gamma  16:21

Yeah. So this is something that the genetic counseling professional group is working really hard on right now. One of the biggest barriers, I think, to having an in house genetic counselor is that genetic counselors are not recognized as providers by CMS at this point. So that can make billing pretty challenging. That being said, we do still see that genetic counselors across the country bill, if you're working in a state that has licensure for genetic counselors, you're going to have, you know, a higher chance of success with billing and with significant reimbursements. There's a few different strategies for revenue generation may be billing directly under the genetic counselor for appointments, a lot of genetic counselors and other areas, see patients in conjunction with a physician. And so the billing is done under the physicians name. There is also the opportunity to think about bundling in a fee. I know some of my colleagues at their institutions, there is a fee built into embryology fees as part of the IVF cycle that generates revenue and income for the position.


Griffin Jones  17:26

You mentioned some states where there is licensure for genetic counselors, do you know some of those states off the top of your head?


Amber Gamma  17:34

Yeah, um, so a lot of the states that I practice in New Jersey, California, Washington, Florida, Pennsylvania, New Hampshire, Connecticut, it's the majority of the states at this point, I think we're around 30 to 35. And then in a lot of states, like in my resident state, New York, there are active licensure efforts to be able to get bills passed and get licensure in place.


Griffin Jones  18:04

And so those are the states where it's easier to bill directly under the genetic counselor typically,


Amber Gamma  18:10

yeah, when you look at the data, you do see that the licensure does increase the chance of getting reimbursement from insurance companies.


Griffin Jones  18:19

And those where the genetic counselor is meeting in conjunction with the physician and billing on to the physician, does that typically happen in states where there isn't licensure for?


Amber Gamma  18:29

Yep, it'll it can happen as well. In states where there are licensure, it depends on your area of practice. So for example, if you're a genetic counselor working in pediatrics, all of your appointments are going to be happening in conjunction with the physician. prenatal appointments pretty often we see that and I would say it's less common within the field of infertility, but it's always something to consider. If you're thinking about getting a genetic counselor and thinking about billing strategies.


Griffin Jones  18:54

This may be a question for a billing person but I'll ask you in case you know it, do you know about the differences between the traditional insurance companies that united Blue Cross and how they bill genetic counselor time or don't, versus the employer benefits companies, carrot progeny kind body.


Amber Gamma  19:16

So we're really lucky actually progeny recently started to cover genetic counseling services. So we're seeing some changes there. You're big players like Aetna, UHC, Cigna. We do tend to see reimbursement from those insurance companies. I know in New Jersey horizon Blue Cross Blue Shield is a bit of a challenge, you know, to get reimbursements. And there are still some insurances that don't credential genetic counselors, but that doesn't necessarily mean that you won't get reimbursement. So sickness and example they don't credential genetic counselors as providers. But if you build genetic counseling services, we do see that you do get reimbursement in most cases.


Griffin Jones  19:57

I am going to do an episode soon. specifically about reimbursements and negotiating with insurance companies, I have a CEO coming on to talk about that topic. So we don't have to go all the way into a book, what other Can you give us for being able to get reimbursed for in house genetic counseling?


Amber Gamma  20:13

I mean, I think that as much as possible, if you're bringing in a genetic counselor, genetic counselors, it's a small community, we tend to be, you know, connected to each other. And one of the things that the genetic counseling professional group is trying to do is to be able to set up resources, that providers who want to bring an in house genetic counselor have access to on these types of topics. So being able to tap connections and these types of resources, always a good idea. I think the other thing when you're thinking about setting pricing is, you always want to consider that sweet spot of being able to try to get significant reimbursement from the insurance company. But if you're going to be balanced billing patients, and the case that the insurance does not cover the cost of that, you want to be able to have it be an amount that is so reasonable, you know, for the patient to be paying. So you know, when I've looked into this before, you'll see varying amounts I've seen, like around 100 150. And these are the types of amounts that people are playing around with to be able to see, okay, what do we get back? What are our patients being responsible for? So I would say it's an ongoing area of experimentation. And and there are federal advocacy efforts that are ongoing at the National Society of Genetic Counselors, to be able to try and get us recognized as providers by CMS. We're just working on getting ready to reintroduce that bill with the new Congress session. So, you know, I think once that gets passed, the billing landscape is really going to change.


Griffin Jones  21:40

How much does a genetic counselor cost? And what is the point where it's more cost effective than using someone externally? Yeah.


Amber Gamma  21:49

So you get when you look at the professional status survey data of the genetic counselors that are reporting working in this area, and this includes all settings, you'll see a salary of around 100,000 250,000 a year. I think one thing that we do have to keep in mind, as well as it's not just necessarily about revenue that has been brought in from the patient appointments. Having a genetic counselor in house also provides a level of protection for the practice. Because genetics is complicated, you make one mistake, and there's one lawsuit that's brought against, you know, a practice, that's going to be millions and millions of dollars. And so having a genetic counselor that can prevent that money from going out the door, when a lawsuit is settled, is going to be able to, you know, help offset some of the costs of actually having that genetic counselor in house. Also, we hear this pretty commonly, you know, the the concerns about the salaries of genetic counselors, there are other staff at fertility clinics that do not actively bring in revenue that are seen as crucial and important to patient care nurses being a perfect example. And over time, we've seen the importance of nursing within this field increase. And I do think that we are going to go the same way with genetic counselors.


Griffin Jones  23:06

I wouldn't say that nurses aren't tied to revenue, they're not tied to billing, you're not you're not billing for you're not billing the insurance company for the nurse. But if you have an REI that can do X 100 retrievals versus y 100 retrievals, the number of IVF coordinators that they use, typically variable to that. So I would say they're part of the capacity, do you for sure. Do you see genetic counselors is being able to improve the overall capacity in terms of the number of cycles that can be done with genetic testing?


Amber Gamma  23:44

I mean, I think that having a genetic counselor definitely reduces provider time and having to, you know, try and counsel on genetic tests, trying counsel on on results. And through that process, you're you're improving processes like informed consent, right. So when we think about just patient care from a genetic counseling role point of view, I would definitely say that it reduces provider time. We also know that genetic counselors within fertility clinics are not just limited to seeing patients, they're gonna have other roles as well. So this may include things like being part of a third party program, or helping to manage carrier screening workflows, or acting as liaisons for labs. And so all of these things can help reduce time that is spent by other staff within the fertility clinic on some of these matters. So if not about


Griffin Jones  24:35

revenue, but about scale, what size of practice group do you think is too small to bring in a genetic counselor again, III vrma is multinational RMA in the United States is still doing several 1000 IVF cycles and you now have one peer at your company. At what point do you think it makes sense to bring someone in?


Amber Gamma  24:58

I think if you're encountering a lot have genetic testing. And you are feeling like your staff does not have the confidence to be able to deal with that genetic testing and counsel appropriately on it. I think that's really when the discussion should be starting. So we're working on a an abstract for presentation that we're going to submit to ASRM this year, which has just been a survey of in house genetic counselors across the country. And when you look at the number of cycles per start, you know, in terms of the the clinics that do have genetic counselors, yeah, we're talking about clinics that do tend to be on the larger side, like more than 500 cycles a year, right. But you will see one or two clinics that definitely are on the smaller side that have genetic counselors. So part of it is going to be volume, but part of it is also going to be how important do you feel like having that in house support is for your patients? You know, as I mentioned, there may be more opportunities at academic Fertility Centers, if there are already genetic counseling resources within the institution itself to kind of form that relationship with those genetic counselors. But I think, you know, really, once you grow, and you're kind of encountering this more, and you feel like that level of confidence is coming down, that's really when you need to start having that discussion.


Griffin Jones  26:19

Does having genetic counselors in house and doing more of the genetic testing in house change the type of genetic testing that is done on the aggregate versus using a vendor. So


Amber Gamma  26:35

it, it will and it won't, the way that it won't, there is this common misconception or that has sometimes been encountered that as soon as you bring a genetic counselor in house, that all of a sudden you can do any type of genetic testing. And there's really two different types of genetic testing, you're going to have your screening testing, which is more like your carrier screening ahead of time. And that's definitely things that genetic counselors that are working with infertility clinics feel like it's within their scope of practice to order. One other thing that you may encounter is you may get a patient come in that has a complex medical history with a suspicious diagnosis, they haven't been able to make it into see a geneticist yet. And sometimes I do get requests about, you know, can we order this testing for this patient, but that's diagnostic testing, that's testing for the patient to be able to establish a diagnosis for them. So that is not genetic testing that you know, generally fertility GCS feel comfortable ordering, because it is not within our scope of practice. That being said, even on the carrier screening side of things, you tend to start picking up on things that may not have been picked up on before you were in house. And testing starts to be ordered for that. So a good example, you'll get a lot of PGDM cases these days for BRCA one, BRCA two, those two genes are associated with dominant conditions. But they're also associated with recessive conditions. So when you're meeting a couple, and one of them is positive for one of these two genes, one of the things that we usually think about doing is offering genetic testing for the reproductive partner, to be able to see if that partner is also a carrier, maybe he's not aware. And so those are the types of situations where you start to see more discussions happening. That may not have been happening before you had an in house genetic counselor.


Griffin Jones  28:24

How about with regard to the prevalence of even doing PG TA and reason I think to ask this is because I recently interviewed Dr. Norbert glacier. I think his episode will come out before this one does. But in either event, people should listen to that episode. And I want to make sure that I'm paraphrasing Dr. Glaciers argument, right. But in a nutshell, he views that PG TA is far over utilized for lack of scientific consensus and believes that at least in part, it's due to the influence of the lobbying for lack of a better term power of genetics testing companies that in his view, they have replaced the pharmaceutical manufacturers as the big spenders at the conferences and have a lot of influence that is based on their their sheer marketing power. And we didn't talk at all about genetics counselors being in house. So I wonder one if you share that view, if I'm representing it correctly, and people should listen to that to make sure that I am, but to if we might see a change in behavior, particularly with regard to PGA if it's not about being referred out to somebody else.


Amber Gamma  29:49

So I'm obviously very familiar with Dr. Fletcher's point of view on PG TA and I think it comes from I think he and I differ in our perspective. ofs, but we share a common criticism of PG TA. And that's really that if you're going to be bringing a test to market, you need to have a very good understanding about the clinical outcomes for all of the different possible results. So your chromosomally normal your PDT and negative embryos. We know a lot about that, because we transfer those routinely, your mosaic embryos, we've gotten a lot of data on those within the last seven to eight years. The one thing that we don't have a good understanding on for most of the labs, in terms of what they've actually published, is your whole chromosome abnormalities, right, you're plus 21, you're minus one. A lot of clinics don't transfer those. And when you think about the commercial PGT laboratories within the US, there's only one PG ta lab that has done a non-selection study, and has transferred over 100 of these chromosomally abnormal embryos, to be able to understand how many of them make babies, how many of them don't. So that was the Ashley TEKS study, they transferred over 100, and none of them made babies. So if you don't have a good understanding about the clinical validation of your PG ta platform, you can't say with confidence to patients, when you get and whole chromosome aneuploid results, what is the chance that that would make a baby? Right? I've worked with labs that have this information and that don't have it. My counseling with labs when they don't have this information is, yeah, I think there's a very high likelihood that that embryo isn't going to progress to a full term pregnancy. But because you can have these cases squeaked through, that's really what's fueled the glacier controversy, and sort of that perspective of things. But I think if we could get to a place where all of the PGT laboratories have this information, then I think that critique really dissolves, because we have the data to be able to tell us, you know, whole chromosome abnormal embryos with next generation sequencing technology, do they make babies? Do they not make babies?


Griffin Jones  31:58

But then the thought that comes to my mind as a dummy is why do they not have that information?


Amber Gamma  32:04

Because it's very challenging to do as a study, right? You know, when you think about the teak study, that was obviously, because there was a very close relationship between the PGT lab and the fertility clinic that was really working with them. So you know, other labs that don't have that type of relationship? How do you really build that relationship to be able to get that study going, and also, as a study, transferring the abnormal embryos, because we know that there is such a high likelihood that they won't result in successful pregnancies? So a lot of ethical questions that come up, right, and may not be something that all institutions are super gung ho about doing, even if we know that it is something that is so important to this field.


Griffin Jones  32:43

You talking about this? And what you said earlier about one of the advantages for genetic counselors being in house is that they know the fertility clinics transfer policy, they know that fertility clinics, philosophies on different things like mosaicism, how much influence will genetic counselors have over those things from the beginning going forward? And in other words, how much influence will they have over the transfer policy over the group's philosophy on mosaicism and other elements?


Amber Gamma  33:16

Hopefully, more. I mean, I know at my previous institution where I was before my current position. When I had first started there, the conversation about transferring mosaics came up. And the policy was set. And then two to three years later, I was monitoring the the research and the data that was coming out. And I brought it to the physicians and I said, Listen, our policy is not reflective of the data anymore. If we want to be an evidence based practice, we really have to reassess this. So I think that genetic counselors in house can be a huge resource for helping to direct clinic policies based on the evidence and based on understanding of genetic testing.


Griffin Jones  33:55

That brings me back to what you talked about with risk. And maybe that's one of the ways that you see in house genetic counselors being able to reduce legal risk. Tell us more about that. How would an in house genetic counselor team or even one help a clinic reduce their legal exposure?


Amber Gamma  34:17

Hmm. So I think embryo disposition is a pretty big conversation now with these intermediate PGT results. So I know some of my colleagues have been really important in discussions with their institution about what do we keep what do we not keep your third party risk assessment, so things like egg donor sperm donors, especially if you have in house gammy donor programs, they can be really pivotal and being able to, you know, assess family histories, and appropriateness of gamete donors, and also be able to interpret genetic testing that is being done for those individuals. And then just generally, you know, in your day to day practice, being able to make sure that everything is being covered from a genetics point of view, we're not missing anything, results are being interpreted correctly. Those are all ways that we can assess with that.


Griffin Jones  35:12

What are if it's so important, as you mentioned, then why are genetics companies closing their fertility divisions?


Amber Gamma  35:20

Genetic testing companies?


Griffin Jones  35:23

So why why did semaphore close their fertility division? Why didn't vitae close their fertility division? If this is such an important thing, and so important that we should bring it be bring more of it in house? Why are large companies parting ways?


Amber Gamma  35:39

Well, I think we have to separate out genetic testing versus genetic counseling. So that genetic testing labs are really the ones where we're seeing a lot of shifts at the moment. And that is having some downstream effects on tele genetics companies that those labs have working relationships with. But the challenge with genetic testing, especially when it comes to carrier screening, which we deal with a lot, has always been that there have been very, very thin margins for that testing. And things change, you know, around 2018 2019, in terms of how you can bill for that testing, you could no longer stack codes, your margins got thinner, we've also changed into an economic climate where capital investment is not as readily accessible. And so I think it's a combination of all of these things, right, and also individual business practice decisions, that are really influencing a lot of the layoffs that you're seeing across companies.


Griffin Jones  36:32

Well, maybe this is an elementary explanation that my audience doesn't need, but that I'm may have benefited from earlier, I thought there was a lot more overlap between genetics testing companies and the genetics, counseling services done by tele genetics companies. Can you talk about what overlap there isn't, isn't?


Amber Gamma  36:53

Yeah, so a lot of labs will have their own independent like their own group of genetic counselors that work for that lab. But then especially a lot of carrier screening labs, you'll see that they start to build these relationships, these contractual relationships with tele genetics companies. And that's just simply because they have such a large volume of testing coming in that their in house group cannot cover all of the genetic counseling demand. So they will contract with these tele genetics companies to be able to provide your results reviews for your patients. And so the lab is then directing money towards the tele genetics company through that contractual agreements, but they're separate entities.


Griffin Jones  37:35

Okay, so the closures and the reductions that we're seeing with genetics testing labs, we're not seeing that trend with genetic counselor companies.


Amber Gamma  37:48

So like I said, there are some downstream effects, right? Because if you have a contractual relationship with a genetic testing lab that disappears over a couple of months, then you're obviously going to have a gap right in terms of what revenue you're expecting as a company. So a good example is genome medical is a tele genetics company that had a relationship with in vitae when in vitae did a lot of their downsizing and their layoffs last year, there were some layoffs that happened at genome medical later on, right. So these are examples of things where we can see more downstream effects that hit tele genetics companies because of genetic testing lab decisions, but it's really all originating from that genetic testing lab,


Griffin Jones  38:28

not originating from what could be the origin cause one being Insurance Billing that if these lab companies are closing fertility divisions and citing the lack of insurance reimbursement, are we not seeing that same trend in for the counseling companies? Or for or for counseling period?


Amber Gamma  38:54

No, I mean, you know, because we talk about billing in terms of the billing codes, right. They're seen as completely separate services. They're built very differently. And, I mean, there are some areas of genetic testing where you see much more successful reimbursement. So oncology, for example, from a from a lab testing point of view, but we're not, we're not seeing the same level of increasing difficulty that we're seeing within the genetic testing world when it comes to billing for genetic counseling.


Griffin Jones  39:26

Is there a disadvantage to genetic counselors career mobility, working for a fertility clinic, as opposed to a much larger company, given all of the different tracks that a genetic counselor could go on to do?


Amber Gamma  39:40

I mean, the thing that I've always loved about my role is you can be a trailblazer. So I think this type of role is going to attract a genetic counselor that likes a certain level of independence and likes to be able to be very innovative. I always say I would have been a horrible pediatric surgeon had a counselor because even though we're all trained in the same way, the role is very different, right? Obviously, in fertility, I'm not working directly alongside a physician every single minute of my day, whereas when you're a pediatric genetic counselor, there's a lot more of that. So, you know, when you think about working for a large company, someone like maybe a tele genetics company, there are certain advantages to that role. You know, you tend to have a lot of patient facing moments. So if you're really into direct patient care, that's a good role for you. You know, your, your company can work with a lot of different clients, if you like being able to have the influence and the drive and have a hand in many different pots. That's where I feel like the in house fertility GC role is really good, because you have those opportunities, and your genetic counselors that PGT labs are also really wonderful genetic counselors that gammy thanks really wonderful, like all of my colleagues are, are very adept and very with it, it's just that our roles differ slightly right? Your gammy being GCS, they see their patient as being the gamete donor, not the intended parent. And so their role, even though we all work within the same field can be different from what I do on a day to day basis.


Griffin Jones  41:27

What specific functions will AI takeaway from genetic counselors in the next two years?


Amber Gamma  41:34

I mean, you're starting to see like some pretest, carrier screening counseling modalities coming up that are, you know, like videos, and I think are more primed to like aI involvement there. I think at the end of the day, genetic counseling is very much a process of building a relationship within a patient within, you know, half an hour to an hour, and being able to really connect with that patient and facilitate a decision about some sort of genetic test or some sort of genetic results. I question about if AI methods are going to be able to bridge that human connection. I mean, obviously, with chat GPT, things have evolved so quickly. But I think that at the end of the day, genetic counseling really offers an opportunity to be able to connect with a patient that I don't know that AI is really ever going to be able to provide in the same way.


Griffin Jones  42:26

Well, even with Chet GPT, it's like, how do we know that? That's real insight? You know, yeah, I think it's going to be a while before we can tell what insight artificial intelligence is able to provide, because we often can't tell what insight real intelligence is able to provide. And at the end of the day, you're helping someone to make a decision that isn't necessarily a plus b equals c, there's an excessively anti factor and people need help digesting it. And so what are actors envision the role of genetic counselor will become as more of the predictive analysis moves to artificial intelligence, what will the role of the genetic counselor become?


Amber Gamma  43:14

I think it's really going to be focusing on those more complex cases where like you said, the decision is very unique to that patient or to that couple, based on what their fertility history is, what their treatment journey has been, where they're at emotionally and financially, and you know, what their goals are in the short in the long term. Those are the areas that I feel like, genetic counselors are really going to be able to thrive and build that role. But I agree with you like there's more predictive things or more routine things, that I think there are opportunities for scale and opportunities for technological support, to be able to target the resources of in house genetic counselors, to the things that really need it.


Griffin Jones  44:01

There's probably a couple of AI companies listening, being like Go on, what are areas where you where would help to have more of that support.


Amber Gamma  44:11

I mean, if you think about how often we're doing carrier screening, there's a lot of you know, let's say that you have a couple where they're both negative on that carrier screening, what's important for them to know, it's important for them to know their results, but it's important for them to know that this test is not decreased all genetic risk, right. And those are the types of things where that conversation is going to look very similar from patient to patient. So that's the type of opportunity that you may think about creating technological support for same thing for low risk carrier couples. So one partner is a carrier or something the other partner isn't. That counseling session looks very similar, but just with some added information about the genetic results that was identified. And then again, risk is reduced if not eliminated, but again, those those types of conversations look very similar from patient to patient. Those are really going to be I think the first areas are the low hanging fruit for more technological support.


Griffin Jones  45:02

And we're How would you like to conclude knowing that of 180 episodes, this may be the first where I've even broached the topic of genetic counseling. And if there have been one or two others, I apologize, but knowing that most of our audience is probably not genetic counselors, I do get notes from them sometimes. And if there are topics that I'm not covering, please do reach out, because this is how conversations like this happen, and we're able to create more content and serve the broader audience. But the majority of our audience being Rei is being execs being practice owners, how would you like to conclude


Amber Gamma  45:39

just that genetic counselors are way more than just people that see patients, there are ways that can support physicians, practice managers, you know, clinical operations, directors, and many, many more ways than you think just by hearing about genetic counselors. So, you know, I think having a genetic counselor has been so beneficial for the people that have brought them in that I think it's really worth considering, okay, how can we make this happen in the future. And it's been an honor to potentially be the first genetic counselor that has been on the show.


Griffin Jones  46:12

And we're gamma. Hopefully, it's not the last time either. Thank you very much for coming on inside reproductive health. Thank you.


46:19

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health



171 When Millennials Run An REI Practice. What Young REIs Must Know About Arbitrage



Stephen’s Info:

LinkedIn: www.linkedin.com/in/stephen-hutchison-61583697

Website: https://ivftucson.com/


Christine’s Info:

Website: https://ivftucson.com/

Transcript




Griffin Jones  00:45

You make money when you buy, not when you sell. Of course, that's not true in every sense. But you're going to hear me say that a lot in this episode, because we talk about the concept of arbitrage and it's a really important concept for you younger doctors, especially to understand what does it look like when millennials run a fertility practice an independent fertility practice? Not just the docs, but the embryologist the business managers are millennials. Is that happening? It is happening and we talk about that in this episode. How do younger Rei guys find the best value in an REI practice? How do they find the REI practice equivalent to the underpriced house in the up and coming neighborhood that is underpriced for some market inefficiency, but not because it needs so much work. And because the neighborhood is underpriced because it's on the rise, not because it's in a really bad neighborhood. That's the concept of arbitrage. How do Rei guys find those deals for practices? Talk about that, if you're going to PCRs you're going to see a whole team of people wearing one kind of shirt that are from an independent fertility practice putting on an event for you. How are they able to do that? What's What are they all about? We talk about that in this episode, we talk about the changes that millennials are making in fertility practice, things like embryo storage, and cryo inventory. And finally we talk about a culture where you can bring your baby your child to the fertility practice. Have you seen that in many places, it's happening here and I hope you enjoy this conversation with Christine DeLuca and Steven Hutchison. Mrs. DeLuca. Christine, Mr. Hutchison Steven, welcome to Inside reproductive health.


02:38

Thank you. Thank you for having us. Yeah,


02:41

thanks for having us, Griffin.


Griffin Jones  02:43

You know, I told you that I was going to make this episode about millennials running a fertility practice and that I was not going to let it be any kind of baby boomer bashing session. So I'm wearing khaki pants right now. It with New Balance sneakers. And if you're not watching this on video, then you can believe that and that I'm wearing a striped polo shirt. And I make sure that this is entirely a proactive session. But I'm thrilled that both of you on because I think it's such a cool, unique story. And before we start done pack the whole story, will you please each just give us a one minute background of how you got to be in your role in the fertility center that you're at now?


Stephen Hutchison  03:33

Yeah, I can I can go first. So you know, I learned early on kind of in life that I didn't want to be a physician. So my dad will talk about is an REI. My mom's an OB GYN. I learned that's not really the life that I want to lead. And I really liked science. I really like research. And so I pursued my Master's at the University of Arizona in physiology. So I was studying kind of metabolism and aging and circadian biology. And out of the blue one day, Holly, my aunt, the practice founder with my dad, text me and she said, Hey, have you ever considered embryology you're Andrology before? And I told her I hadn't I had never even considered that as a career path at all. So my plan was to continue my PhD at the University. But she said Hey, before you do that, come and check out the lab, see what it's like. And I did and I fell in love with it immediately. So after that I meshed really well with our other embryologist Ava. She has 20 years of experience. And so since then, she's been mentoring me. I've learned a lot and so we've just kind of been humming along since then.


Christine DeLuca  04:40

Yeah, and then I kind of started this whole thing I've been working at Reproductive Health Center since God I think I was eight. I mean, started washing speculums doing all the dirty work all the fun stuff too. And you know, work there all throughout. High school and college, and then went off into the world tried to make my own whole scene decided to work in finance for quite a while. wasn't exactly my favorite thing. But I did learn a lot. I mean, it's a very interesting way to kind of start, you know, working for major, major corporations. And what I realized from, you know, the pandemic, everything shut down was living in Brooklyn, it's like, being stuck in a one bedroom apartment with your husband as your honeymoon. I mean, we got married the week before, it was not exactly my idea of a good time, I think we had, I think it was like 50 days in our one bedroom apartment, rarely leaving except for going to the grocery store. So we promptly moved back to Arizona. And then I mean, I just see such a benefit of the work that we do in our clinic. I love all of our patients. It's interesting now being my own market, my own demographic. And it's just so heartwarming and awesome to work with my family and kind of fill the shoes my mom, but mostly handled handling the practice management side.


Griffin Jones  06:10

It's such a cool family story. And I want to talk more about the advantages of a small market potentially. But Stephen, when Holly Hutchison called you or texted you and said, Have you thought about embryology or in geology? How long ago was that?


Stephen Hutchison  06:28

That was in around kind of the end of 2020. I think,


Griffin Jones  06:34

how far into your studies, were you? Or did you have a different lab job at that time?


Stephen Hutchison  06:40

Yeah. So I had, I was just about to defend my masters actually. So I was working in a lab separate completely in basic research. And so you know, I had all the tools needed really to function in an embryology lab and an IVF. Lab. But I just never, never really considered it in terms of cell culture and things like that. So that's kind of she knew that I that I had the basics down. So that's kind of why she reached out. I mean, as you know, finding and training embryologist is unbelievably difficult now, almost as difficult is as finding our UI. So I think she just took a shot. And it really worked out nicely for us.


Griffin Jones  07:18

Yeah, well, that's one way to do it. Just text, someone that you know, going for an advanced biology degree and see if you can't sway their path a little bit. I want to give a little bit of background on the center. And you both can tell me if I'm getting this right. So we have brothers and sisters got Hutchison and Holly Hutchison Phoenix born and raised, is that right? Then, both I believe, studied some of the sciences in undergrad, Scott went on to medical school, became an OB GYN subspecialized in Rei. And Holly went the genetics route. Is that right? She became a scientist, how close to accuracy?


Christine DeLuca  08:00

That's accurate. 100 accurate.


Griffin Jones  08:03

And then at some point they decided to buy in Rei practice together started I should say start together and be 5050 business partners in Tucson, Arizona.


Stephen Hutchison  08:17

Yep. Spot on.


Griffin Jones  08:19

Then how have we gotten to the we did give a little bit of the how you each got into the roles that you're in. But the inception of this practice was 20 years ago. What What was yours?


Christine DeLuca  08:37

I think it's been 27 years. Yeah.


Griffin Jones  08:41

So 96 Yeah. So longer than some of the the junior embryologist have been alive longer than some of the youngest people that might be listening to this show hadn't been alive. And and they did that for at least two and a half decades before you each came on in your cohort. And you talked a little bit about how you arrived. What has the passing of the torch been like or? I mean, the torch isn't passed. Maybe that's not the metaphor. What has the continuation, the generational continuation been like? For each of you? How did it start? And what's gone into it?


Christine DeLuca  09:32

Yeah, I think at least in my son's it's kind of Yeah, you're right. It's not necessarily a passing of the torch. It's been kind of like a business partner that is still your family. So I I already intrinsically like know what their morals are. And we have the same one. So we never really our view or have any problems with how we want things to run or how we want things to continue. We never really have to have a conversation. It's just like the meeting in the hall our masks actually working or not. And should we like actually be wearing them? Or things like that. But um, yeah, I mean, I think my mom is just like ready to move on. She's been doing this for forever. She has other passions and hobbies. But I mean, I know that I always have a safety net with her right, she will always be one of the owners, she will always be contracted, we're always going to need her help. It just will not look like what it has in the past, right? I mean, she will just kind of be like a satellite. But it is so important, I think, to have that safety net, it's given me like, if she was just out the door in three months, I would be, I'd be really scared. So I'm really glad that I have that. You know, just the support. If in case I run into anything, but I mean, she's trying to let me fly on my own, but it's not as easy as one would think.


Griffin Jones  11:02

It's kind of like so for everybody listening at home, I'm going to keep the characters straight. Because if you're reading the Game of Thrones, you're you're you're getting all these characters. So Holly sister, business side is the mother of Christine, who is now part of the business side. And Scott, Rei, is the father of Stephen now embryologist side. So Stephen, what has the transition or the continuation been for you?


Stephen Hutchison  11:32

It hasn't been all that jarring, to be honest. And this is why I don't think there's much of a distinction between Millennials or boomers. Because we all want the same thing. I do see the general trend overall of these younger fellows, these younger Doc's, especially embryologist as well, there's more of a drive towards evidence based medicine than there was in the past. And so both are our evidence standards are higher, and then on top of that, kind of our ethical standards are much, much higher than they were before. So those two things are kind of progressing along nicely. And I think and that is not to say that boomers in the past didn't care about those things. I just think, in general, now they're, they're weighed much more heavily. So I know that in our clinic, personally, I mean, this is exactly what they want. So you know, that being said, I have the lack of the breadth of experience. Like I said, 2020, so three years now less than that of experience. And so, you know, I looked through the literature, and I read things, and then I think, Well, I think I figured out IVF I think I know now how I can optimize pregnancy rates and just blow it out of the water. And then I'll march into Holly's office or my dad's office and tell them all about my hypotheses. And you know, they very calmly dismantle whatever hypotheses I have. And it's because, you know, they have all of this experience that I don't have. And so they've been thinking about these exact same problems. And so it's really nice to be able to, to one to grow on my own and to develop and to see the problems that they're seeing, and then have them provide feedback. And really, it's kind of like the same, you know, if you want to go fast, go alone, if you want to go far go together. And that's kind of the way I see it. By using that the former generation, you can actually move a lot farther than you do it alone. So


Griffin Jones  13:18

Christine, you haven't had to have any conversations about how you want things to go. You talked about that. You know who these people are implicitly and so you have the trust there. But that's different from future direction.


Christine DeLuca  13:35

I mean, yeah, that's true. I definitely. I think as far as like attitudes are concerned on their parts. And like, I think working really hard is very important, right? But I think the mentality of you must be the first person in the office. And the last person to leave doesn't necessarily sit well with me, because I always feel like I'm working anyway, whether I'm working or not, right? I think like as millennial generation, like is concerned, I feel like everybody kind of wants to be on their own and be their own boss. And so at least for me, in the side of how the workplace functions, I want my employees to be happy, I don't want to have to babysit them. I want them to be able to take time off to go to the doctor or go on vacation, right? As long as they're doing their job, and they're not leaving it to anybody else. That's more of the direction that I want. Because I think that gives people more of a reason to show up every day because they love their job and they get to have some sense of like, this is my thing. I'm taking ownership of this and if I can improve things I will and I don't know necessarily that that was always the case in in their clinic. It was kind of like everyone, whoever's here and just grinding grinding. That was I think, just like a higher I don't know how to describe it like, it looked better. But now I don't really care what anything looks like, as long as the job is being performed and people are doing what we're doing and revenue is continuing, and patient care hasn't changed, right? So that's kind of more along the lines of where I'm kind of shifting to where it was not always that way. And we're also way bigger. I mean, I think we now have 22 people on payroll, whereas before, I mean, like, maybe not even four years ago, it was like, seven or eight. So, I mean, with ARS shutting down and everything, we've just, we have so many people that we need to take care of. And we're trying to bring on more people. So I kind of want that mentality of whoever's there does, it doesn't really mean anything, if you're just sitting on your phone and watching like, tick tock, right. It's like the quality of what you're doing.


Griffin Jones  15:56

What have you all thought about in terms of either quality measurements that you want to install to be cognizant of those things or other changes that you want to make? Because even if you loved everything in the past, if we buy a new house, we have new plans for it, even if we we love what the family house has been for the last several decades, there's still well, now I want to put a garden in the back, I want to change, I want to update the kitchen in this way. What are some of the changes that you all our thinking are on the horizon in the if not the coming decades in the coming years?


Stephen Hutchison  16:36

I think from from a lab perspective, the number one thing with that is transparency. So already, you know, across the field itself, I mean, transparency in the IVF lab is almost zero. And that's you know, we're getting to a point where we actually have much more communication with patients, and they can see exactly what's going on. And then second from that, I think would just be a shift in primary outcomes. So I think, historically, there's a focus on pregnancy rates. So simply just you know, how many transfers we do, and how many pregnancies result from that. So we have this per embryo transfer rate. And that's a great, that's a great measurement. But it doesn't tell you the full story. So I think really, what we should we should be thinking about is that intended to treat the number of people that are actually coming into our clinic, and then are actually leaving with a baby in their hands. And so I think, think thinking about it in that and framing it around that we improve the quality of our care. And so there's many different add ons and IVF. And we can kind of talk about that. But it's really thinking about how we can serve our patients best rather than just improve our kind of like those cursory numbers to make us look best on, you know, SARS, or something like that. And again, let's


Griffin Jones  17:45

talk about a couple of those things, what are some of those things that you are going to be necessary to to serve the patient's best?


Stephen Hutchison  17:52

I think moving forward, it'll be a combination of vitrification and then use or not use of PGT. So you know, I know it's becoming the industry standard now to do PGT, across the board. And, and right now, the literature is mixed. Whether there's clinical benefit or not, this is something we've had heated debates about in the office. You know, I think it's moving in a direction where we're, the testing of embryos will be very clinically useful. But you know, in 2016, I don't think that was the case. So things are constantly shifting, and we have to adapt to the new technology. And unfortunately, research lags behind those things. And so we have to be on top of it all the time. So that's one example. I mean, the other I think, with respect to inventory and patient transparency, we're adopting the tomorrow platform next month. So this is one of the first digital platforms for, for cryo inventory management. And so in this way, patients will actually be be able to see in real time what their inventory looks like. And before it was just it's your your embryos are sitting in a dewar. And we promise they're there and I and hopefully, they are in 20 years. So it's kind of like this, they're taking it on faith, but now they can really see what's really there. And so that's, to me, really exciting.


Griffin Jones  19:12

The topic of the debate of PGT is one that I'm going to devote to another episode with a clinician that really wants to speak on that topic. And maybe I can consult you for some notes before I interview this person, Steve and Christine, what needs to happen on the business side?


Christine DeLuca  19:28

I mean, gosh, so many things. So I think one of the interesting when I first came back, one of my first assignments was our embryo storage billing, which I swear is like, prehistoric from the Dark Ages. I mean, we were like losing 1000s upon 1000s upon 1000s of dollars on just this one thing alone. So now we're actually moving to embryo options with Cooper and they have a 90s 7% rate of embryo storage being paid either monthly or annually. You're welcome,


Griffin Jones  20:06

Andy. You're welcome. That's a free one.


Christine DeLuca  20:10

Yeah, I should get paid too much. Just kidding. No, but I'm, I'm really excited for that. Because it really is something that it's really hard to keep up with people change their info all the time. I mean, trying to track down patients after they've had a baby is like, impossible, like they're happy, they've had a baby. Now they see how wonderful the baby is to they don't want to make hard decisions about what to do necessarily with their embryos, and then they just stop paying. So then you contact them in three years and tell them that they have a balanced like $3,000. And they're like, there's no way we're paying that. So, you know, having them pay monthly is going to be extremely beneficial for us, like if I don't have that headache, so really gonna take a lot off of my plate.


Griffin Jones  20:58

One of the reasons why I'm so interested in interviewing both of you is because I think there's a limitation, perhaps perceived, perhaps very real, that many young RBIs perceive when they're thinking, do I start something off on my own? Do I buy into a small group do I take over for a solo practitioner, that they may face a limitation of who is going to be my support. So if you're an REI coming out of fellowship, you're probably a couple 100 grand in debt from medical school, and many of them went to a fancy undergrad, so they've got some of that debt, you haven't really made money, especially if you're supporting a spouse and have children in residency and fellowship. And then they have the opportunity to maybe have a high salary at a network clinic, or they have clear partnership track with some groups. Many of them are scared to start something on their own, partly because of the debt. But then in addition to the debts like okay, let's pretend for a second that I can afford it that I am not saddled by this debt. I'm interested in potentially buying a solo practitioner group or joining with one. But then when even if I learn a ton from them in the next two years ago, I'm stuck with the Office Debbie's I'm stuck with whoever they have been working with for the last 30 years who are going to fight me tooth and nail and every change that I want to implement. And, and then what I'm going to have to, to look around for for someone so what has it been like for you all to know that you're on the you're on the flip side of that, like you are the you're it's like that's already happened? The the the younger support side has already come in for the changing of the guard. So what is it like for that to be flipped like that?


Stephen Hutchison  23:14

Yeah, it's it's not a great position to be in, right. I mean, what you didn't mention also is that, you know, when fellows are coming out, they also don't have experience in the field. So it's on top of everything they relied heavily, I guess you alluded to, but I mean, they really rely heavily on who they're working with the docs are working with, to learn the ropes, really, I mean, they don't have 1000s of retrievals. of experience. And that's something that that really you need. So, you know, on top of the rely on the doctor, if there's a single practice, doctor, for example, will be have, they come in, and then they better mesh really well with the doctor on staff. And if that's not the case, you know, it's not going to be a good fit. And so this, this is a huge gamble in that in that sense. But from our perspective, I mean, we're, we're the last privately owned clinics. And that gives us a tremendous amount of autonomy. Compared to other clinics, really, I mean, it's fundamentally different in the way that we are beholden to really no one. So the expectation with someone coming in is that they are business partners and that they do contribute and change the practice. So there we are not expecting someone if they do come in whoever it is a nurse and embryologist a doctor. The expectation is that they do contribute and they do provide ideas. We don't want to bulldoze them, and we don't want to have them just kind of, you know, toe the line the party line and do exactly what we want. I mean, doctors coming out of fellowship now are really intelligent, they have a lot to add to the conversation. So I think listening to them, adding their perspective is actually how we're going to move forward in the field in general. I mean, I think there's a long, long way to go.


