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179 Chat GPT Has Arrived In REI: Conqueror Or Collaborator? With Dr. Ravi Gada and Manish Chhadua

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.






Please Note: We recorded this episode two months prior to release, and Manish and Ravi have already been pinging me about changes that have happened since. I will do another episode with them because this topic is constantly evolving!


Chat GPT is here to change the future of your job in the fertility industry, or maybe even take it. Is this a stretch? Dr. Ravi Gada and Manish Chhadua discuss how Chat GPT and its predictive technologies has the potential to revolutionize is already revolutionizing the fertility space. And what may come next.


Tune in to hear:

  • Uses for Chat GPT in fertility clinics and the Open AI source behind it.

  • How Chat GPT is being used to share data with patients, aggregate data, how it may be used in the future to generate prompts and consult notes.

  • The elimination of scribes and schedulers.

  • How Chat GPT will be able to interface with patients to provide 27/7 availability and access to care.

  • Griffin push Manish and Dr. Gada about what the second and third order consequences will be from this development, and what significant long-term impact it could have on the future of REIs.



Dr. Ravi Gada:

LinkedIn: https://www.linkedin.com/in/ravi-gada-md-mba-a2307527/

Manish Chhadua:

LinkedIn: https://www.linkedin.com/in/mchhadua/
Website https://reuniterx.com/




Transcript


Dr. Ravi Gada  00:00

In the fertility space, what we're going to deal with is who owns the data inside the EMR. So, when we talk about regenerative AI and language modeling, we're talking about being able to talk back and forth with a patient, maybe summarize a chart, create a summary of a consultation and put a note in the EMR. But we also talked about in AI, this whole idea of helping predict outcomes for IVF, as well as dosing for medications for a cycle embryo growth and development and who owns that data.




Sponsor  00:31

This episode is brought to you by Univfy, email Dr. Yao at mylene.yao@univfy.com, or just click on the button in this podcast, email or web page for your free IVF artificial intelligence tips and strategies. 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.


Griffin Jones  01:13

A monkey can do an IVF egg retrieval. That's something that more than one REI has said to me. That's a euphemism. That's not really true. But will we be saying that what Rei is can do today is like the intellectual capacity of monkeys, based on what's coming with artificial intelligence? That's the topic of today's episode, you might listen to today's episode and wonder is Griffin high? No, the topic of today's episode is exactly why I don't get high. I talked to Ravi Gada. Dr. Ravi Gada and Manish Chaddua. Both of Reunite RX niche is the founder. Dr. Gada is their medical director, Dr. Gada also practices at Dallas Fort Worth Fertility Associates, we talk about chat GPT, which many of you have heard of some of you may have not the open AI source behind it, we talk about the applications that it's having. In the greater context right now the applications that it's having in the REI practice, how it's being used to share data with patients, how it's being used to aggregate data, how it will be used in the future for prompts and generating consult notes, how it will replace the work of scribes and schedulers and nurses how it will be able to interface with patients as an avatar of you. Because of technology that already exists. Today, I pushed Dr. Gada and Manish To explain what they think the second and third order consequences will be from this and what the REI will do when half of the communication half of the tasks that they're responsible for today are done by artificial intelligence tomorrow, at least half depending on what length of time we're talking about. And if we're talking about a long enough period of time, does it become everything that an REI could possibly do in a way that they couldn't possibly add any more value over what general artificial intelligence can do? You'll notice throughout this conversation, we really tried to keep the conversation about the applications of what happens in the REI practice, at least for half of the episode. But there's almost no way to contain it to just that open AI is Chat GPT product is just the tip of the iceberg and it has implications for every single aspect of the human experience. I might sound dystopian or pessimistic when I'm trying to get Manish and Ravi to think about this during our conversation. I don't think I am I think I'm pretty neutral. I'm not making a value judgment if it's good, bad or neutral, but follow along as we discuss how this conversion of technology not only replaces workflow that happens in the REI practice, does it replace the concept of human production altogether. Buckle up. Don't even consider consuming anything that has cannabis in it and enjoy this conversation with Manish Chadduaand Dr. Ravi Gada. Dr. Gada, Ravi. Mr. Chaddua, Manish. Welcome to Inside reproductive health.




Dr. Ravi Gada  04:06

Good to be here.




Manish Chaddua  04:07

Nice to meet you.




Griffin Jones  04:09

Manish , do you know how many times Ravi has Monday morning quarterback my show and I get a text or an email something that I should have said or something I should have asked. I've always asked him to come on. He says no, I don't want to rock the boat. I don't want to shake salts. I don't want to stir the pot. And finally I got a text from a couple like a month or two ago saying okay, I got a topic let's talk about yet. GPT. And I said all right, great. This'll freak people out. And he said companies government I said Yeah, so I want to freak people out about chat GPT. But we were speculating before we even started recording how much of our audience knows what chat GPT is how many of them know about open AI the platform that it's built on? So why don't we start Elementary and just give context for what we're even talking about? 




Manish Chaddua  05:00

I think a lot of people have read a handful of articles maybe about chat, GPT. But you know, it's an endeavor that kind of started probably about five years ago. It's often invested heavily into it. And then, you know, really just back in November of this year, last year, they basically launched this first kind of forward-facing view for consumers of what exactly it's capable of. And so the founders behind it are, you know, a handful of guys, Sam Altman, Peter Thiel, Elon Musk, I think are some of the original core for it. But since Microsoft has invested upwards of $10 billion into this product,




Dr. Ravi Gada  05:38

well, and Griff just, I don't know if people know what I mean, Sam Altman is the former CEO of Y Combinator, Peter Thiel, former founder of PayPal, Elon Musk, obviously everybody knows. So it's got some pretty big backing behind it.




Griffin Jones  05:54

People know those names but tell us about what Chat GPT is doing.




Dr. Ravi Gada  05:59

Chat GPT is an AI language modeling platform, it's probably considered a SASS platform where users can go onto the web, create a login, it's absolutely free to use, there is a paid version of it that you get a little bit more priority. And you can ask it just about anything. And it has over 100 billion different data points. But you can ask it, you can just talk to it. If you're like, Hey, how are you today and go through a conversation, you can ask it? What's the reason for having an Hmh of less than one, you can ask it to draft legal documents that you can ask it to write a poem. So and really, it puts this together and you can iterate on it back and forth to get to the point where you're happy with the answer, copy paste, but it into your platform and use it a lot of people are saying it will be used to augment the workforce and make our lives easier.




Griffin Jones  06:54

Manish, How does that work? Like how is Chet GPT using open AI to be able to do that?




07:01

So chat, GBT is called the term that's being used for it as generative AI. And so what chat, what they've done is they've basically created, you know, in the term is a caucus of data of about 170 billion data points, which is articles, publications, all sorts of data points across the internet, they stopped collecting that data in about 2021. And really, the way that it works is actually through algorithms and just math, it's predicting the probability of the next word or the next most likely word in how it's generating this text. And so that's kind of the clever thing about it is that it's this large, large data set, it's able to basically look at that data set, and then predict the profitability of the next word. And that's how it turns into the text that gets outputted when you're asking your questions and the context that it actually receives when you follow up with that question, and things like that. So it's a predictive model,




Griffin Jones  08:01

Doctor Gada, give some of the use cases that Chat GPT is being used for what are some of the funky ones that you've seen, one of the funky examples that I've seen was, like, talk about a certain type of story in the tone of comedian Tim Dylan, and it was the comedian, Tim Dylan reading it. And it was pretty close. And even he says, like, wow, this is, this is pretty close. And it clearly wasn't there yet. But it's more than just write a poem or write an article, you can actually say, write an article for this certain type of audience or write it in the spirit of x. And so what are some of the wacky examples that you've seen?




Dr. Ravi Gada  08:43

People are predicting this year, chat GPT, or any other language modeling system is going to write a screenplay for a movie, it's going to give it some input data on what type of movie at once and who the characters are, it's going to write the movie from start to finish finish. And they're going to take that storyline and put it into an animated AI platform dollies for pictures, but there's some animated ones in the background, and it'll create the animated movie and that by the end of this year, we'll have a movie in which the screenplay and the animated movie are all done by AI with minimal human input. Wow. So even




Griffin Jones  09:21

the characters, the action of the animation is going to be created by artificial intelligence.




Dr. Ravi Gada  09:27

Yep, completely based on the language of the screenplay, and it'll make all the action of the characters, the voiceover to voiceover as well. So you can there's voiceover you can do now, so I could probably record all of your podcasts, uploaded it to chat, GBT right what I want Grif to say and replay it, and it's going to sound like I'm doing a podcast with you. And we can call it something else.




09:48

Well, I'm going a step further from that they can actually model based off of a handful of pictures of you an actual animation of your face and have that talking as the actual animation for that. Voiceover so that's so they can mimic like real life people and things like that. And that's not just GBT. But that's other AI solutions that are out there.




Griffin Jones  10:08

Sure. What is that? Is that the deep fake? What is that?




10:12

It's related. I mean, it's in that vein. Yeah, exactly. Yeah.




Dr. Ravi Gada  10:15

Deep fakes, probably the most popular one.




Griffin Jones  10:17

Is that a different type of artificial intelligence? What's behind that?




10:23

Yes, sir. I don't know a whole lot about what's exactly behind that. But it is using AI to basically evaluate facial expressions and things like that, like deep fakes, specifically takes my facial expressions, and it superimposes your face onto it. There's other versions of that that basically will just take text and known kind of vernacular and how mouths moves and things like that, to basically create video or animations of a person actually talking.