Christine DeLuca  24:55

I think that's actually quite the contrary like if any doc came in a we already have all the systems in place, think of literally show up, do two weeks of training. And then they off to the races, right, just seeing patients, learning from Dr. Hutchison once he's kind of moved closing out of the door, great. Like, I mean, they don't necessarily have to deal with anything other than, yes, we want their input. But we also want them to understand what we've been doing for the last or what our family has been doing for the last 26 years, which just be good to your patients take really good care of them. And I don't see how that is, you know, like a bad thing. I think we definitely want to innovate for sure. But at the same time, I feel like this would be for a doctor a really cushy, easy thing to walk into. Not only that, too sounds actually pretty cool now, and it's relatively cheap. So you can have like a really beautiful home here that's affordable. I mean, I would love to live in Brooklyn or LA for the rest of my life. But at the end of the day, what do I really have to show for it, right. And I know that a lot of the RBIs. And a lot of the fellows want to go to those major cities, but realistically, I mean, you'd be at the top of the town, you'd be like the big head honcho here, like that's pretty important.


Griffin Jones  26:16

I will not let this episode end without talking about small cities and Tucson. In particular, I want to talk for a second about the concept of arbitrage what I see here, arbitrage usually refers to buying and selling. But it essentially refers to when there's an inefficiency in the marketplace, for whatever reason, for something that can be sold elsewhere, or something that can be valued higher in different circumstances. And I see something like that here that I just don't think exists in many cases, because if you're a buyer, what you're looking if you're a soup, a super nuts buyer, a meat and potatoes buyer, you're looking at an income statement, you're looking at a couple of other things like how old is my provider? How close are they to retirement, you're not really looking at staff. In many cases, you might be looking at a couple key positions like embryologist, but you're not generally looking at the staff. And so your situation a situation like yours would not be valued higher from a just a meat and potatoes buyer standpoint. So you're not having that kind of like being driven up. And then but on the other hand, it's that's the opportunity for somebody to be able to come in and in a situation where they're just not going to be able to get that in most places. If you take over for a solo practitioner, in many cases, you are going to be inheriting the Office app as you are are going to be able to you are going to have to replace that in this case you don't. And whatever the investment that you make in is leverage because right now you all are seeing more new patients than you know what to do with it, or am I getting something wrong?


Stephen Hutchison  28:14

No, I think you hit the nail on the head. I mean, really the volume. Look, if you think about it, and millennials in general is the we're the largest generation in US history. And on top of that our priorities have shifted. So we're having children later and later in life. There are physiological consequences to that. So you have all these people are getting older, and they are building families later in life. And so the demand in general for for fertility treatment is far outpacing the number of providers for those services. And so for us, there's not a the volume is not the problem. It's really finding the people. Right, and so, Tucson, I know, as you know, I had a meeting yesterday with Cooper surgical and, and one of the reps kind of mentioned, oh, hey, I know you're in this remote location. And my must be hard. And I never really thought about that, you know, the Tucson this isn't remote. But from their perspective and from the in the IVF world, we are remote. And so despite that, though, there's so much volume that so untapped. We don't even begin to to fill the need that's here. So I think, you know, finding people who actually want to help the community, despite not having this have the, you know, the big bucks aren't here. I don't think I mean, in New York, there's so much volume that I think shareholders and everyone else can can make, you know, those those promises for that $500,000 sign on bonus, more sign on salary, and that's something that I just don't see happening here or cities kind of similar for the time being,


Griffin Jones  29:48

but I see the big bucks. I mean, maybe I see the so if I'm looking at this, I'm looking at maybe some of these newer networks or groups that we're putting Just by networks that have brand new private equity partners, and they're offering really big salaries up front, but the equity side has, you've got the retiring Doc's and you have the you have a private equity firm that whose limited partners need to be paid in about three to seven years. And some of them are so concentrated, that there isn't equity left for the younger Doc's to eventually buy in. Because the private equities limited partners need too much of a return on investment relative to the scale versus a place where okay, I can buy into this place I can event I can buy these people out and become 100% owner or at least part of majority owner, and then I can bring on other partners in a growing market. That's where I see more opportunity. Down the line, I see a lot bigger bucks because if you can, if you can buy an underpriced asset. Remember you make money when you buy not when you sell, you buy an underpriced asset, then you're the one bringing the efficiencies, not a private equity firm that is saying that they're going to be bringing efficiencies and maybe they can maybe they're not, you're buying it underpriced, you're bringing the efficiencies, you have the leverage by then being able to recruit other younger Doc's and younger embryologist. And now that equity is better leveraged by those folks buying in, and you have a greater share of the multiple in the future or simply the profitability that is generating if you choose never to sell it, I see a lot more opportunity. I think, in many cases, getting big bucks now is Pennywise pound foolish, what is it going to look like for your asset in half a decade to two decades?


Stephen Hutchison  32:02

Yeah, no, I couldn't agree more. I mean, that is really the long and short of it. Right? It's what you know, it's the your it's your input. Now it's just thinking about the long game rather than the short game. So yeah, exactly right. Right now you can I mean, you're what you're going to be offered right out of fellowship is not the same here as it would be elsewhere. But the long term is looking much more bright. I mean, but the problem you mentioned before is that these these rocks are coming out with an enormous amount of debt. And so do they have the ability to kind of saddle that for the time being for those for those years to for that, to really realize that long term payoff? I think that's kind of the struggle, and maybe I'm speaking for these Doc's. But that's kind of the way I see it, and I see their, you know, the downside for them?


Christine DeLuca  32:48

Yeah, but I also see it's a quality of life, right? So kind of like the same thing that I was talking about, as far as like, you walk in, you're your own boss, obviously, the doc, so whatever. But at the same time when you're working for those, like huge firms where yeah, we may be paying you a lot of money up front, at the end of the day, how many hours are you working? How many IVF? retrievals? Are you pumping out in a month? Like, How ridiculous is it? Do you want that work life balance while still having the ability to make really good money? Do Are you gonna have time on the weekends to go to your kids soccer games? Like, yes, these are all the things that we can provide. And it's not necessarily about making money, like we would never push someone into doing an IVF cycle. If they didn't, you know, they only have one follicle, it just doesn't make sense. We get to like the luxury of making decisions and not pushing numbers ever. It's always what's right by our patients, because at the end of the day, like it's not that we're concerned about any of that. But like, our whole business strategy is based off of word of mouth. Like, a lot of my friends have been through the process. I've already been through the process. So I mean, literally, it's it's easy. It's it's small community. I mean, it's big, but it's small in a sense that, you know, people talk and I don't know, it's nice to be a part of something where you never have to question like, Oh, am I doing the wrong thing by a patient? Or am I doing this for a payout? Or am I pushing somebody through something that like, I don't necessarily agree with but hey, I'm gonna make my bonus this year, like, that doesn't exist and are like, one doctor practice like, it's pretty cool that way?


Griffin Jones  34:33

Well, because I don't think there's a lot of clinics in your situation. There are some, but it often falls on one side of the spectrum where it's a single doc group that has very little marketing machine that has outdated processes. And there is financial pressure there too. If somebody wanted to take over because As they need a lot of reinvestment, and they, they need more people in order to, to be able to support their existence. And on the flip side, you don't have that same financial pressure where it's like, we, you know, we need to reinvent a lot of things. And we need a much wider patient pipeline, but you have investors, and the reason why they're paying you a lot of money is because they expect that investment to be returned. There's not a lot of people where you're at where it's like, we've got plenty of volume, we have updated systems that we are not only are we updating right now, but we have the support folks that are invested in being here for a long time, too. And don't have that, that investor pressure. There's So Christina, I don't think it's I don't think it's that common where you're at? Oh,


Stephen Hutchison  36:02

yeah, no, I agree. Completely uncommon, it's to not have pressure for profitability is really uncommon. I mean, we take on patients that we know won't be profitable going into it. And then we have the luxury of doing that, you know, that not every patient is going to look, we're again, we're dealing with physiology, and it's not always perfect, and it's and it's not always easy. And some Patients will demand a lot more time. And this is something that we actually can do for them.


Christine DeLuca  36:30

We work with like a lot of low income patients as well, where we discount heavily their IVF cycles, because we know that they can't afford it. Like that's something that we get to do and a lot of people can, and that happens often.


Griffin Jones  36:45

I'm a bit biased towards you all, because we've worked together for a long time I've eaten in your homes, I've known families for years, and done a lot of business together. And so I'm biased towards you. But I do really want people to consider that. It is worth looking for the diamond in the rough. I know there's not a lot of them. But you're also not the only ones. There are a few in different parts of the country, where if you can get the system where there it's it's a relatively lower buy in where there is a lot of upside in the marketplace, where there's proven growth in the practice. And there aren't existing financial obligations either through debt or investor obligations. It it's not an easy deal to find. It's like looking for the house in the up and coming neighborhood. That also really has to be the up and coming neighborhood and it has to be a house that is underpriced. But isn't so much of a fixer upper. Those aren't easy to find either. But in both cases, it's absolutely worth it. And you make money when you buy not when you sell and I mean that figuratively as much as I. I mean, literally. So you all now are going to PCRs which I think is going to be cool, but you actually sponsored something at PCRs Tell me about that.


Christine DeLuca  38:15

Yeah, so we are we're doing a happy hour for all of the new fellows. I can't exactly remember where it is. But apparently it's gonna be pretty lit. I think it's Jimmy Buffett themes. So everybody get your party hats on.


Griffin Jones  38:30

So so much. So much for getting rid of the baby boomer theme. Yeah. Oh, no, we millennial like Jimmy Buffett. Right? I


Christine DeLuca  38:39

mean, yeah, we just kind of we had to let them fly with it. Because a it's gonna be hilarious. But be like, Man, who can't loosen up to a little Jimmy Buffett, like, party with your parents kinda, but like, also get to know the younger generation. Yeah. And I mean,


Griffin Jones  38:58

tell me about how you decided to do this, because I think it's so cool. And we've been talking a lot to the younger Doc's in this episode. But I want other practice owners to be thinking about this too, because very often, who do you see as the sponsors, either it's one of the pharma companies, maybe it's one of the genetics companies, or it's one of the large networks, they're the ones paying for sponsorships. They're the ones wining and dining, they're the ones making themselves seeing you all aren't that yet, you decided, hey, we're gonna swim in this pond. So how did you make the decision to do that? Why? Why was it important enough to make the investment?


Christine DeLuca  39:40

I mean, it's not just a Steven and I need to meet all of the folks in the community, right? Like we need to kind of make a name for ourselves in general. But it's good to see where everyone is what they're doing, get to know them, see what they're either other practice managers what they're doing that's working versus Just while I'm doing and kind of comparing notes for Steven, it's probably meeting new Docs. Again, for me, it's also going to be meeting docs and follows and all of that stuff. I mean, like, some of the best days are when we have our residents come in from Ghana. And we just get to, you know, basically should, I don't know if I can say, on the podcast, you can bleep it. But


Griffin Jones  40:22

that, but but well know that you said it.


Christine DeLuca  40:25

Okay. Well, the point is, is that, you know, we're all again, it's, we're the same age, basically. So you know, not far off. And we're all kind of trying to figure out where we are in this world. I mean, not necessarily, as it works with practice managers, as well. But mostly like with the younger fellows and the docs, like it's just good to kind of see what's important to them, and what is making them want to be a part of reproductive medicine. So it's just nice to spend the time to get to know our own community.


Griffin Jones  40:59

I want to talk about Tucson in smaller cities, because I've said it a lot on the show. But the there's two things, one is quality of life, and the first is access to care. And I really don't think we can be serious about an access to care commitment, when everybody wants to live in one of 15 cities, how can we really say that we're serious about expanding access to care if all of us want to live in New York in the bay? And there are people in large swaths of the country where they're not seeing an REI. And so can you talk to us a little bit about Tucson, which on one side as a city has been growing, has more young people going in on that sort of patient demographic side? But on the other side, you have less providers than you did a few years ago? So Can Can you talk about that?


Stephen Hutchison  41:57

Yeah, I mean, that's exactly the case. It's a growing city. So it's, it's, I don't know the demographics. Now it's well over a million, right. So that and then the university is only growing, it's always been a big university. I mean, I've been there, Christine, Holly, my dad, everyone is from U of A. So that means that there's a lot of young people and they're all coming out of that system, and they're all living in Tucson. There are now two RBIs. And for embryologists in Tucson, so you're servicing over a million people, which is there's not nearly enough again, it's it's the the volume is there, it's just trying to figure out how we can possibly service all these people. But you know, living in the city itself, it's not about a city. You know, it's it's something that is actually bustling, there's like a huge downtown. There's the university, like I said, it's an active University, and they're active with us as well. So I mean, we actually get to engage in research if we want to. So we have fellows coming in, we have our ability, we're connected with the actual, the departments at the University for research, which is really unusual for a lot of specially private clinics.


Christine DeLuca  43:10

Yeah, I'm so sorry. I feel like such a brat for not writing down his name and remembering but what was who's the doc that was from Tennessee, and he moved back home. And he was talking about like, you know, yes, as a younger doc, and you move back to like a smaller city, and you start taking care of patients, yes, you have to work. But at the same time, you get to do surgeries, if you so choose, and you get to run studies, but you're just heavily leaning on other people to help assist you. Like so you can still have your cake and eat it too. It doesn't mean that you don't get to do all the things that you want to do. You just have to put your patients first. And then after that delegate to research assistants delegate to, you know, the masters students, tell them what you want, tell them like be that point of contact for them, where they help run the study. And then you you know, kind of oversee it and still be a part of it. Some accents.


Griffin Jones  44:09

I think you're talking about Dr. Neil Chappell from Baton Rouge, Louisiana who, okay, who was talking about that. But so if you're thinking of it from one of two ways, either quality of life or from mission, I think for those folks that really are mission driven, and some of you are far fewer than say they are, but some of you are the true blues. When you're thinking of your vocation, as it were your mission, and for many of you that is access to care if it really is a mission to access to care. We have a problem in our field, like when SRM is in Baltimore, and we the that we the Bucha Wazee who are very well educated and know better and know how to behave with polite values go, Baltimore, you that type of response, that type of sentiment is fairly common. And I think if we're serious about access to care, we need to challenge what that is because there are a lot of Baltimore's in the world. And I actually don't think that Tucson is one of them. So sorry, I think that if you're truly mission driven, that there probably are even more places in need than Tucson. I don't think that Tucson falls there. But you could at least say, okay, maybe I'm not the most mission driven person. But I do know that there is a lack of providers relative to the population and anywhere that is, should drive people if one of their their motivators is mission, I don't think that that necessarily will be the the exclusive motivator for most people. And that's when you have to talk about quality of life. So Christine, you moved from Brooklyn to Tucson? What's different about it?


Christine DeLuca  46:14

Well, obviously, I have a car. I could get to places really easily. No, but it's I mean, there's hiking, they're like really fun downtown. Like when I went to school here, there was no like, like, mini little train system that went through all of campus and down through the university, and like down to Fourth Avenue, which is like, one of the bigger bar areas and then into downtown, all the way past the freeway to like this new cool box yard concept. I mean, it's just like, there's so much to do hear now, a lot of restaurants. I mean, we're a UNESCO heritage site for Mexican food. It's kind of put us on the map. I mean, even my brother, he just so he's trying to get his kid into preschool. And he him and his wife, like, fell madly, like had a couple crush on these two other parents who are similarly went in for the interview for their like two and a half year old to get them into preschool. And they're from Brooklyn, and they want to get together. It's like, we actually are there are a lot of people moving from these major cities to Tucson, because it's, I don't know, I guess kind of like a new Austin, Texas in a small sense. I wouldn't necessarily say it's completely that way. But I mean, I own a home. Now, I don't live in a one bedroom apartment. But I paid vastly too much for my groceries. I mean, not lately, but they're pretty inexpensive compared to major cities. And I love it here. I have a really cool community and meet people on the daily have more social engagements than I know what to do it. And my family's here. So I mean, once you're kind of a part of the Tucson family, you're here for life.


Griffin Jones  48:03

Well, you know what people don't didn't say 15 years ago about any place. They didn't say this is the new Austin. You didn't say this was the new Denver. They said Austin is the new Chicago, Denver is the New Boston, the new Philly, whatever it was at that time, but the time for for a few markets is right now. And to me, all of the indicators suggests that Tucson is one of the I don't like to be speculative, because there's so many things that can change. But if all of the indicators are pointing in one place, is it in a state that is high growth and is likely to be for a long time? Yes. Is it a place that has warm weather? Yes. Is it lower cost than the places nearby it that will make it more attractive to people from those areas? Yes. Is it on the border with Mexico as NAFTA becomes increasingly more important in a regionalized, less globalized economy, a check, check, check. And those windows don't last for very long. Like it was oh, Denver's an awesome place to live. I can't believe we can be so close to the markets and get a house for this cheap and it's as expensive as New York in in a couple years time period. And we're seeing that in in a couple of markets, Boise, Reno Tucson. There's only a few of them, and the window doesn't last that long. So I I encourage people to look into a couple of those markets if, if you're inclined to do so. But what about Christine if you're not from that place, because in many cases, people go to either one of the big markets or they go to where either their spouse or themselves are from. So what what's available to someone if they and their spouse are from a totally different part of the country?


Christine DeLuca  50:06

I mean, that's great. Especially, I mean, especially if you're joining our team, because if you're joining our team, you're already family. So you're going to be saddled with a lot of social engagements, a lot of new friends, a lot of new things. But even if you're not Tucson is extremely welcoming. All you have to do is like, I don't know, find a intramural soccer game, and people will welcome you easily into this town like it is not. I mean, Tucson is very wholesome. And we're really down to earth. I mean, unless you're just like, not a very good person in general. I mean, we'll still be nice to you. But realistically, like, that's never the case. People are who they are. And normally, they just want friends, to someone's gonna welcome you like, in a heartbeat. We're just not that way. No one's better than anybody. Everybody's like, you know, we don't put on airs, and we want


Griffin Jones  51:00

to do whatever you want high taxes and snow.


Christine DeLuca  51:09

Nice. I don't know what the taxes are, like on Mount Lemmon, but sometimes gets to know,


Griffin Jones  51:14

sorry, guys, I have to stay in upstate New York, I do want to talk a little bit about how you have been changing some of the culture or adding to the culture and the brand simultaneously. So it's one thing to have an outdated infrastructure, if a young doctor is looking at taking over a practice, they also have to look is Is this an outdated brand? Is it something that as the kind bodies and the other consumer global brands do very well in are more prolific? Is it something that can stand up against that? And so you made some changes to your brand? Tell us a little bit about that process?


Christine DeLuca  52:00

I mean, yeah, I think we've updated multiple things, not just like, the way that our office looks, but presenting information to patients immediately when they walk in with like, our TVs, changed our brand to kind of be all we want you to feel comfortable, right? So when you walk into our waiting room, you should feel like you are in your living room or in a friend's living room. Right? It should be warm and should be inviting and comfy. Yes, I mean, we do have the 26 years of experience behind us. But again, we've got this new generation coming through. And we really do. I mean, it's it's kind of the same as far as we take care of people. And I spend more hours on the phone with my patients than I don't know, any other kind body you could ever imagine. And again, it's like word of mouth and making sure that you're also taking care of being recognized on the internet. I mean, we realized we didn't have as much touch on a lot of patients surveys or Google reviews. So kind of how to rope that in. I Steven, can you think of anything?


Griffin Jones  53:09

But am I am I allowed to talk about something together? Right? Yeah, this credit goes to Donna Schrader, who is the creative director on this project. But we did something called homing from work campaign for telling the RHC story. Steven, can you explain what that story is? And And can you explain what's behind the campaign? Yeah, so


Stephen Hutchison  53:37

the, you know, this is a family oriented business, I mean, through and through, we're all family. So, you know, the whole point was to the video itself is, you know, I was, I just happened to actually watch this last night with my wife. And I was thrilled, I was tickled because I was the star of the show. But really, you know, it's, the whole thing is, my I have a nine month old son now at the time, he was six months old. And, you know, we he's in the office all the time, he's in every day. And so, you know, he goes through every he goes from the front desk, all the way to the back of the lab. So here we embrace family. So we build families, we embrace families. And on top of that, like Christine was saying, we're here for personalized medicine. And that's what the campaign is about, as well. I mean, we're, this isn't a mill. This isn't an IVF mill. Everyone is personalized. And Christine alluded to before, we're not going to do IVF if lifestyle factors can be included as well. So wellness has something to be considered always a prior to any kind of intervention. So I think all those things combined is really what we're going for.


Griffin Jones  54:45

Is this a privilege extended to Hutchison babies only if there's a Rei with two young children are they welcome and they are more


Stephen Hutchison  54:53

than welcome. In fact, we have other babies all the time in the office.


54:58

We have nurses Tada, her baby in here are one of our front desk managers. She's got her grandson in there. Poor Ben never touches the floor when he comes to the office like literally we all just, it's, it's exactly what the video looks like, literally. We all like Ben's here, oh my god, Ben, and then we all run over and we're like, super giddy then. So


Stephen Hutchison  55:23

and to add him to the Game of Thrones here, Ben is my son.


Griffin Jones  55:29

I wonder how many practice groups can say that can say that children of our staff and our providers aren't as welcome here they are here. I think it's probably a pretty short list. And we will remember to link that video in the show notes and link it in in a couple other places so that people can see that because now people are like, I want to see what they're talking about. So we'll make sure that wherever that lives for you all, we will link that in the show notes. Hopefully this episode right now, I've got this episode scheduled to come out before PCRs, which will be great because there's going to be younger Doc's listening to this show that are also going to be coming to PCRs, they're going to be a little bit shy to introduce themselves. Now. Now those of you listening, can use this as an excuse. And if you're still shy, let me know. And I'll I will soften it up with Stephen and Christine. And for those of you that are more extroverted, you'll need no introduction whatsoever, because of how welcoming you both are, I'm going to let you conclude of how you want to see the continuation of the fertility practice as the next generation begins to take over the home.


Christine DeLuca  56:52

Yeah, I mean, ideally, like it's the same thing that you were talking about with patient care and serving a community, we would love to have a doctor that would come in and take over for Dr. Hutchison, but still have that safety net, to be able to provide service and really good quality service. But also, I mean, as just being the younger generation, I want us to continue to have the same moral compass that we always have and never sell out. And always do. It's not just for our morals, but what's best for our patients, and continue to, like just serve our community.


Stephen Hutchison  57:31

Yeah, I mean, we're not here to reinvent the wheel. So bringing more people on, really, we have an excellent track record. So if we can just continue that and then build on top of it, we already know that the field is going to change dramatically. It won't look in 10 years like it does today, just like it didn't look anything like it does now 10 years ago. So we will need to adapt as that comes along. But right now the current pace that we're at, we're right on track for that. It's just the matter of finding the right people who have the same vision you do.


Christine DeLuca  58:01

Yeah, wouldn't hurt to wouldn't hurt to be the only place in town that was you know, kind of took over completely the market and we have the lion's share, but there's a full on reason for it because we're the best. And because we care.


Griffin Jones  58:18

Arbitrage listeners windows aren't open for very long and there aren't that many of them. Pay attention for the arbitrage you make money when you buy, not when you sell. True figuratively as it is literally, Steven and Christine, thank you both so much for coming on inside reproductive health.


58:37

Thank you very much. We really appreciate it.


58:40

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health


166 100% Fertility Patient Retention? A Way To Guarantee IVF Patients Return After A Failed Cycle

Sharing financial risk while guaranteeing 100% fertility patient retention. Is it possible? Griffin talks about one of the biggest points of patient dropout--paying for treatment--with guests, TJ Farnsworth, founder and CEO of Inception, and Cheryl Campbell, Director of Operations at BUNDL Fertility. 

Listen to hear how others:

  • Ensure patients don’t leave the fertility practice for another following a failed IVF cycle. 

  • Increase access to care for patients, while lightening their financial burden and improving patient satisfaction

  • Increase IVF conversion with a step-by-step follow-through process (and how it differentiates from patient retention).

  • Dismantle billing woes that may be hurting your online reputation. (Approximately 25% of negative fertility reviews are based on billing!).


DISCLAIMER: This is a featured sponsor episode with paid sponsor content. Advertisements are not an endorsement from Inside Reproductive Health, nor their personnel.



TJ Farnsworth’s info: 

LinkedIn:vhttps://www.linkedin.com/in/tj-farnsworth/

Company: https://inceptionfertility.com/

Cheryl Campbell’s info: 

LinkedIn: https://www.linkedin.com/in/cheryl-campbell-24a23b58/

Company: https://bundlfertility.com/

Sponsored by: BUNDL: https://bundlfertility.com/


Transcript





Cheryl Campbell  00:00

I think that's what BUNDL does, it does give patients the option to really make a better informed decision. Because you know, when you like myself, I was a fertility patient, I experienced an awful lot of failure and miscarriage. And I think the next thing you think after that devastating feeling is, what is this? What is this going to look like financially in this next component. And when you've got something like BUNDL, it's really giving you that peace of mind and that assurance that you've given yourself that next chance in this, you know, daunting journey,


Griffin Jones  00:35

decreasing patient dropout, that's a good thing to do, because it makes life better for your patients, they have better access to care makes life better for you, because it helps your bottom line and practices are hemorrhaging patients. After a failed cycle. Most people aren't measuring their dropout, it's hard to measure. So we talk about ways that you can decrease your patient drop out rate of 100% patient retention, after a failed IVF cycle, you can increase access to care by scaling the pool of uninsured patients in a way that is localized practice or a single group or a smaller organization can't do improving patient satisfaction, so that they're not hammered with each little nickel and dime Bill $150. Bill here a $300 bill here $225 bill here, which is someone that helps with online reputation, I can tell you, it could be a quarter of negative fertility clinic reviews that are just about that are just about getting unexpected bills, or you can increase IVF conversion. Remember, increasing IVF conversion is not the same as decreasing patient drop out which is retention, you have to retain the patients in order to be able to convert them to treatment in order to bring them back to treatment if further treatment is necessary, when we talk about increasing conversion to IVF for those patients, for whom IVF is necessary with a system that nurtures them, and helps patients along the way. This is all in the conversation that I have with Cheryl Campbell who run BUNDL, which is a product of the inception, Family of Brands. You remember TJ Farnsworth, we've had him on the show before TJ is back on with us today. He's the CEO of inception. And today we talked about these challenges. We talked about how BUNDLfaces them in the marketplace. And this is a sponsored episode, but I look at it like where's the where's the reason not to try you tell me if you've if you've figure one out, but pay attention to these different points and ways that you can incorporate them into your practice. And let me know what you think. Enjoy this episode with TJ Farnsworth and Cheryl Campbell. Today's episode is a feature sponsor episode with paid sponsored content. Mrs. Campbell. Cheryl, welcome to Inside reproductive health. Mr. Farnsworth, TJ, Welcome back to Inside reproductive health.


TJ Farnsworth  03:10

Thank you, Griffin, excited to be back in talking to you. Again,


Griffin Jones  03:13

I'm excited to have both of you on the show. We're talking about something different than you and I talked about last time, TJ, which is not we're talking about I want to talk about financing in the practice, I want to talk about where practices and patients get stuck. And I want to invite Cheryl to speak on some of those points a bit. But I'm curious. From an entrepreneurial standpoint, I see a lot of entrepreneurs in different industries and verticals, acquire or build companies in adjacent verticals that make sense. And so for you, what was it about the financial piece that you thought this is something that's missing in the marketplace? That? Yeah, we want to bring it to others. But we also we just need it for ourselves?


TJ Farnsworth  04:05

Yeah, I think when this was always sort of part of the plan, we were originally mapping out, you know, the inception, and it's in its family of brands and family of companies. It's all goes back to the server part of the original mission when Margaret, my wife and I were talking about starting this business, and our journey and our experience. One of the things that was incredibly troubling to me I know it is for for Sheryl. And and that's really all of us, I think within this industry is the access to care question. And it shouldn't be the patients who don't have appropriate insurance coverage have to be as fortunate as I am, and in order to have the family of their dreams. And so we're constantly thinking about ways in which we can improve access to care and we would love to see universal coverage by insurers that would be That's a dream of ours. I think all of ours. And I think that's ultimately where we want to go but that's gonna be evolutionary, that's not going to happen tomorrow, it's not gonna happen overnight, and we have to have a solution for those patients who do have to come out of pocket for this. And I think, you know, we were trying to think of this is what can we do, that gives patients peace of mind as the it makes the financial leap necessary along with the clinical leap, to move forward with their, their treatments, and it can reduce that and eliminate that barrier to them having the family that they want. And I think, you know, original idea behind BUNDL was, was giving that level of comfort and flexibility with patients that to give give them the ability to kind of say to themselves, okay, I have an option here, yes, this is expensive, but I've got somebody who's willing to share the risk with me with regards to the success of my fertility journey. And if I'm not successful, you know, maybe I can I can absorb, I can stomach that a little bit better, knowing that it didn't actually have the same level of financial burden to me, that it would have had otherwise.


Griffin Jones  06:05

So what was it that was missing in the marketplace? That why were lenders and other financial channels just insufficient? Yeah. So


TJ Farnsworth  06:15

you know, we weren't really trying to solve the problem of being a lender, it's really trying to solve the problem of the risk of maybe being unsuccessful. And so we worked with a number of different lenders in but what none of them were really doing was was thinking about the uniqueness of a fertility journey. And the fact of the matter is a patient who go through two, three cycles of IVF be at the end of their journey emotionally, and at the same time not have the success at the end of that they was out for success being a healthy baby at home, and, and then all of a sudden, now they're faced with the burden of the cost of all of this. And you know, maybe it's finance, maybe there's a monthly payment, maybe they're paying it back every five years or something like that. And every month they make that payment and and they're reminded about the the the lack of success of their journey. And just like, you know, the the, I think, incredibly valuable interview that Jennifer Aniston did recently, you know, not every one of the patients are going to go through this are going to have the outcome that my wife and I were fortunate enough to have. And and I think they're aware of that. And there's more awareness around that. And I think that's oftentimes a barrier to people getting started. And we have enough data, as a you know, as the largest fertility network in North America, we have enough data to know sort of, okay, how can we spread the risk among a larger bit and patient population, share that risk with that patient population, and make this an easier decision for both patients to move forward?


Griffin Jones  07:44

Cheryl, can you talk a little bit about that economic risk that a prospective IVF patient faces and it sounds like I shouldn't have to ask that question on a show where the audience is practice owners and fertility providers. But I, as a lay person, hear constantly, we have 70% 80% success rates, if a woman comes to us 80% chance she's gonna get pregnant. It's like, yeah, Asterix. So can you talk and I think I understand why they're coming from that perspective. They seen the field grow tremendously. They've seen the advances. And after multiple cycles of certain things are true. Yes, the success rates are eons better than they were a few decades ago. But I think when you when you phrase it that way, to a patient, it's like, oh, yeah, like, there's a lot in that aspect. So can you talk a bit about what the financial burden is for the average? IVF? Patient? Right. Are they the risk? I meant to say?


Cheryl Campbell  08:47

Yeah, I mean, the risk is, is big, you know, and I think strategic point is the emotional and physical toll, the fertility journey is one thing, but you know, what we hear from patients all the time is, you know, am I going to be able to afford this? What is what is that going to look like from a, from a financial standpoint? And I think that, you know, at the end of the day, patients want options, right? They want to know, what they're faced with, as far as you know, what does that financial peace look like? And I think that I think that by us, sharing the risk with them, they're being well informed about where they're putting their fertility dollars, you know, there, it's a big lift, I think, to afford to afford the fertility world and I think that they just want options to be able to move forward and just say, right, you know, do I need a loan? Do I need to take a, you know, a look at other avenues of payment? And I think that, you know, it's just, it's just being well informed on that piece. I think that's what BUNDLdoes. It does give patients the option to really make a better informed decision. Because you know, when you like myself, I was a fertility patient. I experienced an awful lot of failure and Miss carriage. And I think the next thing you think after that devastating feeling is, what is this? What is this going to look like financially in this next component. And when you've got something like BUNDL, it's really giving you that peace of mind and that assurance that you've given yourself that next chance in this, you know, daunting journey. So


Griffin Jones  10:17

people might think, well, we have a multi cycle guarantee program, but it's often just a discount after the first cycle. Can you talk a little bit about what makes shared risk different from something like that?


Cheryl Campbell  10:35

Yeah, I think I think of what we're doing with BUNDLin terms of, of a multi cycle shared risk program is that we're really getting the patient to take that, that keep that the stressor off upfront, right, by buying the package up front, by assuring yourself that you you've entered into the multi cycle road, it's not saying okay, well, if you fail one cycle, then we're going to give you this, you know, additional benefit, I think it's knowing that the patient has given them taking that stress off of them, so that they can concentrate on the on the clinical piece and on what they need to to cycle. And I think, with BUNDL, we're trying to just give them that assurance upfront they've purchased and, you know, a multi cycle works differently in terms of you know, rather than just an assurance program, I think, you know, like I said, we're we're sort of looking for that assurance for the patient, that they've capture that upfront and for the practices as well, that they are gaining the retention out of the fact that a patient has, you know, bought those two cycles up front, we've got 100% retention with the patient, that patient is going to stay there to cycle and and to move forward with their journey.


TJ Farnsworth  11:47

Yeah, and I might use add that I think one of the benefits of, of a, of a business like BUNDL and the ability to use the data and share the risk around or under broader patient base allows us to have a more aggressive position when it comes to qualifying patients for the refund program, because we have a larger patient base to to share that risk among Americans. That makes sense.


Griffin Jones  12:13

Tell me more about that, TJ, because I think a lot of people might be hesitant to implement a shared risk or multi cycle guarantee program on their own. For that reason they have, they have a more limited patient population to be working with.


TJ Farnsworth  12:29

So if you let's imagine you're a medium sized practice, and you've you're doing five or 600, retrievals a year, and you are you create your own shared risk guarantee program, your ability to approve patients based upon their own clinical criteria for qualification to that refund program is going to be limited by your patient population, because you've got to spread that risk. You know, you can't it's like an insurance product. Oh, no, we can't it's not an insurance product, or you can't, if you if you are if your patient population is is that are going to enroll in this program is only a handful of patients, your your ability to take the risk on of those refunds becomes much lower than if you have a broader patient population. And you've got the ability to then be more aggressive with what you can do from a refund perspective. Because you're you're having to give a refund or two here and there is not as impactful across a broad network. And then if you're doing it in within an individual captive practice,


Griffin Jones  13:37

talk to me a little bit about how you work with lenders, because it might bear repeating that BUNDL is not a lender. So can we talk a little bit about how you work with lenders? Yeah,


Cheryl Campbell  13:50

the lenders that we work with, you know, we have relationships with to offer patients the best terms and conditions we've worked with the premier lenders in in the fertility space. And, you know, our, our relationship with them is that, again, they they know the space well, there, you know, there's lots of I don't want to say bells and whistles, but a lot of really extensive benefits and brakes that lenders are giving to patients. Some of our lenders have built in kind of communication with nursing staff and and if a patient you know, forgets how to do a trigger shot or how to you know, they've got people on staff to help them so lenders are kind of getting a broader group of benefits to patients when they when they pull lending from them. So they're really kind of it's not just go to the bank, get the money. I think lenders are really feeling the space and figuring that they're trying to meet patients where they are. And so they're they're offering up a bunch of more opportunities for patients to sort of benefit from their lending space. And, you know, we've like I said, we've got great relationship Follow them. And I think that patients are turning to lending a lot, we see an awful lot of lending right now with BUNDL and in they need this kind of warmth as is, you know, not just the straightforward kind of cold lending piece that scares people. We work with patients that are fearful of their of their credit scores, and what can we do to help them and, and what is the lender going to reject me because I have a student loan, you know, just trying to soften that very kind of harsh part of it, right to think I'm going to take out a loan, and look, I'm gonna look like and some of our patients have had never done that. They don't know what that piece looks like. So it's really, the lending piece has gotten so much nicer for patients and the offerings are a lot calmer for patients again, in an already stressful time.


Griffin Jones  15:48

Well, I could see why it would come people down having a guarantee on the other end of it, when you're taking out a lot of money. It's like, okay, I'm taking out a home pay, I'm taking out a mortgage, am I going to be able to get into the house is a lot different than taking out a mortgage and having a guarantee that yes, you're gonna get into the house. And yes, you know, everything that was in the closing contract is being honored that that is a lot different than just having to take out a loan. I think that's that probably is one of the things that might stop people from just borrowing because they don't know. They don't know what the result is going to be on the other end. Can we talk a little bit about I want to dive more into that Cheryl. And I want to talk more about BUNDL’s process and how you work with financial counselors and how you educate patients. I do want to zoom in for a second, TJ on on the global side that I just can't resist thinking about the finance piece. If and when an economic downturn happens, so I don't know when an economic downturn is going to happen. I'm not Ray Dalio. i It sure looks like there's one upon us. But I've also said that before, and but I just see the finance piece as one place where patients get stuck. And not always because they can't afford treatment. Sometimes it's that but sometimes they just can't figure out a way to or it's scary, or they they put it off, and because they just don't see something as immediately accessible. So do you want first Do you think that a recession a downturn is going to be upon us? And then how, how is that going to affect how patients pay for treatment?


TJ Farnsworth  17:34

Yeah, I think the question, obviously, if I had a crystal ball that can say, when the recession was coming, or maybe you've already in one or not, I would I'd be doing I'd be doing something different, I guess. Right. But I think that economic uncertainty, which is certainly happening right now, whether the recession is, is coming or is already upon us, or not, it just inserts another level of uncertainty for patients, it's just one more source of stress, one more source of anxiety. And one more thing that is out of control. Patients who are going through this journey feel very out of control, and, you know, uncertainty about their job, uncertainty about their mortgage, and all kinds of other things, just add that level of uncertainty. And everyone has like a, you know, a maximum amount of ability to take on these things, right? There's only so so much burden that someone can take. And so I think for a lot of patients, they look at this and say, Is this something I want to take on right now? And can I wait skimmers, wait six months, can this wait a year? And those of us know that that's the time is not on the side of these patients? Right? So we're not, you know, when six months make an impact or not? I don't know, it depends on the individual patient. And I'm certainly not clinicians, I wouldn't opine on that. But certainly waiting a year or two or whatever it might be interesting. For interest in terms of people feeling like that uncertainty is behind them, no idea how long that takes. Can it can be very impactful. And so what I do, I do think BUNDL does is it gives patients the ability to take some of that financial risk and put it away. And I also think taking some of the just general concern about thinking about the financial component. off the table will be one of the things that when we were going through this was it felt like every time we turned around, there was another charge for something, there was another fee for something. And I think one of the advantages the BUNDL has is you know, you I pay for my two cycles or my three cycles, and I don't have to worry about this anymore. It's paced done. And I can just focus on what I need to get through this treatment emotionally to get to the family that I want. And I think in an economic recessionary situation, that's that's impactful. And I think, you know, we've all seen the data or on the long run around the the impacts that stress can have on patients as they're going through their for till the journey. And I just think that you know, and the economic uncertainty that we're heading into just continues to add to that, and I think just highlights the positive impacts that BUNDL can have on our fertility practice and our patients.


Griffin Jones  20:14

It relieves some of that uncertainty. And you talked about that not having additional costs. Does that mean that these costs for XC anestesia? The all of these costs? Are those are calculated in in the beginning?


TJ Farnsworth  20:29

Yeah, when a patient purchases their BUNDL? All the fees associated with the clinic are calculated as part of the part of their package.


Griffin Jones  20:37

Cheryl, can you talk to me about how that calculation works? Is it is it fair? Is it does it differ from clinic to clinic? And how does how does one's BUNDL calculated


Cheryl Campbell  20:48

it does vary from clinic to clinic, we kind of start with the practice offerings. And we try to mirror that with your BUNDL packages. So if that would include, you know, anaesthesia, Ixy, assisted hatching, whatever is included in their global, we're going to include that in the BUNDL package so that the patient knows right out of the gate, that we're, they're getting, you know, apples to apples in terms of what their clinic would offer. So it makes them understand that we're just taking all of those pieces and parts and bundling them together to make it easier. So that, you know, to TJs point you're, you're not sort of feeling like you're nickeled and dimed all the way through the process, it's really pulling it all together, and including what's included at the practice level. And again, it does vary practice to practice, but we make those those practice offerings mirror, what the practice is doing.


Griffin Jones  21:44

As somebody that's been on the other side of that who's been responsible for clinics, online reputation management, that's a huge thing I probably a quarter of complaints have some are something in the vein of we just paid this big amount of money, and then we got a $275 Ultrasound bill or whatever it is. It's you know, it was some other it was an additional console, there was some other testing that was required. And, and often it is just a couple 100 bucks, it's usually not the bigger bills, but it's after you have paid some bigger bills and you get one of those in the mail. It's like you're you are not happy. So BUNDL helps to solve for the for for that piece of it, then how do how are people on boarded? Surely, if when a clinic starts with, you know, I want to come back to that. But first, I want to talk a little bit about how BUNDL relieves the economic burden for for patients. So let's let's just say I'm patient that's enrolled in BUNDL, what happens if I do go through three cycles. So and I don't have success, what happens? It depends


Cheryl Campbell  23:03

on the program that you're in, we've got kind of different flavors of BUNDL, so to speak, in our basic program, unfortunately, if you were to go through three cycles, and you didn't have a take home baby, then that would be an unsuccessful program, some of our patients will move into another program, they will sign up with fundal. Again, some of our patients know at that point that they may or may need to pivot into a donor situation or an adoption situation and go down a completely differently, but those three cycles have told them a lot and taught them a lot. And if you're in our refund guarantee program that at the end of all that the benefit is that you're going to get 100% of your money back. So it kind of depends on where you are within BUNDL. So you know, we're just trying to again, whatever program you're in, what we're trying to do is really alleviate that stressful financial piece. And I've had patients even at the end without success, say, you know, at least you gave me some peace of mind, you gave me an ability to really go through this exhaust what I needed to in terms of this and now I need to move into a different Lane within my fertility world, or I may just be done and and be at peace with that, you know, but that's kind of what Bundjalung is hoping to do is we're meeting patients where they are in their journey.


TJ Farnsworth  24:28

Yeah, and those patients that are gonna go through a three cycle program that are not using a refund guarantee. At the end of it, if they use all those services, they would have paid a discount over off the list price for those services. But for those who are patients who do qualify for the refund program, and as I mentioned earlier, more patients can qualify for our refund program than any individual single practice could even patients that you know will be considered on the older end of the spectrum. You know, one of the things that's unique about bond Will it get all the way to the end, and they've exhausted everything, they've all exhausted every FET that they can, and they're, they're done with embryos and no more embryos left. And if they are unfortunately unsuccessful, and there certainly are going to be those patients, they get 100% of their money back, well, we'll take that risk on completely. So it's not like they get a prorated amount back based upon how much of the services they utilized, or anything like that, it's you paid, you know, whatever that dollar number is, you get that dollar number in full and in refund,


Griffin Jones  25:31

I see the need for having this large pool across geographies, because I can think of some earlier clients of mine that were really lovely people that would offer discounts to people after the fact but it was too few for for probably also too little, even when they were they may have you know, thrown in a free cycle here or there. But if that was the case, and it was definitely too few people that they were able to reach and and if it was a discount, then it was likely not enough of a discount because they just couldn't spread the risk over an enough places. So you brought this in to be able to scale to practices, how many cycles have you done thus far with BUNDL, Cheryl,


Cheryl Campbell  26:22

we have upwards of 750 people enrolled in BUNDL at the moment. So that's across a network of I believe are at about 13 practices. So you know, we're only two years old going into our third year and we're you know, we're we're seeing a great some great traction on BUNDL really across all of our avenues, uh, you know, trying to pull the levers on all of our, with our website, with our social with our, you know, fertility groups, we're sort of touching as many people as we can to really get the word out. And of course, our clinics are phenomenal with their, you know, mentioning BUNDL and making sure that everyone that really needs to hear about BUNDL does,


Griffin Jones  27:09

and you're starting to work with more clinics. So it is am I correct and understand that there's no fee to clinics for for working with BUNDL, can you talk about how you work that out with clinics,


Cheryl Campbell  27:23

with there is no fee. But we do have a, you know, an agreement with our practices where we will pay at 80% for each of the services. So, you know, as services are performed, that's really the part that, you know, BUNDL is taking to be able to continue with the program to be able to spread this program out and reach as many people as we can. And you know, it's to, to pay for, you know, the 20% is really for us to be able to, you know, do the administrative side of things, the marketing efforts within BUNDL, but there is no upfront fee. I know some competitors out there in the space will, you know, charge that but there was no upfront fee for a clinic.


TJ Farnsworth  28:09

And while the clinics are receiving a discounted fee from us for the services, we are discounting them the fee to the patient, so the patient is paying a discounted fee as well. So it's it's a the onboarding of things, the patient, you're getting the clinic on the onboarding of that patient, onboarding, the club, the clinic on the BUNDL, all the work that goes into doing the evaluation of their packages, and matching up the BUNDL to that practice. There's no onboarding cost to the, to the practice. And, you know, they get to them see the benefits of the stickiness of patients to their practice, as well as I think we're seeing more and more patients come directly to BUNDL and then BUNDL directing those patients to our BUNDL affiliate practices. And I do think, you know, Griffin, as you're talking earlier about, you know, the economic situation, I think more and more patients, as they get ready to start their fertility journey, are trying to answer the financial question before they even go out and find the clinic. And, and you know, they by doing that they're looking at companies like BUNDL. And in, you know, north of 50% of BUNDL patients actually come directly to BUNDL before they ever even come to a clinic.


Griffin Jones  29:23

Yeah, I want to talk about that, too. We see that all that we see IVF cost as a one of the top searches. But what's interesting is when you look at a clinic's website, if you look at their conversions in Google Analytics, IVF cost doesn't really convert the cost page isn't really leading to conversions. And if you look at their Google ads, for example, we often use IVF cost as a negative keyword because people are clicking on it. They're searching for IVF costs, but it's not actually it's not actually leading to a conversion. There's still a ring in the funnel that they want to solve. For more, and I suspect that that ring is growing in number of people where maybe 20 years ago, you would have just had someone call and say sure that I'll figure everything out once I get there, we even need to train call centers in the house to be able to answer that question. But people are really looking for, they're looking for a solution more than just prices, like they'll call and they'll get prices, but it then they're just kind of shopping. And they're back to square one of thinking about how they're going to pay for this to begin with. So I want to talk about how you use that as being able to bring new patients to clinics. But Shall we first talk about how when, like when a patient does start with BUNDL with without having a good clinic, how do you onboard the patient,


Cheryl Campbell  30:53

the patient generally is coming into, you know, through one of our lead generators, whether it's our clinics, or offer with page calling on the phone, and what they immediately will do is flow into our Salesforce world, we've built a customized system where all of our lead generation flows into the, you know, a sales funnel sense into the top of the funnel and into our Salesforce world. And we've constructed that world as a way to be able to put patients into certain cadences and then follow up as needed. So you know, a patient may come into our world as new patient or estimate. And then we'll do a series of follow ups, whether it's phone calls, or emails, or even texting, to be able to follow that patient through the sales funnel, and their journey, right straight through to payment enrollment, and then post enrollment, follow up questions. So that person will continue to resign the funnel, from the time that you're touched at the top of the funnel all the way through. And you know, it's our patient advocates on the phone, instructing patients about the program, that's our financial team, accepting payment and working with our practices to authorize services. And then it's just general post enrollment question patients calling to ask us about what happens if this stuff happens. And, you know, I just fell in the cycle. And what does that mean, and this process, this system in Salesforce allows us to really track and make notes on patients all the way through, so that they know that they're never without us, that we're a part of their team, their entire journey, that we partner with their practice, to help them through this entire fertility world and, and beyond. So that's, that's really benefited us. Because patients really automatically feel there's always a way for them to be in touch with BUNDL. And we always know as a team, we can share that information across our Salesforce platform. And we know where that patient is.


Griffin Jones  32:52

I want to talk about this more, because I think it is huge. And I think it's an area that clinics would love to be able to replicate for themselves in their own workflow. But it's very hard to do. And it sounds like you're doing at least some of that for clinics. And so I want to talk a little bit more about that. I do know one thing that always makes our clients freak out, or it makes the listeners freak out is that they always they very often think that if I work with this type of group that I might lose my patient with some other clinic that they work with. Are these are these transferable agreements. No BUNDL is


Cheryl Campbell  33:35

not transferable. So when you're signing the contract with BUNDL, you're doing your services at that practice. And that's, you know, an agreement that the patient realizes upfront. And, you know, we're we're going to maintain and promise that retention for that practice that that patient will cycle at that practice. So it's not transferable.


Griffin Jones  33:57

I could just hear a collective sigh of relief for those that are think, oh, this sounds pretty good. But I don't, I don't want them taking my patients and sending them somewhere else. And doesn't work like that. So if anything, you may have patients in an area where you're not working with a practice yet, but you're you work with a lot of practices. You're in a lot of places in the country, but you're not everywhere yet. And so what happens, Cheryl, if Are there examples where you have people that are coming to you, they're qualified, and they're in markets, that there isn't a partner provider yet?


Cheryl Campbell  34:40

Sure. And that's, you know, that's our marching order moving forward, right is that BUNDL has always been designed to sort of be at every practice we can possibly get into. And I think that you know, now that we're growing and we're seeing, again, entering into our third year, we want to be wherever we can be and we talk to patients, all the time when I always talk about my team is it's frustrating when we can't be in a market where we hear a patient saying, you know, I'm, I'm in Utah, I'm in the Nevada area, or I mean, you know, Southern California, we've got Northern California, but you know, when you're gonna have a presence in Southern California, so we are on a sort of trek at this point to be to increase our footprint across the country, and to really try to get fondle in as many markets as we can. And, you know, what we say to patients is, you know, be patient, we'll try to be there, but we try to sort of also guide them towards clinics where you'd be surprised patients will travel, you know, patients will make those plans that they need to be in a clinic that we might have a presence in, but we are really full press, you know, moving ahead and trying to get on them on as many clinics as we can, because we know that it would benefit so many patients. And we also use that as an option to make calls on on new clinics, when we know of a patient that is in an area that's really expressed an interest in BUNDL. It's a part of our in our national sales team, we use that as a means of saying, Hey, listen, you know, we've heard with patient your area. And we'd really like it, if you can, we can talk to you about BUNDL, because we've got patients that are interested in multi cycle and we're on the phone to them all day. So it's kind of working in an in it's advantageous in that way, too.


TJ Farnsworth  36:23

When I was going to add, I think you'll Griffin one of the things that you know, that I'm super passionate about was patient experience. And it's not a great patient experience for for patients in San Diego to call Cheryl and her team and say, hey, I'm interested in doing a BUNDL. And we say, great, you can but you've got to fly to Northern California to do it. So I think you know, for us understanding that, you know, we're trying to make sure that those patients who come directly to which we're seeing more and more than do so have choice when it comes to clinics and have something that's you know, geographically convenient to them?


Griffin Jones  36:57

Yeah, well, if you're in any of those areas, maybe you should definitely give BUNDL a call. Because sounds like there's already people in those areas that are IVF ready and ready to go. And doesn't sound like there's risk to the people that could try that out. So if you're in Southern California, Nevada, Utah, those are a couple places and then some other places in the country as well. It would make sense to reach out and see if there are already patients in your area that are ready to go because the these are folks that have thought about how they're going to pay for for this, they've committed to it, they've been qualified. And I constantly have people ask us, How do we get more IVF ready patients? And I often think I'm often annoyed by the question because I don't think they're doing enough to nurture, have a funnel, etc. Here's a way guys say, here's a way it's right in front of you, is there any type of minimum from the clinic that if we do, we're committing to do X BUNDL cycles in a year.


TJ Farnsworth  38:05

Now, if somebody can sign up with us and and use it once a year, you know, you just really never know what you want as you want choice and options for patients. If we if we require some type of a minimum it might require it might cause the patient caused that clinic to change their behaviors in terms of why they steered patients. We don't want them steering patients to BUNDL we want BUNDL to be a choice that helps them with their conversion. It helps them get patients who are on the fence about whether or not that they should move forward with their journey to move forward. And for them to be an option for us to learn to keep patients within their practice. And we don't want them creating sort of perverse incentives by having some type of a minimum with us.


Griffin Jones  38:44

I want to do a little bit of math for people listening because you there's there's no risk to do I like things where there's no risk to try something out. And there's there's only a little bit of upside at the very least. But if you take an average IVF conversion rate of 50%. Let's just take nationwide, some people are much lower than that, if they're in a non mandated, non mandated did state, if they're an area where there isn't a lot of employer coverage. Some people are higher that if they're in an area where there is a mandate, and there's a lot of employers with coverage, but let's just take an average of 50% of those that aren't moving on to IVF that need it. About half of them are for some kind of financial reasons, but only about half of them are because they really can't afford it maybe quarter to a half of them. So we're probably talking about at least 10% of patients that are just dropping off because they just don't have a solution right in front of them. This is a way to offer them a solution. And it is in such a way that the clinic can do it and just they can just test out what works I can say, Oh, you have patients in Southern California? Great, but let's do twos. Let's let's do two BUNDL cycles with, there are two packages a BUNDL with with these folks. And it's a way to be able to start it at a really low risk from, from my view, what am I missing? Like? Like, I feel like I'm the one. That's like, Yeah, let's do it. So, you guys be the skeptics? Like, am I missing something?


TJ Farnsworth  40:31

No, I think you're not. I think I think that the, you know, the risk to the to the practice is, is that they do the upfront work with us to onboard themselves with BUNDL, and then other patients end up actually engaging with BUNDL. And, and look, we're actually going to make referrals to practices sometimes that come through BUNDL that don't end up using BUNDL, they end up you just buying a cycle from the individual practice. And so that's, that's okay, we know, that's part of the cost of doing business. For us, it's, it's fine. I do think that one of the one of the major benefits, the practices beyond the conversion rate, which you do a great job of pointing out, is something that I think very few practices don't fully appreciate. And that's what I'll call, you know, their bounce rate, right? How many times when someone in their practice, do an IVF cycle, fail, and then go to their clinic across the street, because, you know, their cousin's friend, it was successful there. And the rally is what we all know the patient doesn't quite understand is that that's not a good thing for them. Number one is not great for the practice in the in the retaining patients, but also, the right thing for the patient is for them to stay with that practice. Because the practice can make adjustments to the cycle can, the clinicians can make adjustments to the treatment plan that can increase your chances of success versus another practice starting from scratch again, which may or may have an impact to the patient's chances of success. And so I think it's better for the patient to stay with the practice, it's obviously better if the practice was patients to stay, as you know, probably Griffin, as well as ideal when you talk to practices. Most of them think that's not a problem for them, they don't have patients leave them. We all know that's not true. And it's not necessarily because the practice is bad. It's just because, you know, not everyone's gonna get pregnant on that first cycle, right? That's just not, that's just not how the world works. Unfortunately, sometimes it's going to take two and sometimes it's going to take three. And so being able to retain those patients, I think, you know, customer acquisition costs, all the things you've driven, that you've forgotten more about than I'll ever know, I think are really, things I think these practices, you're better off retaining the patients that you already have, rather than have to go out and get more.


Griffin Jones  42:38

That's a really good point. So a lot of people don't even drop measure dropout, they don't know how to measure it. And they are losing lots of patients after their first cycle virtually every clinic has. So first is if they are thinking, Oh, we don't lose patient, they know that if they were to measure it, they would say it because anytime that it is measured, it's revealed. And the second thing is they might think, well, but we will do such a good job of caring for them that even if we have a failed cycle that they'll come back to us as opposed to going to somebody else. And I think people are just under estimating what it can feel like to be in that position. And it's not, it doesn't even have to be because a clinic let you down because they didn't have a great experience with the care team. They may have. But when you're when you're in a position like that, and you're just like, I'm not going to cuss on the podcast. But we're we have to do this again. It's been so long we then it's just like, Well, why don't we just try this place? Why don't we just try this other place? Why don't we just switch it up? It's because there when when you're desperate, you have to consider other options. What are the best ones or not they come to mind. And sometimes just choosing another option is what gives people that peace of mind. But Joe, you use the words you have 100% retention rate with BUNDL. So how does that work? Who reaches out to who after of a failed cycle? If someone is in BUNDL,


Cheryl Campbell  44:16

if they're in BUNDL, and they and they have a failed site, you know, though patients will contact us and say, you know, I failed my cycle. What does this mean? And we always are saying, well, you You ensured yourself that next cycle, you're fine. You're moving on to cycle again. And you're guaranteed if you know they think that there's some sort of do I have to pull the lever? Do I have to do something? No, you've done the right thing by coming in. It's exactly why BUNDL there because unfortunately, there is sometimes failed staples. And I think now that patients know they've set themselves up for that next round and they're ready to go and there's nothing that needs to happen except that they keep moving forward with treatment. They've learned lat from their first cycle, their physician has more information about how to achieve success next time around, patients will often just call and tell us that you know what my doctor said they're going to change up my protocol. And I'm going to do something different this time around. And but they know that they've already gave given themselves that ability to move into treatment, they don't have to think about, I failed that cycle, I took out a loan for that cycle. And now I can't get another loan, and I need another cycle. It's all these things that start running through their head, they don't need to worry about it, because they've guaranteed themselves upfront that they can just comfortably move in to their next phase. And we hear from patients all the time, but just want to let us know that and just say, Okay, I'm ready for that next cycle. And I'm ready to go. My doctor said this. And so it's, it takes that piece of work to go look for another practice. Do I have to, you know, should I start looking again, should I just I dig deep again, for for more finances, you know, its BUNDLis securing against reason, really why BUNDLworks so well for patients is that moment of oh, gosh, what do I do now? That goes away, and they can regroup and say, Okay, I've guaranteed myself this next phase, in my journey, and it's all set up for me and on the BUNDL, and we say, yep, that's exactly what you can do. And you move forward. And don't worry about that stress that you you know, it's hard enough to hear you feel that cycle, but to be thinking, you know, who authorizes the next thing and who pays for it, we've got it, we've got it a BUNDL, and we're taking care of it so that the patient can just focus on the next clinical piece, which is hard enough. You know,


Griffin Jones  46:36

we talked about how hard reporting can be. And so maybe you don't all have this yet. But do you have any reporting yet to compare, when a second cycle starts from for a BUNDL patient versus when a second cycle starts, for a non BUNDL patient,


Cheryl Campbell  46:57

you know, it varies patients often will move quickly from one cycle to the next. Largely because there's, you know, this Hurry up aspect to fertility, right, you're anxious to sort of whether it's, you know, you've got a diagnosis of a diminished ovarian reserve, you're older, you missed two years, because of COVID, whatever the case may be, you may be wanting to move very quickly. And a lot of our patients do, they'll fail a cycle, they'll regroup their doctors will change their protocols, and they're ready to move on to that cycle the next month. It's doable, it's hard. It's a heavy lift. But patients want to do that. And that's also the beauty and the flexibility of our program that allows them to do that.


Griffin Jones  47:39

And people don't have to go back through the financial counselor, as you said. So I'd love to wrap up with Cheryl, because I wanted to talk a little bit about the area where there is a lot of drop off. And that is just a lack of follow up from financial counselors from the clinic, because they just don't have that infrastructure. So I'd love to get your take on that show TJ, I know that you have to go, I just want to conclude about what you see as as the biggest change that could be coming from the payer field from the from the financial side, for patients as they pay for treatment.


TJ Farnsworth  48:20

I mean, from my perspective, I think the good thing for patients is we are seeing an evolution towards more universal coverage, which I think is great. I don't think that'll be revolutionary. I don't think that tomorrow, we'll all sudden wake up and we'll be all dealing with 100% covered services. I think this is going to be evolving as more and more employers adopt this type of services and see it as an essential service that we all know that it is. So I think that we are going to continue to see patients that are faced with large out of pocket expenses associated with these services. And that's where I think BUNDL can really provide a bit of it to financial peace of mind and simplicity of that process.


Griffin Jones  49:00

I'd love it. It's always good having you on and I like your like your takes on some things. football teams not so much. This I do. Sure you talked a bit about how your team works with patients and you have a sequence of a CRM and you talked about it a little bit and steps. But can you tell us more because this is an area where I've always pointed to as a bit of a black hole we we help people we've helped people have content on their website and make videos and put them in different parts of the welcome sequence so that people are ready to talk to the financial counselor so that they're not a deer in headlights. But then when it's come to the follow up we have just sort of said he should have a follow up sequence in place. But we have never built that out for someone that's where it kind of touches operations more than has been our field. And so you you have done that and Can you talk a bit about how BUNDL built that out because I think it is very relevant for any financial counselor that might be listening or any practice owner that wants their financial counselors to be able to retain more people to treatment.


Cheryl Campbell  50:17

I think Griffin It was born out of kind of how we felt the rhythm that we felt with patients, you know, fertility patients are facing so many things, right. They're talking to a lot of people, they're talking to doctors, they're signing consents, they're talking to pharmacies and meds piece and, and so you know, we don't want to flood or overflow the patient with so much follow up. So I think the system that we tried to come up with was really sort of a soft touch, so to speak, is it kind of a, you know, a natural rhythm to how we feel the patient is where they are in their in their journey. So if you're coming to us, sort of knowing nothing about the fertility world, and they need that kind of initial first conversation, you know, we feel like the phone call was always the best. And then beyond that, we think that, you know, we build a system where we're able to say this patient really knows, and it's flexible for us to say this patient seems to know a lot about what they want, they're actually ready to move into contracts. So we're going to our system allows us to kind of fast forward them into the contract mode, then to payment then to, to enrollment. So it doesn't lock us into having to do a string of the follow ups that don't make any sense for this patient. It's allowing us to be flexible, listening really to where they are in their journey, listening to the mile markers that they've got, I've got a follow up with my doctor on Monday, you know, please send me an estimate now, but I don't know where my start date is going to be. And even know if I'm going to need IVF in the next month or two months, being you know, that makes us kind of say, All right, you know, what, I'm not going to inundate this patient with a bunch of our system allows us to sort of tag that person up two months follow up, and it should be a phone call. And it's really just listening to every patient and understanding that everybody's journey is different, and what they're coming to us at all different parts in that journey, some that have already failed four cycles, some that you know, are exhausting their fertility dollars, I want to speak more about BUNDL, but move quickly some that have already started and need to really fast forward through the entire process, we need to get them to contract to payments. So it really that's kind of what our cadences and our women's with our with our system were born out of is really just knowing that the fertility patient comes to us at all different parts in their journey, and we don't want to be a call center or or, uh, you know, we're not selling discount tires, you know, we're not, we're not doing the the regular follow ups that you would see sort of in a retail mode, we're trying to really kind of understand what that patient is and tailor our systems to that. Because there's nothing worse than when a patient says to us, oh, gosh, that would be too much, or why are you? You know, I don't want too many follow up. We hear that. And we want to make sure that we understand that.


Griffin Jones  53:14

Well, I could see you also being really good at that too. Because when follow ups are done correctly, it's more of a of a service toss. It's more like a concierge service, as opposed to, Hey, are you ready to do it's it shouldn't be like that it should be the patient feeling cared for. I see you having a natural knack for that as the rest of your team like you.


Cheryl Campbell  53:43

They are very much they are all like I said, we all come some of us come from a fertility journey ourselves. But there just is that level of compassion, I think that we're all a team that kind of understands that. Yeah, there has to be a level of of empathy and compassion in in where we are because you don't know who's on the other end of the phone, you don't know what that story is going to be. And so you have to be poised and ready for what that might mean. So we're sort of park counselor apart friend, Park, fellow warrior, or however you want to put it, you know, that's, that's what our team is. And that's what we tried to devise with our processes.


Griffin Jones  54:25

And you know that about each patient because you're recording it in a CRM because you have people whose job is to know that and record that about prospective patients. It's so hard for financial counselors at a practice to be able to, to maintain a CRM like that's the reason why most don't and they are losing people because they might have some to dues. They might even have a project management software that has their tasks of oh, I follow up with this person, but then it's really just, you know, it's like one follow up and If there's nothing to nurture the patient with, after that they don't have any automation like that. And then they don't have good records to say, Oh, I talked to this person on this day about this. And you all have that, how much do you do for for clinics? So if if we're a clinic, and we're like, I just don't know about, if this patient's going to be able to afford treatment, or I, I'm just worried that they might, I can tell they're worried. And so I'm going to send them on to BUNDL because I think that's a good option. We're going to try a BUNDL here. So what are you able to do for the financial counselors? After that? What do you take off the clinics plate,


Cheryl Campbell  55:47

I think what we're doing is we're really basically taking it from that point on, I think the patient has probably gotten a very good understanding of what the practice is like, you probably know a physician or have been to a physician there, they probably had a maybe a bit of counseling, on the single cycle cost or the actual cost when they cut over to BUNDL, we're basically going to take them through the entire our entire process of who we are, but also just kind of lend some hand in. If this happens, that happens, we're kind of helping them understand, sometimes understanding IVF in general, a lot of my team, like I said, we're X patients, but we're also some of my team has actually worked on the clinical side, they've worked in the financial piece. So we're able to kind of advise, essentially, with whatever the patient wants to know. So we're another source of information for the patient or another source of comfort for them. We're an overflow as such as a financial counseling unit that works in conjunction with the with the practices that we're partnering with. And I think we also can, if they become bungle patients, we're there for them whenever they need us. So we're going to be the one that they talk to, we're going to be the one that they come to. And that does alleviate that at the at the clinic side. So we always sort of say that we're kind of helping to be an extension on that financial counseling piece. And, and we hope that that's part of the service that that we're given, when we're in partnership with a practice,


Griffin Jones  57:17

show, you've given us so much to think about with regard to how we help to move patients through the treatment journey, how we help to assure them how we help to expand access to care, and TJ gave us a lot to think about with certainty with the need in the marketplace for this kind of scale. So it can provide a nationwide scale that a single practice just can't do. How would you like to conclude? And I might steer the question, but I could just tell that you're really passionate about that. Even when we were prepping for this interview, it was it's not something that you did because your boss has asked you to do it, I could see the passion coming out of you. Why are you so passionate about this, and maybe we conclude with that thought, you know,


Cheryl Campbell  58:09

I just feel so strongly about options through for what we call our you know, our fertility warriors, when, when people are faced with fertility journey, it's not a club or a group you thought you'd ever be a part out, right? I myself with my own story, I just never thought I would be faced with, you know, that wasn't the plan. The plan is not to, you know, to physically and emotionally be put through the fertility process. But I think what we're trying to do is with BUNDL, and we're so passionate about it, because we believe it is such a really positive program that can help patients and I think we're just trying to, to sort of shine light and make it a lighter feeling for patients. It's daunting, it's hard. But if we can make one patient really say to us, gosh, she just made it that much easier. You just took that stress off of me. I just want to thank you so much. And that just means everything. And again, being a patient I just I an X patient, I just feel such passion for it and people struggling everyday with this journey. We just want to make it a little bit easier. And you know, a little bit lighter for them.


Griffin Jones  59:23

So Campbell, thank you very much for coming on and said reproductive health.


Cheryl Campbell  59:27

Thank you for giving up giving us the opportunity to talk about it. Really appreciate it.


59:33

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health




163 An Integramed Autopsy & An REI’s Entrepreneurial Rebirth

This week, Dr. John Schnorr joins Griffin to break down what transpired when he and his colleagues found themself at the bottom of the Integramed fallout. What happened to his clinic and his patients through the unraveling, how did it influence his career path afterward, and what entrepreneurial venture did he undertake as a result- all on this week’s episode of Inside Reproductive Health. 

Listen to hear:

  • What happens when another company is the employer of your employees-and they close their doors overnight-without paying you-or anyone else.

  • What considerations you should make before you enter into an agreement with any company- especially when the rules for assignment change drastically under the umbrella of bankruptcy law. 

  • How Dr. Schnorr rose from this downturn, and continued down an entrepreneurial AI path which has the potential to significantly impact the industry down the line. 


Dr. Schnorr’s info:

LinkedIn: www.linkedin.com/in/john-schnorr-md

Twitter: @JohnSchnorr1

Company: www.cycleclarity.com


Transcript




Dr. John Schnorr  00:00

They ended up going chapter seven, which has gigantic implications for the patients and for the fertility practices, because now they're going to disappear. And part of the thing that really challenged us the most is they had captured all of our revenue. So they had taken all of our revenue, they had all of our patient deposits. We didn't have any of our patient deposits. Patients wrote checks to Costal Fertility, they didn't write them to IntegraMed, we're not going to be able to go back to the patient and say, No, you made the check to the wrong person. You know, you need to pay us again, we had to, you know, provide care for service for monies we never received.


Griffin Jones  00:41

RIP Integramed. We go through what happened with Integramed from one practice owner's point of view the rebirth from that my guest today is Dr. John Schnorr. Dr. Schnorr finished fellowship from the Jones Institute in 2001. He joined a group called southeastern Fertility Center at that time as an employed physician became a partner there split off with a partner of his to form his current practice coastal fertility. They were an integrated practice. Now they're not they're independently owned. We talked about what that was like when another company is the employer of your employees and they close the doors. Almost overnight. We talk about the rebirth from that we talk about the landscape of of what it might be like to go with another group versus staying independent. Dr. Schneider has been involved in different entrepreneurial ventures. Now he has a venture focusing on one of his own pain points with the time that it takes for snog furs and other clinicians and other staff to go through the ultrasound process. We talk about that venture and the idea of moving forward as an entrepreneur as an REI. So hopefully this gives some career path ideas for some of the physicians listening and hopefully it also makes some connections. Dr. Schnorr. John, welcome to Inside reproductive health.


Dr. John Schnorr  02:11

Thank you. I'm excited to be here with you today.


Griffin Jones  02:13

I'm interested in having you because you're an entrepreneurial document involved in different ventures, you've been a senior partner in your practice. And so I would like to explore that business route. But let's maybe start with your timeline. You were you. You've been independent. You've been corporate, you've been independent. Again, you've you've been involved in other ventures. So let's start. Maybe not from the beginning, beginning but let's start after fellowship. How do you find yourself in private practice?


Dr. John Schnorr  02:44

Well, I start I did when did fellowship at a place called the Jones Institute in Norfolk, Virginia, came out in 2001. And then I came straight to Charleston, South Carolina, where I am now I joined it at that time, a practice called southeastern Fertility Center, who at that time was run by a physician, Grant Patton and I became an employee and eventually a partner at Southeastern Fertility Center. And it's in Mount Pleasant, South Carolina, which is one of the suburbs of Charleston, South Carolina.


Griffin Jones  03:12

Were you the first employed doc?


Dr. John Schnorr  03:15

There? I was not. So there was another employee doc here at the same time, who actually I think, was even a partner by the time I got here. So there were two partners at the time, and then I was an employed physician.


Griffin Jones  03:26

And how did you choose them? I know that we're used to a time where there are job openings all across the country. Dr. Chen and Dr. Lee have talked about times earlier than when you exit fellowship. Where are you guys? We're, we're delivering babies because there wasn't any job. So what was the landscape like in 2001?


Dr. John Schnorr  03:47

It's a good question. When I was getting out of fellowship in 2001, there was not a lot of demand for reproductive endocrinologist. So there weren't a lot of job openings. I did have a couple of different offers. I had two young daughters at that time. They're now older daughters at that now, but at that time, they're younger daughters, and I wanted a wholesome place to raise kids that I thought would be a good environment to live. Were from the West Coast. I'm from Arizona, but we just felt that Charleston had the right feel to it. And importantly, I wanted an academic connection. And I joined the Medical University of South Carolina part time while I was also a private practice physician at Southeastern Fertility Center, and eventually became the Division Director of musc. And I've now been their division directors since 2003.


Griffin Jones  04:34

So did southeastern become the practice that you're a part of today or did you leave in form another?


Dr. John Schnorr  04:42

No, it melted down in a partnership dispute around 2012. At which time we then started our own practice called Costal Fertility specialist I'm in right now. And I have thought for other doctors that I work with at Costal Fertility specialist.


Griffin Jones  04:59

So Did some of those folks that went on to start coastal with you were they at Southwest southeastern at


Dr. John Schnorr  05:05

the time, one of them was one of them was. So he was with me at Southeastern Fertility Center. His name is Michael slowy. He's from RMA in New York and came actually over to join us in 2009. And then in 2012, we together work to join to make coastal fertility specialist.


Griffin Jones  05:24

Were you a partner at that time at Southeastern? What did you learn from the partnership dispute that you decided, Okay, I'm going to make sure that we're we run our group as we move forward this way, what were some of the important lesson? Yeah,


Dr. John Schnorr  05:39

that's a fair question. It was a partnership, which was run by a physician who was probably 65 years of age when I came to town. And he wanted to continue working. And I think there was some reasons to believe that maybe we should part ways. And so we and the new practice called coastal for coastal fertility, elected that if you're greater than 70 years of age, you need to sell your shares back to the to the company and the company will then employ you at will if they feel that's the right thing to do. So that was one of the core decisions made for the new practice and the new practice. Kosta, fertility is very kind of socialized in a way that we share probably 60% of the revenue, and 40% of the revenue is based upon productivity. And that makes it so you're not competing against your partners, and you kind of it's all All for one and one for all but you still get rewarded for some productivity.


Griffin Jones  06:33

How did you learn to make a model like this? Was it all trial and error?


Dr. John Schnorr  06:38

I kind of thought a little bit about what what did I want out of a practice and I wanted a partner who was a partner, not a competitor, I wanted a collaborative effort. I tend to be a little bit capitalist by nature, that entrepreneur spirit is a little bit capitalist. And that's not my nature to have a socialized kind of approach to things. But I thought it would make it more comfortable and easier. And I think for a successful practice, there's plenty of money to give around. And if you were to craft some crazy, wonderful agreement, so you make an extra million or $2 million in your life. My bet is that doesn't change who you are at the end. And it's the partnership. It's the friendship, it's the collaboration, it's the fun, that changes who you are. And that's the spirit that I wanted to create. So we created a buy in practice, which is fairly easy to buy in because we wanted the best physicians, and we want it to be attractive for them to join us. I've been very lucky with the doctors who have joined me over the years.


Griffin Jones  07:33

So that started with yourself and Dr. Silva in 2012 2012. Dr.


Dr. John Schnorr  07:38

Slowly came in 2009. We formed Coastal Fertility Specialists in 2012. Don't quote me on the exact numbers, but Dr. Heather Cook joined us, I think in 2014 2015, she is now a full partner. We have Dr. Jessica McLaughlin who joined us, I think in 2019. She's now a full partner. And we're lucky enough to have Dr. Carrie Riestenberg, who joined us about three or four months ago, and she certainly on our partnership tract also.


Griffin Jones  08:07

So at what point did Integramed come into the picture?


Dr. John Schnorr  08:13

So when I was a partner at Southeastern Fertility Center, we I think my partner and I, at that time, agreed that administratively we were weaker than we were clinically that we were clinically probably a B plus to a minus grade practice. But administratively, we didn't have some of the skill sets to really administer a practice like that. We thought we might be a C or a C minus administratively. And so our senior partner that time was very interested in Integra med. And in 2007, we became partners of Integra med. The partnership at that time was what's called an MSA or a medical service agreement. That time importantly, entanglement was a publicly owned company that was traded on the stock market. There were probably 30 Other practices who are partners with Integra med. They got a percent of our net revenue, I think that percent was 6% of our net revenue or gross revenue, actually, they got 6% of our gross revenue. And then in that deal, they got 15% of our net profit.


Griffin Jones  09:16

Can we clarify medical service agreement for the audience? Because I think some people think especially maybe some of the newer Doc's think that Integra mat always had an equity model, like many of the networks today do and they did have that model. They did take equity in some of the groups that they worked with, but sometimes they also just had a management verb service agreement, and you talked about medical service agreement. Can you tell us about what that is?


Dr. John Schnorr  09:45

So it was an agreement of medical services that we were going to provide they kind of let us be the doctors and they were the administrators, they actually employed all of our staff. So our staff were no longer really employees of southeastern Fertility Center. They were employees of Integra. permit which will become important later on down the road. They actually manage all of our revenue, meaning that when a check was written to southeastern Fertility Center that got handed to Integra Matic, I put it into an Integra mat account and tigerman within pay all of our bills, and then the the income would come back to the doctors at the end. So whatever profit was available at the end, was given to the doctors got 85% of the profit and Integra mat got 15% of the profit. So that's how that agreement worked. And, you know, honestly, for the first couple of years, they did make us better, you know, they did provide advertising and marketing ideas, they provided management for our Executive Director, they provided decent health care benefits for the staff a better 401 K for the staff. I mean, for the first couple of years, it was good. It wasn't perfect. I mean, they wanted us to kind of you know, not be southeastern fertility as much as they wanted us to be in Tiger match. So there was some kind of loss of identity. And we weren't totally comfortable with that. And they tried to push things that we didn't necessarily want. But I think it's probably pretty typical in a relationship to have some give and take. And for the most part, I think integrity had made us better. And a lot of my business ideas and concepts now probably came from a lot of their teachings along the way.