Griffin Jones  10:51

Okay, well, I could just totally dive into this part where I'm deeply concerned about someone making a podcast episode.




10:59

That's a really weird edge case, or not weird, but just kind of scary, is that even hackers are using chat GBT to generate clickable content so that way, they can send email blasts out and they'll just ask it things like, hey, create a email that's basically has a link in it, that's the most likely to be clicked by users. And it'll actually generate and so this is another edge use case where it's like, okay, well, you know, the malware the ransomware type of folks out there using it to help move their cars.




Griffin Jones  11:32

Well, I want to come back to this and talk about what we think second and third order consequences might be of all this, but let's talk a bit since this is, after all, a show for Rei is it isn't Rogen were talking to fertility specialists and the people that own fertility practices? What are the applications that open AI can be used in the REI practice at this time?




Dr. Ravi Gada  11:59

So I think at large, right, we've, we've seen in our space companies that come in just using AI for data mining for embryos, look grading eggs, grading embryos, there's companies trying to predict what's the outcome of an IVF cycle. But we haven't really seen too much movement in the linguistics modeling or the language modeling. So in an REI practice, could you create a chatbot that basically communicates back and forth with a patient answering simple questions. So if a patient calls, or has a question about what's my Hmh level? Or what's this thyroid function test, could could a language model reply back and forth with that patient just enough to answer as many of their questions as possible? In healthcare, you want to be very careful in what we call follow up criteria. So if the if the bot doesn't know the answer, then say, Hey, let me get one of the nurses for you or one of the doctors and then someone picks up the conversation from there. But you could think about that in a way where patient has free access or 100% 24/7 access to a chatbot that's been trained by us in the REI community. We've given all the language the data points, the conversational pieces to have. So that's a use case. Interestingly, I did a did a thing the other day I put write a male male couples gestational carrier contract, and it spit out a gestational carrier contract immediately. And then I said, Well, can we add language for what happens in the first trimester if there's abnormal screening, postpartum does the gestational carrier provide lactation and milk for them and and it added all these sections in there along with by the way, an exhibit page to add the financial conditions of all of these things, so I can have it write contracts for third party reproduction pretty easily. I had a patient asked for a work excuse the other day, and I had chat GPT write a work excuse after an abdominal myomectomy for six weeks, and it wrote it for me. It leaves blank so you know template so then you copy paste it and then you add the patient's name, sign your sign it and send it.




Griffin Jones  14:12

Let's talk about the EMH level example for a moment, the thyroid function example for a moment, how would we know if the bot gives the wrong answer?




Dr. Ravi Gada  14:21

So this is the part that gets complicated, right? So what's interesting is there's plenty of companies today that have language modeling, ai, ai ai, so chat. GPT is owned by open AI, open AI is primarily going to become a Microsoft based company. Recently, Facebook launched one called llama and then Google launched one called Bart and so everyone's going to have a version of this. You have to then take their AI language modeling and input your own data set. So perhaps that's recording the next 1000 hours of calls with nurses and physicians with their patient. inputting that data. And then running tests to see is it doing what it's supposed to be doing? And if it is perfect, if it's not, you have to give feedback to the system always. And that's how it's why it's called machine learning or regenerative learning is it has to learn from itself. The patient either has to tell it, it's wrong, the nurse has to tell his strong, but you've got to feed that system enough to be smart enough to give the right answer and smart enough to know when not to give an answer. But that's going to be the biggest challenge in our field is making sure it doesn't overstep its bounds.




Griffin Jones  15:33

And so at what point do we expect it to be able to be a better judge than a human being?




Dr. Ravi Gada  15:41

I think in some cases, we might already be there in certain language modeling. I mean, when we in you open up your Gmail, or Outlook, and it practically finishes your sentence for you when you're typing up an email now, and sometimes I'm like, well, that's better than I would have wrote it. So let's just go with that. But in the healthcare space, I think we're I think we're a bit of ways I think we always are later adopters, for new technologies for that reason. But if I had to guess, I mean, we have to be three to five years from being able to really, I hope within three to five years, where they're where we can leverage this type of technology.




16:14

And the biggest challenge is going to be what Robbie's talking about this Fallout criteria. So when we think about AI, and basically, you know, creating the answers are basically predicting what the answer should be. The probably the, the hardest part is going to be that aspect of just knowing when not to answer and AI is not there yet, or doesn't seem like it's there, which is why a lot of stories are online about how they're tricking chat GPT and providing wrong answers to math questions or, you know, doing a handful of other things like that. So that's probably going to be where, you know, some, the physicians in general, will view this as a tool that helps them get to the answer faster. But it's still, you know, we're far away away from between us getting to the point where we can blindly trust that to do that.




Griffin Jones  17:06

Have you read anything about the regulatory bodies or the agencies thinking about how we're going to regulate this either from ama or from Fe cog or from is anybody talking about this? Rob?




Dr. Ravi Gada  17:19

I don't think anybody's talking about him. I was listening to a couple of podcasts about it. So in healthcare, it's not interestingly Moniece mentioned to me earlier today, chat, GBT did certify that their HIPAA that they have a HIPAA compliant API version to it. I don't think any of the society organizations are talking about it. Even in this sense of copyright. People haven't really quite figured out when chat GPT pulls language from the internet, essentially rewrites that language and spits out an answer. It's not giving attribution for where that came from. And so there's even concern that could chat GPT ultimately get stuck in lawsuits with copyright? And are they just rewriting someone else's language or or verbiage that's out on the internet without site citation of credit? And Google does it right you type a search? It gives you an answer. But there's a link to where it goes from they might summarize a little bit in the in the description part. But ultimately, it gives credit through a link which chat GBD does not. So there's some people looking at this, but I mean, no society organizations from a medical standpoint, no, I don't think anybody is even digested what this technology means




Griffin Jones  18:31

until they hear this podcast. And they're like, Oh, crap, we have to have a board meeting.




18:36

And one of the counter arguments to the copyright thing that Ravi just brought up is that, you know, do humans in general do anything different? Are we just basically absorbing information and data from a variety of sources, and then basically mimicking what we hear with some amount of, you know, how much innovation is actually being produced? Out of what we regurgitate? Right? Some attribution




Griffin Jones  18:59

and some innovation, but very often isn't even possible to totally attribute everything because like the machine, you might be saying, in this case, money's we're aggregating and it's an amalgam of everything that we've consumed. But I was I was going to ask you that question about intellectual property, too. And you brought up the example of Google Ravi. And I wonder if if case law is still been established about that? Because sometimes I think like, is that enough when a creator is putting out information or creating something, and Google just kind of takes it and they put it on a Google search? And yeah, they give it a little bit of credit, but very often, what does the Creator actually get from that credit? If that person gets their answer right there in the search, they don't ever have to go to the creators website. They might see that little URL at the bottom, but they're pretty much just getting their answer from Google. Is there any kind of case law that, you know, Manish that has been established? Or is there are there battles going on about this




20:07

definitely is something that's been brought up even just about how the way Google works. Now Google gets a little bit of away with it, because they are actually providing that attribution. And I think that's where chat GPT will be very different. Because, you know, it's not the Texas generating is somewhat unique, but it's not actually sourcing that direct place of where the data is coming from. Even Ravi and I have had conversations about this as well, just to say, you know, here are the different differences. And then, you know, Google is a little bit different of an animal as well, because it's giving that attribution, it's giving hope to those creators to actually get the clicks or get the referrals. So I think it's a little bit of a different scenario altogether.




Dr. Ravi Gada  20:48

But there, but there is, there is case law for this. So there is something called fair use for copyright. So fair use has been established that our case law underneath that there's four criteria for violating fair use, but one of them is not citing the person, but it has to affect their ability to monetize. So if you have a company that has a bunch of articles about fertility, and you're regurgitating their data and putting it there, and their whole business model is to get links, have people click on that? And then ultimately buy something or lead them down something, then? Yes. And that's where Google pays people for that link. And so there is it's called fair use. I mean, I don't know that it applies to copyrights. Specifically, it's not going to apply to what we're going to deal with in the fertility space. I think in the fertility space, what we're going to deal with is who owns the data inside the EMR. So when we talk about regenerative AI and language modeling, we're talking about being able to talk back and forth with a patient, maybe summarize a chart, create a summary of a consultation, and put a note in the EMR. But we also talked about in AI, this whole idea of helping predict outcomes for IVF, as well as dosing for medications for a cycle, embryo growth and development. And who owns that data? Is that the patient is that the clinic? Is that the EMR? Is that everybody? And I think there will be a little bit of information that comes out from probably not the fertility space, but probably more on a higher level of internal medicine or diabetes of who owns this data.




Griffin Jones  22:27

I wonder if this affects people like me even more so than it might the general public and that those that are in deep niches, and are based around information are in deep niches, part of the reason why anybody picks a niche, whether it's a client services firm, or media company or software company is so that they're delivering specific needs to a small group. And that's where they that's the entire reason why they do it. And if something can just say, hey, take everything that inside reproductive health has gathered and created from original sources, then it could be the small niche companies that are most vulnerable, don't you think?




23:16

Yeah, I mean, content creation is something that's going to transform quite a bit. I mean, even if you look at the way, you know, traffic gets generated, and Google and even beings a algorithms work right. Content Creation is like, been the pinnacle of how they judge what's what's good, what's not what's new and fresh. And so that's definitely a large area of impact. I mean, there's, there's sub companies from chat GPT that have already been created that just create copy, and they create everything from sales, copy, marketing, copy, blog copy. So that's definitely distinct part of I wouldn't call it a threat, but a possible, you know, a rethink of that approach of copy creation or content creation.