Griffin Jones  11:16

And so for the folks listening, what you described, part of what you described is a professional employment organization a PEO on the employee side, when Dr. Schneider says that the employees were employees of integrity said that's actually very common. It's very common for organizations between, let's say, five and 200 full time employees to join a PEO. The PEO then becomes the employer. And they're the ones cutting the paychecks they have, because that PEO has 1000s and 1000s of employees, they get better deals on 401 K and health insurance, they broker that type of thing. And that's so that's very common for medical practices, law practices, any type of business between five and 200 people that you said that was it South Eastern, so does that carry over as you went and formed?


Dr. John Schnorr  12:08

Right? So that's a good question. So southeastern kind of melted down around 2012. And at that time, we were forming coastal fertility and Tagore. Matt wanted to be part of coastal fertility, not the old southeastern. And so we crafted an agreement to be part of integrity and moving forward. And that was a very conscious decision showing at that time and temperament was very good for us. We thought it made us better to be part of integrity and and we consciously elected to continue to be part of integrity and in 2012.


Griffin Jones  12:37

So this is still part of the years where, where it's going well for being in that relationship, when and how did things start to change? Yeah.


Dr. John Schnorr  12:47

So you know, the first we got when that things were changing a little bit foreign Tiger men was when they got purchased by a private equity firm. So a private equity firm, called safeguard and September of 2012, purchased all of the public stock that was available, and took Integra mat private at the time. So guard at that time, was a private equity fund, out of Montreal, and actually was owned by a publicly held company called Power Corp, which was also out of Montreal. And I remember very vividly when that announcement happened. We were at SRM and San Diego and they announced this new kind of sale where this was all going to be taken private. And the goal was to get all these additional revenues because they're now private, and then responded back out into the public service for sector for more money. And so everybody was kind of make good money off of that. And we had a big meeting about all of it. And, you know, one of my questions to them was at that time, Warren Buffett was a very kind of leadership person in the field of investment. I simply said, Are you guys buy in long term hold or are you kind of a buy and flip, and they said, we are 100% Warren Buffett, we are going to be in it for the long run. We got you guys got good leadership. Nobody ever says buy and flip do they buy and flip wasn't a word that happened. New Leadership did get brought in some very wonderful people got brought in to Houston, a lot of really neat people who kind of really helped get entanglement up to a better footing. I do think that there was some improvement over the first couple of years. But we started to know that notice that leadership started to leave over time. And so I'd have to think just kind of rolling out numbers 2018 2019, we started to see a lot of turnover of staff. I think I later learned that there may have been a lot of debt put onto Integra mat that they were servicing a fair amount of debt. And so there was a little less profit leftover and maybe some more challenges, kind of keeping things moving forward. So we kept noticing the people we used to interact with weren't there anymore, or they had more roles than they had before. So We started to over time and you know, 2018 2019 got less benefit out of Integra mat. So there'll be less marketing activity, there'll be less insights and people come in to teach us how to do things better. And so I think at some point, we started seeing diminishing return out of entanglement.


Griffin Jones  15:17

Do you have any insights as to why companies do that when they purchase a company that's listed on the stock market, they take it private, I can only think of a handful of examples, cigar doing that with Integra mat. My first employer was clear channel, which is now I heart media, and they were a publicly traded company. And then I believe the Marx Brothers purchased them and took took them back private. Of course, everyone's talking about Elon Musk and Twitter right now. And so those are the examples that I think of why what's the strategy behind that? Do you know,


Dr. John Schnorr  15:50

I think, I don't know for sure. But I think the strategy was to bring revenue in from other sources where, you know, you now have 30 practices, and maybe all 30 practices, which use the same genetic testing lab and they use the same pharmacy, should you be able to pull all this money together so that the revenue could increase, you maybe you can make decisions a little bit quicker than a publicly held company, and then flip it back out into the market once you really amass more income. So it was about making more money. And, and again, this was a private equity firm, who I think was primarily interested in just that.


Griffin Jones  16:24

And so it gets to be 2018 2019. You're seeing changes, then what happens?


Dr. John Schnorr  16:31

So, you know, we started, you know, having some dissatisfaction within our practice about Integra mat, but didn't take any action on that. It's my understanding that eventually Integra mat decided to put themselves up for sale, that over time, the company that owned regard called Power Corp actually had been writing down in their annual financial reporting. Between 2017 2018 I think they were writing down the value of Integra Mattis, who saw the value declining, and they would make statements that they've had some unsuccessful acquisitions and the costs required to reinvest in the company has lowered profitability, and they kind of lowered the value over time. And actually, they put themselves up for sale, I'm guessing 2019, certainly by 2020. They were for sale. And it's my understanding, they had a bitter, we're pretty deep in negotiations, right around the time that COVID happened.


Griffin Jones  17:29

And so then COVID happens. And I know some stories from other folks where they found themselves without a payroll company overnight, they found themselves without HR overnight. And, and as you talked about your employees were at that point in, technically employees of integrity read, so COVID hits and how does it unfold? So it


Dr. John Schnorr  17:53

was really tough for us. I mean, COVID was tough for everybody. But you know, right. When this started going, there started to be national recommendations that the fertility practice has stopped practicing fertility for a while, or at least slow down and what they're doing. And a lot of really great practice chose to do that. And I respect that decision. I mean, I totally understand that decision. But entanglement made their money off of the practice of reproductive endocrinology. So if you stopped seeing patients, you stopped billing, if you stopped billing, you stopped getting collections, if you stopped getting collections, the revenue was kind of dry up for entanglement. And I think they, they frankly, saw that coming. We were one of the practices that didn't stop seeing patients, we continued, we continued at the same pace. We added a lot of security measures, we didn't have any patients get COVID We didn't have any doctors get COVID. We did it safely. And very importantly, we did it profitably. We were profitable every single month. But what we started noticing is COVID kind of really hit around March, around April, we had vendors calling us because they weren't getting paid for the invoices they had out. We had vendors actually starting to deny us services because our invoices weren't being paid. And, you know, we would call Integra mat and say, look, we've been profitable, you guys know, we've been profitable, why aren't you paying our bills, and they would say, well, we're gonna pay your bills. And then we got to the point where they weren't paying the doctors, they were paying the staff, but they weren't paying the doctors. And so by April or so the doctors were digging into their own pockets, to pay the vendors so that we could continue to provide services, and they weren't getting income. So it was a double hit. We weren't getting income, and we were going into savings to try to pay the vendors and that culminated in what became a bankruptcy filing by Integra Med, which was in May of 2020.


Griffin Jones  19:45

And so at this point, you're you've got you got vendors coming for you, you you have to I guess make changes. And for those listening the bankruptcy that was filed in May of 2020 was chapter seven. And for those that don't know chapter For 11 means that you can restructure, you go through bankruptcy court you, you build a plan and you, you put your debtors in positions and you come up with a plan to pay them off and eventually emerge from bankruptcy. Chapter Seven has closed the doors. And so you get so in April, you're already having to dig into your own savings, you're already not getting paid, and then made 20 of those. Yeah. And now we're, we're gone. So how did you begin to replace the infrastructure?


Dr. John Schnorr  20:31

So and so you're exactly right, Griffin. I mean, when we started getting when that bankruptcy was a discussion, we went met with our local attorneys and told him what was happening and that this should be chapter seven. And I'm not kidding. They consistently laughed at us as a bunch of naive physicians, which we probably were that healthcare companies don't do chapter seven, they would do chapter 11. And then I was saying, honestly, I really think there's gonna be chapter seven, no, no, no, they're gonna do chapter 11. Here's how we're going to handle that. Well, they end up going chapter seven, which has gigantic implications for the patients and for the fertility practices, because now they're going to disappear. And part of the thing that really challenged us the most is they had captured all of our revenue. So they had taken all of our revenue, they had all of our patient deposits, we didn't have any of our patient deposits. Patients wrote checks to Costal Fertility, they didn't write them to IntegraMed, we're not going to be able to go back to the patient and say, No, you made the check to the wrong person, you know, you need to pay us again, we had to, you know, provide care for service for monies we never received. And adding insult to injury, they had a guarantee Money Back Guarantee program that they had sold to patients called IVF. Attain, in which the patient would receive a lump sum check, and be given up to three IVF cycles and your money back if you don't give birth. And those were contracts to Integra man, that we felt obligated as physicians running a practice to comply with. And so we ended up providing free care to a lot of patients who had paid us in advance, we never got any of the money and Tiger Man has the money, and we didn't receive any of it.


Griffin Jones  22:12

And how did you replace your your What did you have to replace in terms of the administration? How did you do that in


Dr. John Schnorr  22:20

everything, everything. So Griffin, within about two weeks, we had an EMR that was run by Integra men. We had all of our employees had to go over to coastal fertility, Costal Fertility had four employees at that time, they were the doctors, we had to absorb every employee, we had to actually get a payroll system put in place for all that we had to work our way out of that EMR into a new EMR along the way. And then we had a gigantic legal battle, which was on our doorstep, which we didn't see common either, which was something that became a formidable experience for us. So I have great partners, and everybody was divvied up with a task. One partners task was to find a new EMR and other partners task was to help onboard the new employees. And my task was to be part of this kind of upcoming litigation so that we could survive this.


Griffin Jones  23:13

And so you that that sounds like a great lesson and leadership, by the way of, hey, we've got five fires and four partners and associate or whatever, that or whatever it is, and and breaking that apart. And so as you're, you're you're coming through all of this, then I guess it starts to think about next steps. Were you thinking about how do we emerge from this at this point? How are we going to restructure or in these early months is it simply just keep the ship above water?


Dr. John Schnorr  23:50

Well, what I learned if I'm the first business, southeastern fertility is that when we were melting down, we believed at Coastal fertility, that the patient was going to get us through this, that the one who won the patients was going to win the revenue and was going to survive. And that was true for southeastern Fertility Center. And when we came to the bankruptcy meltdown, we decided we were always going to do what's right for the patient and provide the care that they paid for, even though we didn't receive the money. And so our vision was continued to provide great care, continue to take care of our staff who provide the great care, and along the way, figure out the rest of it. And so that's how we manage that. And there were some very down days and hard times getting through it. But we ended up frankly, as a better company than we were even while we were under entanglement.


Griffin Jones  24:39

So then you start to rise from the situation and people went in different ways. Some groups formed a new group together from entanglement. Some groups stayed independent. Some groups went all different kinds of ways. They sold to new networks that were coming they merged with the practice across time. And they sold to the dock that was in the other city and wanted to come to their city. And so how did you decide the route that you ended up taking?


Dr. John Schnorr  25:09

Right? So so that legal challenge that was presented to us is one that we didn't know anything about, which is that of course, and bankruptcy, the job is to sell the assets and then provide whatever money you get from that to the people who are owed money. And it was considered that an asset to the Integra man was our contract with integrity meant, meaning that in theory, our contract had value. And that value would go to the highest bidder, meaning that our contract would be put up for sale. And the challenge with that is that our contract have voting rights with it. So Integra mat got a full 50% vote at our meetings. So in theory, our contract could be sold to our competitor, who could then come into our boardroom and make whatever vote they wanted and force things to happen, because they outbid somebody else for our contract. And so that became uncomfortable for us. And we ended up working with some of the other practices who were part of Integra Med, in a legal effort to win our contract through court, unfortunately, is, you know, not by accident, bankruptcy was declared in Delaware, which is considered the state most favored for the bankrupt party. And so this all went down in the state of Delaware. And in Delaware, they appointed a trustee who was in charge of liquidating the assets. And the trustee, consistent with prior legal history, decided that our contract was an asset and our asset was going to be put up for sale. And we had to fight that and we had to fight that so that we could become close to fertility itself, not part of another person who could be our competitor or necessarily somebody that we didn't necessarily want to work with. And that became a formidable challenge for us and legal dispute that probably lasted upwards of six months.


Griffin Jones  27:03

I'm not a lawyer, but it sounds to me like the argument would be breach there. No, that's


Dr. John Schnorr  27:09

right. What and our contract it said that you couldn't assign our contract to somebody else. But in bankruptcy court, you can throw that out. So in bankruptcy, a lot of normal contractual agreements can be thrown out of the contract. And the way we want it is actually through a tennis star. So this is kind of an interesting story. It turns out that I think it was Andre Agassi. I'm not totally sure about this. But he had a contract in which he was going to do marketing for a sports apparel company. And that sports apparel company went bankrupt. And his contract with a sportswear company got sold to another company, for example, Danny's. So now Andre Agassi was going to have to mark it for Danny's, for example, and I kind of made up Danny's instead of the sports apparel company. And Andre Agassi argued that that's a personal service agreement. And appropriate personal service agreement is an agreement that involves a relationship of personal trust in which the character reputation skills and discretion are necessary to render that performance. So he's basically saying I agreed as a tennis star to work with a sports of our company, I didn't agree to work with this restaurant, and therefore you can't give this contract to the restaurant and in court. And that legal challenge, he won that. And so that was a precedent by which our attorneys argued that in some ways, the physicians are performers with specific skills and talents involving personal trust relationships with the patients, which require character reputation, skill and discretion, and therefore, assigning that to somebody else would be an appropriate plus, considering that who you're assigning it to would get 50% vote in your practice. Fortunately, the judge saw that favorably in our way, and agreement was crafted in which we got to get our own contract back, we essentially bought our own contract back. And we bought it by providing the free care to the patients and honoring the shared risk agreements that were already put in place by Integra med. So I think the judge wanted to be fair for the doctors, but also fair for the patients. And I realize I'm a biased person in this discussion, but it seems like it was fair, and that the patients did well, and the doctors got the contract back and got to run their own practice.


Griffin Jones  29:33

Listen to that doctors, you might never have thought that you could someday have a career parallel because of Andre Agassi. And yet, and here it is. That's fascinating. You could you've ever predicted something like that would have an impact. And maybe you read that years prior in the Wall Street Journal or something and thought, Oh, that's interesting. And you flip the page on to the next story and And lo and behold, it's Sunday, it has tremendous significance.


Dr. John Schnorr  30:03

I mean, what I was really impressed by the leeway bankruptcy judges have that they can take things you agree to in your contract and say, No, we're not gonna honor this, we're not honor that, like literally in our contract said you cannot assign this to somebody else. And bankruptcy court, they say now that doesn't exist, we're going to take that out. So the ability to rewrite agreements during bankruptcy, I'm sure there's good legal reason for that. But it's something that I didn't understand. And I didn't understand that our contract would become an asset that would be up for grabs. And so that was a little bit of a journey and stressful at times. And, you know, we kind of got through that and got our own contract back and to be able to function at Coastal fertility on our own and done very well with that.


Griffin Jones  30:45

That is fascinating. I wonder if there is ways of crafting language for bankruptcy courts or for that potential contingency? Oh, I have to bring a lawyer on the show to talk about that. But I wanted to ask you, what do you suppose the conventional wisdom was behind when when advisors and and lawyers said Ah, there's that they won't file for Chapter Seven everybody files for chapter 11? And health care? What do you suppose was the the logic behind them thinking that


Dr. John Schnorr  31:18

why they went chapter seven instead of 11?


Griffin Jones  31:20

No, not the not not entanglement, filing Chapter Seven, but rather wide? Why good counsel, that that Utah lawyers, advisors, people that know the business? Well, while they were almost certain that they would file for Chapter 11, thinking you're crazy for thinking that they would file for a Chapter? Well, I


Dr. John Schnorr  31:37

think it's because 98% of the time, they're right in chapter 11. So I think it was just based upon the statistics and how uncommon it was for a healthcare company to do chapter seven.


Griffin Jones  31:46

And is that simply because healthcare tends to be better pay, they tend to be able to get lines of credit more easily, or, or, or get revenue streams back online more easily. And let's say it's an entertainment company, it could be, it could theoretically be anything, it could maybe it's maybe it's a bust brand, maybe it's a,


Dr. John Schnorr  32:06

I'm guessing that the margins were thin enough that they didn't see profitability, and a new company realizing you can wipe away the debt, the margins were still thin enough, and they were challenged enough that they didn't think it was going to be a viable company, even after bankruptcy.


Griffin Jones  32:21

So then some people form a new group other people sell to other groups all over the place, some people merge. So far, you have remained independent, is that right? That's right. That's right. Is that for the foreseeable future? Or? Yeah, that's


Dr. John Schnorr  32:39

a good question. I and honestly, I have a lot of discussions with my current partners, that I think being part of a network can have a lot of positive effects. I mean, we know the negative stuff now after going through all that. But I think the positive is the collegiality, the meetings, where everybody kind of meets together the new freshing ideas about marketing and administrative support, and maybe negotiating on insurance contracts, I think there can be a lot of benefits. And so I still see those benefits, but we also see some of the dangers along the way. And, you know, I think that the important thing that I learned from this is that, you know, venture capital can be good private equity can be good, I'm not against them at all. I think there's some great examples of that being successful. But I think the most important thing is whatever you get into make sure that your interests are fully aligned, that sometimes they're not aligned. And if they're not aligned, if one person is about the money, and the other is about the patients. I think that's right for challengers. I also think it's important to control your own revenue. I think one of the challenges we had is we weren't capturing our own revenue. I think one of the things we did well is we maintained our brand identity, and our reputation and our brand loyalty. So when we did separate from Integra mat, they still knew who coaster fertility was. And I think having an out in your contract keeps it fair, I think it keeps it honest. The ability to have a divorce kind of keeps everybody interested in working together, knowing that somebody could leave if it wasn't working out. So you know, contracts that are quote, evergreen and go on forever without an out. I'm leery of those type of contracts. I think those are contracts that have challenges with them. And I do think all contracts should prohibit assignment. Now. We talked about that not being helpful in and bankruptcy core, but maybe at some level, it's nice to have that around so that they can't assign your contract to somebody else.


Griffin Jones  34:38

We've talked a little bit about that on the show before having an assignment or no assignment clause. Does that preclude some folks from from wanting to buy in to a fertility center though some companies from wanting to buy a fertility center if there's no assignment because hey, if my goal is I want to flip this and three and a half years, I have to be able to assign I have To be able to sell. So would would, could that potentially diminish the multiple that someone received on their EBIT? Da? I guess it makes sense. Well, that's one that that's a possibility. But for all the reasons that you brought up, it's something that you really want to think about. And especially because I'm, I'm completely speculating, but now we have how many networks 910 11, some, some, somewhere around that ballpark somewhere. But I attended 12. And a few years ago, we had a few, I don't think we're going to have 10 to 12. For a while, I don't think we're going to have 18 to 20. Even if we do get close to that number for a little bit, I suspect that these folks are going to be gobbling each other up pretty in the relatively near future, because eventually, there's just not enough practices to buy. And the only way that you're going to be able to acquire other practices is by acquiring the parent company. And in your case, I, I don't need to, to tap your phone calls, I know that you're getting I know that you're getting calls because you're a five Doctor group, and you're in a non mandated state and you've run it so profitably. And so what what is made you not say yes, up to this point?


Dr. John Schnorr  36:15

Well, and so we have received a lot of a lot of calls I know every practice has. And there are some that were interested in and some were not the ones we're more interested in, have a more collegial aspect, which will be kind of they present a toolbox of options, and you choose from the options you like. And if you don't like some of the options, you don't do it. And they give you a little bit more autonomy along the way, and you get to control your own revenue. And, you know, those are the models, we tend to like a little bit more. And so we're continuing those discussions. But we're still very early on in any of those discussions.


Griffin Jones  36:48

Well, let's talk about other entrepreneurial threads that a physician can pull, whether they own their own practice or not. But I have often thought that when you either work for a company or you own a company, you get to at least form a good hypothesis for what could be a market need based on your own challenges. And so you have done that in the in the cinematographer space and, and perhaps others, but I just like to hear about what you're delving into now and what got you into it.


Dr. John Schnorr  37:24

Right. So I've always kind of had a little entrepreneurial spirit, and I've always wanted to try to make the world a better place. I'm the guy who was always trying to think about what's the pain points now and how do we make those pain points better? And I've always found I remember back in my fellowship days, one of the pain points was doing ultrasounds of follicles. That when we were doing that I was the doctor considered measuring big. So whenever they looked at a measurement that snorted, they would say, well, it's you know, he measured 19 millimeters is probably 17. Or, you know, they would always kind of discount my measurements. But we'd have other fellows that they said, Well, he measures small, so we're going to add to him. So we're always kind of using these kind of fudge factors and kind of measuring follicles, and also thought it was a fairly tedious process measuring these follicles. And so around 2019 or so I was reading The Wall Street Journal one morning, and there was a big article that showed that artificial intelligence and this prospective study was able to identify breast cancers as well or better than radiologists looking at the same mammogram images. And those images that were put up honestly, I looked at I couldn't figure out where the breast cancer was right. I mean, a reproductive endocrinologist don't have a lot of training in that. But AI is seeing this breast cancer as well or better than radiologists. So I thought well, to me, that's fascinating, right, a second pair of eyes on a breast cancer very important. What could it do in the space of reproductive endocrinology. And it dawned on me that maybe we could use ultrasound and apply artificial intelligence to the ultrasound images, so that we can identify and measure the follicles within the ovary with the benefit, maybe we can do it faster. But also maybe we can standardize it. So there aren't people who measure big and small, they're just people who measure kind of that standard measurement. And so, you know, being the entrepreneur, I didn't want to put a lot of money into without seeing if it was, you know, patentable or already patented by somebody else. It was open space, we were awarded three patents and the ability of artificial intelligence to see follicles. We then went in search of an artificial intelligence company who could help us do this. And of all places in the Ukraine. There is an artificial intelligence group that was measuring with artificial intelligence when the football went across the line. So they're able to track a football going across the line. They're working with backup cameras from cars, they were doing a lot of really neat things. And they thought that they could help us with this project. So we started a pilot project where we just looked to see if we could do this and track a follicle. It turned out to be successful. And then with a whole team of annotators, literally, we annotated 19,000 Varian images, they had over 90,000 follicles where you're showing repetitively where a follicle is within the ovary so that artificial intelligence can learn what a follicle is and what a bladder is, and therefore more accurately read the ultrasound image of the ovary.


Griffin Jones  40:24

How did you find the team to work with in the Ukraine in Ukraine is at this point, are you are you googling artificial intelligence developer


Dr. John Schnorr  40:33

and started with Googling, and then have friends who are in the space who were using AI and maybe the legal field and other areas who would point me in directions and, you know, we would kind of interview each other to figure out what they've done in the past talk to their references can figure it out, and then put a small amount of money into it to figure out if they can actually get a private pilot off the ground and see if it's successful at an early level, it was very inaccurate, early on. But the proof of concept that we could track a follicle and see a follicle and discriminated from the bladder was what I needed to know. And when my belief was, as I annotated more and more and showed it more and more, it would get more and more accurate. And in fact, that happened to the point that our accuracy rate went to above 92%. With a dice score, which in artificial intelligence is the way you measure the accuracy. It's a combination of accuracy, precision, and recall, that gives you this dice score. And to get a dice score above 85% is good. We got up to 92% by annotating over 90,000 follicles now, that was a mind numbing process. And I reviewed every one of those annotations to make sure they were done accurately so that we had an accurate platform on the other end.


Griffin Jones  41:44

Are you bootstrapping at this point? Are you talking to VCs? So and and even now are when you said you've got patents, I immediately thought oh, they love patents on Shark Tank. Every time somebody uses the word patent on Shark Tank, the sharks get reengaged. And so that made me think of venture capital are you talking with with VC now? Are you hoping to continue to bootstrap?


Dr. John Schnorr  42:07

Yeah, certainly, we'll talk with anybody it's been bootstrap now. But we'll talk with anybody. The challenge that we didn't see common Griffin, was that the FDA considers software that reads a medical device or medical image, it considers that a medical device. So the FDA says that they have to regulate our software just as if it were a hip implant. So that was a challenge. We didn't see common. We ended up doing five clinical trials to prove to the FDA that we had an accurate safe product. And we received FDA clearance in January of 2021. So this is now a product that's available on the market called cycle clarity.


Griffin Jones  42:48

And so at now, you're beginning to to unroll the product did start with using it in your own practice was was getting your partner's to adopt a part of you. I mean, when you were when you were quality checking the AI, you were doing it yourself. But in terms of adoption, were your partners, the first people that you are trying to get on board.


Dr. John Schnorr  43:12

And so you're right. So the FDA is jurisdiction is you can you write your own software, you can use your own software, but you can't sell your software until you get FDA approval. And so we have been using this artificial intelligence application since kind of early 2021. And so it's now been functional at our office for a significant period of time. And I have great partners who I think probably were a little leery at first with what I was doing. And they kind of gave me a little leeway. And I think now they look at this is an indispensable resource within our practice that it allows us to do a variant ultrasounds that take 10 seconds per ovary, literally, you put the probe in, you push the button, it scans to the ovary, it feeds the results directly to the EMR, it does the same to the left ovary. And what an ultrasonographer will do is they'll come in the morning, they'll do maybe 20, back to back ultrasounds each taken a minute, two minutes, three minutes, around 10 o'clock. Once their morning's done, they're gonna review each of the images takes about a minute to review each image, and then it gets put directly into the EMR, what my partners will tell you the greatest value is or the second greatest value is that anytime any day they can review every one of you have any images from top to bottom to make sure as accurately read and try to correlate any differences between estrogen levels and progesterone levels. It gives a second look a second opinion. And I think they would tell you that's probably one of the greatest values.


Griffin Jones  44:44

Have you ever done a side venture like this before where the where it wasn't just the main business in your main business being the practice? Have you done ventures like this that aren't the main business in the past?


Dr. John Schnorr  44:58

I have I was fortunate to be part Part of donor egg bank USA, which I've learned a lot from Michael Levy, who is a great person and created a great company with Heidi Hayes. Prior to that, I had written some software for OB GYN training for their board examinations. And so there are many different times when I've kind of done things on the side that have been beneficial. And I've enjoyed that I enjoyed making things and building things, and watching it grow in a way that you're impacting millions of people, rather than that one person in front of you as a physician day in and day out.


Griffin Jones  45:29

What big differences do you perceive, if any, between starting a venture in a space that's relatively unexplored? It's it's, it's a new technology taking over for something that is analog and inefficient, versus starting a proven business model, like an REI practice? What differences do you notice it's the


Dr. John Schnorr  45:51

risk model and the lack of guarantee, and it's the capital investment. I mean, a lot of capital was invested in this artificial intelligence company, where probably somebody would have given us a 5% chance that we can even create a platform that works much less read it accurately. So I imagined going into this, it didn't look like this was going to work very well. But as it started to build, and we got more and more smart team members involved, who all had their own expertise, I mean, we have a chief technology officer who's amazing senior engineers that are amazing. We have a data scientist specialist, we got a Chief Operating Officer, we have medical device reps, who are integration specialists. We're now in seven different web contracts with all the large major networks except for one. And we're in seven different locations, we have 17 different offices. And right now we have over 45 different people doing ultrasounds. And importantly, they all offer Sam with the same degree of accuracy because there's AI doing it. So you know, the benefit becomes, you no longer need to be a physician working at the bottom of your license doing, you know, follicular ultrasounds, you can be a medical assistant working at the top of your license with cycle clarity, getting the same measurement accuracy as to reproductive endocrinologist, while the reproductive endocrinologist is now seeing patients. And our own studies show that we'll say four hours of physician time per day, four hours per day, for a clinic doing 1500 or more cycles per year, and IVF, allowing you to see more patients to maybe do more surgery, do more retrievals and let the medical assistants do or even the ultrasound ographers do the scans. And then if you have any questions about it, when you do STEM review, every one of those event images will be there for you to see from top to bottom.


Griffin Jones  47:39

I've recently had Dr. David sable back on the show. And the thesis behind his investing strategy is that we have to be able to expand the number of people that are served by art in the country and worldwide, and that the quality cannot decrease as cost decreases that the current standard for quality has to be the standard cost needs to be lowered from there. And technology lifecycle clarity has to be a part of that solution. It sounds like what you're working on has a piece of that really well thought of. But when I see challenges of models like that being adopted, it has to do with clinic workflow, and that there's just so much variance in clinic workflow, that there have been really good tech solutions, and some of them are still out there. And some of them are being adopted, but many of them not as fast as I think that they probably ought to be. And it's because there's so much variance in clinic workflow. How do you overcome that?


Dr. John Schnorr  48:45

Well, and I think you're I think you nailed it, I think our greatest challenge is synthesis change. And even though it's positive changes change, and change is hard. And change takes inertia. And it's got to be painful enough that you make that change. And so our job is to find clinics with good leadership from the physicians who say this is going to be a positive change moving forward. We're going to implement this we want to you to put effort into this ultrasound, ographers gnamaize, and physicians to make this work. And with effort we've been able to show it coastal fertility and now seven other centers that it works very, very well. And at Coastal fertility. What matters the most is the number of eggs retrieved. The maturity of the eggs retrieved the fertilization rate, all the embryology endpoints that matter the most were unaffected or improved by using artificial intelligence. So this application can help you forecast when to do the egg retrieval when the most number of embryos are going to be there and how to improve pregnancy rates. And importantly, it uses the center's specific own embryology data through our data science experts and artificial intelligence to figure out when the best time is for each particular clinic.


Griffin Jones  49:52

Do you see yourself moving into this type of entrepreneurial role full time and I didn't just I don't just mean like real clarity, I mean, you could probably sit down and write down all of the pain points, the analog pain points that you have, as a practice owner as a clinician, you maybe you already have written them off. And you could just start saying, well, now I can work with AI developers on this problem and on this one, and so do you see yourself doing this full time?


Dr. John Schnorr  50:21

It's it's a great question. I love being a physician. And I think ideas come because you're a physician, you're currently seeing patients and you're seeing the pain points, and you're able to evaluate your own product and your own clinic. So I never see a time in which I'm not a majority physician. But you know, could there be a time when I dedicate more time to kind of maybe cycle clarity other things? Yes, I mean, that's a possibility. But I always want to have a significant part of my time being take care, take care of patients. That's what I love.


Griffin Jones  50:49

You got to keep the sauce sharp. John, you've given us gold in this episode, I think a lot of the young doctors are really going to get a lot out. But I think a lot of your colleagues are also going to and I hope that there's somebody that you used to talk to a lot that you just haven't in a little while that says, you know, I want to reach out to John and say, I enjoyed it. I hope I hope somebody does that. That's my pious hope. The only difference between a sinner and a saint is a pious hope. But how would you like to conclude knowing that most of our audience is there are a lot I would say if there's 150 fellows that at some point, maybe 50 of them are listening, there are a lot of young Doc's, the biggest segment is is partners of practice. And then the next is is C suite. So you've walked us through an entrepreneurial path for Rei is how would you like to conclude,


Dr. John Schnorr  51:40

I would like to conclude that we're blessed to be featured in the field of reproductive endocrinology, I mean, what a special place where and to help couples have kids and families that they wouldn't otherwise have. And I just as an entrepreneur, always wanted to make the world a better place. Whether I'm making it a better place because I'm working on environmental concerns or method. Maybe I'm trying to invent a better speculum, or maybe a better way of doing ultrasounds. I think we should all just work on our own little niche of our world figure out what our talents are individually and how we can apply those to patient cares to make the world a better place.


Griffin Jones  52:14

Dr. John Schnorr, thank you for coming on inside reproductive health. Hope to have you back. Thank you.


52:21

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society, visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health



162 4 Principles For Abandoning The Travel Agent Model Of IVF Care: With David Sable and Abigail Sirus

Former practicing REI, David Sable, and venture capitalist, Abigail Sirus, deconstruct how democratization will change the face of the IVF field. Sable and Sirus break down the four principles of how this will be accomplished, perhaps sooner than anyone anticipated, on this week’s episode of Inside Reproductive Health, with Griffin Jones.

Listen to hear:

  • What Sable and Sirus believe will happen when the travel-agent model for IVF care is abandoned and patients are empowered to oversee their own care.

  • Griffin question what risks this evolution may introduce to both patients and practitioners.

  • What Sable and Sirus think may happen to incumbent REIs- whether or not they will  be phased out entirely.

  • Why Sable and Sirus believe, one day, patients will pay for IVF if - and only if- they have a baby.

Reference:

https://dbsable.medium.com/the-four-guiding-principles-for-democratizing-ivf-pre-asrm-2022-prep-notes-from-the-front-lines-of-2f2fd66e5d8d


Abigail’s info:

LinkedIn: https://www.linkedin.com/in/abigailsirus/

Company: AWM Investment Company Inc.

David’s info:

LinkedIn: https://www.linkedin.com/in/davidsable/

Company: Life Sciences


Transcript

Griffin Jones  00:26

Netflix? Or are you Blockbuster Video? Or are you HBO? Or are you some other analogy that should be applied to the fertility field as we talk about the massive change that is coming from venture capital to the field of reproductive health. My guests today are Dr. David Sable, who needs very little introduction to you all. This is his third time on the show former practicing REIi also teaches at Columbia University for classes on entrepreneurship also manages a fund for Life Sciences. Today, we bring on his colleague, Miss Abigail Sirus, who is a venture capitalist and investment associate for another life sciences Innovation Fund. She had at IBM for another number of years before that, today we talk about the four principles for democratizing IVF. We get so engrossed into these principles and the changes that might be happening in the marketplace and who might be executing upon them that we're going to have a part to where we go through some of the mapping where of the areas of biggest potential disruption for the fertility field, I felt that we needed this conversation to set up the next one, and I don't tire of having Dr. Sable back on the show, and you don't seem to either. So until you do, then these multi part series make sense today enjoy the four principles for democratizing IVF. With Dr. David Sable and Abigail service. Ms. Sirius, Abigail, welcome to Inside Reproductive Health. Dr. Sable. David, welcome back to Inside Reproductive Health.


Abigail Sirus  02:08

Thank you for having us.


Griffin Jones  02:11

I'm always happy to have Dr. Sable. Back on the show Abigail, this is the first time that you and I have met. And I want to talk about an article that David wrote recently based on work that the two of you have done together. But before we get into the article, just give me a little background. How did the two of you link up? Sure,


Abigail Sirus  02:29

I'd be happy to. So Griffin, David and I actually had the pleasure of meeting on a project at while I was at my previous company, IBM, I was a blockchain strategy consultant. And David was actually one of my clients. So we in that instance, we're trying to create a blockchain enabled system called IVF, open to really bring standards to the way that biospecimens are stored and tracked and traced along with chain of custody for in vitro. And I admit, you know, Griffin, I'm actually the product of IVF. So my twin brother and I were born via IVF. And it's it's truly a miracle that, you know, I really wouldn't be here without. And so it's always had a place in my heart and been special to me. But when I got to meet with David and several others across the industry now a few years ago, and do this project together, my eyes were really opened to the industry in a new way. And I'm a process minded person. And when I started to understand the inefficiencies across the space, it really started to inspire me and grow my passion for all of the opportunity that is here. And things that we can can kind of bring to light through innovation, which I know we'll talk about a little bit


Griffin Jones  03:42

later. But what came of IVF open?


Abigail Sirus  03:45

Absolutely. Well, I'll let David answer that question.


David Sable  03:49

Thanks, Griffin. Thanks for having us. having me back. And having Abigail on. Going back to the decision to bring Abigail on I try to endeavor to be the dumbest person in the room. Wherever I am.


Griffin Jones  04:00

It doesn't work when you and I are hanging out.


David Sable  04:04

Well, certainly when she's around, it's today. That happens. But now IVF open was we likened it to building drainage ditches for to let the IVF industry scale try to help you and I might have talked about it briefly trying to have one place that assigned identifiers for frozen eggs and embryos so that nobody ever was stuck someone's eggs and embryos for somebody else's. And nice thing is it kind of got it's been taken up by a lot of the private industry incumbents and made part of their kind of overall strategy. Training Group enforce these kind of rules by a nonprofit is a difficult thing to do. So having kind of the industry say yeah, this is a really good thing to avoid these problems. Let's go ahead and try and see if we can build into our her handling of specimens, a uniformity of labeling. And that'll evolve in a nice way kind of organically. within the industry, what we did is we tried to put all the incumbents together into a single, not a room and single single zoom screen. And, you know, it really it's it was great was that everybody got it. Everybody understood, and left the effort, which hats off actually to Risa Levine, who you know, who's a super patient advocate activist in this field for kind of getting the whole thing off the ground. And the other great thing that came out of it is I got to know Abigail, because IBM was a big partner of ours, in that. And then when I was looking for someone to join me, actually just having us if you know anybody, and she said, Well, how about me? I said, well, they knew you were available, I wouldn't be asking. So I brought her on as soon as I could. And that's been terrific. She's been with us for almost a year. Now.


Griffin Jones  05:57

Let's talk about the article that brings us here today, which is about the four principles for democratizing IVF, the four guiding principles for democratizing IVF. And this was an article that you published just before ASRM David. And there are four principles, I have a feeling that we're going to go into the third one disproportionately today, at least that's where my disproportionate interest lies. But the four principles for democratizing IVF are abandoned the truck travel agent model for IVF patient care, use the gravitational pole, foreign by incumbents making today's highest pregnancy rates, the floor of outcomes for the future. And fourth, using greater certainty uniformly higher outcomes and improve data collection analysis to actually quote, qualified data leading to better risk management, who will talk about the four of those principles? Let's start with the first one. What do you mean by abandoning the travel agent model of IVF? Patient care?