Dr. Ravi Gada  23:59

I think the niche markets will get saved in this because when I look at health care, people focus on cancer, diabetes, hypertension, obesity, and fertility, and very small sectors get overlooked. And so all of these companies I think, are going to be focusing on the big three, you know, in terms of hypertension, diabetes, obesity, and then add cancer, and infertility kind of gets overlooked. I think that's why actually, as a field, I feel like we're very technology deficient. We don't have enough technology infused into this space, and maybe will be saved. I don't know.




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Griffin Jones  25:57

We talkedabout a couple of the applications that you're using right now what applications do you expect that aren't quite there yet, but that open AI chat GPT will be able to do in less than three years.





Dr. Ravi Gada  26:11

Imagine a day that we're I'm sitting in a consultation room with a patient, there's a TV screen behind me here. And I say well, let's take a look at your Hmh level today. And on the screen, it hears me say that and pop to the h a m h up on the screen behind me for the patient to see that. And then I say, you know that's numbers normal, you know, that should mean that you have a good ovarian reserve. We also do a follicle count to look at that. And here's me say follicle count from your ultrasound. And it puts that up on the screen. And I have this now interactive conversation with the patient. They're asking me questions, we're going back and forth through a return visit or new visit. And at the end of that visit, we walked out of the room, I hit done on the recording device. And it generates the entire consultation note immediately on its own because it's regenerative language modeling gives me You know, I can then sit at my desk take 30 seconds to read it finalize it done, by the way, any edits that I make to that note that I didn't like the way it writes, it's recognizing that I edited it and and learning from that. So I think at the highest level, you could look at that you could look at it basically, you know, every six months, every three months, it reads the entire chart for a patient and summarizes it in a note on a three month update or a weekly update depending on what cadence you want to do that in. So there's things like that there's things that I could have it recording all the calls that my nurses do to patients, right, I rely very heavily on my nurses to communicate back and forth with patients. And I can and the language model can tell me if there was inaccuracies being presented or something that is different than what I would have said based on its understanding of the conversation. And then we can we can retrain that nurse, we can improve things, you know, it goes beyond nursing, to imagine the day that all of these things are just used as tools to make us better, more efficient. And ultimately, it will probably take over half of the I wouldn't say conversation but communication that we have back and forth with our patients.





Griffin Jones  28:24

At what point might we expect to see the avatar Doctor Gada, having that follow up. And so if all of those things are just different data points, and it can compare it to all of the data points from every piece of scientific literature, fertility and sterility is ever covered. And everything from all of the medical colleges, if it can just deliver that type of information, and we can use your video we can use your voice at what point are patients just seeing a virtual Doctor gotta





29:00

so I think the humanity and US will fight that pretty pretty well. So I think if you look at telemedicine, a lot of things like that, I still think the preferences is face to face communication, I don't think you can replace that for some people. Right. And I think for places where we're underserved pay at places where we're trying to get into that aren't getting quite the availability of health care. I think those are the areas where you'll see this kind of really explode or really thrive is to care for patients in in those particular areas.





Dr. Ravi Gada  29:32

But I mean, I've talked to Manish about this you know we have a lot of pilot projects in this area of where where will this technology take us and how do we get in a lot of it's in the datasets that are fed into the system but when I do think does the day come that you asked the patient would you like to see the human doctor or would you like to see the avatar Doctor initially or virtual care models are already there today. Many patients are going online and wanting to order their her own tests and get their information at home or through virtual care. So I think there's a version of it today, I think there's going to be a more sophisticated version of it in the future.





Griffin Jones  30:10

I'm a little skeptical on Manisha is hope for the humanity aspect. I think people want the humanity when they feel that the robot is insufficient. So the reason I yell into my phone when I'm talking to the the banking teleprompter is because it doesn't understand that I'm saying, talk to an agent or review account balance. But if I actually could do that as easily as I could correspond with a human being, I think it has more to do with convenience than humanity.





30:42

Yeah, for sure. And grip, I think my my point of view on that is more for general, for healthcare, I do think fertility is a little bit different, because of the age of the patient and kind of, you know, the fact that every fertility patient coming through as either a for the most part is Millennials or younger, right? You definitely could see this avenue of I'd rather text with my doctor than, you know, talk on the phone with them, or, you know, have to go and show up at a clinic and actually have that face to face interaction. So I definitely could see that scenario.





Dr. Ravi Gada  31:13

You think about this, there's a YouTube video out there, if you type robotic reenact the Moses of bow, using artificial intelligence, there is a cadaver. So it's a pig model of a robot, taking bow and sewing it back together without any human doing it and it healed intact. And then obviously, they checked it sacrifice the cadaver and checked it. And so, I mean, if we're getting to the point where cars can drive themselves, robots can do bowel reenact the most surgery on their own, we will get to the point where communication back and forth with the patient or consumer will get there. The question is how far right do you get to the point where you just do the intake form? And asking a few questions for clarification? Or do you deliver lab results deliver? Do you deliver positive and negative pregnancy tests and that way? That's the part is how far will it take it? I think it's going to go. If you fast forward 30 years from now, there's going to be a way different version of doing this. The question is in the next three to five years, or while we're all around, how far are we going to get?





32:17

And that's absolutely right. Like you take any technology, any innovation like this, and it's all a matter of a timeline, you assess some rate of improvement, and every tech pundit will say that is whatever the rate of improvement you select, that means at some point in time, you know, the technology will surpass the reality.





Griffin Jones  32:36

m&e, as you said, this has been in the works for some time now the technology behind chat GPT. But it seems like there has been an inflection point recently though, no, like, just how good chat GPT is itself. And then I practice with it. And a couple other like, think of translate for exam I, I don't remember the last time I used Google Translate for language, but it used to suck and not too long ago. And recently, I when we were covering the KKR story for buying ie vrma. And their only media coverage was in Spanish. And I speak Spanish pretty well. I put it into Google Translate to see and it was good. I like almost as good as as a native speaker who had been natively raised in both languages. So what's the inflection point when he's what happened recently?





33:28

Yeah, so this is common, right? This is common in a lot of technology, whether it's the smartphone or the internet, or, you know, even AI. And really, it's a byproduct of technology from 1015 20, even 30 years ago, becoming more accessible, less expensive to use, and basically more awareness, right? So you take smartphones from, you know, back in the late 90s. And they existed, and they had a lot of functionality. But it wasn't until the advent of the iPhone, where it really was the right time in place. And the cost equation made the most sense to where it can actually rapidly grow inside of that. And by the way, my background is telecom. So that's why the analogies there. But then pass that chat. GBT really is the first very consumer facing version of an AI model that showed the rest of the world everybody, including, you know, guys, like you and me, as well as you know, just college students and everybody else in between, right, what the capabilities of AI is. And I do think that AI has been in place for a long time. I mean, it wasn't, it was a number of years ago when AI beat, you know, IBM Watson mini in a game of chess. And this is just that acceleration. And I do think in AI, right, if we look at any of these revolutions that have happened, or major disruptions in technology, you know, it keeps happening faster and faster. And so So I think chat GBT has really opened everybody's eyes to what's capable? And now, all the thinkers and innovators are out there? Basically saying, Oh, I didn't realize we were this far along. How can we employ this as a part of, you know, a core model? Or how do we adopt this and find out what the right solution is that's really chasing this already, and integrated into our workflow.





Dr. Ravi Gada  35:18

And Griff real quickly to add on that. So the inflection point was I don't know if sometimes we will realize Chat GBT launched in November of 2022. So the inflection point was the first real launch of a major language model. And it obviously caught fire. And that's why we're all talking about it, or a lot of people are talking about it, interestingly, in that, but it was founded, I think, in 2019, four years, something like that about four years ago. And they've been working on it up until now, interestingly, post chat GPT launched, let's call it circa November of last year 2022. That put a lot of pressure on Google and Facebook to launch their versions. And so Google launched Bart, and they did a commercial about this. And in the commercial, Google asked, or someone asked the chat bot, to tell them about the James Webb telescope. And it was listing some bullet points. And the last bullet point said that the James Webb telescope was the first telescope to take a picture outside of our solar system, which was actually false, it was actually not yet planet and people picked onto that. And as soon as it did, Google's actual market cap value dropped by $100 billion that day, attributed to this error, because everybody said, their language model and their regenerative AI is not as good as Microsoft's, and they're not ready yet. And it lost some around seven to 10%. Market cap $100 billion because of that, but I think chat GPT launching in November is why we're at that flexion point today,





Griffin Jones  36:52

to the point that is a can take over half of communication that's currently happening between the REI practice and patients right now, maybe more than half so when that happens, Rafi not if because it will happen. It's only a question of time when that happens, what is the RBIs role going to be?