David Sable  07:05

Well, yeah, 30 years ago, if you wanted to take a grand tour of Europe, you call up a travel agent. And they would book your flights for you book, your hotel, book, your tours, make reservation restaurants for you add up the bill, put a big margin on top of it send you one bill, and he'd write one check. And it's a it was a way of getting things done. And it's a nice model, if you a can afford it, be have access to a great travel agent. And see they actually give you what it is that you want. For the IVF world. That's kind of what we have. Now you go to an IVF clinic, you say I'm having difficulty conceiving, and the incumbents in the clinic make all the decisions for you. And they charge you one amount. So your input really comes down to just choosing a clinic. And they make all the decisions for you from there. What the future of IVF as we foresee it, and the way things seem to be evolving, as we disassemble the cycle into different places, into geographies closer to where the patients live. Using our inputs more efficiently, not putting everything into a $2,500 a square foot laboratory is that the patient herself or the family themselves will be able to choose maybe being monitored one place, have their egg retrieval somewhere else, take the rigs store them somewhere else. In initiate contact with the laboratory, once the eggs are frozen, and maybe bring your reproductive endocrinologist into the process later on. Giving the patient the opportunity to choose to stay closer to home do some price comparison shopping. Really the way we purchase just about everything nowadays, there's no reason that IVF cannot evolve into that model, which will result in greater access, more price comparison we have more price choices, and an ability to kind of oversee one's own care the way you can do so many other choices now in the marketplace.


Griffin Jones  09:24

Maybe we'll bring this up a little bit when we get to the third point where we talked about dollars until baby and time until baby in life disruption to baby but is there a risk if you are abandoning the travel agent model the all in one model by choosing your clinic of having death by 1000 cuts like I don't think the airlines have added a lot of value the Spirit Airlines and the Frontier Airlines by having people choose if they want to bring a carry on if they want to pay more for that or if they want to pay more for not having a middle seat and maybe there's something to be said For the Southwest, and the jet blues and the Alaska's that have brought down cost without making people have to nickel and dime on an each individual micro choice. But what about that?


David Sable  10:14

Well, I think that if you're looking at people, yeah, if you're looking at the people who have access to air travel now, without a very, very low close budget airline, we have to pay for your seat choice and pay for each bag you bring on. And there's no food and there's no flight attendants, then it may not be very additive to them. But we have to ask ourselves, and you have to start every conversation the same way, what problem are we solving. And if we're solving for access for the next million, 5 million people per year that need IVF, that have no access to it now, then they may be more than willing to, at a price point in a geographic location that works for them suffer and endure some of those little cuts of inconvenience. Whereas if the choice is they have no access to IVF at all, then were you kind of opening that consumer choice up where it will matter, people don't want to buy an IVF cycle, they want to have a baby. And if I, you know, look at some of the inconvenience and the things that people endure now to go through an IVF cycle, including traveling 1000s of miles, and taking off at 40 hours of work, per cycle, in order to go back and forth to the clinic to be monitored things of that sort, then, you know, I don't want to make consumers and patients decisions for them. I think that as you expand the market, you know, our big goal is to go from 3 million cycles a year to 30 million cycles. We've got to give a lot of different patient experiences, put them into the market, and let the patients slash consumers themselves decide.


Griffin Jones  12:06

You brought up the point of I don't want to make the patient's decisions for them referring to the travel agent model, but I can hear a number of RBIs thinking I make patients decisions for them. That's what my job is. What decisions are patients qualified to make? And maybe perhaps they're not qualified to make? Like, are we talking about picking their own PGT? Provider? Are we talking about picking where they store their gametes and their embryos? Are we picking where they're pharmacy to? What are what are we talking about


David Sable  12:44

all of the above? It's so amazing again, when I met Abigail, who had not yet had another than professional reasons to learn about it. She was incredibly knowledgeable about the process, the science, the medicine, everything there was I remember thinking, what was your healthcare background in college, this is like somebody who's like a pre med that decided to go into data and analytics. Turns out years an accounting major, pretty good accounting major imagine my patients knew so much about what they were undergoing that, why not entrust them with the ability to comparison shop for the best IVF process that works for them. Rather than have us decide for them. You look at the range of pregnancy rates from one cycle from one program to the next. And through the United States and through the world. Here we're doing about 2.6 million cycles per year, worldwide, hitting about half a million babies, tells us that our efficiency is somewhere between 20 to 25% per cycle worldwide. We know we have clinics here in the US that are doing 65% per single embryo transfer, if that embryos genetically normal. So there's an enormous range. So to think that the de facto proper way to navigate your IVF cycle is to put all the decision making in someone else that may turn out to be the case. But why? Why do we assume that's the only case. And again, this is within the context of trying to expand the size of the marketplace, to people who really, really need IVF not to have a baby or to have a healthy baby or to get pregnant at all by a factor of five or 10x. So it's the putting different choices out there. It's we go back to our old metaphor of we have an IVF industry that's the hotel industry with just the four seasons Is the Ritz Carlton. But we got a heck of a lot more people that need a place to sleep. And essentially, their frame of reference may be give me a comfortable bed, and a clean bathroom at a price I can afford. And they'll get the same eight hours of good sleep that you'll get in the Ritz Carlton. If we keep people the same probability of having a baby. And we're transparent enough in the marketplace the same way all other consumer marketplaces are going, then why not interest this the patients, again, because a lot of these people would have choice would have no choice at all, it'd be out of the market. And so I think that the REI is have done a fabulous job of making these choices up to now. It's great, and they should Oh, this should always be a place for them. And high touch high hand holding, kind of decision making for you service is fabulous the same way. There's still great travel agents out there. But it shouldn't be the only choice.


Griffin Jones  16:02

Well, not to defer to anecdotes. But hopefully to give some context, Abigail, during your journey, were there. segments of the journey where you wish that you had decision making authority that you could have opted for the option that you wanted? Or did you choose any options that are now informing how you view this from a business perspective?


Abigail Sirus  16:26

Yeah, and just to be clear, I do not have an IVF baby. I was born via IVF. So I can't speak directly to the process itself from that intimate of a perspective. Although, you know, who knows, maybe I will, I will one day. And I'll come back. And you know, we can have another discussion. But what I can tell you is just from observing the industry today, as David said, not only about the hotel chain model of making sure that there are the Holiday Inn expresses as well as the Ritz Carlton's, really, for us as well. It's about geographic access, and making sure that, you know, a teacher in Des Moines has just as much of a chance as having the family that she so desperately wants as anyone who's right near our office in New York City. And it's only by increasing that optionality and bringing services to patients through you know, at home monitoring and other innovations that we're seeing that we'll be able to bring those models to bear, which is part of what I'm so excited about coming from IBM, where we were doing consulting projects with innovative technologies, like blockchain, and AI and quantum computing, and starting to see some of those models take shape in this industry as well, is just, it's just the tip of the iceberg.


Griffin Jones  17:35

You talk about that there should be a gravitational pull for incumbents. That's the second principle of democratizing IVF. But is there often an inherent conflict from incumbent, Dr. Harrington sent me a book by Clayton Christensen, who is the author of a theory of disruptive innovation, or at least one of the theories behind disruptive innovation where he charts out the corpse of blockbuster and other incumbents that were simply dis their disincentivized relative to their current model, their expenses, their profits, their current obligations, against someone that's coming into the marketplace that doesn't have nearly as many obligations, they don't need to make as much revenue. They don't have current infrastructure as expenses. So you talk about using a gravitational pole for and comments or at least ideally, there should be one. But isn't there not one very often almost by nature?


David Sable  18:41

The agreement? It's great question and when we mapped out the strategy for reengineering IVF. The second principle really came down to the best what knew in the best circumstances, this will be steered, managed and navigated by the income. It's the people that know it best. You know, the experienced Ori eyes the best embryologists, but recognizing that there is a natural, rational and perfectly reasonable, kind of, you know, inertia towards changing the way you do things like frankly, when I was running a busy IVF program, I was making a good living, I was employing a lot of people. And I was busy as all hell. So if you came to me and say, Okay, it's your job to, you know, open up the world. So that the next million, 5 million 10 million people have access to it. I'd say listen, it's a nice idea. But where am I supposed to fit that into my schedule? So going from anecdote to generalization. You know, Eduardo Harrington is as visionary as any young Rei out there. And you recognize that you can't really rely on incumbents. So To do all the heavy lifting for you. So the way we look at is we can do with them, we can do without them, we can do it with the existing Rei infrastructure. And we try to make it in their best interest by looking at their operational capacity, looking at the limitations of the inputs, where they're bottlenecks are in their process, and trying to come up with solutions that make them able to expand what they do in a less costly manner. And they can decide to triage that input any way they want, they may decide to expand their geographic reach. If we cut the IVF cycle to three parts, retrieval and freezing being one part, storage being a second, and then thaw fertilization, development and transfer. Third, they may decide to have retrieval stations all over the place. And they may take their existing satellite offices and use them there. They may do alliances with large OBGYN groups in rural areas. To do them there, they could do them. alliances with other programs, leveraging the real estate that they have, they can use decision making decision support software to put 10 times the number of people through stimulations. And so the army on duty Rei on duty only needs to look at four or 5% of the results each day because the computer will make the same decisions that they are, you're all different ways that we can facilitate their operations. So in that way, we like to think that the incumbents are going to be served by innovation. But if they choose to keep things the way they are, which is perfectly okay, if some of these programs are doing fabulous patient throughput, terrific care, great results, then we can use these technologies to reach patients that have otherwise no choices by bringing other people into the marketplace as suppliers. In a way that maintains the quality of care, because we're gonna be using a different engineering, different data analysis, and different process optimization, try to arrive at the well, the well run IVF kitchens that exist now. So we can do them with these people without a lot of what we do in IVF is repetitive things that over and over again, a lot of embryology will lend itself to automation, robotics, things of that sort. So that way we can build the kind of bigger parallel industry that can take that next 10 million people in that aren't being served. And the incumbents can choose to participate wherever they want to. We want to make it easy for them to do so without giving them absolute control over who gets to be treated worldwide. Because again, what are we solving for? We're solving for access. And the size of marketplace not being served is a lot bigger than the size of the market currently being served. To the incumbent people. We embrace them, we want them to do a fabulous job. But we don't want to be in a position. And if we're acting as advocates for the unserved we don't want to give them control over who gets to be treated who doesn't.


Griffin Jones  23:32

Incumbents can be served by the innovation or it can be done without them. It sounds like you had a I wasn't at your talk at SRI. But it sounds like you were a little bit more stern with that message at SRI, what are the consequence? What did you say their first second, what are the consequences if they if they choose not to be a part of the innovation?


David Sable  23:58

Oh, it's a it's a competitive marketplace. You know, the right now we've got a small number of suppliers, with a enormous reserve army of new patients that are trying to get in and more and more patients getting coverage as well. Their coverage from employers, state mandates, things of that sort. I guess the the downside to not participating is you're locking yourself into a model that we may or may not be able to replace that you go into, you know, what are the what does a patient look at when they're trying to make a decision to how to navigate their journey? And Abigail and I came up with three key performance indicators. It's using an MBA term, but it seems I just saw the patients silently make these decisions. For the 20 years I saw patients dollars per baby time until they have a baby and the life disrupt Should they have to endure to have a day, every patient is solving for those things. And those are our North Stars in trying to kind of navigate or map out how we reengineer, the IVF worlds. So if the clinic existing now is operating at capacity, and they have full control over the pricing, it's exactly what you want as a supplier in any industry, you want to operate, you want to be as busy as you want to be. And you want to be able to charge what you want to charge. And this is not a value judgment, every economic actor is kind of solving for that. But they're operating within an environment where there's a cost structure, there's an access structure. And if people have no choices, then they're the kind of a, you know, they're at your whim. They, you know, the there, they have to serve under the parameters that you set. Now the markets can change. And if we put out a, whether it's technology, whether it's using AI, whether it's finding alternative practitioners, whether it's opening of centers closer to them, we're suddenly those dollars per baby time to baby in life disruption are much more skewed in the patient's favor. and to hell with it, I'm no longer going to the ball of the ball to buy a bookstore, to buy a book, in a big bookstore, I'm going to do it online, I'm going to download a Kindle file, I'm going to have all these other ways of fulfilling my need for a text file called a book, I'm gonna have all these other ways of fulfilling my needs to build a family. And the incumbents if they don't fund either change their marketing strategy, change the way that they fulfill that or, you know, maybe they maybe they're still doing such a great job, that people that want that higher touch, higher cost, higher travel type IVF experience will continue to come to them, which is great. It's a really it just puts that competition into the marketplace. That, you know, it's all doctors always say, no, we want the free we want free market medicine. Well, this is free market medicine. But it's free market in a way that the patients have access. And the patients themselves have choice. Not were the providers can rely on monopoly power to keep their keep their practices the way that they are now,


Griffin Jones  27:32

Abigail, are there some segments of incumbents that you see more vulnerable as others going back to the blockbuster example, that's the example that's always used in every business course is used in mainstream everyone knows that example. huge corporation in blockbuster, within a few years being totally supplanted by now a titanic Corporation of Netflix. But I think the story that almost no one talks about I don't ever hear anybody talking about is no that was HBO. So HBO live to tell the tale. And as far as I know, they're still doing well, I haven't looked at looked at their performance or their stock prices or anything. But as far as I know, HBO is still doing just fine. But that Netflix space in the market was HBOs to take and somebody came out of nowhere. Netflix and did it. But HBO had the same considerations. They didn't suffer the same consequences as blockbuster but they lost the land grabs, are you seeing some incumbents that might be more vulnerable than others and, and in different ways than just you know, being being supplanted? Entirely?


Abigail Sirus  28:48

Yeah. And it's funny, you bring up the Netflix and blockbuster example, because that's one of the first cases I ever read in college. But I think about it informed two ways, in terms of incumbents first, who are not going to be willing to innovate, and bring in new practices or new processes or see things in a different way, which I think of as blockbuster. They're the ones who are sitting there streaming was coming to a head, we were seeing, you know, it becoming less and less expensive, with the compute power becoming more optimized, and they decided not to change their business. And because of that, they were usurped by Netflix. But then we have also the incumbents who do a specific part of the process or have their specific niche, just like HBO does, and creating their own content and being extremely good at that, and creating a name for themselves in that way, who will continue to have their corner of the market based on what they do well. And so I think that for the incumbents who are choosing not to innovate, they potentially might be at the most risk. Because, you know, I think it's good to see businesses growing and changing and adopting new modalities in ways that might be better than they ever were before. But then there will also be the HBO models who are very good at doing so. specific things, maybe they have a specific capacity where they have a number of genetic counselors on staff, or they can focus on specific, you know, more complicated journeys than others can like an HBO model, and they will be able to survive as well. But generally, you know, I think we keep focusing, you know, we've we've got Thanksgiving coming up this week on kind of this pie. And speaking about these incumbents who have really in the scheme of things, just a small sliver of the pumpkin or pecan pie, but the the pie is quite large. And so I think that there's vast opportunity for incumbents and new players to come into the industry together, and to create innovation that can improve the patient experience and make it more accessible for all.


Griffin Jones  30:39

Let's talk about the third principle then of what needs to happen in your view, in order for that to still be successful. That which is that today's highest pregnancy rates should be the floor of outcomes for the future, that it's not about delivering a lower quality product at a lower cost. It's keeping the main metrics of dollars until baby time until baby and life disruption to baby at the forefront at the forefront, excuse me. But aren't those three principles very often in conflict with one another that if you reduce the time to maybe you might have to increase the cost of AV or vice versa.


David Sable  31:28

One of the things that we learned when we started examining the IVF industry, as an industry that eight years ago, is that it's really characterized by outstanding science and really mediocre engineering. It's, you know, the you look at you in my career that pregnancy rates when I came out were middle single digits by putting back three and four embryos at a time. And we didn't touch the egg. So the idea of sticking a needle into the egg to do insemination with the sperm was just beyond us, much less doing things like genetic analysis. So the progress has been just remarkable. And the fact we have anybody that can have a baby, that can create a baby, more than half the time with one embryo routinely, on average, is that seemed like a million years in the future, back when I started being exposed to this in the 1980s. But that being said, that means that someone has cracked the code to get that high. And what is engineering engineering is just getting everybody on board to these best practices to do is to do things as well as everybody else. And if our goal is which we think it should be that anybody that needs IVF, to have a baby has access to IVF, say to a baby, then we've got to proliferate these best practices. Now, there are some people who are more talented than other people for manual procedures. And if we look elsewhere in cell biology, and we look elsewhere, in manufacturing and engineering, we see that these things can be standardized, to using robotics, using machine learning, two way that everybody can operate at the highest level, we will migrate to that it's unavoidable. Every industry that's tech based does that. And the sheer size, the sheer enormity of the demand for IVF services is going to migrate the best clinics to higher and higher pregnancy rates, they're much higher here in the US than they are in the world average, you're very high in areas of Western Europe and parts of Asia. And that will it's just a matter of time, get up there, we will collapse the pregnancy rates always upward finish. Now that said that means as we engineer and as you do more and more process optimization, those rates will be even higher. And that leads us to probably the biggest innovation, which is really going to disrupt this industry and I also think is inevitable, unavoidable and an unequivocal good. Is that shows you how bad I am at writing articles because I completely buried the lede. But I wrote that because the real big point that I was trying to make is that we're gonna get to a point where the expectation for outcome is very standard, no matter where you go. And is high enough that we can risk manage in a way using very simple principles of finance. And we turn things around and nobody ever pays for an IVF cycle where they don't. That is the ultimate democratization of the process. That's where we really change the way we deliver it. And it's very, very, it's very doable. Just a question of how much time in there indeed We do see a conflict turns real choice as to how you want to run your practice how you want to deliver this. And, you know, in the interim, we will see a splintering, of which clinics do suck, do certain things, well, which ones adopt a more convenient model? Which ones adopt a highest possible pregnancy outcome with a super high price point model. And this is all fine. This is the market working the way the market should, you know, if you notice, we're not talking about forcing the insurance industry to cover things that the basic insurance model doesn't say that they should cover. We're not talking about convincing governments to provide price support, or provide supplementation for patients. This is really trying to go through a free market model. These things may be accelerated by governments getting involved maybe because they're concerned about population shrinkage and things of that sort. But ultimately, the to the individual choices that the existing clinics are not going to stop the movement towards a much bigger marketplace marketplace with lots of choice. And that choice will ultimately include completely shielding, the patients were having to mortgage their houses two or three times in order to do that next cycle, are people draining the life savings, and never ending up with the baby. And you know, what's the big motive, the big driving factor, there is just this enormous, enormous market of people that really want to spend money, want to dedicate their time and effort towards building and all of us your grip, and certainly you included who interact with IVF patients, that you can't underestimate the size of that motivation. This is not consumer discretionary. This is not choosing to buy a book at a bookstore on Amazon or downloading video text file from HBO or Hulu, or going to your closet and having VHS tapes. This is one of the prime motivators in life. So there's this enormous, enormous marketplace out there that's going to find out oh, by people creating we means of fulfilling these needs.


Griffin Jones  37:37

Does that mean that we should expect one of the factors to to improve before the others? For example, should we expect dollars until baby to reduce before we see time until baby to be reduced? Or both of those to happen before we see life? disruption to baby? Are we? Is it more realistic to expect one of those dropping? And then that setting the standard where the value add becomes in the other two segments? Or are we looking at technologies that could possibly reduce the concern of all three at once?


David Sable  38:15

Yeah, I think it's a Venn diagram where the three circles overlap a lot. It's like dollars to baby if a patient has to travel 25 miles to the clinic every two days to be monitored or needs to travel to another state to have the cycle done needs to stay in that state, then that's a dollars per baby and time to baby and definitely a life disruption to the you know, when we develop new medications that can be given orally instead of by shots. Well, those shots are real life disruption to baby. They're also very, very expensive. And there's only two companies that make those sets of dollars per day. The fourth thing is well, so it's I think that as you as you move one, it tends to drag the other two along. And it's not so much a conscious choice because implicit in these are specific things you're doing. You're moving your retrievals from the big, unbelievably expensive lab to a procedure room, because the engineering system is closed up. So the for the egg never sees the ambient air or light before it's frozen. Or you move the retrieval to your satellite clinics 10s or hundreds or maybe even 1000s of miles away so that you can better leverage the enormous lab that you built. And you can kind of defacto increase the capacity of your laboratory without building out without spending another 2500 for another square foot of space. You may be moving your storage somewhere else. All of these things are going to improve your operational capacity, improve your ability to grow By the service you're giving now, in ways that can turn into translating into offering your patient a better experience that's more affordable, or more risk managed, or closer to where they live. I think it's just kind of a virtuous ecosystem, where you start attacking these things one at a time. And they show up at all of these parameters, both for the clinic themselves, and for the patients, as well as being a motivation for kind of ambitious entrepreneurs outside the fields that say, Hey, you got all these people newly insured, all these people who state mandates, all these people that may be in other countries now need the service. Look, Japan is doing everything they can to make IVF more accessible. Let's build it and they will come because right now they have nowhere else to go. It's kind of it's kind of like virtuous ecosystem, because


Griffin Jones  40:53

it seems like it should be a virtuous ecosystem. But there are clearly challenges to integration. If that's the case. And Abigail, I want to get your experience if you see if you've seen these challenges with integration in other areas, because it seems like there shouldn't be a Venn diagram that someone that can come in and improve the time until baby would also help be helping reduce the costs until baby and, and limiting the life disruption to baby. And there's all kinds of companies at ASRM that are trying to sell into clinics, and I see them struggling selling into clinics or a number of different reasons that can be an a whole podcast episode. And I've probably done one or two, but they are struggling, even though I see the value that they bring they they reduce nursing workflow, they reduce the the legality and other workflow, not all of the workflow much of the workflow involved in third party cycles. They reduce what Texans did ographers and other support staff have to do, I think of these companies, and I see the value that they bring, and there have having a hard time selling in two clinics, partly because of its it's seen as an added expense. But also because it is really hard to integrate given the variability of clinic workflow. So it seems like it should be a virtuous ecosystem. But there's some roadblocks, and I'm wondering what you've seen in other sectors that might be comparable.


Abigail Sirus  42:39

Yeah. And for me, it goes back to my background and emerging technology and how tech gets adopted, really, I mean, when we think about it, I started doing blockchain back in 2016, which feels like a long time and blockchain years are in any emerging tech where, yes, of course, in the beginning, when you're changing the status quo and introducing something new, there is that friction in that hesitancy, especially when the incumbent clinics have a great formula, they know what they're doing, they know how to do it well, and they know how to bring in an optimized value for it. So adding anything to that or changing anything, can be, can be met with a little bit of, of that friction that I mentioned before. But as we see with kind of all the traditional tech curves going into, you know, any business school case, yes, there's that friction in the beginning, and you kind of go up into the curve where over time, as the technology begins to be more widely adopted, it becomes status quo, and it becomes kind of bundled along and become standard of care in this case. And so I think that we're just in kind of the beginning of that cycle of seeing some of these new technologies starting to take shape. And as the value becomes more proven, and as it becomes, you know, these are some of the best educated patients, I think it throughout all of health care. And they know exactly, you know, what's going on and where their money's going. And if they hear that this clinic over here is doing something that might have better outcomes than a clinic down the street, I don't think they'll hesitate to, to make decisions based off of that, and to also encourage that kind of innovation. So I think it's going to happen organically and naturally at first, and then quickly and kind of more all at once once things start to become status quo. But as for integration, integration is always difficult. But what I think is important is, is patterns do start to emerge. And so once some of these early stage startups, you know, I had the pleasure of walking through the SRM booth just like you did, and getting to speak with a lot of them. Once they start becoming adopted, you know, a couple clinics at the time, and start being integrated into their workflow, they'll be that much better positioned to integrate into the next one. And you know, as well as we do in this industry, there is some pretty significant consolidation. So just winning over a couple of those larger chains could mean that a lot of innovation is adopted at a faster rate.


Griffin Jones  44:53

Well, I see that but I also see a lot of steps back and I see it being I see it also taking several years. So I think of one company that's been around for many years that probably has half of the market share and does very well. And, you know, they and so there's probably okay, we get a few of the early adopters on board that will try anything. And then that provides the case studies for us to increase the market share. And then, and then they've got some rapid growth for a little bit. But then either it just, it just stalls because whoever isn't adopting, still isn't adopting, and and they don't see the improvements as dramatic enough to to make the investment. Maybe they're just incremental, or the consolidation does happen, Abigail, and then they they go back, it regresses because the the new partners coming in are cutting costs and say, you know, what, we just don't see this as dramatic enough. So is, is incremental one year after another possible? If so, it doesn't seem revolutionary, it seems like it's taking a really long time for many of these companies, or does it have to be so dramatic and so obvious to that? This is now the standard. And if that's the case, what's necessary to do that be given the variability of clinic workflows, if something is really going to be that dramatic of an improvement, that means it has to affect a lot of the areas of the clinic and lab, presumably. And in order to do that, there's a lot of things that need to be integrated. So, David, you've said on the show before, that the entrepreneurs job is to solve the chicken and the egg. But what about this challenge of of improving incrementally? When? If, if the adoption, the catalyst for adoption, is seeing dramatic improvement?


David Sable  46:49

You Yeah, well, like, like a lot of things successful only be in retrospect. Yeah, and we're going to look back at one point and find that it's gonna be an awful lot of overnight successes after 15 years work. The kind of cul de sac that everybody drives into intellectually, when they envision, you know, this kind of a sweeping statement, but I often see, when I discuss innovation with an IVF, is it's always done within the context of the existing clinic structure as it is now. And it's always okay, how do we go into these existing clinics convinced them to do something different. And I think that we may find that the innovation really reaches critical mass. And you see those revolutionary steps, when we start building that industry alongside the one that's there now. Now, this may be one of the large consolidated chains, and these are terrific doctors, terrific administrators, they may decide, you know, we've really reached a limit of kind of the limit of growth of what we're doing under brand name of what we've got. So we've got the four seasons there, let's build a nother system for a different marketplace. Let's take a critical mass of these innovations. 4567 have put them together in a way that really adds up to a substantial change in cost of development delivering the service, yet with the same outcome probability, you know, take this, the, the old thought that lower cost or more convenient, has to be a trade off between lower probability of the baby that's unacceptable, you've got to have at least as good a chance of having a child at the end of the whole process. But you know, there is an enormous industry to address that doesn't exist, right. And trying to kind of force feed incremental innovation into the existing infrastructure, the existing clinics as they are, or as they are consolidating. Maybe too difficult a way to get these innovations into play. However, like I've been, I've been talking to founders now going on seven years. And watching them as they evolve their business plans. And it doesn't seem like it's been all that long. We've seen some really great changes the way people look at these things. Like if you're looking at you, and I've talked about AI. And if you're talking engineering in the 21st century, you're talking AI, which What does AI it's math, but it's a digitalization, of which previously were just kind of our teas and all processes. But the all the Ag companies a few years ago had the same business model. We're going to go We ended, we're going to optimize one part of the process one part of the IVF cycle. And we're going to charge $1,000 per click to do, or $2,000, a click to do it. Absolutely unsustainable business, great engineering, great concept, you are making the process work better. But the whole idea of building a business around, when really what we're trying to do is drive costs down, it was very difficult to demonstrate the value proposition. But if you take those same capabilities, and you say, Okay, we're going to talk to intact the entire process. This is just bringing the data collection, feed into the computers have computers tell us those things that really make the process work better, make it work more efficiently, and really feed into dollars per baby time to baby life disruption. And let's reengineer the system itself, let's offer IVF places where it's not available to people that have no access to it that really want it that can afford it at a lower price point. And let's build that places where it doesn't exist. And we're gonna start filling in a lot of the holes around the existing infrastructure around the existing clinics and the clinic networks. After that, we've got the existing clinics looking and suddenly, wow, there's someone else doing this. And it turns out that some of our people, some of our market, maybe want to do that instead, maybe it's closer to where they are, maybe there's they could do the same get, they get the same probability of an outcome. And they're willing to do the trade offs of not having quite the same experience that we've been offering. And that way, that kind of parallel industry is going to flow into the existing industry. This is what I'm not smart enough to be able to predict it. What are you already know, that incrementally looking at people with no access at all. And we're trying to one after another build systems that can deliver that access to them. And actually can do it in a way that we can measure and we can process optimize, iterate in a way that the current kind of artisanal system doesn't let us do that I think you're gonna see in retrospect, that these things had really revolutionary effects. But you just can't map it out. It's going to happen organically. And when you look at the proliferation of technology over the past 100 years, how did airplanes go from the Wright brothers to the first jet for two years later, to what we have now, which essentially the democratization of air travel, including airlines that charge you to pick your seat, and have no food on board, you have to pay for every single bag you bring. These are things that evolve, because the technology was built in let it evolve into that. And turns out there was a market segment, looking for the first eyeglasses were invented in the 1300s took about 300 years before everybody over 40 could see. And, you know, it's it's a very, very long time to put these innovations into a marketplace. it up if you can see it a lot faster. Because there's an extremely fast proliferation of knowledge. Consumers know where to go for the information. And given the information of the the way information travels over the internet, things of that sort. This a very, very savvy group of patients is waiting for access to the waiting for access. And again, we go back to the desire to have a family. He is one of those incredible, you just can't. It's just this is not consumer discretionary. This is not something you could like people give this out.


Griffin Jones  53:56

So it could be the case that the disruptive model coming from venture capital becomes not one that says we're gonna create something that sells to all of these people or even sells this to the patients as a as as a direct to consumer base, but rather all of these booths that are ASRM are at SRM trying to sell to the clinics to improve these envision they themselves are now the model we create a model running alongside the the current model. That's how I see the 15 year hard work the 30 year 40 year hard work potentially being an overnight success based on your insight.


Abigail Sirus  54:42

And I mean to me Griffin a great analogy and one that's obviously used quite often now is electric cars like Ford and GM. Chrysler everyone knew electric was coming but decisions were made not to pursue it until they were forced to buy a new entrant coming and doing things differently inspiring change and having customers or in our case, patients demanding that new kind of experience proliferate in other areas. So I think we're seeing this in other places, it will be modeled here, as David said, hopefully faster. And so we can get to more patients as fast as we can. But I think that


Griffin Jones  55:17

that's a good point. That's a, you just made me think of something, Abigail, which is that I suspect that that part of the reason why Tesla was able to come in as the entrant there were is from all of the different vendors and companies trying to sell to GM and Ford and Honda and Toyota over the years to develop certain technologies. And that made it possible for Tesla to come in faster possibly to acquire some of those to, to, to integrate some of those that weren't happening and build a whole new model, which could be the case of venture capital coming into


Abigail Sirus  55:49

exactly. And we're seeing, you know, new clinic models emerging where they're bringing in these technologies, almost as if they're within the clinic's DNA itself, they're getting off the ground while thinking about re engineering processes that still have yet to be optimized that kind of some of the larger the larger chains as well. And so they're starting off on that front foot of the innovation as they go, which I think is going to be really exciting to see how they can grow and progress and continue to innovate, since they're starting in that place already.


David Sable  56:21

In the kind of unspoken on talked about part of this, as well as there's an entire industry of cell biology, feeding into biopharmaceuticals, for example, and all sorts of new types of fluid engineering, that is not operating in a vacuum, like IVF is just one more area of cell biology. And a lot of these technologies are mature, they're in place elsewhere. And we just have to cart them or put them in the lab, plug them in. And it can really radically rattled radically change the way a lot of the IVF cycles performed in ways that can benefit the providers themselves in ways that can provide new founders who want to build different delivery systems of IVF. And all follow them benefit the patients, their mortgage, they're better engineered, so they're easier to scale. Since they're better engineer, they're easy to measure the benefit from these are things that are gonna go into bringing that IVF pregnancy rates higher and higher, towards the towards emerging of kind of the emergence of a best practices, and then give us a springboard to keep iterating to keep reengineering, to keep finding the thing that's working the least. So we can inch that pregnancy rate higher and higher. Then we bring in our actuarial and financial principles, we risk manage the whole thing. And we build an entire different IVF industry, where you pay for baby instead of buying IVF cycles. That's what you want to you want to get people's attention, you start totally risk managing the process. You will see the floodgates. So


Griffin Jones  58:09

that's your fourth, that's your fourth principle that you talk about in your article and talk about burying the lead David, I buried the lead as I read this again, and think oh, this, this will get people's attention. So the fourth principle recaps what you just said greater certainty uniformly higher outcomes and improved data collection and analysis leads to actually actuarial quality data, which leads to better risk management, which leads to pain and getting paid for outcomes, not cycles, you pay when the procedure works, you really believe that that's not only possible but inevitable.


David Sable  58:49

Yep, absolutely. It's too important. It's to the people that are consuming. People are also very yet it's the the optionality right now. It's just unacceptable for most the idea that someone talked to me for that five, six years ago, they say, Well, what's an IVF cycle costs like the cost of a small Toyota. What's the big deal of this? Well, you go into a Toyota dealer with 15 or $17,000, you drive out with a car, you walk into an IVF clinic with 15 or $17,000. And you walk out with a possibility of having a baby or a 35 to 65%, possibly of having nothing other than endured a lot of inconvenience, a lot of heartbreak and set your financial stability back quite a ways. Now, that is a a need in a marketplace that screams for someone to open up that market. So this is something you're talking about with incumbents or without incumbents. This is something that really plays right into the The underwriting insurance playbook. If the traditional insurers want to assume that, so far they have not. So we've seen the emergence of a secondary market, people doing IVF and fertility only underwriting insurance, which I'm thrilled about, we're seeing some of the practitioners start to re explore using risk management. And these kind of risk sharing strategies. This goes back to the late 1990s. But it was done very poorly. And as the numbers get better and better, frankly, it's an easy thing to do. If no one else does it, Griffin Newman, Abigail and I all started our own insurance company. It's just taking actuarial data, crunching the numbers using some very basic insurance principles, sticking the margin on top, making everybody else pay a little bit more. So the nobody pays to get enough. And it's really kind of trying to


Griffin Jones  1:00:59

think of where the precedent is for that, David, I see the actuarial principle. But I think of if we have a tumor removed, and we undergo chemo, if the if the cancer comes back, we'd still pay for that procedure. If we pay a landscaper to install drainage and and level our backyard and the flooding returns, we still pay that landscaper, we might write a bad review. But this happens all of the time, in other segments where people are paying to have a problem solved, but for whatever reason it it still happens. So what makes this possible in IVF? In a way that doesn't seem to have been possible yet. And oncology?


David Sable  1:01:45

Well, I don't know if we want to trade anecdotes. But why. But I practice that I did surgery, it's like until the problem was solved. You paid your surgical fee, and that was it. You know, follow up problems, things that complications that things have brought you back or part of what you're paying for upfront. Yeah, it's it's certainly there may be, you know, co pays and things of that sort along the way. But we really, you know, we're talking about risk managing in a way to make something affordable and acceptable, can take away the big optionality with whether there's some small, you know, it's like administrative fee that goes into paying for IVF. And certainly, let's say there's a late pregnancy loss in the third trimester, tragically, how does that get, you know, internal internalizing for the system, these are sort of details, what we're talking about is the, you set up a pricing system for your for your based on your outcomes, and you define the outcome, however you want. The same way, you know, it's maybe it's like a warranty. Maybe, as we've mapped out for the disease prevention, part of IVF, which is a enormous another enormous industry, when to be developed. Maybe the pricing marketing structure is essentially a gym membership for the family. You freeze your eggs early, you go on birth control, all of your pregnancies occur, using IVF and PGT. Him. And you have a zero risk of having a baby that dies of sickle cell disease, as 9% of babies born with a do have childhood. That you pay a certain amount for unlimited access to the service. And since we know what the service costs to produce, and we know the likelihood, and we build our business over selling your lifetime of access to disease prevention. Pricing is really just it's just taking the cost of production, looking at the enormous size of the marketplace, bringing some creativity, and a little bit of fearlessness into addressing a new market, rather than trying to just make a little bit of a change with the IBM ecosystem is one that most people are not served with really. We're really trying to build an industry that doesn't exist. And a big part of that is that this whole part of what was offered the possibility of having a child or family to people that don't have access to and making it affordable. And we're not going to make it affordable by just doing what we're doing now. And putting a lower price tag on although that's one one way of doing that. Wherever you address another 1015 or 20 million people worldwide, for a million to 2 million more people who in the US is by tackling price and the patient's own risk. We attack that with engineering, we attack it with certainty and attack it with numbers. And it's a, it's very antithetical to the idea of this produce now. And yeah, this is a big idea. But if you talk to all the people that don't have access to having families, you know, they're very open to big ideas. And there's not a room in this industry, both for the people that are doing such a good job. As well as people are going to cover and address those people in our research.


Griffin Jones  1:05:45

We spend so much time talking about the four principles behind democratizing IVF, that we didn't even really get a chance to go into the map, it could be its own topic. And I would love to have both of you back on the show to talk about how you mapped engineering solutions to IVF success because there is so much in the lab in the clinic. And you really give some of the main problems with labor, with embryology, with medication, with lab space and complexity, that I think it merits its own topic. So I'm inviting you back in front of everyone. David, your invitation is constantly standing. But Abigail, I'm explicitly inviting you back with Dr. Sable. To go over just the map in a sequel part to this episode, if you would oblige us in the new year.


Abigail Sirus  1:06:44

I'd love to absolutely looking forward to


Griffin Jones  1:06:47

it. I'd like to give both of you the floor to conclude and in a way that either summarizes what you talked about today, or what you want people to pay attention to, either within relation to the article or other things that they should be studying up on.


Abigail Sirus  1:07:08

So to summarize, Griffin, my perspective is is simple. We continue to talk about the small slice of the pie and how to cram as much innovation and new thinking and bring integration into that sliver. But I think that there's such a broad opportunity beyond that. And that innovation will come from all areas. And we're going to see different kinds of businesses entering the market, challenging incumbents learning from incumbents. And hopefully our goal is that over time, what it will do is increase access to anyone who needs IVF that they can happen and have the best outcomes of anywhere in the world. So that's how I would conclude.


David Sable  1:07:49

Yeah, just reiterate to what Abigail just, you know, this is a if there's a entrepreneurially healthcare entrepreneurial playground that's more interesting than this one. I haven't found it. You've got an enormous enormous life moving need, with a huge population of people. We've got a confluence of terrific engineering, information technology and great science. That is this this is yet having been the I look back at the last 30 years when we've done it IVF is breathtaking. It's absolutely spectacular. What we can do to scale that is, you know, it's it is just such an opportunity to take fearlessness, creativity, and just a lot of heart, your heart knows brain and is looking looking for comparisons. Don't look at healthcare. Don't look at the IVF industry. Look at what we've done. You know, my first computer, I love putting a picture of it one of my one of my talks, my 1988 Commodore PC 30, which was a fabulous $2,500 computer with 10 megabytes of RAM, and one male, half a megabyte of RAM, 10 megabyte hard drive, and a 286 chip. And it was a great computer wasn't connected to anything else. And to think what that computer does, what you can do with $2,500, the computing world now. That's where we are in IVF. Now where that computer was, which was about 40 years ago. Look at the IT industry, look at the transportation industry, look at communications. That's the kind of growth we're going to see to helping people get pregnant and families which argue is just as important. And the need there'd be the desire to suck that entrepreneurial effort up into an enormous industry is there and that's the opportunity. And that's the kind of growth that you're really looking for in the next 1015 20 years. And I'll leave it at that. In Griffin I will say this again. You are the only person that provides this kind of forum to talk about this. So I always like whenever I'm on your show, I always want to back it up by reinforcing what you're doing. Because this is not a insignificant part of. So, you know, I could stick myself in there and just a plug for what you're doing, which is really, really necessary, really important.