Dr. Ravi Gada  37:12

And you know, I mean, I think people worry about this a lot, right? People talking about not just the role of the RBI, but the workforce is these are these technologies going to replace the workforce. I mean, whether it was the calculator, whether it was Microsoft Word, whether it was, you know, all these different technologies that keep making us better and better. But we talk about this all the time in our field, that there's a under underserved population, there's, you know, we're at the tip of the iceberg. Maybe we're only meeting five 10% of the populations need. Does this actually make us better? Ultimately, we're still proceduralist we still do a lot of procedures in surgical procedures, egg retrievals, embryo transfers, IUI. Guys, so I hope or I think this is not going to replace the average ra i think it's going to make us more efficient. I think it's going to make our nurses more efficient embryologist more efficient. But you're right. How does it allow for us? And we talked about how many are the amount of retrievals that an REI can do in a year. And beyond that point, there. It's it's not beneficial maybe to the patient or the ER, and it depends how many nurse practitioners do you have underneath you? How many nurses? Well, this is going to be another adjunct to that technology have an honestly a checks and balance. I mean, imagine the day where we have going into an IVF cycle. And I'm going to do for the physicians and nurses that listen to the podcast, a Lupron trigger. Well, there's certain things for Lupron triggers that you want to know you want to know that that patient has regular menstrual cycles and that they have a normal FSH level. And so the second you order a Lupron trigger, that the that the AI actually scours the EMR and actually pings you and says, Hey, I don't see an FSH level on this patient. Are you sure you want to order a Lupron sugar? And I say, Oh, I'm glad it caught that. Let me order a FSH level real quick and make sure. So I think it'll make us more efficient. It's, you know, replacing us I think we're all going to be replaced one day, you know, whatever, whatever, you know, sector you're in, you're gonna get replaced 100 years ago, everybody was a farmer, or at least knew somebody was a farmer. Today, I don't really know that everybody can say I have a first degree relative. That's a farmer. So machines have already replaced, farmers machines have replaced manufacturing jobs. And that's the worry about this type of AI technology. It will replace jobs, but it will also create jobs. I mean, we didn't have the jobs we have today that, you know, that didn't exist 100 years ago. In fact, I don't know what the population of the US was 100 years ago. Let's make it 100 million people. Today were 300 million people, no manufacturing jobs, very few farming jobs, and everybody's still employed. So there will be new jobs created. Maybe we'll figure out newer ways to help people get pregnant, but things that are replaceable at Everybody should be looking at saying, you know, how do we either make ourselves better to stay ahead of it? Or how do we use it to, you know, augment what we do today?





40:09

And there's there's a lot of people out there far smarter than us that have kind of pondered upon this question as well. One of the other things that I think is kind of changed recently, is initially they thought a lot of low skilled labor would get replaced fairly quickly by automation and AI and things like that. I think chat GPT tests that a little bit and saying, Hey, listen, well, you know, if your job is sitting behind a desk at a computer, basically, replying the emails and doing things like that, there's a lot of risks there, probably more so than a surgeon, or, you know, even a mechanic at that point in time. So I think that's what it's changed kind of some of the view of what would get replaced by AI first, but I do think we're still a fairly long ways away from that, like, years, at least,





Griffin Jones  40:56

well, for now, and I do want to talk more about that. And we'll definitely end on a note where we're really freaking people out, but, Robbie, I want you to think a little bit about what it is that the REI will be needing to do in these coming years as Chat GPT gets an AI in general gets more sophisticated, like how I'm envisioning it is there's human Gada overseeing a hunt the capacity that robot Gada can do and robot Gada is helping to treat 100 patients and human Gada just needs to oversee robot Gada or is that not the right way of thinking about it? Because the human will soon not be?





41:38

Grip? I think the jury's still out on whether or not Robbie's a robot or not.





Dr. Ravi Gada  41:43

It could be it could be, do you wanna see dr ga da, or Dr GA D Ay ay ay.





Griffin Jones  41:50

Oh, it's already there. And and so what's the relationship supposed to be? Yeah,





Dr. Ravi Gada  41:56

I mean, I think ultimately, that relationship kind of goes back to, you know, we already use or have our staff help us accomplish what we accomplished in the day, I don't accomplish in a day, you know, very much if I don't have a nurse, an embryologist, a medical assistant, a billing person. And this will do the same. I think that, but I do think you know, we've managed to have talked about there, I'd love to do a commercial where I have four consultation rooms running with a iPad in there that's actually has my own avatar, speaking back and forth with that patient, one patient, it's their new patient console, the second room is their return visit with their lab results. And the third patient is coming back for another FET after a successful delivery. And all the while I'm actually over in the operating room doing the retrievals all day. I mean, so that day is coming. Now the question is, is that coming tomorrow? No. Is that coming in the next three to five years? Probably not? Is that something that we can work towards in the horizon of a 10 year type cycle? I think so. I mean, I know that might not sit well with some people. But I think you have to embrace this technology. We are looking at this very heavily. We're investing a fair amount of resources to figure out how to do that. And I think that the people that do will do well, I think the people that resist it may do well. But I think there's a high chance that they're not going to be able to be as efficient if they don't adapt to technology, which is the story over the last 100 years.





Griffin Jones  43:30

You talked a bit about it's some of this like data entry type of work that is most vulnerable. And I was hearing one expert on this topic talk about that it's actually more white collar work that is vulnerable rather than blue collar work because blue collar work tends to be more manual. But Manish when are we going to see an intersection between robotics and this type of AI because once that happens, then we don't need human God at all, once we have a robot that can do the very sensitive maneuvering in surgery that the best surgeons can do right now. And we have the artificial intelligence of all of the data points gathered from every surgery ever electronically recorded. When can we what progress are we seeing towards robotics and artificial intelligence? converging?





44:31

You know, it's actually something that's, that's familiar, before even AI right, it's the separation between engineering and technology or software. Right. And so this is I think, why we're seeing this is because replacing things that are soft like on a computer or something like that becomes a lot easier once you can get over a kind of the intellect or the brain of it, right? The biggest issue with robotics right now is probably the expense and so when In the cost of robotic arms, robotic equipment and stuff like that, that's reliable and high precision and things like that start coming further and further down. That's when you'll see this kind of cannibalize even those types of industries. And so that's where I feel like, you know, this low skilled or blue collar laborers, you said it, you know, as a little bit more protected, because the cost of those robots has not come down. And the functions that they pervert perform, and the accuracy of what they do, just isn't quite as inexpensive as, you know, your email solution of being able to message back and forth with patience or something to that regard. So it's going to happen, but it's just, you know,





Griffin Jones  45:42

so maybe there's a silver lining to all of this supply chain crap that it's slowing down the inevitable





Dr. Ravi Gada  45:49

grip. I don't know. Are you old enough to remember the Jetsons? I mean, that's where Yeah, remember





Griffin Jones  45:53

the Jetsons Flintstones crossover?





Dr. Ravi Gada  45:56

Yeah. So you know, I mean, imagine I mean, the Jetsons is looking forward to, obviously, if robots robots replace what we do, and we work, everybody's concerned on what would we what maybe we start enjoying life again, you know, we worked so hard, we, you know, is a society. And I'm not talking about just fertility, I mean, globally. And maybe we actually, you know, a 40 hour workweek becomes a 20 hour workweek. And we actually are able to read and spend time with family and travel. And maybe I mean, robots taking over and doing certain things. I'm not saying they're taking over the world. But maybe we get back to the point where society actually has time to do the things we do rather than being in this hamster wheel that we are in today.





Griffin Jones  46:38

Before it does, what other applications do you see elsewhere in the fertility industry and quote, so you talked about the applications that can happen in the practice between fertility providers and patients? But where can what other applications are we seeing right now with open AI, if any, in the fertility industry, and what more should we expect?





Dr. Ravi Gada  47:01

Yes, I don't think we're seeing I mean, I haven't seen it, I tried to keep a pretty good pulse on what's going on. I haven't seen it. There's some chat bots that are out there. But overall, in terms of chat, GPT, I don't think so we've seen it in obviously, in the lab, there's a lot of work being done to robotics and, and automation and AI. But what's interesting is, I don't, I think also no one in the fertility space, or even a lot of other spaces are going to actually be able to build their own technology on this, they're going to have to leverage I mean, think about Microsoft, Google, Facebook, Amazon, few other companies, I'm probably leaving out, but they have the best of the best, the brightest or the brightest, and essentially unlimited budgets relative to ours to do this. So a lot of this is going to be creating API Interfaces into their technologies. And using our datasets. I wouldn't be surprised if the EMRs that are out there are looking at this today, right? The electronic medical records, they're fairly technology forward, they are probably looking at their datasets, because they have actionable datasets. You asked me hey, you know, Hey, Ravi How much does DFW fertility associates? What kind of data do you guys have to feed into Chad GPT. And I've looked at you and say, I haven't even I don't have data. Like, I haven't started gathering that. But maybe I should, maybe we should start recording every conversation we have in the office with a patient and with each other, myself and my nurses, myself and the embryologist to feed this dataset, and is one individual, clinic or user or even an MSO going to be able to create enough data, perhaps but but likely not, it's going to require a collective effort amongst the industry. So I don't think we're there in terms of that. I mean, like I said, there's the earlier stuff, I was telling you writing a letter writing a contract for third party reproduction. But in terms of the high level stuff, it's got to be a concerted effort of gathering that data, putting it in, and then really, ultimately, you know, garbage in, garbage out. So if you put garbage data in, you're gonna get garbage data out is what that term is. But you've got to do that, then you've got to test the model over and over and over again, because in healthcare, we demand 99% excellence, right? In other industries, they might say 80% lunch, this, you know, we've all talked to a, a answering machine bot on a customer service line, they'll get to 80% and be satisfied with the quality of that work. We have to exceed that above 99%. So no one's there yet, but the question will be how do we get there? I think that a lot of people like us and others are looking at this. And I think that it's around the corner. If you ask me what does around the corner mean? I can't tell you the answer.