Griffin Jones  1:10:23

I'm grateful for the plug, I hope to be able to provide a lot more coverage in 2023, as inside reproductive health expands its scope. And there's certainly no shortage of material to cover based on what we talked about today based on what else is happening in the field. And I look forward to having both of you back on the show. To explore this more. Thank you both very much for coming on inside reproductive health.


1:10:52

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health



161 Is Time Running Out To Sell Your IVF Practice? Advice From Financial Expert, Richard Groberg

 Long-time fertility financial advisor, Richard Groberg, joins Griffin this week to review a Yale School of Management paper and to discuss whether the time is right (or wrong) to pull the trigger on selling an REI practice. What factors should you consider about timing, taxes, keeping a piece of the pie you created- and everything in between- on this week’s episode of Inside Reproductive Health.


Listen to hear:

  • What it really costs to sell your fertility business.

  • What hidden caveats to consider when selling an (even profitable) REI practice.

  • The reality of compounding growth in the fertility field

  • What the long-term hold principle means for younger fertility specialists who are not yet owners, but who may be on the brink of buying in.


Yale School of Management resource: https://www.readkong.com/page/on-the-nature-of-long-term-holds-holding-a-business-for-5835798


Richard’s Information:

LinkedIn: https://www.linkedin.com/in/rsgadvisorsllc/


Transcript


Richard Groberg  00:04

On a recent fertility sale, one of the internal discussions was, how much do I bet on myself versus taking equity in my acquire, which diversifies my risk? Because now, my results aren't dependent on much just my practice, they're dependent partially on 5 10 15 practices around the country.


Griffin Jones  00:26

Is it time to sell your IVF practice? Are you getting screwed over by not holding on to your IVF practice? Are you getting screwed over by being a young physician who isn't building equity in their own IVF practice? To begin with? I visit these questions with my guest, Richard Groberg. Richard has been on the show before he's been a Chief Financial Officer, he's been a for-hire financial advisor to help practices on the sell side to sell their practices and devalue them. And together we review a paper by the Yale School of Management that visits the pros of a long-term hold of a business when it might make sense to sell though I think Richards’s commentary is a lot more in-depth and interesting than what the paper has to that particular point. And the different things to consider when you're building an asset versus just trying to flip one. For those of you that have practices that are thinking about selling right now, this paper and this review is hopefully good news to you. I try to get more advice from Richard for younger docs than is offered in the paper. And we also get Richards’s insights on what he sees happening in the marketplace. Now as practices are selling, are they selling at rates as high as they were? Are? Is the buyer side starting to slow down our volumes starting to slow down what returns some practices are still getting? We get those today. And so I hope you enjoy this visit again with Richard Groberg. Mr. Groberg. Richard, Welcome back to Inside reproductive health.


Richard Groberg  02:07

It's good to be back riff and thank you,


Griffin Jones  02:09

You are a popular guest the first time I wanted to do this in a live event with you. I've just been so busy. I tell you audience; I will do a live event with Richard at some point so that you can come on and ask questions directly. While we're talking. I still want to do that. But in the meantime, I had to have Richard back on, so I was chomping to talk to him before the interview starts. Richard says Hang on a second, how are you slow down and caught up for a little bit. But today we're going to talk about the nature of long-term holds, particularly talking about a paper that came from the Yale School of Management on building a business or buying a business and then holding it for a long time. This is mostly about building a business and then holding it for a long time, as opposed to selling it or flipping it. And so I want to go through this with Richard because I think a lot about the younger docs that are not building equity themselves by building a practice and again, getting multiples down the line. And I don't know how much this consolidation happening in the field helps or hurts younger dogs, I have heard arguments made for younger dogs that they are able to buy into things that will be worth a lot more and then sell for a lot more later. But I don't know. So we're going to review this paper together. So and bring up some points for all of you. And then we'll share this paper for you in the show notes so that you can review it yourself. But let's talk Richard, about buying and holding a business and then we might be able to also talk a bit about some things that are either accelerating or decelerating in the field. Maybe it's a good time right now. But in your view, how do you Scott, how do you do summarize the pros and cons of holding a business?


04:19

Oh, Grif, I'd actually unpack this article from two perspectives if I'm putting on my pure corporate finance numbers guy hat on. One is every year my business makes money. What do I do with those profits? Do I Do I pull it out? Do I invest in something else? Do I buy a new sports car or do I reinvest in my business? And the second aspect is when do I sell and I think whether you're in the fertility business or another business, to the extent that you can reinvest your profits to grow your business profitably. It always adds value whether you're adding another doctor to fund growth, you're opening a satellite, you're buying equipment, you're expanding your facility. If over a period of time, that endeavor generates a higher return than the cost, you've added value to your business. And some of the great success stories in the fertility industry, Shady Grove, Boston IVF, others CCRM, in its early days have added value by reinvesting in themselves and growing, as long as you can earn a higher return than the cost, or alternative investments, that always is a positive, especially in owner operated businesses. The second aspect is the whole concept of do I sell? Or do I continue to grow my business? And that's related to the first answer, if you can reinvest in your business and generate an incremental return above your cost relative to the alternatives, you're going to be better off in the long run. Now, there are some caveats that the article talks about, which I'll double back to in a minute. But if you continue to grow your business versus Okay, I want to sell like the article talks about I have to pay lawyers, I have to pay accountants, I have to pay advisors, I'm gonna have taxes, am I really getting what I think I'm gonna get. And again, some of the great success stories in American business and in the fertility industry, are companies that have held long term. Now that that can change. When you and I talked in January, the market for PE back groups buying fertility practices was heating up, multiples were increasing. And when someone wants to pay you 910 1112 13 times your profit. And there are other factors that make you think about selling, I'm getting older. I don't want to be left out of the corporate consolidation. I have leadership issues. I need help with renovations. It's hard to resist that. But as the market pulls back, which it is now, people, I'm sure are rethinking? Do I really want to do this now? Or do I continue to grow my business?


Griffin Jones  07:24

So there can be conditions to sell? And that is part of the second part of the equation that you're talking about is when do people make this decision? But you also referenced the first part of growing the business investing in the business every year it's making money, what do I do with the profits? Do I invest? Or do I take some of it out how much of each the papers starts with this thought exercise, and it's an anecdote, but it's useful for people to think about, which is, think about where you're from, and our audience is from 75% is from all over the US and other 7% or so is from all over Canada, another 6% or so is from all over India, and then everyone else is from all over the rest of the world. And so think about wherever you are from Think about the wealthiest people where you are from. Are they employees of larger company? Did they do they flip businesses one after another? Or do they have at least one major enterprise of which they're still the either the largest shareholder or some kind of plurality shareholder? And I think of Buffalo New York, there's only there's only three billionaires in all of buffalo Richard so my list is a lot easier than somebody from Dallas or somebody from Las Vegas like yourself. In Buffalo. There's only three billionaire families the rich family which owns the very fortunately named by the way right that owns rich products. There is the Pegulas who own who now own Pegula sports entertainment which owns the Buffalo Bills and the Buffalo Sabers. But they've held the interest in their energy company is escaping me at this point and the Jacobs family who some of you know, the Jacobs family for owning the Boston Bruins, but before that they own Delaware North, which is one of the largest concession companies in all of the world and they still do and so so that passes that sniff test but Richard, can you give us more to think about if not data then other points for the best pathway to wealth being holding a business other than just the anecdotes phrase like that in the paper?


09:38

Well, some further anecdotal examples in our industry. Most of the transactions going on in the industry. The sellers are taking some combination of continued equity in their own business and or equity in the acquirer. And if you think about some of the growth A success stories of people who've built businesses and sold them. Most of those people are people who've made great wealth outside of ownership, the first thing they want to do is look for something to buy. Investment bankers, pe people, when they make their riches, they then want to own their own business. People like Griff Jones, rather than being consultant and working for somebody else, you own your own business and continue to reinvest. And so the world evidence is that when people make good money, if they're not holding their business long term, most of them that are really successful the second time around, are buying another business reinvesting in themselves through partial ownership, investing in the company that's bought them looking for that long term value. Now, there are a lot of good, there's a lot of good information in that article about what it really costs when you sell your business, you think you're selling your business at x times your earnings, by the time you get done with the fees and expenses and taxes, you're not getting as much as you think you're getting. Which is why, again, from a pure mathematical standpoint, if your return on reinvesting in your own business is higher than what else you can do with your money, apart from the social, the social equity value of building community and building Employee Relations and building community relations, it's always better off to wait as long as there's not a prevailing alternative scenario.


Griffin Jones  11:40

So what you're talking about Richard is substantiated in the article with the 2017 version of the Federal Reserve's evidence from the survey of consumer finance, indicating that US wealth predominantly resides with entrepreneurs and business owners, the top 1% of wealth holders in the US derive the largest percentage of their wealth from business equity, and other financial health as as, as opposed to residential equity or retirement assets. And,


Richard Groberg  12:08

you know, are people people who who earn high salaries and, and get sales commissions, they don't build long sustained wealth, unless they become owners, or they reinvest those profits in something that gives them ownership or long term value.


Griffin Jones  12:27

So maybe, you know what I do want to go down this rabbit hole for younger Doc's listening, I kind of want to save being prescriptive or even not being prescriptive, but giving younger ducks more to think about after we get more into the paper. But it raises a good point, which is, sometimes people do get money from other ways, then being the capitalist from the beginning, and then they become the capitalist. So in other words, may be one route, is to build a practice from the beginning and and then you're building equity from the start. But another potential way is you go work for someone else, like a dog, and earn a lot of money and minimize your expenses, and then start a group you open up a practice or buy into another venture, do you think one is usually better than the other? Well,


Richard Groberg  13:27

it's hard to answer that without looking at the other factors that affect it. For younger physicians in the fertility industry, the cost of getting in business, the cost of operating is very high, and you come out of school and med school and your specialty, and you have so much debt. How do I afford to open my own practice? How do I compete with the big group down the street makes it more difficult, and we've seen that in other industries. So there seems to be a movement away from younger doctors coming out of school, opening their own practices, versus going to work for somebody else. And, and hopefully, and I'm seeing the PE back groups, granting equity over time and options to the younger physicians, so they do have a stake and can build wealth. And it's not just about maximizing my current income, but at the same time Grif I am seeing some groups starting, that are backing doctors to open practices from scratch. I'm working with one now in the southeast and for them, and hopefully for a lot of others. It's not about how much what's the most salary I can make. But how do I earn equity and build long term value? But as I said before, it gets difficult in an environment where the cost of getting in business and staying in business is very high. And I'm competing again. Hands roll up groups with hundreds of millions of dollars of private equity backing, that can spend on marketing and recruiting and opening satellites much more easily than a doctor just out of school can.


Griffin Jones  15:15

Okay, so we have major expense considerations for doctors just finishing training, we've got other considerations for ducks to think in the when do I sell question that are within a few years of retirement, maybe they're within one or two years of retirement, and it's just getting to be to be a lot and, and there are reasons to sell that you brought up earlier. But what about the folks in the middle? In your view? They're, maybe in their mid 40s. They've been a partner for eight years, and maybe they have one senior partner, then they have two peer partners and then two associates on the way What about that middle group here is this is that really who the paper is talking to about holding their that holding their practice?


Richard Groberg  16:07

Yeah, I've had a few situations like that this year, where you've got to practice with a few doctors who are significantly older and closer to retirement, and other physicians who are 1015 20 years away. And interestingly enough, in some of those scenarios, where they've sold to the roll up groups, the younger doctors have retained a significant equity stake in the business to bet on their future versus cashing out. Whereas the older doctors would cash out. I've worked with other practices where absent what I call stupid multiples from the buyer groups, they're like, Oh, I'm 45 years old, I've got 1015 years at most, my practice is still growing, I still have opportunities, I have no interest in selling now. And I remember in one of my former lives grift when I was in the veterinary industry, and I was tasked with going out and buying practices for a corporate group, I need some doctor who's making a ton of money. And I basically said, unless you're ready to retire, or have some strategic reason for wanting to sell, there's no reason for you to sell. Here's my card when you're ready, call me. Because they're making too much money, there's too much growth, they can reinvest incrementally, profitably, again. But doctor can open a satellite and a physician and generate enough incremental business and grow his or her practice or change your quality of life by not being the only physician. The value added there is better than I'm going to sell, pay all the advisors pay taxes. And then what do I do next? Where am I going to make this higher return as my business.


Griffin Jones  17:58

And that ties into performance. The paper also talks about compounding and of course, compounding capital as a surefire way to accumulate wealth that's discussed anywhere that wealth is discussed. But in the paper, they talk about the concept mathematically, and they illustrate it by depicting the growth of $1, over 25 years, at 15% interest per year, initially, barely any interest is paid. But over the 25 year holding period, the initial investment soars to over $32, the first 15 years representing 60% of the holding period, show the first dollar have grown to $8.10 20 for 24% of the total capital growth in the final 10 years, that $8.10 More than quadruple to $32.90. And a full 13% of the total growth occurs in the final year. So translate that for the rest of us that are not CFOs, please.


Richard Groberg  19:06

Well, that example is a little bit sort of mathematically theoretically static, in that if you're reinvesting your money, and you're earning 15% a year, that that's the case, unless you're investing in bonds or some interest bearing account. That's easy math. But that doesn't necessarily apply, if I'm reinvesting in my business, unless I can earn those kinds of returns versus pulling the money out and putting it elsewhere. But there are also some tricks of the trade if you're if you're opening a new satellite, there are expenses to open it that get deducted for tax purposes, that you're generating the incremental revenue. And if you sell a year from now with the same multiple you could sell now But you added $1 of men earnings than you're worth $10 more. If you wait two years, if you keep doing it over and over again, you get the same compounding effect. The unfortunate reality is that for the average fertility practice across the United States, and frankly, for the average roll up group, unless you're doing something unique, and you're adding services, or you're again, opening satellites, adding doctors, it's hard to generate a 15% compounded return year over a year. Again, unless you're doing things like some of the great success stories have done, or, again, companies like engaged MD and others that are increasing their number of subscribers and increasing revenues by reinvesting constantly in marketing and sales people and adding services. I hope that I hope that answered the question.


Griffin Jones  21:03

It helps to illustrate the concept in a way that isn't like the example that's often used just about compounding interest, how much money would you have if you compounded a penny every single day, if you just started off with one penny on day one, and on day two, you had two cents, and on day three, you had four, etc, etc, that by the end of that it's in excess of $5 million, I believe. But of course you're not you're not doubling money every single day in any kind of investment or owning a business or being in stocks or even writing the crypto wave really. But the so you help to give more context to that example of that. That's how compounding can work. But it doesn't mean that that is the way that it always works. You talked about what do you do with your businesses making money? What do I do with the profits? Is there a way of thinking about it? With regard to how much one should invest? Other than the other side of it, which is this is how much I want to withdraw for personal expenses. I want the Tesla now I want the vacation home, I want to go to Bora Bora. Is there a way of thinking about how much money to reinvest versus how much to distribute? And at what point?


Richard Groberg  22:29

Yes, the practices that I work with that are not sale assignments, but looking to grow and expand. It comes down and in any industry, it comes down to a fundamental, you know, a doctor says I want to add a doctor, but I can't afford it. So okay, how much is that doctor gonna cost you? And how many more cycles-starts? Do you have to generate a month to pay for that and be incrementally profitable? Or I want to open a satellite? Okay, well, how much is it going to cost? What's my overhead gonna be? How much more business do I need to do to be profitable? And what's the likelihood? Or I want to buy a piece of equipment? Not because obviously, safety and patient care is always first. But someone says I want to buy a piece of equipment because it can do extra me. Okay, well, how many more of those procedures will you do a month? How much are you going to charge? And is it profitable. And if it is, then assuming you don't have other things personally, you have to do with your money, it'll that investment will make your practice more profitable. And if today, your practice is worth a multiple of x, as long as that x doesn't change a year from now, if you're making $1 more than your cost, then your business is a bit more valuable than it was today by reinvesting in it versus taking the money out and doing something else with it.


Griffin Jones  23:59

I suppose that this could be an entire episode in and of itself, especially when we talk about satellite offices. You talk about forecasting of this is how many more procedures I expect to do this is how much more revenue I expect to Bill. Is there also a way in perhaps it's just going against those projections in real time. But whether you cut losses on an investment because I think that's one of the things that make people perhaps want to sell sooner is like well, I could invest in the business in this way. But if I am wrong, and I don't make $1 more than I did last year, because the expenses are more than that set on that satellite office then we expected that they would be how should one review that perhaps review the forecast to decide okay, this is this is something that we were right up out and we should keep going or, or, or bail on. Where? Because I think satellite offices. This is anecdotal. So I don't know if this is true, Richard, but it seems to me like they get let go more frequently than they make it a year or two. And maybe I'm wrong about that. But how can people make more informed decisions either as they're forecasting, or they already have forecasted and open, but they have to make a decision on to, to continue to investor cut their losses?


Richard Groberg  25:34

Well, any kind of decision like that there's a judgment call, people need to do their homework, if they're opening a satellite or adding a doctor, they need to weigh demand and potential demand and weigh the risk against the costs. They need to have the wherewithal to make the investment and bear the risk that maybe instead of taking one year, it takes a year and a half or two years. But that does need to be weighed against the alternatives. I mean, I could argue the other side of it, some people feel, you know, something, I work in this business, I make my livelihood, it pays my salary. Maybe I need to diversify. On a recent fertility sale, one of the internal discussions was, how much do I bet on myself, versus taking equity in my acquire, which diversifies my risk? Because now, my results aren't dependent on not just my practice, they're dependent partially on 510 15 practices around the country, and the ability of the corporate group to do some things, or, you know, something, I'm going to put the rest of my money in the stock market, I want to know a very famous broker, who would not buy one stock ever. Because he said, I make my living on the stock market, if the stock market goes down, my livelihood gets hurt. So my profits from the stock market, I put in real estate, so I'm diversified. So there is no one right answer. But I think it should be balanced. But I also think that there's another concept from from this article that I think is important is that if you're building your business to be fundamentally sound, and not be dependent on a flip, then you can weather a storm. You know, look what happened in 2020. With COVID, a lot of businesses that weren't prepared to weather the storm in various aspects of the utility industry were hurt 21, it rebounded 22, as an industry has been a little softer. So if you're fundamentally sound, and you've protected your downside risk, then it's not about what I'm going to get bailed out, because the next roll up group is going to pay me an insane multiple, you don't have to sell and when the time is right, and the factors, say this time, then I can choose that decision versus being forced to.


Griffin Jones  28:12

Let's talk a little bit about taxes. And I'll come back to other parts of the paper. But we talked about diversifying risk, we talked about compounding one consideration in how much money that one makes is how much they have to pay in taxes. And so can you talk a little bit about the advantages of holding business versus not with regard to tax?


Richard Groberg  28:37

Well, when you decide to sell, even though in today's market, people are taking some retained equity in their business stock in the parent, which usually can be tax deferred, the cash portion of what you get is going to be taxed. And that means that your net proceeds are less, there are always some strategies and tactics and things that tax experts and tax lawyers can do to minimize that. But you don't get what you think you're gonna get. Versus Holding, holding, holding. Again, you build a very valuable business, you always can borrow against it to create liquidity. There are things that you can do without selling, paying taxes and having a lower net proceeds. And again, depending on what state you're in, it can be painful California. If you're selling your fertility practice, between federal and state taxes, it's a pretty painful number. And a lot of people don't set up their corporate structure preparing for that. And then when the deal happens, they realize oh my goodness, I'm not getting what I think I'm getting. But again, it also comes back to why and myself Like, if I'm selling because I'm older, and I'm closer to retirement, and I need to diversify, I'm worried about competitors coming in my market need a big brother behind me. Multiples have gotten so high that I'd be crazy not to sell part of my business, I need to build a new facility or renovate, then you take into account the tax aspect. And you just understand that I'm gonna have to pay what I have to pay. I want to make another point there. To the extent you're reinvesting in your business in a way in which you get deductions, then when you sell some of your taxes or long term versus short term, if we go back to my example of I add a doctor, physician, and the physician costs me, let's say it's a major urban market, by the time I got them with salary, benefits and malpractice insurance, they're costing me over $400,000 a year. But I generate enough incremental revenue that I'm profitable, then my revenue and expenses are proportionally balanced, I've made $1 more, if my business is still worth 10x, then I've added $10 in value that will be taxed as long term gain versus income short term.


Griffin Jones  31:28

And I suppose there's also the benefit that a business owner has. And in order to be able to deduct some of the expenses that we talked about, in our previous episode, where you were advising on categorizing as one time expenses, these are things that maybe maybe it was a business trip, that was kind of a business trip, but kind of a personal trip. And and I don't even know if the paper is talking about that kind of tax advantage.


Richard Groberg  31:57

No, it's not. I mean, it's like, again, if if I had a doctor for Doctor cost me $400,000 a year, and I generate enough cycles, that my profits, my revenues are $401,000 a year, I have 401,000 of revenue, I have 400,000 of expense. So but I've added $10 of value to my business if my business is worth 10x, because I have $1 More net profit with that new doctor. So I've offset the revenue. So I've got no tax impact. And I've created $1 More of long term value.


Griffin Jones  32:36

To give some more context to the paper as well. They're not talking about businesses that are suffering for a long time that aren't creating value that have a poor investment thesis. They say that a business that is slog through for five to 10 years without really getting off the ground should be liquidated or exit even then I don't know that that's totally obvious of what that is, there could be some, there still is a line that says well, it's making a little bit of money is it worth getting rid of and moving on to doing something else. But what they're talking about is healthy business with a tenable investment thesis that is improving their revenue consistently should not be sold just because of a 60 month period of up and down what they are talking about in terms of really good business to hold on to is one that is capable of generating mid teen returns on equity for at least a decade with a path forward for equally desirable returns, in your view from looking at a lot of clinics, books. Are they doing better or worse or around that?


Richard Groberg  33:51

As a general industry? 2021? I would have said yes, in the post COVID recovery. Most of the industry statistics say in 2022 in general No. Of the eight practices that I'm currently representing one way or another, some are growing significantly. Some are relatively flat. And there's a whole host of reasons why. So every business is unique in that regard, but as an overall industry. They're not growing that dramatically. Which by the way is part of why recently the PE back roll up groups are starting to pull back from being as aggressive, lowering their multiples that they're willing to pay. And some of them have even temporarily paused in the market, because the growth does not support the valuations being paid because practices aren't growing double digit like they did in general in 2021.


Griffin Jones  34:57

So there's a bit of a Yeah. I don't want to call it, Jacqueline. No, I wouldn't. So there's a bit of a catch 22 in that if you want to diversify and reduce some risk by selling at a higher multiple, because you're not doing as well as you were last year, well, the buyers are also seeing that. And so there may have been a six month window, where there, people could have said, you know, what, I probably only have about two years left or three years left, and I don't know how long this slower growth or flatlining will continue. But now, buyers are potentially seeing that as well, from what you can tell.


Richard Groberg  35:43

Yes, I mean, if I'm a, if I'm a fund that invests in the PE back roll up groups, between the slowing economy and slower growth in general, the utility industry and higher interest rates, you know, how do I justify the valuations on paying? Now, having said that, the and we talked about this last January in our podcast, the premise that one of these groups will find some economies of scale, and value added, above and beyond an individual practice, that hopefully will make the corporate group and the underlying practices more profitable over time than just going it alone. But like any other investment, stocks get overvalued. And they eventually correct back to a rational place. And that's going on now. Because just like the individual practices, the corporate groups have to ask themselves the question, if I'm reinvesting all my profits to buy more businesses, am I generating a higher rate of return than doing something else with the money? It applies to everybody all the way up and down the food chain.


Griffin Jones  37:04

And from the seller side, we talked about taxes being one of the things that they have to consider. But there's also transaction fees that the paper discusses. So how significant is that? And How significant are transaction fees when a practice is selling their practice? And how significant is it when they're selling part of the practice that maybe they're not totally exiting, but they are selling a controlling stake in equity, maybe even a minority stake in equity, are transaction fees similar in each of those cases? Or do they vary depending on how much of the business someone is selling?


Richard Groberg  37:48

Well, if you're selling a minority stake to an associate, or partner leaving is buying out another partner, the fees are much less significant. And I have some of those clients and you manage it properly, it doesn't get out of control on on sales to the PE back groups, even when the selling doctors are retaining equity in their practice, equity in the buyer or both. The fees can can be very significant. The buyers hire an outside accounting firm that goes through your numbers with a fine tooth comb to make sure everything is recorded properly. A lot of businesses are on a cash basis and need to be converted to accrual basis, you have legal fees, you have an unbelievable burden of document requests that burdens the practice manager and other people. And if you and then of course, you have fees to the advisors, people like me and others in the industry that helped guide through the negotiation process. And then the lawyers and accountants, you know, it can get expensive, but you only do this once. So making sure that you've got good counsel and good accountants and good advisors is worth the investment if it's not getting out of control. Because if you're still going to own part of your practice afterwards, you got to wake up the next morning and know what the deal is with the person you're now working with, as opposed to being on your own.


Griffin Jones  39:24

Well, so do you only do it once? Or is there more transaction costs to consider if I'm selling a controlling stake in the practice now I'm selling 60% of the practice. I'm retaining 40 Do I have to expect the same transaction costs to be incurred the next time? When


Richard Groberg  39:44

what no because what typically happens is, let's say one of my recent transactions. That was a multi Doctor practice where two of the doctors were older and closer to retirement, but there were younger doctors. They sold the practice They took some equity in the parent and they took back 40% of the practice going forward, which differed a bunch of taxes, and gave them an incentive to grow their practice, but also gave them the diversification. The documents themselves were such that when one of them's ready to retire, or a new doctor physicians coming in, that they want to sell some equity to the documents were so thoroughly negotiated, that there might be a little bit of legal work internally, but not to the extent of I'm selling all over again.


Griffin Jones  40:33

Do you want to talk about the idle cash? Because I don't I want to I wanted to ask you about it. But I don't totally understand it. The idle cash part of the paper?


Richard Groberg  40:44

Yeah, I mean, especially if a business is expanding and taking risk, like you talked about before, I think it's important to keep reserves in the business. In case things don't go well. But if you keep too much reserve in the business, it's what's called dead money. So if if interest rates are one or 2%, you're keeping a whole lot of money in the business, you have to say to yourself, oh, if I pull that money out, what else could I be doing with it? Could I earn a higher return somewhere else, versus just letting it sit there and not be reinvested or in return. But again, it's very important. And I'm a big believer that businesses should have some cash reserves. Because you never know what's going to happen. You never know, when the next COVID happens, or you get seven feet of snow in Buffalo, and you can open for a week, or, you know, I had some businesses in Staten Island where they had the hurricane come through a few years ago, and they got flooded and took six months to get insurance money. So again, there's no black and white there. But cash just sitting there not doing anything isn't earning your return.


Griffin Jones  42:02

So I think what the paper is talking about here is that there's also risk of have the opposite of that wretched. So if once you if you do sell a business, you don't want to just have it do nothing and not compound. But there's a risk in the redeployment of that cash that finding a new business to start or purchase is hard work requires a lot of time. And there's also a high possibility of false starts. So you have something right now that's making money, maybe it's making 10%. Maybe it's making 5% compounding year over year, maybe maybe some years, you're doing really well. But if you sell it, and then you have to make the decision of well, it's not it's you know, it's gonna make one to 2% in a savings account. What do I do with this money? Now, in terms of how I redeploy it, it takes a long time to start another business or even find one that's worth buying.


Richard Groberg  43:02

Yeah, that's what I was thinking about the other aspect of idle cash. But that's true. And you and I both know, some people from the industry who sold their businesses for a significant amount of money. And then they're scratching their heads, what do I do with it? Do I speculate, where can I reinvest it? It's not earning much for me anymore. And some people make colossal mistakes in that regard. It also depends on where you are in your life. You know, if you're 60 years old and closer to retirement, you're going to be more prudent with it, then, you know, I just cashed out and I'm 35 years old, and what am I going to do and there are some great success stories and there are also some people who've gotten in trouble making rash mistakes.


Griffin Jones  43:54

So that has to do with the the redeployment risk of the money, there's also redeployment risk in choosing a venture. So if you have a practice that's doing really well, and you think you know what, I can sell the practice right now. And then I can start a company that is maybe I start a surrogacy agency or I start an AI company or I start a finance company for fertility cycles, that I'll just take that money, and I'll I'll start the next venture. But this paper talks about the redeployment risk in doing that, that that is far from a guarantee that just because one person was successful at an untrue entrepreneurial venture in one area, that they will be in another for a prolonged period of time.


Richard Groberg  44:50

Right. And you just brought up a good point, which is the redeployment of human capital versus financial capital, someone who started and ran their business and may have A lot of money. Getting there are two aspects is what am I going? Where am I going to redeploy it? But where am I going to redeploy my expertise, and my passion. And sometimes those two can be in sync. And there are some great success stories when that's happened. Think about Mark Cuban are some people in our industry who've done things successfully one time and then redeployed in a different area, and there are others who were doesn't translate.


Griffin Jones  45:29

So now let's start to explore when it is time to actually sell. So we talked about risks to selling we talked about the compounding benefits of holding on to a business, the paper says that we think keeping a business that is performing well has a durable investment thesis is a privilege and is an economic golden goose that should be nurtured, pampered and retained for as long as possible. Doing so provides a few other primary benefits, like we talked about avoiding transaction fees, avoiding tax fees, and or avoiding certain taxes at certain times. But as you mentioned, there still can be a time to sell. So let's pretend all of these things are the case, Richard, that that things are still going well, is there? Is it still? Is there still a time to sell. And let's pretend everything was like how you saw it in 2021. And it was year after year after year, is there still a time to sell? If things are mid teen compounding returns every single year,


Richard Groberg  46:41

I think there are a combination of factors which lead people to sell. And this year, even with the market now pulling back, there's still people doing and it's usually not one reason but a combination. physicians who are getting closer to retirement, thinking about retirement diversification concerned that they don't want to go it alone. The some of the big groups are going to come into my market. And while I'm still growing, and doing well, I need a I need a strong partner to help me. I need to renovate my facility or build a new one. I'm having a hard time recruiting. There are some practices where you and I know where a doctor was 60s partner was retiring, he had a hard time recruiting, he wasn't ready to leave. So he sold part of the practice. Or the practice has problems that the current leadership can't solve that perhaps. And then of course, if you take any combination of those factors, and then valuations are high, you know, if I've got practice growing double digits, and that's a multi Doctor practice. And someone's only willing to pay me five or six times, well, I might as well keep going. But if I have a multitude of those factors that are weighing on me, and valuations are still strong, and some of the subjective factors meet my objectives. While it is still time to sell. And even with multiples coming back to reality, there are still practices that I'm working with that are selling because they want a combination of those factors. And then they figure out how do I minimize my taxes? How do I diversify my risk? How do I still own part of my business so that because I still believe in it. And by the way, some of the practices that I'm working with are still on double digit growth paths, but meet some of those other objectives. And their attitude is, well, if the price is reasonable, and I have the right partner, and I still retain part of my business, it makes sense to do it. If not, I'm growing 15% per year, so I don't have to sell I'll wait.


Griffin Jones  49:03

That level of growth. And those concerns seem like they should address each other meaning for practices that are growing 10 12% 15% year over year, it seems to me like it makes sense to solve for a lot of the issues that you talked about while they're having that level of high growth meaning they get to a point where they don't want to face competition. They are there. They're getting close to retirement but they're having a hard time recruiting ducks to come in. Maybe they're having a hard time recruiting other staff like embryologist it seems to me like solving for those issues investing in the the company while they're doing that well make sense to do because a lot of times people will say, Well, we're growing so much anyway, why do we need to invest in these areas? because eventually you get to a point where that might force your hand to sell, it seems to me. And it seems to me that if they do invest in those areas that they're not as pressured by this sale and an answers to some of the question of how much do I reinvest in the company right now?


Richard Groberg  50:22

Well, in most cases, when they're getting that kind of growth, unless there's a very strong other factor, it probably makes sense to wait. I have a few situations where the combination of factors is such that okay, I probably could wait. But because of my growth, I'm going to get a higher valuation and cut a better deal and get the help I need but still own part of my practice. So, you know, I like to say there's a reason why they're 31 flavors and Baskin Robbins, everybody likes it differently. So depending on which who the group is, the answer might be a different answer. But again, the longer you wait, if you're growing, the more valuable your businesses on a pure economic basis, the way this Yale study is calculated, which is, which is an accurate way to do it.


Griffin Jones  51:19

I'm stepping away even from the sales question for a second, going back to the reinvestment section for or the reinvestment thought for a moment, which is, if you have a practice or a business, whether it's in the fertility field or anywhere else that has mid teen returns compounding year over year, and really isn't the investment, just making sure that that thing goes on forever. Don't you just want that to go on forever. And I guess it gets to a point where if you start to see some growth, that's a lot higher, like a lot of people saw in 2021, a big jump in the end of 2020. over the previous year, doesn't it make sense to say, you know, what, what we're trying to do is preserve our 12 13% growth year over year, anything after that is going to go back into investment into making sure that we're that we're doing that for the next five and 10 years,


Richard Groberg  52:16

if you have a valid place to put it. Yes. So let me give you an example. I'm working with a company in another industry that has a bunch of retail locations. And last year, the business was at breakeven, the business has tripled, it's making a lot of money. Every dollar has been reinvested this year, to open more locations to replicate what it was doing. And by the end of the year, it'll have twice as much revenue and be twice as profitable. And instead of pulling out $3 million, that $3 million is being reinvested and probably created $10 million in value to the owners. Now, a year from now, the investment proposition may not justify reinvesting. So there's, you have to reevaluate all the time, whether I can make more by reinvesting then doing something else with that money.


Griffin Jones  53:14

So those things are immediately obvious in terms of where you could reinvest your money. There's other things that maybe work but aren't as obvious as if we open up in this location, we'll get this many more patients right now. Or we can hire this doctor right now and see this many more patients and do this much more volume. But I think of things like, Oh, if you were doing really well, in 1996, maybe you didn't need to buy a website and invest in having a website, but by the year 2000, you you needed to have it. So do it in 1996, even though it's not a place where you have to put your money right now, but in a few years it will be or social media in 2012, let's say but then by 2017 or 18 is you're not attracting nearly as many patients if you don't have that and or all of the things that are necessary for recruiting young Doc's that might not be a place that we have to put our money right now. But in order for us to not become the older group that has a hard time competing for the newer talent, we have to make a couple of changes. So what about those investments that good point that aren't as immediately obvious.


Richard Groberg  54:39

So if I put my financial geek hat on, and someone says Look, I need to hire Griffin, I need I need to build a new website. I need to have a marketing campaign. I need to figure out how to convert more of my leads into interest into actual cycles, new patients and cycles. At the end of the day, while there's not a black and white answer you still need to die would do the financial analysis, what's it going to cost? And over time, is it going to generate more more patients for me, which results in revenue, which results in profits, which makes my business more valuable. And those often are not short term decisions. But if I've also seen the other side of the equation where someone spends money on something that feels good, but if it's not good, either improve the quality of medicine, improve the quality of customer service, or bring more customers or revenue in, you have to question the economic validity of making the decision. That makes sense,


Griffin Jones  55:48

it does make sense and to me, it hits the nail on the head of what makes the best visionary entrepreneurs is they can navigate those decisions, when the clearest, and most obvious data isn't in front of them in that people can err on the side of well, I can't make that calculus right now. Because I don't know what the return will be. And then they end up not investing in the things that allow them to continue to appeal to the people that they're trying to recruit to come work for them, that people that can that become their patient base in the future, because they're doing well attracting patients right now. And then just over time, they become the less desirable group and their volumes decrease and, and then you get to the 2022, end of calendar year where they are in the group that you're talking about that isn't doing as well, because they didn't make those decisions five or six years ago, and or maybe even two or three years ago. But you can also err on the other side, like you said, of people that just throw money away. And, and there's a lot of faux entrepreneurs that do that. Because this lol This is an investment. And it never pans out to be one. And I think the best visionary entrepreneurs are the ones that make those decisions without airing too far on either side of the spectrum.


Richard Groberg  57:18

Right? Typically those kinds of decisions, you're going to be 51% right or wrong. But you've got to think about what happens if I don't do it, well, I lose business. If I don't make this investment. If I don't update my website, if I don't figure out how to convert better. If I don't improve my lobby, am I going to lose business. That's the same economic analysis, it just works in reverse. Not how much incremental revenue and profit am I going to get? How much I gotta lose, if I don't do it. And great leadership, you can't great leadership, you can't just live by the numbers, you can't just live by the seat of the pants, and I'm gonna hold my finger up in the air and see which way the winds blows, you have to look at both and make balanced decisions. And if you're taking a huge risk, you better have the wherewithal to withstand the storm.


Griffin Jones  58:17

And I would define a huge risk as something that that bets the farm. And if it has to do without, do I just take out a bit more profit this year, and you don't really need to take out a bit more profit than my gut tells me to reinvest back in the business. And that's if it's, if it's something that's if you're if you're kind of on the fence, and you don't totally, you don't really need the profit, then if you make five of those decisions, it's likely that one of those is going to have a Pareto effect distribution where it's truly significant for the business.


Richard Groberg  59:00

You know, again, without revealing anything confidential I know over this last year or so you've done that you've reinvested in staff and other things to expand your business and make your business more valuable by being a more robust greater depth service provider to your your clients.