Griffin Jones  49:54

So I was going through Dr. Rudy Giuliani's workflow with her and I How she did 1300 retrievals last year and I was thinking of each of the points, she was talking about listening well, I could impact that I could impact and I told her, I said, You should listen to this episode that I'm going to record with Ravi and Monique, because she was talking about her scribes. And I was just thinking your scribes are gone, man, they're not they're not going to have a job in a couple of years. There's no way in schedulers to right.





Dr. Ravi Gada  50:23

Yeah, yeah, exactly. Or are their job changes, right? You know, they, you know, they either they're either gone, you're correct, or it changes, right. So we still like concierge service, right? So they, the bot kind of does that. I mean, Google right now, I think has a platform that you can order a pizza now through a bot or make reservations at a restaurant. And it'll actually if the restaurant doesn't have something like open table that you can go online and do it will call the restaurant and make the reservations for you and interact with the hostess without, without a person, it's a robot talking to a hostess. So those jobs will be either replaced or used in a different way.





Griffin Jones  51:03

Sometimes those applications come and they circumvent solutions that you would think need to happen, right? So for one of the things that we've been saying for many years is that millennials don't want to talk on the phone. But Gen Z absolutely won't talk on the phone. So you guys have to figure out your scheduling, you got to figure out this digital scheduling as well. Maybe you don't, because this Gen Z person can just input into chat GPT called the fertility clinic and make an appointment for me.





Dr. Ravi Gada  51:34

Yeah, that'd be ironic, as we keep focusing on how can we get the clinic to be the Chatbot. And we find out that the Gen Z is actually or the chat bots, and we're still interacting with them on the human side? Well, unfortunately,





51:45

they're not gonna go to the metaverse to schedule appointment anymore. So





Griffin Jones  51:50

well, it's just kind of one of these principles that you think of that we often it's, we have to build a certain type of infrastructure. And there were many countries, for example, that never really built out a telephonic infrastructure never had landlines at scale. And that was probably in their government central plan that, okay, 10 years from now, we're going to build telephone poles and have the wires out to the rural countryside. And they just never had to do that. And so there can be a number of applications that we're thinking of, for artificial intelligence that just circumvent the need for us to build out some other kind of solution.





Dr. Ravi Gada  52:31

So the other day I took I had an Excel sheet, it was a financial Excel sheet. And I took it and I was just curious, because I had heard people were doing this, I copy and pasted it, I didn't format it. And I thought what happened, so I just copy pasted into chat GPT, it looked awful. And I hit submit. And it summarized the Excel sheet for me without even having cells or columns or anything, it was very oddly formatted. So imagine taking the entire data set that we have for IVF patients and outcomes, and just dumping it into this thing. And just at first go saying, What do you think of this? Or tell us in patients less than with a Hmh? A 42 year old with an AMA H of 1.2? Whose BMI is this? Who has unexplained infertility? What what what what should we do? I don't know if that will be the answer that we're looking for today. But that's what we're probably looking to strive for. And, and that's literally just copy and pasting an Excel sheet. Imagine once you get these API's start working with these companies, and you really integrate with them to provide this type of data. I think it's, I think it's also like people, it freaks people out. But I think that when literally, when the calculator was invented, people thought, no one is going to know how to do math, we're all going to be stupid, nobody is going to use their brain anymore. And they're just going to rely on this device. And here we are today doing way, way more amazing things and advancing technology. And the calculator is a tool that you just use, and honestly half of us have moved away from that to things that are on our computer now.





Griffin Jones  54:15

Okay, so we can spend the next 10 to 15 minutes concluding this topic with going down these rabbit holes, because this is going to be fun, what you just brought up Ravi, the example of the calculator, how it's going to make people dumb, and people aren't going to know how to math do math anymore. Ravi, that did happen for probably 80% of the population. They can't do math anymore. And May and 20% can do math into levels of application that we had never even anticipated before. And probably a square root of that number is, you know, has just magnified the Einsteins of the world. But isn't that number getting smaller and smaller and smaller. smaller and the, the applications are greater and greater and greater. But eventually doesn't that number just become nil, because there's nothing that a human being can do to add value to collective general artificial intelligence,





55:17

definitely the edge of what we're talking about, I think Robbie talks about, like these alternative purposes for humans, and basically, what's going to create our, you know, Will and an ability to keep driving forward and stuff like that. And I do think that that those things will happen. But I do think there's a lot of fear around just that, which is, hey, listen, does the population as a whole get less intelligent? Or does a proportion of the population become less intelligent, and then you have this, you know, small niche of the population that continues down the road of research, and basically innovation and stuff like that. And that, you know, that's entirely the storyline of that time machine movie. So so i think i digress to the point





Dr. Ravi Gada  56:02

where it is, right. I mean, people have, maybe, maybe people have become worse at math worse at spelling, because Microsoft Word and everything auto corrects your spelling. And the older generations, like, gosh, we knew how to do all this, I feel like that sometimes. But the newer generation says, Well, you might know how to do math, and you might know how to spell. But these influencers are able to create a whole new, you know, industry, and they're able to create content, videos, edit it with through a computer that does it all with them. And it would take me eons of time to do that. And they can do that in a matter of an hour. And it would take me days, and I still might not get it right. So I might know what you know, the square root of 256 is and they're like, well, that doesn't matter. I've got a computer to help me do that. But you can't use the computer the way I can. So smartness is dependent on the tools that we have, I think that it, it forces people to be resourceful, and be able to use the tools you have. So just like you use a calculator, just like you use Microsoft Word, you're gonna have to learn how to use AI, and whether it's chatting GPT, or some other platform. And someone else might say, well, I could have written a beaut, I can write a beautiful act or essay on my own. Well, that's great. But if someone else can use a tool to do it 10 times faster and 10 times cheaper, they're probably going to win the race.





57:32

And we've seen this from a software point of view, we've seen this over the last, however, long, 40 years or so, right? Where software is now becoming easier and easier to produce, even what developers can accomplish in just a day versus what we had to do to do you know, back 20 years ago, just to get the same type of thing done has has totally changed. And so there's a rate limiter at some point in time where it's not going to matter that they can do more faster, because there's just not more to do. But we're not there yet, either. So, you know, our developers use chat GBT already today and just in the last few months, right? It helps them solve problems faster, it helps them optimize code that code faster, and a lot of things like that. But we have a long way to go before it replaces any of the developers. So





Dr. Ravi Gada  58:19

by the way, for for like normal people speak that like language model. This thing can code because code is a language so it can actually code software. And people are estimating 10 to 20% of software at at big companies is already being written by platforms like Chen GPT.





Griffin Jones  58:36

I see what you guys are saying human intelligence, resourcefulness, resilience, that's only one category of concern that I have. Let's pause it for a moment that we remain committed to innovation that we use this time, Robbie, like he says the possibility to be free to pursue other creative pursuits to enjoy life. Let's pause it for a moment that we don't actually get worse at anything. There still comes a point right? Where there is nothing that human intelligence and creativity can do to surpass that which a general artificial intelligence can think of let's let's think of ancient hominids, for example. It's some point they were equal at some point, humans parted with chimpanzees, and they parted ways with other previous hominids. But then not we live in a world where there is nothing that a chimpanzee can do to add value in a human being world other than be observed and be a pet. So doesn't that happen at some point? Where Yeah, no,





Dr. Ravi Gada  59:36

I mean, it's a great point. So what's interesting though, remember, AI and regenerative learning is data. Data input. So right now, someone estimated chat, GBT has 190 billion data inputs and it regurgitates it out. But it doesn't know what to put out unless it's been put in. So Chad GPT, for example, is likely or any AI is is likely not to figure out How to create this nuclear fusion between protons to generate energy, human intellect still is able to do that, right? They call it the neural network inside of AI. And what's in there is what's been inputted by humans. So a lot of people are saying that what's inside of the datasets, there'll be able to, you know, AI will be able to find it faster, regurgitate it, remodel it continue to do that. But it's always going to need to use or I say always, I should say, as of today is it needs source data, it needs innovation. So innovation is still going to come from humans. And we're going to do that. And then we submit it into a platform such as AI, and go from there. But as of today, I don't know that anybody has any great use cases of AI solving a problem that humans needed to invent or get to, it's really regurgitating all the things we have. And it's just gathering it faster and spitting it out faster. Maybe one day, we'll be able to have, you know, its own neural network that actually generates new ideas, but new ideas are still created by humans and put into the computer software system.





1:01:12

So I do think that there's some places where we're getting there, right. And that has to do with the sheer sheer compute power, right? This ability for it to go after large, large sets of data, right, and basically go through every permutation, right? So it's a little bit different from what we would think about as like new ideas. It's not necessarily a new idea. It's just a, hey, we've gone through every permutation of possible outcomes. And that's how we get there. And so there's, there's this, you know, looming threat or looming kind of, you know, fear of the fact that hey, listen, there's not anything more that we can do that hasn't been done by AI. But I do think that's right now, it's science fiction, at some point in time, it probably will become reality. But hopefully, it will be past my time.





Griffin Jones  1:02:02

The operative phrase that Dr. Gaga was using was as of today, and I think it's okay, as of today. But even Manish can think of a couple of applications where it's starting. And so what about what how long is as of today lasts for? Is it 10 years? Maybe? Is it 100 years? Probably not? Is it 1000 years? Almost certainly not? Almost? Certainly not?





1:02:26

Yeah, in grip. The interesting thing about that is that it's not a conversation about RBIs at all right? No, it's, you know, it's a





Griffin Jones  1:02:33

human race. Yeah. But it's the relevance of the human race.