Griffin Jones  59:21

I think about the the building the business in this way of having a hold asset and that's why I wanted to go over this paper with you and and like you said that applies to me with what I'm doing with my business. It applies to a lot of practice owners. When I first wanted to talk to you about it, I thought of the younger Doc's that have not bought in yet that are about to buy in. And I don't think this paper really speaks to them. So what do you what do you think this paper means for those folks? So that's who I was originally thinking of the folks that are me Be they've been in associate for two year three year, they have the chance to buy, they either have the chance to buy in, start something on their own or, or buy in or work for a new network group. And so what do you think this long term hold principle means for the folks that are not yet owners, but are on the cusp of potentially being owners,


Richard Groberg  1:00:26

I think in the fertility industry and other health care businesses, where the practitioners are the primary drivers of the business, in the long run, if you have any kind of ownership mentality, you care about your business, you want it to do well. And it's not just the job, you're not going to build the same kind of wealth, just taking a salary, maximizing your income, as having a piece of your own business, whether you're starting your own practice, you're starting a practice backed by one of the groups and I've got a client doing that, or you're opening your own business, the concept applies if you're, instead of making $500,000 a year, if you're making $400,000, you're here. And that other 100,000 is building equity in your business. If you believe in yourself, and you're building business value, then somewhere down the road, you're going to be worth much more money. And frankly, from a from an self appreciation standpoint, you've built something that's partially yours, you're better off. Now that needs to get balanced against do I open my own practice? And where do I get the money to do it? Or do I work with one of the groups and make sure that they give me equity or options or those kinds of things. But again, I've worked with physicians who want no part of that. But for the most part, physicians in this industry and other practitioners are so dedicated to the craft, that why would they not want to own a piece of what they create?


Griffin Jones  1:02:03

I think it is okay to not want a piece of it too, even though the evidence that we've gone over today is dictated that the people that make the most are the capitalists, the owners of the capital, doesn't mean that everyone has to do that, and you can't have a really good life. If you don't do that. I also think it's true for some business owners that as long as they don't walk away with lots of debt visa, as you make some money for a while, you can still go back to the to the employment path, if you decide, you know, what, I have now made myself a much more senior person I've been I, I have put myself on a track to now be number six are the number four at a much larger organization. And I never would have been able to build that career capital had I not been the number one of this smaller venture, and I can walk away from that and then go be somebody else's number four, number six, I think that's a reasonable. I think that's a reasonable career path. And I think it's it could also be the case for people that if they start their own practice, and maybe it's just them in a partner, and they do okay for five years. But maybe that makes them the opportunity to be a senior partner at a much larger group after that, as long as you're not going into debt. Or if you're making more money than than what you're borrowing or spending, then that still can be a part of the Career equation.


Richard Groberg  1:03:38

Yeah, not everybody wants to be an owner. In my former industry in the veterinary industry, there are now statistics that more than half of the veterinarians coming out of school don't want to be practice owners don't want to work full time, and the burden and stress of starting a practice and the debt in the ownership, which plays into the corporate groups. There is some of that in our industry. Not everybody wants the burden, financially and mentally of being an owner. And I'm fine. But even then, to the extent they can have a small piece of the equity, whether it's options and equity in the parent company or a piece of their practice. There are ways that roll up groups are making that happen now. But again, there's no one right answer because everybody's different.


Griffin Jones  1:04:29

But I would love to have you back on for a live event where people can ask questions in real time, but for concluding this thoughts on the yellow paper, which we will include in the show notes, what would you like to summarize for the audience?


Richard Groberg  1:04:45

I think the premise of the paper is, is that if you can reinvest in your own business, and it doesn't have to be at a 15% return at a higher return than you can do elsewhere with your business. You You're building value you're building community, you're building loyalty amongst your employees and constituents. And your business will be more valuable when the other factors say it's time to sell. But every micro and macro decision should be made with some thought process of what are the financial implications, and the non financial implications? Not one or the other.


Griffin Jones  1:05:27

And I suppose that valuing one's time would also be a tiebreaker for that, isn't it, Richard? So if you could have a business that's doing well, but if you're working 80 hours a week, and you feel that you could be doing as well working for someone else, it at some point, one's time is is valued in that not just for earning potential, but also quality of life and, and their time with their family. And


Richard Groberg  1:05:54

that is one of those factors that would lead someone to say, you know, something, let me let me get the benefit of selling to another group and having them help with certain things. Take some pressure off


Griffin Jones  1:06:08

me. You had a few people that reached out last time we shared your email address. Are you comfortable with doing that again? How can people find you?


Richard Groberg  1:06:17

Absolutely, I can be reached at Richard Groberg and outlook.com. I'm on LinkedIn as well. And your podcast is so well viewed and received, that I had a number of calls, I picked up a number of assignments to work with fertility practices, both in the United States and surprisingly from Europe. So I think that's a testament to your reinvestment in your business to continue to grow it.


Griffin Jones  1:06:43

I appreciate that very much, Richard and I appreciate being able to cover these topics and I look forward to having you back on to cover them some more. Richard Groberg thanks for coming back on inside reproductive health.


Richard Groberg  1:06:58

Thank you. It was my pleasure.


1:07:01

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to Inside Reproductive Health



Revisiting Improving Patient Experience by Building An Empowered Team, An Interview With Dr. Peter Klatsky

There’s a challenge in finding the balance between keeping both your staff and patients happy. On this episode of Inside Reproductive Health, originally aired in 2020, Griffin gets Dr. Peter Klatsky’s take on managing everyone’s satisfaction while providing a new standard of care. Working with his partners at Spring Fertility in California, their goal is to provide their patients a level of service that isn’t seen anywhere else, all while keeping their employees happy and in for the long haul. 

Learn more about Dr. Klatsky and Spring Fertility by visiting www.springfertility.com/

Read about the work done by Mama Rescue and support their vision by visiting www.mamarescue.org/

To get started on a marketing plan for your company, complete the Goal and Competitive Diagnostic at FertilityBridge.com.

Other episodes mentioned in Episode 54:

Ep. 50, Dr. Pietro Bortoletto

Ep. 54, TJ Farnsworth


Transcript


Dr. Klatsky  00:04

I've learned that not every single patient is going to have to have perfect experience. And our commitment is when we have a patient who had an experience that didn't live up to our goals that we listen and react immediately and try to improve our system.


Griffin Jones  00:18

Here's another flashback episode for you tell me if you do, or if you don't like these flashback episodes, email me, text me, many of you thought that they're a good idea. I always hated them, watching them on sitcoms, as a kid couldn't stand when they did that. So you tell me, if you liked them, I think it's useful to go back and see the growth that some of these folks have done. And for those of you starting your career, growing your practice, calling on some of these practices, it can be useful to go back and listen, I had Dr. Peter Klasky, on in the winter of 2020. Anything big happened since then. And we talked about the growth of spring fertility. And at that time, there was a handful of practices that were on the up growing fast and new practices, I should say a lot of established practices were still growing. And many networks were forming to buy practices, there really only handful of groups starting at that time, kind of it made it may have not even had a brick and mortar that time. I don't remember, there was spring and there was bias. And and then you know, maybe a couple others in different senses. But if like these brand new practices that were moving real fast, then of course we know Vioxx was acquired by combat even know that kind body went on to raise a lot more money and make an acquisition, like viruses grow to a number of different marketplaces. Spring fertility also has grown quite a bit in that time and time. When I spoke with Dr. Klasky. There, he was just they were just in San Francisco in the Bay Area, at least. And I don't know how many providers a day at that time, but I think it was Dr. Klasky, Dr. Trim and a few others. Now they're 1314 physicians are 1314 rei physicians, and a number of advanced practice providers. They're in different marketplaces that include scheme self was practicing in the Bay Area at that time that was back in New York, that are in Canada now with an acquisition of Genesis Fertility Center in Vancouver. And so this has been tremendous growth. And and it's from one of these brands that was meant to be one of the new exciting practices, one of the new exciting ways of opening up a practice. So you decided is spring fertility, done it the way they said they were going to do I think model for others going forward? Are they a new contender they they now part of the establishment? Are others going to do what they do love to hear your thoughts about spring fertility student group based on this old episode with Dr. Klasky, from January of 2020. Enjoy. So I want to talk about what that means to the standard of care not seen anywhere. But I want to talk about what that vision for spring fertility is because there's a pretty common trajectory for a lot of people to either join up with an existing group or to maybe start their own, which is less common because it's harder to start one's own group. Now you've done it with a pretty impressive speed and starting to be scale. So what was it that made you want to do that in the first place? What was the void in the marketplace that you thought? This is what I could add to it?


Dr. Klatsky  03:46

Well, you know, I think it starts with seeing an opportunity to practice medicine the way I always dreamed. And I felt that it for a variety of reasons in this places that I was I wasn't able to practice the kind of medicine that I wanted to practice. I was fortunate enough to have a best friend from residency, who I went through fellowship with and that was Dr. Nam Tran. He was practicing at UCSF, I was practicing in Albert Einstein College of Medicine. And we both had wonderful academic medical careers. But when it came to the practice of seeing patients and the way in which we wanted to deliver care for a variety of reasons, we weren't able to practice the way we wanted to in a larger academic center. We then also noted that most of the major innovations in our field had come from the private sector. And so they had come from people came before us who we were fortunate enough to follow people like Bill Schoolcraft and CCRM, where he worked with one of our partners. Now Dr. Devin haras, who's brilliant and amazing people like Richard Scott who really really innovated people like on at Cobo and our colleagues over in Spain and So nominate woke up. And we said, Gosh, the really big game changing innovations in our field seem to have come not through NIH funding, which is near to absent in our field, or at least in the IVF component of our field. But we're coming from from the terrific world class private Fertility Centers that invested their own money and time to research and develop. So there was a combination of one, we could leave academic medicine, and still do provide the cutting edge care and actually provide it in an even more cutting edge and even more rapid way we could control the kind of research that we wanted to, and try to push the field forward one and then two, from a patient experience standpoint, there were so many areas where we felt like we wouldn't have been, we were not able to serve patients the way we would have wanted to be cared for if we were the patient. And so we may add to that, that I'm having this conversation with my best friend, who we happen to be on different sides of the country. But we blue sky, what would it be like if we had our own practice, we could do it the way we wanted to do it? And what would that vision look like? And then we were fortunate enough to have two other close friends who happened to be the best embryologist on the West Coast, who also shared our vision. And they wanted to push the field forward. And, you know, in their words, they felt like they were what they were wonderful institutions, but felt that if they had stayed there, they wouldn't, they wouldn't be practicing the same way 10 years from now that they were at that time. And so the four of us came together and sort of had this idea that, what would it look like if we were starting from scratch? From the patient experience from the patient care? And what would it look like in the lab, if we could take the best technology available? And then imagine what technology might bring us over the next 10 or 15 years? And how would we design and build a lab. And then after about a year to a year and a half of planning and thoughtful analysis, we then decided to take this job.


Griffin Jones  07:06

So I want to come back to that question of the lab and springs perspective on the lab. But I want to explore this idea of why you felt you couldn't pursue the way you wanted to practice medicine or build your own infrastructure in the Academy because I've only talked about the academic side of our field really once on the show with Dr. Petro Borgia Leto, and I'm having a few more guests on to talk about it in 2020, because I realized that it's a void that we really haven't covered. I've done a little bit of business with academic centers, and the very smallest consulting engagements are like a bureaucratic nightmare to go through the red tape. So I can infer why you might not have been able to realize the practice of medicine that you would want to realize in the academy. But describe why you had to take your vision out of it. And it's probably beyond NIH funding, I'm guessing.


Dr. Klatsky  08:08

Yeah, I think one of the draws to an academic centers to do amazing research, and to do amazing teaching. And the thing that you still can do in a one in a great academic institution is provide terrific teaching. And you can teach residents, medical students fellows, and that is incredibly rewarding. In a private sector practice, you can also continue to teach, we have residents come to spring fertility from an endocrinology group, we have new physicians who are when you join spring fertility you before you see a patient, you probably spend another two to three months just training with us learning our protocols and our perspectives on how to deliver care in so we haven't lost that that teaching angle from public funding the NIH, whether it's the NIH or somebody else, there's just not a lot of research dollars into the really exciting stuff that we do when it involves human embryos. And too, it's not a high priority for the NIH. From a bureaucratic standpoint, I share some of your frustrations I one point had over a quarter million dollars of funding from the World Bank to do maternal mortality research in Uganda. And that was matched by several other private foundations. And being able to deploy funds that we already got, you had to go through multiple layers. And so you can imagine what it's like as a vendor trying to, you know, work with your services. But But even more than that, from a patient that to get what it means to be a provider, occasionally to have a patient who wanted to be seen earlier so she could get to work and you knew she had a very stressful job. And it was important for her to be seen and out of the office by 730. So Nam or myself, we're pretty committed to our patients. We're not pretty but we're very committed to our patients. And we're willing to come in at 7am but in you know, essentially that you don't have control over the resources. There might not be a nurse or a medical assistant to help you do it all For Sale, and therefore you can't do that. So I've noticed you'd say, well, I, I'd like to come in and see this patient this time. No, that's not available, we don't have the staffing for that. And so when you have control over the system setup, you can set up so that something that would be incredibly popular, like earlier monitoring hours is a viable option for your patients.


Griffin Jones  10:22

Yeah, it seems to point out, the nuance between where the standard of care begins in the form of whether it's best business practices or simply is now the standard of care. To me, it's not immediately obvious. It's something I talk a lot about on the show, but you're talking about being able to accommodate patients in a way that works for them. That might be best business practices, and therefore, is favored by the private sector. But at what point? Is it just the standard of care?


Dr. Klatsky  10:57

Yeah, I don't like to think in terms of best business practices, but I like to think in terms of what's best for my patient. And well,


Griffin Jones  11:04

that's what I mean, Peter, I think we divorced those two concepts. And but Customer Service at one point is patient service.


Dr. Klatsky  11:13

Yeah. 100%. And so, you know, that's where you we, and all it really takes us is looking at, what would I want if I was a patient? Right? And then it takes a little more effort to figure out how would I change my system, for example, we have two shifts of nurses. Why do we have two sets of nurses because that's the only way we can have patients come in early. And also get results to patients in the afternoon. But that, but that's not the way most larger institutions are set up. And that's also not the way an institution, even private sector institutions are set up. Because if you if you were the only Fertility Center in New York City in 1992, you didn't have to worry about what patients wanted, right? You had 612, month, waitlist, whatever you did, and you could make the patient's jump through whatever hoops were necessary. And, and they could go through that bureaucratic maze, and the doctor could get there, you know, have the best parking spot in the lot and then show up at the time that was convenient for the clinic or for the provider, and patients would wait. And what we're seeing today, you know, is that patients do demand more and a place like spring fertility that actually thinks what would I wanted I was the patient is going to continue to grow and have incredibly positive patient experiences, if other centers aren't going to do the same thing,


Griffin Jones  12:32

which really makes me wonder how someone can worry about what the patient wants, while also serving the patients. So we've had others on the show and have talked about the CEO role. And a lot of companies now have a chief executive officer who is in charge of the C suite, and they manage all of the business. And mostly the physicians are often their advisors, but it's effectively the employees of the company. There's a few folks like yourself who are physician led groups who are in the entrepreneurial seat and in the physician seat, so you didn't have to worry or a physician didn't have to worry about what patients wanted in 1992, you Peter Klasky, very much do. And you also have a patient caseload, you have to do retrievals you're still an REI, within the practice group, as well as being an entrepreneur that leads the vision and the scale and the future value of the group. How are you able to do both things at the same time? Because I'm just running a client services firm. And it ain't frickin easy. How do you manage it?


Dr. Klatsky  13:49

Not alone. And so I focused during the day from 7am until 6pm, I focused entirely on my patients. And when I'm focusing on my patients that's going to inform what spring fertility should do from an operational perspective. I'm lucky that I don't it no part of spring has been Peter Cloudscape. Alone at all. I have the best partner in the world. Dr. Nam Tran, who is the smartest person I know. And in addition to being the smartest scientist in position, I know you he's also the best operational leader that one can have. And we were very fortunate early on to hire really terrific people. So I we have a chief operating officer who is excellent at taking our vision. And in managing the day to day operations. We just hired an amazing woman who is running our VP of operations. And she came from, from the Vita which is a large healthcare organization where she takes a lot of the structure and organizational stuff. And so you know, between Derald and Marin, and then we've got an array of additional folks who we have both given direction to and who who we trust to carry out that direction and trust to check in with us. So we have weekly check in meetings. And when Nam and I are seeing patients, we're getting feedback so that we know how to adjust operations, right? When we when I'm seeing patient nice to hear somebody's frustrated about something, we respond not, you know, in a month or in two months, we respond that day. And our team is all motivated. So the other important important thing is to make sure you have a happy team, and that you empower those people. So we were so fortunate to hire Dr. Devin unharnessed, who is now the CO medical director of spring fertility, and overseas medical operations and process on par alongside of Dr. Trump non track. And so the way we do it is not the way your question was sort of, Peter, how do you do it? I don't, you know, we have an amazing team that together functions really well. And we complement each other. And what we share also is a vision for how to be everybody join spring wants to deliver the best service for their patients. And we define services in equal parts, patient experience, and clinical outcomes. And, and everybody knows that that second best isn't good enough. And so we're united by a desire to deliver the best experience for our patients, the best care for our patients, and a desire to be the best at that. And then we hire wonderful people. We hire people who are effective operationally, but also fun to hang out with. And so we have a great time hanging out tonight, I'm going out to dinner with all of the providers and we've got a dinner for eight with some of our key management people and the providers. And it's going to be our end of year last physician meeting, we have a physician meeting every month, everybody has an equal weight, everybody has an equal say. And we take feedback, whether it's from our patients, or our teammates, or their physicians incredibly seriously, if you joined spring, and now we're seven positions, if you join spring, and you have a suggestion for something you think we can do better, we want to hear, right, we don't want somebody else to come up with that idea. And and we want to make sure that we hire the best Doc's and that we keep those Doc's in New, and then we, we make sure they're happy. And in California, there's no non compete either, right? So so it is all about making sure your team is empowered, you have the right people, and everybody communicates well. And so a lot, also a lot of hard work, right? late hours, but I think the thing that's you allowed spring to, to effectively scales thus far, has been a team of people who will complement each other.


Griffin Jones  17:42

It started with two, how does your skill set and Dr. Trim skill set? Where do they overlap? And where do they diverge?


Dr. Klatsky  17:53

You know, usually, this is where I would make a joke and say that I'm better looking and more charming. And he he's good at managing the plantings around our office and some of the wires that sometimes get tangled. But all kidding aside, there's a total joke, I think that nom is these isn't has always has been the smartest guy in our field for for as long as I've known him. And he's just one of the smartest people I've ever met. And I and I'm comfortable enough to recognize that and confident, are smart enough to recognize that and confident enough to let him run most operational practices and not feel threatened by him saying, Hey, I think we should do it this way. When I've been doing it a different way. I think that there are areas where I have strengths that may be complement areas where he's not quite as strong. And both of us if we had to, or you're over everything, or if we had ego around who would get to do this or who would lead that it would just slow us down and get in our way. And it would affect our relationship. We really also liked each other. So even though we're quite different, and but because we like each other, it creates an environment where the nurses like working with us because we're because we're going to be having more fun, we're going to probably be making fun of each other. And we're going to be supporting each other. And we're never going to worry about who took more calls or who had a little bit more work on one thing or another. We're both trying to make sure we're not holding the other person back. And then when you have that environment, and you bring in somebody like dedmon, Horace Uzziah Harris, these are are incredibly brilliant physicians who are also committed to that same vision, give patients the best clinical experience possible. And, and one of the most amazing things that I've experienced and then on the lab side, we're led but by just to an amazing team of embryologist. And you know, in as to married embryologist, who we started with Sergio Bukhari, he's to monitor Porsche. And they just delivered the best not only the best quality work, and constantly trying to push the envelope for innovation and to improve outcomes. But they also create an environment in the lab, that is a wonderful place to work. So we're able to attract and retain top embryology talent. But But I think, if I were to shorten it, and try to make it more concise, NOM manages detailed operating protocols. And I probably manage some of the vision voice. And I'm very attentive to the patient experience.


Griffin Jones  20:42

When you're growing up fertility practice fast, you need the best that there is. And the best that there is that I'm hearing from half of the Fertility Centers on this continent is engaged in the with regard to the informed consent, the pre treatment, education, and the workflow assistance that engaged in the software provides engaged MD is over and over again, something I hear from clients and from you all, at SRM and a meetings about how useful it's been for staff how useful it's been improving patient satisfaction, because the patient gets to go through the modules on their time that makes their care with you their time with you personalized, and you'd have a much more defensible informed consent. As you can see, people were watching these modules, they have the time to do it, they agree that these different phases, and you don't have to track down all this paperwork, all the time that you save your staff, how you make them more efficient, and improve the satisfaction of the patient. That's part of the standard of care, the patient has to go through paperwork, if they have to do all the education themselves, they're a deer in their headlights, they're a deer in headlights in their interactions with you is that the highest standard of care, engage them the input improves these things. And you can get on board with engaging in the you're among now the minority that are not going to engage md.com/griffin to get a free workflow assessment, assessment from engaged and V. Team. And you'll also help to create more inside reproductive health content, because you let a sponsor know that this is one of the places that you've heard them. I heard from the show you heard that from me. But it's an advantage to your team. And it's most necessary if you're going fast. It's a competitive advantage engaged in the.com/griffin. Now back to this conversation to Dr. Peter Klasky. Spring is often known for its vision for the lab, it's its functional outlay of the lab and looking at the lab very differently from how IVF labs have been structured in the past. When people say that, what are they referring to?


Dr. Klatsky  23:04

Well, there's a lot of things we do uniquely in the lab. But we the flow in our lab is extremely efficient, and designed to prevent minimal movements and to minimize any risks to embryos or eggs. With regard to egg and embryo storage. There's everything has not just redundancy, but two layers of redundancy. There are some things we do very uniquely in our lab. We are the only I believe we are the only practice in the country that injects in those ACCION eggs in a hypoxic environment. That's the same ambient air quality that exists in the incubators. We are the only lab in the country that does the same thing from egg retrieval. So when the eggs are being retrieved from somebody's body, they immediately go into an isolette while the embryologist is looking at them, where the carbon dioxide level is 5% and the oxygen levels 5%. So that's matching what it is in the fallopian tubes. I don't believe I don't know of any center that's doing that currently. And to be honest, we weren't able to do that when we built the lab because the technology didn't exist to lower the oxygen to displace oxygen in a nice sight. And within two years of opening, we were able to do that. But we built the infrastructure in our lab that can do that. So we have nitrogen gas and co2 Gas throughout our lab. And we have other infrastructure that's anticipating what technology will bring five years from now. That is amazing innovation that we you know, I credit 100% to Dr. Trump, and his vision for what the lab, the IVF lab will look like in 2025.


Griffin Jones  24:41

I think innovation like that, which is groundbreaking in some ways and other things that other people are doing and it harkens back to something that TJ Farnsworth had said on the show a few weeks ago and I actually really agree with that I've thought about both before and even more since I want to see if Few agree. First off, if you if you don't why, and if you do, what do you think can be done about it, but his sentiment was coming from the oncology field was that there? There is less peer to peer sharing of best operations practices of best practices, both from a business and clinical setting. And I really do see that, Peter, I really see it from independent owners, especially I think everybody feels like they've got the secret sauce. And maybe you're a guy that really does have the secret sauce. And you think Well, I do. And I don't want to share with folks that are doing the same. First, do you see it that way? Do you see that our field isn't nearly as collaborative as it could be? Why or why not?


Dr. Klatsky  25:45

I don't, you know, I think we I don't see it that way. And I'm sad that TJ doesn't feel that way. It feels that way. I actually think that there. I started this off by saying, we followed great minds and great practices that shared their advances in our field. And he, I don't think oncology even moves as quickly as the field of fertility does and oncology moves incredibly quickly. But why do we have egg freezing because of a commitment of somebody in Japan, carried forth with clinical trials performed in Spain. And those publications came out in 2010. And by 2012, egg freezing was no longer considered experimental in Europe or the US. And it was, and people were traveling to other places to learn how to do that. I think that Richard Scott and Bill Schoolcraft, shared advances in pre Implantation Genetic testing with the field. So I don't know that there's been a lack of peer to peer sharing, even when even when people have secrets. When we opened up the lab, we had Barry bear, who's whose lab director for Stanford, which is maybe 40 miles away, walk through our lab, and tour it with us and in the professionals in our, in our field, I expect that they do share. So I know the embryologist are constantly sharing with each other what they're doing, because they have long standing relationships. It's kind of like when Nam was at UCSF and I was at Einstein, we'd always talked about what each other was doing. So and, you know, all of us had peers and colleagues and other centers of so I've not seen that that much. I do think people are tied to their practices, I think maybe some of the border docks, and we're pretty young group, but maybe some of the older dots don't want to change the way they're doing it. And that's what he's referring to. And so they say, Oh, this is really special. Because this way, I've always done it. But I think most innovations have been pretty. It's hard to keep secrets in our field, you know, trade secrets, because our trade secrets are information and knowledge. For example, what I just shared with you on your podcast, everybody I know nobody else is doing hypoxic xe made me you know, but I'm not. I haven't been shy about that, since we've opened that, you know, and maybe people will start doing it, people have to buy into something and believe that there's a benefit to it. But I don't think people are really secretive.


Griffin Jones  28:08

I see both sides, I definitely see enough examples of both. And perhaps you're right, that there is an age difference. I think there's probably a practice structure difference. The people that I see sharing are the people that you mentioned, plus yourself plus TJ, the people that are growing groups pretty quickly, and adding a lot of new things tend to share. And then there are probably another class of folks that they want to hold on to their piece of their particular market. And I often find those folks are reluctant to talk to the folks across the street or have nice things to say about the folks across the street are reluctant to meet with them or join some of the broader groups. And so


Dr. Klatsky  28:57

we all just do. And that's where so if they're acting that way, that's what's silly. Like, they may not be but you but you're embryologist are when you're nurses aren't as RM they're sharing. Your your junior Doc's who both went through fellowship together are sharing with each other. So that's where we try not to be, you know, we try to have good collegial relationships with everybody. And, and, and we always want it and the great thing about our field is it doesn't stand still. So what is amazingly cutting edge today in five years, four years, maybe standard of care, and you'll have to continually move the needle. And that's really to really really keep growing, you're gonna have to attract and keep the best people who all have that future in mind, you know, want to move the field forward. So we have better patient outcomes, so we can provide a better patient experience and I guess that part you need to really give voice to your your new hires. So that doc who is straight out of fellowship Hey, you know Meet me. Maybe that's the person who's going to be Richard Scott or Bill Schoolcraft, you know, in 20 years. So listen to the suggestions that they have. And that opportunity.


Griffin Jones  30:12

Yeah, that was gonna be my next question is does it become binary for Talent Recruitment and how you're able to build your group because I belong to a few different masterminds of owners of other creative firms. And our fertility marketing blueprint took us years to build the way it is a really good strategy piece and allows us to make sure that almost any group is going to be successful if it's if it's done right. And took us years to do, and I willingly share it with other agency owners. And I just tell them, if you decide that you're now going to go into fertility field with this, you'll burn in business development, hell, but other than that, I'm not making people sign an NDA, I'm not, I'm just sharing it with other peers. And so that they can use it to help


Dr. Klatsky  31:08

like you, Griffin, and in your your, your becoming a thought leader in our field. So people are gonna want to always have your, your thoughts and opinion and I think that makes sense.


Griffin Jones  31:20

Well, to your point, though, I can't keep secret sauce anyway, there is no secret sauce. The embryologist are talking to each other, the nurses are talking to each other, the Jr. Doc's are they're talking with their pharma reps who come in who are talking with other folks. And so it's either you're either offense of this is what we're doing. And I'm doing a podcast episode every single week, and Peter is sharing his version of xe on the podcast with everyone and sharing that and bringing that to the field on offense, or on your or your you're on defense. And I'm starting to see the folks that are struggling with that. But to me, it's binary, there is no maintaining the secret sauce, you've talked about how you are building a team based on that ethos, how else are you building the team to be collaborative, like what's the structure of springs team that makes sure that it's one of as you say, advancing the core value of what's in the best interests of the patient, we


Dr. Klatsky  32:21

onboard people slowly providers, you know, most places, you're seeing patients a week out, provider out of fellowship will probably take a minimum of two months before they're seeing their first new patient. And more likely closer to four, we maintain regular full team meetings where we talk about clinical issues and also practice issues. And what we have built in, I guess, modeled from the top down is a relatively flat system or flat operating system. So that medical assistant, you may have just heard somebody knock on my door, nobody feels timid about knocking on anybody's door, it's spring fertility, and if a physician is running five minutes late, that means a patient's been waiting for too long. And so everybody's instructed to let that patient that physician know and empowered to do so. So we've actually a small waiting room has been virtually every year in San Francisco combined. And people are usually surprised because these patients don't wait here. And that's because you know, the physician would be in trouble, regardless of who the physician is, if the patient's waiting for them. And that's, you know, a core value is that the patients come first. And everybody gets a copy of our mission statement. Everybody knows what our pillars are. And everybody is oriented for two days, every single hire, whether you're in the finance area, or whether you're in a clinical operations area, to understand what that mission is, and we try to hire Well, we try to screen for people who are interested in that mission before we bring people on.


Griffin Jones  33:55

Yeah, other thing when I say binarias offense and defense, it's really Who do you want to work with and for? And who do you not want to work with and for and in order to attract people who are self motivated. The values and the reinforcement of the values, the reiteration of them, I think, is critical. And I think in that group of clinics that were founded in, let's say, the mid into late 1990s, many of those don't have them. And I think part of the reason why some of them are starting to struggle now is because they're not built in this way, which is not only just built for talent shouldn't be built for patients but also built to attract talent. So where do you see this going in the next decade, let's say in terms of I guess what you want to do with spring but where you see the field, really starting to bear to some of the demands that have been eking the past couple years,


Dr. Klatsky  35:05

I think the field is growing expansively they massively. And so I think I think that it will continue to be growth in our field, driven by demand for IVF services as women continue to have their first child and start families later on in life, but also with the advent of egg freezing. And as people get more comfortable with that technologies, we have more data on the on the viability of that technology, I think people will demand more and our patients are are more demanding. And they're used to having an individualized and personal experience. And so the centers that are able to provide that enable to provide a patient experience will grow in those that want to continue putting the doctor first as opposed to the patient will see you know, probably see a retraction in their market share and clinics like ours, where people like working together. I said last night, we went out to dinner with a candidate, a new physician recruitment candidate, and she was lovely, and the team was just happy to be out together for dinner. And mentioned tonight, we're having another dinner with all the physician and providers, and then we're having a party for our entire staff and their partners on Friday night or holiday party. And so sprint like spring is a fun place to work. We every quarter, we do something as a team and not, you know, they're usually not boring. And, and sometimes, they're arguably too fun. But we really try to make sure everybody in the in the organization feels valued, and that people enjoy being around each other. And so if you can do, and I think that's a critical element to the patient experience, it is almost impossible to deliver a wonderful patient experience. If your team does not like working together. In order to make patients happy, you have to start by making your staff ensure that vision that we're all what we're doing is important, and it's about the patient.


Griffin Jones  36:57

The old adage had been shareholders first customers second, employees. Third, I think many forward thinkers have corrected in our field, you could say its employees first patient second, in that case, the for the for the exact reason that you described


Dr. Klatsky  37:16

would be very, I don't want to say that because I still think the patients come first. But but almost like in order, you have


Griffin Jones  37:22

to say that because you're a doctor, if you were if you were just a business owner, not a physician, you wouldn't have to say that because I'll say it right now in front of everybody, clients come second, if any of my clients are listening, and most of them do, they know, my employees come first. And if I felt like my employees, were not someone that put the client's interests at the top of their mind, and we're willing to go the extra mile, they wouldn't be on my team to begin with. But if it ever came down to, you know, if client ever dog cost an employee, I would rip them apart in front of the whole team just to boost morale.


Dr. Klatsky  37:59

Yeah, wouldn't rip apart a patient. We're very sensitive with our patient, but but you can have both. Let's agree you can both they're both critically important. Your mission is about your patients. But you can't fulfill that mission. If you're if your staffs unhappy or feels like you're in any way not doing right. But


Griffin Jones  38:17

I just don't think that point can be understated that when employees when team members are happy, they take really good care of the people that they're supposed to be taking care of. And that's true in medicine, as well as client services I wasn't going to ask you about this wasn't on my list. But I do want to talk about your endeavors for social good particularly in Uganda. One of the reasons why I started my own company is because I want to be a philanthropist. But for me, they're very much separate I guess that my business is what I do to make money so that I can give money to the organizations that I care about. We're not like TOMS Shoes where we're selling a pair of shoes and then another pair it goes to the individual in need for you are your endeavors for social good, very much infused with spring or is spring a business venture that helps you to contribute in the ways that you want to.


Dr. Klatsky  39:14

I think it's all in so so first spring is about providing really excellent care to people on a really important level. So if you're an infertility patient been trying for the last 12 months to get pregnant, and every period feels like a wound in a stabbing, you know, insult and pain and injury, then providing sensitive, compassionate fertility care, you know, is a social good in its own right, helping somebody preserve their future fertility and their options and empowering them to go on their next date and not feel stressed. Like it has to be the guy they're going to marry. You know, for somebody who's going to freeze eggs is a social good so I feel like I'm so fortunate that the business or profession that I'm in just doing my job is a social good No, no, I'm passionate also about just reproductive health globally and in reducing disparities in care. And so the mama rescue program that I started in Uganda was really successful. And we were funded by the World Bank by UNICEF. And I basically had a decision to make whether I was going to get out of the fertility space, and go full time into the nonprofit space, or go all into the fertility space. And I chose the ladder in the way we sort of marry those two things right now is it spring fertility is actually making a donation sort of like TOMS Shoes. And so we make a donation for every person, we get pregnant. To spring fertility last month, we authorized the $24,000 payment to the organization's running mama rescue. And that will provide for every pregnancy, we have, we provide for two women in rural Africa to get an emergency transport in the event of an obstetric emergency, and to transport 10 women to a health center for skilled obstetric care. And so and we do that, with every pregnancy achieved at Spring. And so so that's where we get to marry, you know, helping women who can afford advanced reproductive technologies have gradually built up care in the United States, with women who are no less deserving in an environment in an area with far fewer resources, and try to connect those two worlds through our shared humanity. And that's something that's been important since we started in, I mentioned that, that Nam Tran is the smartest person I know, you know, he came to United States as a refugee. Like, my God, like if Donald Trump was President, you know, 40 years ago, we might not have had the benefit of having somebody like him in our country. And so we still believe in that shared humanity and that shared reproductive health, and I sort of pivoted off on the politics, but I like to, but we're real infertility is real. And in frankly, like, I'm disgusted with our current administration, and as a CEO of a company, or as a founder of a company, I probably shouldn't say that. But I don't care. Because it's reproductive health, right. And that's what we're passionate about. And so we're passionate about helping improve the lives of women, both in our own community. And if we can tie those eyes to women who are deserving and caring and, and underserved. We want to and so that's what we do with every pregnancy we we actually support access to skilled obstetric and antenatal care in in western and central Uganda.


Griffin Jones  42:36

How do you want to conclude with our audience of how spring fertility is going to build this new standard of care that's not seen anywhere.


Dr. Klatsky  42:46

I hope that we continue to have great feedback from our patients. I've learned that not every single patient is going to have to have perfect experience. But our commitment is when we have a patient who had an experience that didn't live up to our goals that we listen and react immediately and try to improve our system right now. I think we deliver amazing care. And I hope that we can continue to hear the kind of feedback from patients that they have pregnancies quicker, that the experience is less uncomfortable and more empowering. And if we can continue to do that, and continue to empower our patients provide a more comfortable, compassionate and efficient experience. Those are words that don't always go together. It spring will continue to grow. It will continue to grow in the Bay Area. And as well as new geographies. And anybody who's interested in that mission should give me a call or send me an email because we are hiring


Griffin Jones  43:48

new geographies, watch out folks that are coming to your town. Dr. Peter Klasky. Thank you very much for coming on inside reproductive.


43:56

Thank you. You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society, visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health


149 Extend Fertility’s Lessons From The Market For Egg Freezing

Dr. Joshua Klein, REI,  Chief Clinical Officer, Medical Director, and Co-founder of Extend Fertility in NYC joins Griffin this week on Inside Reproductive Health to discuss the business of getting into business. Listen as they share perspectives on risk tolerance, people-management, financial backing, and the potential to lose -or gain- it all on the path to entrepreneurial leadership.  


Tune in to hear:

  •  Dr. Joshua Klein share how he successfully cornered an underdeveloped segment of the fertility market, and what steps he took to get there.

  • Griffin question Dr. Klein on how he knew when to time the change in his career path, and what others in the same position should consider before making a move.

  • Griffin question Dr. Klein when he says “people are the hardest part.”

  • How to not get way over your head in overhead before you even start.

Dr. Klein’s information:

LinkedIn https://www.linkedin.com/in/joshuakleinmd/

Website: www.extendfertility.com

Transcript

Griffin Jones  00:04

How many ways are there to start an REI practice? How many ways are there to start fertility business? Explore that today with my guest, Dr. Joshua Klein because a lot of younger REIs think about well, do I have to go partner with somebody? Do I get a salary right at an academic center? Do I go off on my own, and I risk everything, because I've got this stupid medical school debt. And I went to some very expensive undergraduate college and maybe my parents were wealthy enough to help me but maybe they weren't. And I've got that debt to some of you who are coming out with a lot of debt. And, and so starting a venture, your own entrepreneurial venture can seem pretty daunting. And so our guest today Dr. Klein talks about another possibility is finding other people with financial backing. And in starting your own endeavor, as a piece of that you won't necessarily be a majority owner and own everything. But that's one way to do it. So we talk about the massive learning curve that you're gonna go on, if you want to learn more about the business of fertility, whether you own it or not, that it's drinking from a firehose. So Dr. Klein talks about some of the things that he picked up and the challenges of managing people, a vision for an REI practice. To start the whole thing of looking at fertility preservation is something that was underserved in the market. And what Dr. Klein thinks is the right demographic, or the more appropriate demographics for fertility preservation, and why he saw that as a need in the marketplace, and other hard lessons learned, like cost per lead cost per new patient acquisition. And so we both we talked about those things, and Dr. Klein closes with thoughts of how younger dogs might approach making that choice. So I hope you enjoy today's episode, Dr. Klein originally was a he completed his fellowship at Columbia. And then he was an associate physician at RMA of New York. And now he is a partner at Extend Fertility. And I hope you enjoy this conversation with him. Josh, welcome to Inside reproductive health. 

.

Thank you so much for having me, Griffin. I am interested in the topic for today because we have had people to talk about egg freezing on in the past. And but I'm interesting because your group extend fertility was one of the first to make a brand around. Yes, you're a comprehensive IVF practice. But you did have a special focus in fertility preservation early on. And so I want to spend some time talking about that. Maybe we get to the business second, but you were where were you in your career, when you started to feel like, you know, fertility preservation was something that was clinically viable, because, you know, that wasn't the case. 20 years ago, maybe the people just getting on board now are late. So when was it for you? Yeah, that's a question that that I thought a lot about. When we first were putting this place together.