1:02:37

Yeah. But even before that just passed, are you guys it's, you know, a cure for fertility, right. It's basically, you know, what's the pursuit? What's the purpose for, you know, humans and its happiness, and, you know, procreation and all these other kinds of facets. And so yeah, we'll get to a cure to fertility probably sooner than unnecessary need for humans.





Griffin Jones  1:03:02

I actually think it's going to be the thing that puts us all out of business, because I think it could even it could happen before a cure for fertility. I've said this for years that my long ball sci fi outcome is that,





1:03:16

but it'll be sustaining, right? It's putting us all out of jobs in order to sustain us otherwise, even the AI has no purpose without humans, but





Dr. Ravi Gada  1:03:25

it puts us out of business for what like we all are doing things so that we can be productive and earn money and then use that and enjoy life and have a purpose. But purpose will be redefined as it just as it was 100 years ago, where it is today. And it will be redefined again and another 100 years.





Griffin Jones  1:03:44

So I actually think it puts us out of the business of production. I mean, the the intersection of artificial intelligence and of virtual reality, I think that's what ultimately puts us out of, of the business of human production. Because when we can live in a world where we can augment our intelligence with artificial intelligence, so human beings are already cyborgs. This these devices that we carry around on us help to us to augment our intelligence and our communication abilities and all of our memory and then once that becomes further integrated with our brains with our nervous systems, and there's a virtual world in which we're able to participate, then eventually, what do you even need to reproduce physically in this physical world for you can have your augmented intelligence baby in your augmented reality world that never has to worry about dying that never has to worry about sickness that doesn't have to worry about human suffering. And I'm not saying this to you guys are smiling. Most people are going to be listening to this episode and not watching it so they can't see you smiling right now. I'm not saying this to be dystopian. I think this is just what's actually going to happen.





Dr. Ravi Gada  1:05:00

about maybe it puts us out of the business of being productive production, but it actually puts us back into the business of relationships and, and, and leisure and lifestyle.





1:05:10

And, and just to just to touch a little bit on the philosophical side of this, right, is just keep in mind the lifespan of a human is part of evolution. So,





Dr. Ravi Gada  1:05:24

that was pretty deep. I don't even know what that means.





Griffin Jones  1:05:26

Yeah, explain that many.





1:05:29

Yeah, so just kind of getting to the point that like, humans live the span of life that they live as a part of how we've evolved to become where we are right now, there's plenty of animals that live many, many years longer than humans and plenty of animals that live much shorter years than humans. And so, you know, that's, that's part of the equation as well. And, and the second thing that's kind of goes into that is it like, listen, we might have purpose with AI, but AI has no purpose without humans, either. Because what does a bunch of bots running around, servicing themselves and doing things for themselves me, either, that's a, that's a purposeless kind of function in that vein as well,





Griffin Jones  1:06:13

maybe, but I'm not convinced of that, they may find a purpose because the purpose of any living organism is just to continue existing. And human beings might be the first one to evolve itself out of existence. You talked about our relationship to other species in terms of how long we've been aren't, we haven't been around very long. It's been 200,000 years, I think, since humans separated from the last hominids. And when you look at our, our growth, it's been it's, it's a hockey stick, compared to the first years of leaving the canopy. And now civilization just in the past couple 1000 years, industrialization 200 years ago. And so I don't think this stuff is too far away. And I'm not trying to be dystopian, I just, I just don't think that I don't think there's any way for us to be able to contain it and control it. And so far you guys ever given otherwise?





Dr. Ravi Gada  1:07:09

You know, I think that people thought that when assembly lines came about, I think that they thought that when tractors came along, I think that is always been a worry. And it will always continue to be a worry. But ultimately, in a philosophical sense, humans are resilient. And like I said, we seem to stay ahead of the technology that we create ourselves. You know, at what point do we are we not able to stay ahead of it? Well, up until today, we still have I mean, people thought the world was over when assembly lines came in, and manufacturing jobs just got crushed, and what are we going to do and farming got replaced by equipment. And here we are today, three times the population with you know, 2% 3% unemployment, I mean, people are still employed doing something?





Griffin Jones  1:07:56

Well, if they said that, in the 1860s, as folks, were moving from steam to coal, you know, the late 1860s, or somewhere before the early 1880s. Whenever that happened, if they said, This is the end of humanity in the in the next five years, yeah, they would have been wrong. I think it's the amount of time where people get things wrong. I don't know if this is going to happen in a century or in a, or in an eon or a millennia. But I think it's inevitable that it will,





1:08:31

from that point of view, right? There's a this is not a country point, right? This is, you know, a we're never going to know, or we're not going to know, anytime soon. But in addition to that, yeah, I mean, it's definitely a possibility. And we'll have to figure out something else to do or something else to be or some other purpose to have, at that point in time. But, you know, it's, it's a tricky question, and probably well beyond our scope. So





Griffin Jones  1:08:59

it makes the premise of matrix a lot more interesting, doesn't it? You will never know except, and then and then what will happen? Well, if if you could, if you could evolve yourself out of existence, and then the only thing you had left to do was to recreate a previous existence? What period would you go back to accept the end of the 20th century? And it makes the promise even better,





Dr. Ravi Gada  1:09:22

right, right. Now, I've thought about the matrix A lot, you know, in looking and hearing about AI and its evolution, and it really makes that movie a lot more relevant.





1:09:31

Yeah. My only claim is I don't think they'll need us for batteries. So.





Griffin Jones  1:09:35

So you guys are optimistic. And I know that I might sound pessimistic, I don't think I'm being passed out. And I'm not making a value judgment. If all of this thing is is good, bad or neutral, but I want you guys to think a little bit about second and third order consequences. So Did either of you watch any of the interviews that Brett Weinstein has done about chat? GPT I bet but most of my audience doesn't know who Brett Weinstein is though. Those of you that do, I bet it's half and half about half the like, really critical thinkers really like him. And then other people might not like him because he's like the guy in the movie that is worried about everything. And he's always trying to warn about the media coming. And he's, he's, you know, he's worried about civil war. He's, he's very worried about the entire scientific and medical apparatus and feels that vaccines were rushed in that, you know, that that system was compromised, even if the vaccines themselves are safe, he feels that the the system was co opted. And one of the things that he's worried about is chat GPT given our fragile social relations right now and human beings, general incompetence to assess expertise already, you know, your peers, Ravi are very What are your peers often complained about is Dr. Google? And so if Dr. Google is them, though, and it's a avatar of them pulling from collective data points and, and its expertise that may or may not be scientifically grounded, then what are some second and third world? I'm sorry, second, or third order consequences that you might be concerned about?





Dr. Ravi Gada  1:11:15

Here? I mean, Brett Weinstein, he goes into things like it's able to pass exams, it's able to actually change GBT our licensing exam, as physicians is called the USMLE. It has passed both of those exams. And so if it's able to pass those exams, and people can access it on the internet very quickly, how do we discern who really knows? And who's just using chat GPT to present the answer? And I mean, there's two facets, I think, to that. dilemma. One is, you know, we all have been in oral exams, we've all taken exams in classrooms. I mean, the tool is only as good as you can access a computer and internet and be able to ask it those questions. But there's still a way to assess in education, because his big issue is education, and how people are using it to write essays and pass tests and do these things. Well, we've moved to a virtual education model post COVID. And maybe this brings us back into the universities, doing oral exams. I mean, you know, we've all been there. And and, and you can assess that in real time, you can assess an essay when you have Chad GPT able to write an essay for you, and how do you discern who's a good student and who's not. But again, in person education, we'll do some of that. The second part is, we already have things like chat GPT. Today, as physicians, we have up to date that we use as a resource. I have my partners, I have my colleagues, if I have a case that I'm not sure about, I pick up the phone, I talked to somebody, I get some information. I mean, it's a resource to augment and help our ability, but I think he does a lot of fear mongering, I think he likes to just the world is ending and everything. And that's okay, itself. But ultimately, there are ways in the education system to figure out who knows the right answer, and who doesn't, without having them taste, take tests at home. In the real world. You know, he gave an example, I think, at one point, have an auto mechanic and you just go in the auto mechanic asked Chad GPT. And he just sounds really smart. But how do you really know he knows, versus an auto mechanic who's been around for 20 years? And at





1:13:26

what point in time? Does that matter? Right? If I can get to the right answer, either way, right? It doesn't matter if the auto mechanic use chat UVT or not.





Dr. Ravi Gada  1:13:34

I mean, sometimes when I see someone come to the house for work, or you know, we're interviewing someone, one person might be really old school and has 20 years of historical knowledge. And the other one's a whippersnapper who uses all the resources around them to get to the answer. Which one do you want? I don't know. But that, you know, that depends on you know, what you're looking for?





Griffin Jones  1:13:53

Well, you talked about the assembly line, the farmers, you know, how those jobs have gone away, and how a lot of wealth was created by better jobs. And it really depended you. You all live in Texas, where you have a low regulation, low tech state that saw a lot of growth, but I live in a part of the country where many cities were decimated because they didn't adapt. And so you see different types of trajectories, I guess we would have to have a whole other conversation beyond our pay grade of what is the equitable distribution of, of benefits after chat GPT How do you even materially divide the spoils? And is that something that's possible to so that everybody can enjoy life as opposed to some of the people being able to enjoy life more from chat? GPT Are either of you guys? truckies





1:14:47

when I was a kid, I watched the soundtrack all the time. Yeah, the original





Griffin Jones  1:14:50

are next generation, next generation eyes. So next generation all the way what I'm hoping for is the holodeck. If we can all get the holodeck out of this you Then I think that's where the where the trade off. This has been the closest to any kind of Rogan episode I've ever done with you this is we're recording at almost 1130 at night on the East Coast. And I really could talk to you guys for three and a half hours about this. But we'll save that for another time because people are gonna listen to this, they're gonna Monday morning quarterback me just like Dr. Gowda doesn't say you should have asked them this you should have. And so I'll compile that I'll and I'll happily have you guys back on for a second time because this has been a blast. We've talked about the applications for the REI practice and for fertility patients. But we've also talked about the potential implications for the human race because you can't possibly contain this topic to just the REI practice, even when you're focusing on the applications for our field. It just goes so far beyond that. So how would you both like to conclude?





Dr. Ravi Gada  1:15:57

No, I mean, thanks for having us. Griff. You know, I know we've talked about coming on this before. But this was finally a topic that I feel very passionate about. I think that healthcare in general should embrace this. And I think that health care at a high level, will we as people in the side, the fertility industry have to figure out how do we take the data that we have, and not just data inside of the EMR, but all kinds of data to make sure we keep up and so we are working on this, you know, continuously, I think that others will join in and it will make us better, it will make our patients better, it will make outcomes better. So I'm not worried about the technology of the consequences of what does it do to jobs or do to us, but more how much it's going to improve our efficiencies and our outcomes. So those are the things that I think that technology helps. And technology is deflationary by nature. And maybe this also helps bring down the cost of IVF, which could help us be able to access more of the patients that are out there seeking care. So that's how I would, I would leave it.





1:17:04

And just that on the roof. Absolutely. This is a fun topic. You know, it's one of the ones that I think, you know, I can talk about tech all day long. This is one that, you know, definitely over the last few months has definitely been top of mine. Something that's just interesting has so many implications in fertility as well as far beyond, you know, any of your users that listen to this, if they haven't had a chance to even just log in, and just play around with. I mean, it's a different feeling right? To read an article about it versus actually start asking your questions and see what you'll understand a little bit why we're so excited about it. But appreciate you bringing us on the show. This is a lot of fun,





Griffin Jones  1:17:45

Manish Chaddua,  Dr. Ravi, Gada thank you both so much for coming on the inside reproductive health podcast. I look forward to having you back already.





Sponsor  1:17:54

This episode is brought to you by Univfy, email Dr. Yao at mylene.yao@univfy.com or just click on the button in this podcast, email, or web page for your free IVF artificial intelligence tips and strategies.  

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.

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

178 The Information Fertility Payors Need For Reimbursement Increases Preview:Featuring David Stern

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.





What should you take into consideration when tackling the insurance companies for fertility service reimbursement? This week, Griffin hosts Boston IVF’s CEO, David Stern, to discuss the ins and outs of maximizing insurance reimbursements, and the barriers you may not have considered. Tune in to the latest episode of Inside Reproductive Health to hear more.

Listen to hear:

  • How to position both insurance companies and employer carve out companies to get better pay out rates

  • What data you need to share to get the best reimbursement rate.

  • About the differences in negotiating when it is a global fee vs. different CPT codes and what state mandates do to codes.

  • David give examples of some mistakes that can happen, ie: money loss, when billing uses incorrect CPT codes.

  • How Boston IVF negotiated a 67% increase in reimbursements.

  • About the principle of disruptive innovation, why traditional fertility companies were late to the fertility game, and how others cashed in.


David Stern’s Info: 

Website: https://www.bostonivf.com/

LinkedIn: https://www.linkedin.com/in/david-stern-mba/

Transcript

David Stern  00:00

In an insurance situation, you almost have to be an accrual because what you're doing is you're performing services, but you're not getting paid maybe until the end. And so, if you think about it from a calendar standpoint, somebody gets there. Day one, they have their period, they start drugs in the middle of the month, you start them as an IVF case in February, but they're not going to complete the process until March. Or if it's a freezer, it might be April or May. And so if it's cash, you they're not paying you cash when they start in February, they're getting approved, so their prior auth approval, you know, you're going to get some payment from them, but you also have cancellations. So if a patient gets cancelled, you don't get the full amount for IVF because they haven't gone through the full cycle.

Sponsor  00:48

This episode is brought to you by Univfy. Email Dr. Yao at mylene.yao@univfy.com. Or just click on the button in this podcast, email or webpage for your free employer benefits, tips and strategies. 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  01:30

Lucky you, look at you, lucky, you get to listen to this episode about insurance reimbursement today. I know try to calm yourself. My guest for today is David Stern. You might know David Stern, he was at EMD Serono for a number of years as Senior VP executive VP in different areas there worked at high levels of leadership and other parts of the industry. But most of you know him now going on his fourth year as CEO of Boston IVF. I tried to get as much concrete advice from David as I can about how you position two different payers, both insurance companies and employer carve out companies for getting higher reimbursement rates. We talk about the data that you need to share with them to get the best reimbursement rate we talk about the difference in how you negotiate when it's a global fee versus different CPT codes. We talk about what state mandates do to that dynamic global fee versus individual CPT codes with particular emphasis on New Hampshire and New York being among the most recent David gives examples of some of the mistakes that practices make when they're billing to the wrong CPT code and losing a lot of money. Because of it. He talks about a particular example where Boston IVF was getting probably under 50%, of what the cash pay rate would have been from reimbursements from different insurance companies and what Boston IVF did to negotiate 67% increase in reimbursement. We talk about the leverage that you have as a clinic, whether you're in a large market with a number of physicians, or if you're in a smaller market with fewer providers. I asked David, if it's really the case that fertility networks can help clinics negotiate with insurance companies, if they don't have a lot of providers in that specific geographic area? Is it irrelevant how many providers you have across the nation? If you only have a small percentage of the market in a particular geographic area, David respectfully disagrees with the position that I presented given from a fertility practice owner and he says why we talk about the principle of disruptive innovation, why traditional insurance companies were late to the fertility game while companies like progeny kind body and carrot were able to grow massively. We talked about the differences between negotiating with traditional insurance companies versus employer benefit companies. And then I asked what do you do when you have an employer benefits company or anyone for that matter that comes in hot the first year, but then the next year slashes reimbursements in year two, finally, David talks about the game of chicken that happens in negotiation, how you learn your own costs, how you learn what you're being currently reimbursed, and how you think about that, as you discern your leverage versus what's worth it to your practice, what's worth it to your patients, and what might be worth it in the future. I hope you enjoy this episode with David Stern. Mr. Stern. David, welcome back on to the inside reproductive health podcast.



David Stern  04:23

Thanks, Griffin. Glad to be back on. Thanks for having me. Again. 



Griffin Jones  04:26

I want to ask you a lot of questions about insurance today, because it's not my sphere, I get questions frequently. And it might be yours being the CEO of a very large fertility clinic group. So I want to start off with some context and hopefully not be too general. It might seem obvious, there's more insurance coverage than there had been there's more employer benefits and more employer benefits companies, but it's specifically as you can be what's happened with insurance coverage in the fertility field in the middle last five years.



David Stern  05:01

The insurance coverage has expanded, which is very good for patients. It's increasing access for patients, which is fantastic. And there are a couple reasons for that. As you mentioned, it's become more popular to offer fertility benefits through an employer through an employer carve out companies, some of the traditional national insurers like United Healthcare, Aetna, Cigna are also trying to make their own kind of carve outs for fertility and offer it in a little bit of a different way than they historically had. And then there are also state mandates. And I think that's something we should talk about, because in general state mandates, most people feel are very good. And I think they are because they offer access. But when a state passes a mandate, there is a slow period of time where people think, okay, the mandate passes, for example, New Hampshire in New York passed a mandate went into effect in 2020. But it took the insurance companies time to catch up, and in some cases, they still haven't caught up. And so there's this perception, I think that we have from whether it's resolved as a lot of lobbying and does a fantastic job, but patients underestimate the amount of time that it takes once the mandate is in place to actually mean that you're going to get coverage. It's not like it starts in January. And right away, you can start doing IVF January seconds.



Griffin Jones  06:35

Tell us what you mean by the insurance companies not having caught up what does that look like? 



David Stern  06:41

I think it has to do with the process by which prior authorizations take place. First mins take place insurance companies have NVF centers or fertility practices in their network. All of that takes time, especially if you're going from a state that didn't have a mandate to now having having a mandate, it's almost going from zero to 60, if you're in like New York had a fertility mandate, but didn't include IVF. And their update to the insurance mandate was to include IVF coverage. So that's a little bit different, because the Fertility Centers were maybe the maybe already involved or taking insurance. And the only difference was they could now start billing for IVF procedures were before they wouldn't be approved, or they wouldn't be paid for is part



Griffin Jones  07:30

of the reason why it takes so long to catch up because of variance in the way the legislation is written. So why can't a Blue Cross a really large company that does have experience with mandates in Illinois and Massachusetts, once it hits in New York or New Hampshire? Why can't they just replicate that process at scale? What what are the variables that's causing them to be slow?