Dr. Joshua Klein  03:31

I came out of training in 2012. So I finished my fellowship at Columbia in 2012 and took my first job at RMA New York, which is as many listeners probably know, is affiliated with Mount Sinai. It's one of the big academically affiliated programs in New York City. And part of it is just history because ASRM? Well, I should say, the studies that demonstrated that egg freezing could be done through vitrification relatively reliably and reproducibly. And with relatively good success rates really came out in the late 2000s Going into the early 2010 2011. That sort of timeframe. And then actually was at the end of 2012, technically published, I believe, in January of 2013, when he ASRM sort of put their guideline out that said that egg freezing can be offered as a method of fertility preservation without the rubric of an IRB without an experimental protocol. There was a lot of buzz around that that didn't mean that ASRM was you know, endorsing egg freezing or something that everybody should be doing. But at the very least, it wasn't considered an experimental modality anymore. And so that that was 2012 2013 which was literally the first year I was out in practice and kind of getting my feet under me. And, you know, sitting in an office in New York City and Manhattan with that The culture around us, you know, certainly being the case that most women are not getting getting pregnant and building their families in their 20s People are, are sort of young if they're getting pregnant in their 30s. It felt like to me, egg freezing is something that might be super valuable to like, a lot of women, not just a select few, but to like, sort of in some way, the average educated professional 30 something year old Manhattanites, who isn't, you know, hasn't partnered up yet, or isn't ready to settle down yet is still building their career and not at that stage of their personal or professional life where they're ready to have kids. And so, you know, at that time, egg freezing was still very small, it was still new, most people didn't know about it, and this people weren't accessing it for one reason or another. And so even at a big program, like RMA, they were doing, I think, something like 120 Egg freezing cycles a year, which means, you know, maybe 10 a month and the entire practice. So I was seeing a small handful of patients of who are interested in egg freezing. And it just felt like it didn't match the demographics of what it should. So at some point, that kind of light bulb went off that there's a disconnect between the number of like single, professional educated women who might want to do this, and then people are actually doing it. And then of course, the question became like, what's the missing link here? How come? How come it's a mismatch. And so the things that I thought about and that kind of got parlayed into building extend fertility, where people don't know about it. So there was a lack of proactive education about fertility preservation, you know, IVF, clinics, are doing a really good job of keeping busy helping people build their families, people who are struggling to get pregnant with IVF. And so egg freezing was kind of not the center of their attention. So that's one was education and awareness. Two was sort of, I think, the environment, I think egg freezing was never really thought of as like an important piece of an IVF clinic. And so I always used to say that, like, you could pick out the egg freezers in the waiting room, because you know, they were the ones sitting by themselves younger, kind of looking awkward when most of the infertility IVF waiting room is couples who, you know, kind of sad and tortured a little bit in the egg freezers, or they don't have a problem, they just are wanting to be proactive about planning their, their their reproductive life. And then third is cost because egg freezing tends to be priced as sort of like the IVF pricing, but a tiny notch less, even though technically, it's a lot less work for the lab to do so. So it kind of was overpriced, I think at that time. And so those principles were the ones that we tried to harness when we created a Extend Fertility as a center that focused on egg freezing back in 2015 2016. To kind of build a brand and a culture around the idea of making egg freezing and fertility preservation more understandable, more accessible, making the experience a little bit less unpleasant, especially if it's a sort of a purpose built environment, and then bringing the price point down in a way that that could still allow us to have a viable business model. So that's kind of the threads that went into it.


Griffin Jones  08:11

So you saw the market. You saw the the the the flaw in the market when it came to pricing and availability. What about demographics? Because that is a point of maybe contention, but that I just I don't I don't hear a lot of consensus about is what is the ideal demographic, and there are both clinicians and egg freezers did say, the younger, the better. And it it should be something that, you know, 22 year olds parents gift to them for graduating college, I hear both clinicians and egg freezers say that I also hear clinicians and egg freezer say that no way, like it's a very narrow demographic, and it's for 3839 year olds, maybe who are right, right, just before the window of have a real DOI risk, I suppose. And so, where how do you? How do you come to what you think the proper demographic is? Yeah,


Dr. Joshua Klein  09:19

it's a that's a great question, because it is something that I think gets debated hotly, and we have patients every day that say, you know, can I wait a year? Can I wait two years and sometimes it gets a little silly, you know, how can I wait six months? It's like a negotiation. But I think what, what has to be recognized to sort of think through that intelligently is that it's in arguable that in general, if someone does egg freezing younger, they're going to get a more valuable end product meaning younger woman will get or any particular woman if she doesn't younger, will probably get more eggs and more healthy eggs and that same woman who in an alternative universe does it older So, by that rationale, it's, which is oversimplified, as I'll explain, everybody should do it, like you just said at 22. Like, it should be a universal thing, the younger, the better. And so there's not much to argue about. But the reality is that even even at a place like extendable, we tried to keep it on the more affordable side, it is a luxury good meaning between the cost of of the service and the cost of the medications, and then the cost of storage, it's a, it's a, it's a significant amount of money. It's not the easiest process, we try to make it as easy as possible. But it's not the easiest process, it does take a lot of wherewithal to kind of get through it. And so it's not, you know, if if it really was something that you can get come into the doctor's office, you know, get a procedure done for 10 minutes, and it costs $100, I probably wouldn't be singing that same song of everybody should just do it when they're 22. Because kind of why not. And it could, could really be an important thing in your life. But but it's a lot different than that. And so what I what I want to point out is that every year that passes that you don't do it is another year that you might not end up having to do it, right. Because if you're 25, and thinking about doing it, but you wait. And then by 28, you actually got married and then started your family naturally, then that you want that gamble, right? Because you didn't have to do it. And now you may never have to do it, because you're already getting getting your family started naturally. And so you kind of dodged that bullet and you save the money and you save the anxiety and the investment of time, energy and resources to do it. And so in a certain way waiting to do it longer makes sense. Because the younger you are, the more likely you're going to end up starting your family in an easier way than egg freezing, if you just give it some time. And that's why I don't think that the 22 year olds should be less, there's a special situation which I'll actually get to also in a moment. But for most average healthy women, 22 Doesn't make sense because you can afford to wait because if you do it when you're in your late 20s or early 30s, you'll still get a very good end product. And there's a large percentage of women who will in fact, the majority of women who are thinking about it 22 By the time they get to 30 they won't need it anymore. So I think we're overselling it if we're selling it to 20 year olds. So that's something I think isn't always articulated clearly. But that's a reason not to do it too early, even though it's true. If you do it at 22, we'll do it at 30, you'll get more out of it 20 at 22. But you might not need to do it at 30. And so a lot of times it makes sense to wait to sort of let your life unfold. And then but then you gotta be careful not to let that slippery slope slip. Right. So if you do it at 39, I certainly would think that that's a mistake, because that's already you're sort of reacting when egg freezing works best as a proactive maneuver, right? If you're freezing eggs that are mostly not healthy already, which is when you're getting close to 40. That's the reality, it might work. But it's certainly not a great situation. The other thing Oh, the other thing I wanted to emphasize is the fact that age is only half the story, which is to say age is the best marker of egg quality. But there's another issue which is quantity, right how many eggs a woman has and we've learned over the last 1020 years, especially through how Hmh testing has become very common. And actually a symbol of a test. That is , it's been a very important development, I think, in the last 1020 years of fertility, management and treatment. Because if you're a 28 year old with a very low Hmh, which there are a lot of healthy 20 year olds that are going to have a low AMI, it's something that's very highly individual variable, it will probably make a lot more sense than thinking about freezing eggs at that point. If you're 28 year old with a very great Hi imH. You could say okay, I've waited a year. And that's not such a terrible decision. So I think that's another thing that's often overlooked is it's not only about age, it's another dimension when it comes to egg freezing, which is your egg supplier ovarian reserve and Hmh testing is so easy to get it's almost a shame that, you know, I believe that that OB GYN should just be doing it routinely, they do a lot of other health maintenance stuff that may or may not be helpful. And this is something that could be really useful. And I think slowly they are doing it more and more. But I think that's another dimension of calculus that needs to be recognized. And that can help a woman who's trying to strategize to make that kind of decision is really useful to have.


Griffin Jones  14:16

I don't think that this question is gonna go away because it doesn't seem that it doesn't seem that we have hit the plateau for the age of first birth in this country. So I think everybody remembers that headlines from earlier this year hit the first average birth. For women in the US the median age hit 30. And if my records are right from the CDC, it was even just in 2014 it was a little over 26 years old. Yeah. So it went, it went up one and a half years from just shy of 25 and 2000 to 2026 in less than 26 and a half in 2014. And then in 2022, it's 30. So I suck at math, but I think most of the people listening can see the exponential growth. So I don't think that this is going away. What do you see in the marketplace? Do you see peaks and valleys? You know, what I wondered is when you started in 2015, in New York is like, okay, are we going to see this in Charlotte in three years? And then in Cleveland, two years after that, and talk to us about what you're seeing?


Dr. Joshua Klein  15:46

Well, I think you're right, first of all, that this is still a moving target, and the market is still maturing. The, it's interesting, because there were some well publicized predictions that were made 2014, let's say I think about what the expected size of the egg freezing market would be. And there's one quote that's out in the media that said something like 85,000, or 100,000 cycles of egg freezing by 2020. The truth is, it hasn't grown that explosively. And you could think about lots of different reasons why that might be the case. But I think that egg freezing has clearly grown a lot. I do think it's going to continue to grow, I actually think that some of the kind of spin off growth that we're seeing, and that others probably are seeing as well, is more and more married couples, or not just married, but I guess more and more couples are coming in to proactively plan their families, even as couples when they're not ready to have their children yet. And also, and this gets a little hazy, where the line gets drawn between fertility treatment and fertility preservation. And sometimes it's an issue with insurance coverage, and so forth. But lots of patients who, you know, come in in their late 30s, for fertility treatment, they do IVF, and they get an embryo. And they say, Well, wait a minute, we always wanted two kids, and we struggled to even get one good embryo. So what we want to do is we want to do another stimulation cycle to at least get one more before we go ahead and use this one. And that happens all the time, these days that people are trying to bank at least, you know, not bank inventory of embryos, in some unreasonable way. But to put away one or two good embryos for the second baby if they're having their first baby in their late 30s, or 40, which is actually very logical. And so the I think the fertility preservation concept is kind of growing and branching out into other in other ways that in some way, are still evolving, by the way, another, I think, idea that will come to fruition, but I don't think it's happened yet, is I've had a handful of patients who have read about and are interested in doing proactive couples who are interested in making embryos for PGPT, which is the polygenic testing, you know, looking at, particularly if let's say, a couple comes in, the guy says, you know, my, my dad has terrible Parkinson's disease. And I know there's no gene for a consensus disease that I can screen for, but it just scares me to death that that's something that I might have a kid and it's going to be at high risk for. And so what I want to do is do these kinds of polygenic testing, you know, involving multiple genes to say which embryos have a higher or lower risk for developing, whether it's Parkinson's or Alzheimer's or diabetes or heart disease and things like that. So that's something that's not common yet. But I think that it's coming, as this sort of feeling devolves into a lot of this proactive planning your family type of and then genetics is obviously evolving and improving as well.


Griffin Jones  19:02

So you made a brand that I think is pretty well positioned for that. The brand Extend Fertility really works for both sides of fertility preservation and fertility treatment, it is because it's the extension is very intentional. And so you, you started this in 2015 is when the was when the business started, right. So you completed a fellowship at Columbia in 2012. You go work for RMA for three years. This is the point that a lot of the listeners are at they're either just leaving fellowship or their associate docks and they're thinking about the next step. You are at a place where you're at a great practice. You could pursue partnership there, or you could go off and do something risky. What was your decisions? When did it start? to appear in your mind of I could go off and do a venture like how did that originate?


Dr. Joshua Klein  20:07

That's a great question. So, yeah, I mean, without getting, I guess, too personal, I have a lot of gratitude towards my years at RMA, I learned a lot. And it's a good place. I think that for me, I think that it well, it was a hard decision, let me just say that much. The truth is that when I started speaking to one of my associates, my business partners who was interested in investing money, putting together investors to build out Extend Fertility, my original expectations that I would sort of be some kind of consultant on the project and not actually do it myself. But as we kind of continue those conversations, and I got more enthusiastic and excited about the idea, and he got more enthusiastic about me actually getting in it, it took some time, to warm to the idea, but I kind of got more excited about about doing it myself. But it's scary, you know, especially first job out of training. And I was fortunate to have, you know, good training and at large academic centers at Ivy Ivy League institutions. And so I hadn't kind of been really out in the business world before before then. But I think that my mindset essentially was that I felt like a small fish in a big pond at RMA, which isn't necessarily passing a judgement, it just the way it is, when you're working for a large institution like that. It's a big pond, it's a big pond, and to their credit, it's a big pond. And so I felt like I was young enough at that point where if I was going to ever take a risk, you know, I didn't, I probably couldn't have done it the day after I finished fellowship. Or I certainly think it's very hard to do it. The day after you finished fellowship, there are those who do it, and I give them credit, too. But I felt like having gotten my feet under me at for a couple of years. If I if I stayed for another few years, it probably would have been that much harder to leave. Probably my income, presumably would rise slowly. And so that, you know, the better you're doing the more than make it attractive to stay. And so, you know, when you're young, you're just getting started, it's a little easier, because you're not giving up so much. And so, I don't know, I guess my thought process was basically I felt like this was a good idea. And at the end of the day, I felt like, before I started my before I finished fellowship, before I started my professional career, I felt like I questioned, like everybody has self doubt, I knew I was a bright kid. But like, it's hard to see yourself doing what your what your teachers and mentors and superiors are doing, like, Can I really handle it when when stuff gets, you know, kind of difficult when there's an unhappy patient? And how do you? How do you deal with that, or when you have some issue with like an inspection and there's regulatory stuff, and hiring and firing and all that it's very intimidating as a young, you know, kind of medical trainee. But I think that what I started to realize was that the hard stuff is still hard when you get older, and everybody does their best to handle it. And so and everybody's just human, I think that's what I what I really kind of it became clear to me that everybody's doing this is doing their best and no one knows all the answers in advance and kind of everyday brings another challenge with it. But if you know if the other guy can handle it, probably so can you and you just have to kind of have that courage and have that confidence in yourself. And so that was what I think allowed me to take that leap is sort of getting out in the world seeing that nothing's perfect. Even behind the curtain, every practice, every lab has its own questions and issues and, you know, uncertainties and every practice has its own issues that come up and like that's life and you kind of do your best to keep people happy and to do to keep the patients happy and go home, you know, doing the right thing and hopefully sleeping well at night. And you know, so it kind of lost that in that side of the intimidation. And then I felt like you know what, I'm going to take the leap. And by the way, if you take the leap and you kind of just fall on the floor. So you still have your training and you're kind of embarrassed probably but you can get up and go get a job and so you know, I felt like it's it's not if you if you let that opportunity go when you're young doc it may not come back to you. But if you take it and you swing and miss Well, no one's gonna fault you for taking the swing I think and and your career isn't ruined just because you tried something it didn't work so


Griffin Jones  24:40

and if you fall flat on your face and you're humble and self aware enough, it will make you a better partner somewhere else absolutely Well, as long as you are and those are two big as. Those are two big conditions. Not everybody is onboard and self-aware. But but if you are falling flat on your face can give can can make you do that much more valuable as a as a partner somewhere else is if the gays and then you know, if you are successful, then that's then you have you've done it long before most other people have. So in your view, what's harder? owning a business or residency


Dr. Joshua Klein  25:21

apples and oranges I guess I mean, I think I think Well, the obvious answer residency is harder, because it's physically so demanding. And then you also have to kind of keep your mind sharp while you're literally exhausted. To be clear, and for the record, I don't, I'm a very small part owner of extent, but I wouldn't call myself the owner of extent, because there's a lot of investor money that went into building this place out, and that and by the way, too, for, for the, for the, for the record for the listenership here also. So I'm talking like a big shot, oh, yeah, I'm gonna, you know, go off my own and start something new. And I in some ways, that's true. But I wasn't in a position to put up tons of my own capital, because I didn't have it. And so I did start off with investor money. And I guess I had to earn their their respect and their confidence to get that investor money, but I didn't, I didn't find $5 million in my own pocket to put down and build out a lab and build out a program. So I didn't have that much courage, or I guess, wherewithal at that point. But having said that, there's no doubt that running a program is hard. And I think that the reason that that's true is because literally you feel stressed and responsible for like 1000 different things that can come up and everyday, something does come up. A lot of it's the people, the people is the hardest thing. You know, they say hiring and firing. And that's, that's the most blatant example. But, you know, people who are thinking of leaving, and people are unhappy for X, Y, or Z and people who don't get along with each other. And they're both important pieces of your, of your of your of your team, and you gotta help them get along somehow. And, you know, the day to day, team, building, Team preserving is is is is complicated, and there's no playbook and you just got to do your best to sort of read people's emotions and feelings and instincts. And that's obviously not easy. Also, the fact that you feel responsible for everything, and maybe I that's one of the things I have to continue to mature to learn, let go. But like a silly little example, there was a, someone who dropped off a gift bag for a patient letter retrieval. Was it yesterday morning or two days ago. And somehow that gift bag disappeared. And it never got to the patient in their post op, it was supposed to be like some snack. It was nothing. It was like some snacks. And some, I don't know what, maybe a heating pad or something. And the person who dropped it off was obviously not happy because the patient was was was heard about and they were expecting and and I don't even know what happened. Somehow it never, never, never made the way and so then I'm was approached by the person who dropped it off. Because of course, like, you know, I'm kind of considered responsible for everything and like, Where can we figure it out? And then I'm asking you at the security cameras and the security camera wasn't focused, it wasn't working. And then I'm asking the lab and it's just like, this is the last thing I want to be you know, working on is finding the snack bag. Like Who else am I gonna you know, I did get help and and still not figure it out. But the point is, like, from the littlest to the biggest things, you worry about it because you feel responsible for everything that happens under the under the four walls or under the roof. And so that's that's not an easy way to live. And my hair's a lot grayer than it was five years ago, that's for sure. But well good news,


Griffin Jones  28:36

Josh. That means you're not a sociopath. So you it's, it's like it to be a business owner is one I it's so hard and I'm not running a medical practice but just you know, even running a client services are it is so hard for the reasons that you describe balancing, delivery and sales and, and the people that the to do all of those things and and you have to be so you have to be receptive to people. You have to listen and then there are other times where you have to forge ahead and say okay, we're moving on and and so you have to be agreeable enough to listen to not be a sociopath AND and OR a narcissist and but also not so agreeable, that you're just Oh, okay. Yeah, I guess I guess that is too much work for you to do. Yeah, I guess. I guess the patient doesn't really need that. You know, it's you have to you have to walk a line that can be pretty heavy.


Dr. Joshua Klein  29:48

It's funny the way you frame that because I also think it sort of tangentially but it connects to, in my opinion, how to be a doctor with a good manner in terms of how you manage patients and patient make patient recommendations. In the sense that, especially with infertility, where most of our patients are, you know, relatively young, relatively educated, lots of them are doing lots of Google research. And they're on the message boards, and they're talking to their friends and their and their sisters and whoever else that that their doctor said, you have to do this or that doctor said that never should be doing them like that, or Google, you know, says X, Y, and Z. So I think it's a really hard balance to strike, you always want to be open to hearing your patients feedback, or thoughts or questions or suggestions. If you're perceived as as dismissive of their input, that's going to be the kiss of death, patients hate bad. But at the same time, and this is something that I've also learned and continue to learn is that it's not healthy to just say, Oh, you read about that, you want to try that, or your friend did this, I'm sure we'll do that. Like, I think you not only is it not good practice, but it also you lose respect. And it's not a healthy dynamic for the patient, if you're just willing to do whatever. And so, you know, you have to really strike that balance of being being open minded, willing to discuss but also firm when you know, sort of what's right and what's wrong, and make sure that you express your opinions, so that people know that you kind of have something that you kind of believe in and that you're willing to draw boundaries and give firm recommendation. So anyway, tangential to the managing a practice. But I think it's the same skill set in a certain way to be able to read people and allow them to see that you're willing to listen to them, but not kind of just they're


Griffin Jones  31:43

both examples of leadership. So the idea of partly being is that you're meant to lead me as the patient Yeah, you have to listen to me in order to be able to lead me effectively. But at the end, you you are not the pharmacist and I am not the physician, you are the physician, I am the patient. And you have to be able to lead me in the same as drew in a business and for not just fertility practice owners and other business owners in the fertility field who listen to this show. But all of us business owners across the market think the last year and a half, two years have gotten unbalanced advice from it's all been about the employee, just go on LinkedIn. And see I haven't seen one post on frickin LinkedIn sticking up for a business owner in two darn years. Everything is and we deserve this too. And we also should have that and we're finally making what we're worth. It's like, really, that's what your worth is, is right now in the most unprecedented inflated economy of all time, like, is that house really worth a million and a half dollars? Okay, but then does that mean that that's what you're worth when there's a recession or or the pendulum swings the other way. And for business owners, the advice has been do whatever you can to retain, show that you care show that. Listen, give them what what they're asking for. And in many cases, you do have to do that. It also has to be balanced with leadership and saying this is where we're going and holding people accountable. And many people, the last few years, many of us have been afraid to hold people accountable, have been afraid to, to really, you know, leverage leadership. Because it's like, well, if I lose that person, you know, we're already down three people. And, but, but it sure makes things worse. Because then it becomes a cancer in the organization. And and then nothing you do is good enough, when you are listening when you are if you don't have the other side to balance and say this is where the organization is going. And we're all accountable to it.


Dr. Joshua Klein  33:56

Right, right. Yep. And it's not easy. You know, it's and it's, I think it's probably as hard as it's ever been for the reasons that you're talking about it. We all do appreciate our employees and our colleagues and genuinely, and they do deserve what they deserve. But yes, it can get out of hand pretty quickly if you don't set sort of some framework for what's reasonable. And that's not an easy thing to do. So


Griffin Jones  34:25

other than like principles like that, about people just even like function? What are things about business that you knew nothing about when you started? Like, I think now, good advice for most people, unless they're 100 on this on the entrepreneurial spectrum, and by 100, I mean, Mark Zuckerberg, I mean, Elon Musk, I mean, that type of but you know, your average business owner might be like a 70 on that spectrum. And, and so I think for most people, unless they're the most extreme on the entrepreneurial spectrum are better off I'm going to work for someone first learning as much as they possibly can, and then starting their own business, if they still think that's a good idea. And I say that and I believe that at the same time, though, I know things like I wouldn't even Effingham County what to look for, in many cases. So what are some of those things where you're like, I didn't even know, to look for that. Before I was, before I managed to practice.


Dr. Joshua Klein  35:30

I think I mean, in a very fundamental way, I think one of the things that has become clear to me is that so much of business relies on assumptions that are necessarily loose. You know, one of the things we struggled with and as they struggled with, but but that we, that we learned along the way was, I mentioned earlier that when we started extended, we wanted to push down the price point and egg freezing to help make it more accessible. And this has been an ongoing debate that's still ongoing, you know, what's a reasonable price for for an egg freezing cycle? And even more, it might sound crazy, but what does it cost for us to deliver an egg freezing cycle, because it's not simple math. You know, there's fixed costs and variable costs. And so I think when I when I agreed to join in San fertility, and I had some really accomplished smart business, people who joined as well, and we started, you know, kind of making decisions about how we're going to set things up in the framework. I was, I think, expecting that these business business people with their MBAs, Ivy League MBAs would have some magic formula, they're going to pull out some Excel spreadsheet, and they're going to just have it all figured out. And like this is, you know, it should cost x. And as it turns out, they don't know, at best, they say, well, let's assume that this year, we're going to do this number of cycles. And let's assume we're gonna have to do X number of embryologist, doctors and obviously, you all the different things you have to put on paper. And then yes, there is some smart math you can do to sort of make a smart, smart decision and a smart assumption. But I think that it was sort of a little bit disturbing about how much of a business is done in a way that you just have to like, make thoughtful decisions based on as much available data and often there isn't a lot of available data, and kind of just try it and see what happens and then adjust along along the way. So I think that, you know, it definitely I've learned a lot about business over the last number of years. And I've learned to respect people enormously for their successes in business. At the same time, I think the my perception that there's like this business secret book that like you only get if you're a business person, and that doctors aren't privy to that, I think misconception has been, or I've been abused of that notion. So you kind of just have to get comfortable with saying, Well, this is like the best guess we're gonna make. And let's, let's go with it. So that's something I think that you only learn when you're on the other side and really see the books and know how the some of those decisions are made with regards to the dollars dollars and cents. That's one, I'd say another sort of big learning item for me was, I think, when you're on the outside and thinking about a business, from a financial perspective, in a relatively unsophisticated way, are you tend to think mostly about revenue and not about overhead, and he's out while they're doing 1000 cycles of IVF. And every cycle is, you know, they're getting 10,000 bucks. And so that's like, well, whatever that is $10 million of revenue. And so like, it's 10 million bucks, like that must be rolling in the dough, except that you don't realize that, like, your annual rent, if you're in Manhattan can be easily a million dollars or more. And then you've got, you know, four or $5 million of payroll for all of your people. And then you've got all of your equipment, and then we got like, etc, malpractice insurance. Yeah, and the insurance and not just malpractice and liability and the cyber insurance and like, and all of a sudden 10 million bucks is not exactly a ton of money anymore, you know? So I think that the to the to the uninitiated, it's easy to see a business as as a revenue entity, but it's not it's it's a it's a P&L entity. And so and there's so many more overhead items that you never dream of before you're kind of in it. And so I think that's something that I would definitely caution people to think about if they haven't gotten on the other side of the curtain yet is just you got to realize that that delivering a product and certainly a high quality product and certainly a you know, a high touch service. highly regulated product, like health care in America, for fertility patients is a very expensive thing to deliver. And it's not so easy to cut out a lot of these major major expenses and so, you know, it's for full transparency, you know, I kind of imagined we'd be able to push price points down a lot more than than is realistic before I knew what goes into it. And so you know what we charge for our server He says now is more than I thought we'd have to charge but the reality is, it's it's it's very expensive to deliver good quality care or even mediocre quality care, let alone good call quality care. And so, so don't forget the overhead it's it's it's an important other


Griffin Jones  40:14

how I remember the first time you did a budget, the first time we tried doing a budget was like, it's like, I don't know how much that's gonna like before we launch the podcast, but I don't know how much it is to podcast, like, I don't know how much we're going to end. So it does take some, like some expense tracking, which is different from budgeting that helps that informs but you know, it's a lot easier for us to do a budget and forecasting, because like, How the heck are we going to sales forecasts in the beginning? I don't know, how many clients am I going to sell this year? How many. And so that's that's two areas that I really would recommend that if somebody's thinking about starting their own business, their own practice and their their in an organization, I would I would try to do two things. And the first, well, maybe three. First is is see as much of the financials as you can some people do like that our firm is moving towards open book management, where we share that with our team. And maybe some places you can only see a piece of it. But David sable recommended a book to me last year called how to read a financial report. That's exactly what it sounds like. It's as interesting as reading New York state tax code. But it is it's the basics. And it would be great if you could do that for your own practice, or even your own Rei division if you're at an academic center, and to see what that is to have some education that the second is to know what to know, the sales and marketing pipeline, how are people coming in? That is extremely important to know, as deeply as you can. And the third is the Human Resources pipeline. How are we getting in retaining people? And like those are three areas where I think it makes sense to really delve in May, maybe even more than operations and delivery, I might even put those three areas ahead of operations and delivery. In terms of priority of learning, what do you think?


Dr. Joshua Klein  42:15

I think you're right, because that's kind of how you get to have a team that can do the things you want to do. And if you have that, then you figure out how to do you know, if you have the right team, you're gonna do the things you want to do the operations and delivery, but you can't, you can't get there without sort of getting your Human Resources figured out without getting your sales and marketing figured out. So you have you know, a customer and that you get your finances straight. So yeah, I think that's probably right. And by the way, the sales and marketing piece is also another thing. And I can reflect with our own experience that extend you know, we came in to be open and came into the market heavy on the increasing, increasing is more so than, you know, infertility treatment, an elective service line, it has less insurance coverage than IVF does. Even today, you know, even with progeny and Karen and when fertility, there's still only a very small percentage of of women will have coverage for fertility preservation, and only a minority percentage of our patients have coverage. And we were very aggressive with our marketing and our marketing spend early on. And we grew very fast. And so it was clear to us from the first couple years of doing it that marketing works when it comes to egg freezing. The problem is that that only actually works. Ultimately, in the long run, if you can spend money to get customers in a way that allows you to still have a profit margin on what you're charging for your service. Meaning if you got to spend $5,000 on marketing for every customer that you're going to convert every patient you're going to convert, that may not be a viable business model, because you're not charging enough to justify it. And so you know, how you're gonna get your patients the best way, of course, is when they show up, you know, they word of mouth, it's free. But the reality of fertility in the US right now, certainly in any major metropolitan area for sure, is that there's lots of competition, and everybody's got an angle. And most practices, even the academic practices are doing something on the sales and marketing. And so it's important to be realistic about the fact that that stuff has to be done carefully, thoughtfully, and it costs money and you have to keep track of how much money you're spending and what you're getting for that for those dollars. And once again, like maybe I was way too naive, but this isn't stuff that I thought about, you know, figuring okay, just buy some Google ads and there's your marketing and like it, you know, it's a lot more complicated than that, obviously. So that's definitely another area that that I've learned a lot about over the last number of years.


Griffin Jones  44:55

We're talking about lessons learned, you know, owning a practice or owning a business in the future. silletti field and things that you may want to learn how to do or learn about before you go and start your own venture. Another thing is some of the systems that are used, and oh people that can give really good recommendations on the different EMRs. They've shopped and the depth and scope of functions. But I would ask someone that you know, that uses engaged MD, if you're not already, if you don't use engage them D in your system, you're thinking, I want to open my own office within my own group, or I want to open my own practice, I want to go join somebody else, and I want to be able to add something to it, engage them D is one of the surest bets that you can do, but you don't take my word for it. Ask someone that you know, because more than half of your colleagues are using EngagedMD and more than half of your colleagues are extremely delighted with EngagedMD because they got real informed consent. They don't have stacks of papers that people have to sign and then account for and then keep an eye out file cabinet somewhere. They have true informed consent from patients that have a module at their convenience, so that the staff isn't overburdened with questions that they don't need to be getting that they can help the patient with the attention that needs to be devoted to that patient's case. Because the elementary the rudimentary is covered, and now it's just what that patient is stuck on or what's unique to their case that the care team can focus their care on. That's what personalized care is. And more than half of your colleagues have seen the benefit from engaged MD that way, so just reach out to any of them. Hey, guys, do you use EngagedMDin the people you want to fellowship with people that you see it ASRM? Hey, do you use engage MD? What do you think I hear Griff, talk about it. But he doesn't want to practice? What do you guys think, and see what they say. But if you want that free workflow assessment, want to see what other practices are doing, you want those insights that engagedMD has, and you want to see how your practice stacks against that ideal workflow, then you go to engage them the.com/griffin. And you mentioned that you heard them on the show, you mentioned that you heard them from me, and then you're going to get that free workflow assessment. So ask somebody else, don't take my word for it, but go to engage them db.com/griffin Or say, or an on the show. So you heard from me, so you can get that free work assessment for you. That's one of the biggest system wins that you can have right off the bat. And you can verify that just by asking people you already know, I hope you enjoy the rest of this episode about things you need to know for the fertility business, you might start, I'm gonna let you conclude on whatever topic you want to but before that, because we have so many younger Doc's that listen. And they're thinking about like, how do I choose who I'm going to work with you were you chose your your business partners, and, and they chose you. And so talk about how you did that? Well,


Dr. Joshua Klein  48:21

I'd say I was probably luckier than I realized, the main person, the main business person that I that I partnered with, is a wonderful guy named Michael Kohn, whose private equity hedge fund guy, the truth is looking back, I got lucky that he is of as high integrity as he is, because I probably could have gotten really treated much more poorly or gotten abused more if I wasn't so lucky to find someone. So I think that the advice would be, you definitely have to choose we get into bed with very, very carefully, especially when it comes to business people because I think that they're not all going to be the most high integrity people. And to be fair, like business people are, their profession is to use business to make money. And that's true for doctors too, obviously, with our professionals, how we pay our bills and make a living. But I think the mindset of young doctors is a little bit more idealistic than the mindset of probably mid career fitness people is and you got to be very careful not to be too trusting or too idealistic in that sense, you know, for young blacks are coming out and looking at job opportunities. So it's, it's complicated, because I think that, you know, the people that you're going to work with day to day are the clinical team, you're going to have obviously Doctor colleagues, and then other clinical colleagues and embryology colleagues and so forth, but these days, a lot of practices are either owned or part owned or managed by business entities that you may or may not have much direct interaction with. And it's it's a very, very seen I think that I Have the level of involvement and exposure to the business behind the practice is going to be very different from one place to another. And I think that that's those are important questions to try to really investigate while you're looking at different practice opportunities, you know, if there are going to be places that are looking at the conversion metrics, you know, how many consults did you do, and how many of those turned into IVF patients, and if you're below a certain bar, maybe they're gonna get dinged, or you're not going to get your bonus. And, you know, to some degree, that's not crazy. But if that's gonna bother you, like you better you should be aware of it. And in other places, certainly in more academic environments, the culture, maybe more sleepy, but, but that might be more comfortable, to not have to sort of think about numbers like that. And so I think that I'm not sure that I have much brilliant insight other than to say, it's a very, very playing field out there. And so you really want to ask as many questions as you can and talk to as many people as you can, looking at to what degree is that practice run like a business or like a medical practice that has a business behind it, because the culture of the place and look, business is not terrible. And there are some very successful, very busy places out there that run like a business and that patients are happy, and the doctors are happy. And you know, that's not necessarily always the worst thing. But I think different doctors have very different priorities of how they want to practice medicine, and what kind of lifestyle they're looking for. And it's going to be pretty different from one practice environment to another. And so just Just do as much investigation and homework as you can. Because it is going to be very different from one opportunity to another.


Griffin Jones  51:45

So that's for the homework, let's conclude with the introspection thing, because a lot of people listening are in the position of the 2012, Josh or Jean Klein. And maybe there's a couple different routes for that type of person, but some of them should stay at Columbia or wherever their academic center is, wherever they're doing fellowship, because they're going to be happy, they're at another one, some of them should go on to be should should just gobble and gobbling, gobbling till they're a bigger fish in the bigger pond that they end up with it someplace like an RMA or or an RMA or wherever they end up, some should go off on their own. And then there's other people still that it's like, oh, there's somebody that just started their own thing couple years ago, I don't totally want to start my own thing that I don't feel like starting from zero. But there's also a lot of opportunity for me to help make this bigger, I want to go join the Josh Klein's out there. So there's a couple of different options introspectively. And then this will this will be your final thought for the program? What How should people decide what's best for them?


Dr. Joshua Klein  52:58

That's a great question. I think that you can't have everything, I think that it's important to be realistic about the fact that if you're someone who is going to prioritize, you know, maximizing income, then you're probably not going to get that at a pure academic program. Because you're going to be salaried. And usually, that's not the culture. If you're someone who enjoys teaching who enjoys having some abstract today's stream every year going to conferences, then you're going to get that at a more academic program, it's gonna be much harder, you're gonna be sort of swimming upstream at at a pure private practice. If you're someone who has, you know, family, or hobbies or outside interests that are very important to them, that that, you know, you want to be out of the office by 5pm every every evening and not work weekends, you know, that that's going to be something that you want to take into account. And I think the bottom line is that there's no job, probably, that's gonna let you be like the division chief, and academically active going to conferences every couple of months. And you know, making a seven figure income, and not working weekends, and being out of the office by 5pm, every month, and every week, every day. So, so I think it's just a matter of, and again, no brilliant insight here, but you really just have to think about what are the things that are most important to you and your lifestyle and money is important, but it really is not necessarily the most important. And so, you know, make your list and then try to get as many of those things as as you can, because you're just it's like buying a house you're just not going to get everything unless unless something's you know, your I guess our unlimited budget, but most people are going to have to pick and choose. And so just think seriously about what's going to make you happy in five years and 10 years and then chase after those things. And maybe some of it will come along with it. You know, you can be in a private practice and still be the research person who does put together some research abstracts every year and like that's fantastic. But as long as you you know, are are comfortable the fact that that's kind of if you can, you'll do it but it may not happen then you're being being smart. So I think it's it's really a matter of triaging what what is going to be highest priority for you and your career and, you know, being honest with yourself about what's going to make you happy. And if you do that you should be landing in a good place. And there's lots of good places. That's another comment is that there's not like one right job, I think there's a lot of ways to be happy. So we're in a good time, there's a lot of good going on.


Griffin Jones  55:27

Well, if if one of those routes makes sense to talk to you, as you say, talk to everybody is that an offer you would extend are there that you would extend to the younger dogs that they can reach out to you on LinkedIn. So we will include that in the


Dr. Joshua Klein  55:45

video, I think my journey has been an interesting one and not the most common, you know, working and big place academic place, and then in New York, kind of CO founding my own place, and it's been a journey and it's been a learning journey. And so I do think that I can give people guidance, or at least my, my personal, you know, perspective, so I'd be happy to be available.


Griffin Jones  56:05

Dr. Josh Klein, thank you for coming on inside reproductive health.


Dr. Joshua Klein  56:09

Thank you for having me. It's been my pleasure.


56:12

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health



148 "Physicians Are Bad Business People" And The MedikalPreneur Author Who Says That’s A Lie

This week on Inside Reproductive Health, Griffin hosts MedikalPreneur author, board-certified REI and OBGYN, and Inside Reproductive Health fan-favorite, Dr. Francisco (Paco) Arredondo to discuss the misguided concepts of physicians as business owners and operators, and what it takes to make it as both a healthcare provider as well as a successful proprietor. https://medikalpreneur.com/product/medikalpreneur/

Listen to hear:

  • Dr. Arredondo’s 5 H’s for hiring success.

  • Griffin point out that doctors can get away with bad business techniques because their trade is so high in demand.

  • Griffin press on the tension between employee satisfaction and client retention, and question who really comes first, and why it matters.

  • How much culture influences business success, and what to ask yourself about your own clinic operations.

  • Dr. Arredondo’s crash course in business success as a practicing physician.