David Stern  07:55

I'm not an expert in Blue Cross. But I think it's an excellent example. Blue Cross operates very locally. And Blue Cross of Massachusetts is different than Blue Cross of Illinois. In fact, I think they have different ownership structures. And so just because you have Illinois, Massachusetts, Maryland, New Jersey, where they're all blue crosses, like New Jersey, Blue crosses Horizon, it's Brandon horizon. And I don't know if it's a different ownership structure. But it's not as simple as just saying, hey, let's roll this out, because we have it in Illinois. So let's just do it in Massachusetts, the national companies like a Cigna or United, it's much easier for them because it's national. And so they're following the different regulations. But an important consideration is that each state has a different mandate. And this is where it's also very confusing for a lot of people is just because you think it's covered. It could be based on the number of insurance or a number of employees. So for example, one state I think Massachusetts has, if you have more than 100 employees, you have to have coverage. In another state, it's 50 employees. But if you think about it, if you're in a state like New Hampshire, a lot of employers, local employers in New Hampshire may be law firms or small companies that don't have 50 employees. And so they fall outside of the mandate. Whereas in a bigger state, like a, you know, New York, maybe if it's 50 employees or 100 employees, it's easier because there are a lot more bigger size companies.



Griffin Jones  09:36

And it seems that even that legislation could be written differently. It could be maybe in one state, if they're headquartered in that state versus if they have an office that has 50 employees based in that state. Is there variance there as well.



David Stern  09:51

Typically, if you're headquartered in that state, and you offer that insurance, then you're covered by that state, it becomes more complicated again, if you're offering a lot Local plan in a different state outside of the mandate, and it might be up to the different state regulations.



Griffin Jones  10:07

A Boston IVF has offices in how many states now



David Stern  10:09

we have eight states, offices in eight states. 



Griffin Jones  10:13

How many of those are non mandated states? 



David Stern  10:17

Four of them are non mandated. So Ohio, Utah, Indiana, and North Carolina.



Griffin Jones  10:24

Okay, so we can kind of explore mandated versus non non mandated and we can even explore a little bit within mandated states. What because Boston IVF has offices in New Hampshire and New York, which as you said more recently released their mandate in 2020. What was the biggest changes that you all had to adapt to? In those two states,



David Stern  10:52

when you have a state mandate that takes effect the insurance companies and this is one of the things that I mentioned about catching up, oftentimes, insurance companies will get reimbursed that you build based on a CPT code. So each procedure has a CPT code, a blood draw, an ultrasound, an egg aspiration for a retrieval, those all have CPT codes. In the more advanced states where the mandates have been around for a long time, there's something that's called a global fee. It's an S code. So the S code for IVF is s 4015. And that includes all the ultrasounds all the physician visits, all the blood draws, the egg retrieval, and oftentimes, the fertilization, all the things that happen in the lab, and then the transfer. And that's global, in that one CPT code. And what that does is it actually places the IVF Center at risk, because you're paid one fee for that IVF cycle, as opposed to in states where oftentimes when you have a new mandate, you're still submitting CPT code. So if you do seven ultrasounds, you submit the CPT code for an ultrasound for seven times for a patient and the insurance will pay seven ultrasound visits or blood draws or whatever that is. So there's a difference between CPT code billing and global billing. And it puts more onus on the IVF center and more risk when you're doing a global bill because they're giving you one fee. And then you have to figure out how do you manage the patient, the proper clinical way, but also maybe you don't need to bring them in everyday for an ultrasound and a blood draw. And I think in some of the practices that have been in mandated states for a long time, you see a little bit of a different type of scenario than you do in cash state where they're bringing patients in all the time for bloodwork and ultrasounds,



Griffin Jones  12:50

does that apply to the employer benefits company as well, if they're covering people in mandated states do they also need to go by the global fee structure,



David Stern  13:03

I would say the way that they operate can be different, but the Centers of Excellence the progeny is the wind fertility, the I would say kind body all have a global fee. And so you're getting reimbursed based on that global fee for an IVF case?



Griffin Jones  13:22

How does the process change the workflow process change, whether it be investigating coverage or doing claims when you're moving away from CPT codes and towards a global fee.



David Stern  13:37

One thing that I change is who is doing ultrasounds is a perfect example. In a smaller clinics, in clinics where yourself pay, a lot of times the doctor will do the ultrasound, it's an opportunity for the doctor to interact with the patient. When they're coming in, they can say oh, your follicles are growing nicely, or, you know the follicles aren't growing as quickly as I'd like I'm going to increase your dose, it's an opportunity to have that face to face interaction, even if it's for five or 10 minutes when they're doing the ultrasound scan. In mandated states, you want the doctor seeing patients bringing more patients in into either new patient consults or follow ups. And so you oftentimes will hire somebody to do the ultrasounds for you like an ultrasonographer. So you have multiple patients coming through and that's one of the benefits of the mandates is you have an increased volume. And to do that you need to have different people performing those types of procedures because a doctor doesn't need to do an ultrasound and I think many doctors would actually say there's probably an ultrasonographer that might do a better job of doing ultrasounds and then a physician who is doing it as a way to interact with the patient but not the expert and ultrasonography.



Griffin Jones  14:53

How about on the claim side what information is important to insurance companies?



David Stern  14:59

First and for For most, you have a prior authorization process. And this takes time. And in fact, one of the things that we've seen during the pandemic is, it's taking longer to get patients approved for prior authorization. The good news is that once a patient is prior authorized, then you know that the cycle is going to be paid for. But up until that point, you have to submit testing, you have to submit diagnoses you may have to do, you might have to do evaluation of the uterine cavity, there are different tests that you have to do diagnostic tests in order to show that the patient is infertile. And essentially, you know, has infertility as a disease and is treated and falls under the state requirements for infertility. And it could be due to staffing issues that insurance companies have, but it's definitely taking longer to get prior authorization. And so one of the frustrations patients have as well as IVF centers is when a patient you submit the all the information. And the patient says, Hey, I'm getting my period, I want to start, if you haven't gotten the prior authorization, yet, you can't start because you can't start the process until the insurance company has said, yes, they meet the criteria, we're going to approve that. Sometimes patients will get denied in the prior authorization process. And you have to do a peer to peer one of our physicians has to talk to a physician on the insurance. Oftentimes, it could be based on maybe a BMI parameter. It could be based on age, some insurance companies have cut offs. So if someone's BMI is too high, they'll say no, we want to prove that because the higher the BMI, the less likely the success of an IVF cycle. Same thing with age, we actually had one of our payers who routinely was denying anybody over 40. And so we had a meeting with this payer. And we said, You're denying everybody over 40, we have to take time to have our physician call your physician do a whole appeal process. Why are you doing that? And they said, well, because people over 40 have a less under 5% chance of getting pregnant. So we pulled out our statistics for Sart. And our 42 year old and over had a 15% live birth rate. And we said to the insurance plan, maybe 15 years ago, that was the case. But today, the average in the United States is 10%. So to say that just because someone is 40, that they should be denied, is using old criteria to basically prevent patients from getting coverage for treatment they need. And there's a lot of that happening, where insurance companies typically deny things and then some people will say, Oh, well, it's denied, I'm not going to fight them, I'm maybe cynical in thinking that insurance companies deny things where maybe they shouldn't be in and then they'll approve them on an appeal. So patients and physicians, it takes a lot of the physicians time to do this. But in the end, the patient can get approved and go through treatment. And



Griffin Jones  18:04

who is doing this with the insurance company because you have to deal with each individual insurance company. Right. And so I'm guessing it's not the Claims Representative necessarily working on that one claim, although they have a criteria from the group. But when it comes to something like pointing out the live birth rate of your over 40 demographic, I'm assuming that that's something done on a more global level than just the claims representative on this particular claim. Is it? Is it someone that's director level at your company? Do you have to come in and negotiate with somebody high up on the insurance company side? How does that work?



David Stern  18:44

A lot of times, we have financial counselors, and their job is to work with the insurance company to put the claim in in order to get the prior authorization when it gets denied usually has an escalation process. So we do have a director of financial counselors, a lot of times we have one or two physicians that are specifically the ones who interact with a specific insurance company. So you know, one doctor might be for Blue Cross and other doctor might be for Harvard tufts. And that escalation process will happen at that level. When we have a bigger situation than oftentimes I may get involved and talk to somebody high up at the at the insurance company. We've had a couple of different insurance companies where we'll have our medical director Michael Alper myself, our CFO, and we'll sit down with high level people at an insurance company and that example that I gave you was, are specifically saying can we not have a specific approval for because our success rates are good? Why do you keep denying this? And the response we got from the insurance company was, well, if we give it to you that everybody will will take advantage of it. And we said, why don't you put into fac AI Center of Excellence and specific Basically say here are senators that have a higher success with these patients. So we will, you know, prior author, we won't have to go through an escalation process. And they said, No, we don't think that that's necessary, we'll do that. We want you to continue to have to escalate it through the appeal process. Unfortunately, it's can be very frustrating at times. So



Griffin Jones  20:20

for that particular company, it never was resolved at the global level it oh,



David Stern  20:25

it for that particular company. And what's even worse, is we said, okay, for your people that are going through the prior authorization, who reviewing these, do you have a group that only does fertility patients, and they said, No, we have priority, you know, whoever whenever it comes in, it gets done either alphabetically or by number or whatever. There isn't any specialization. So that's even more frustrating because you have somebody that's approving a orthopedic claim who then gets an infertility claim, and it's just reading off of a list that they have. And so if it says over 40, deny, that's exactly what they do.



21:04 

Sponsor 21:04

The fertility field now has really amazing benefits companies like Progeny, Carrot, Maven, and KindBody, and employers really want to know the value of the fertility benefits they offer, and they want to maximize that value for their employees. Still, most employers don't offer unlimited fertility care. There's a financial limit to most employees fertility benefits, employees often exhausts $10, $20 and $30,000 in fertility coverage, because they need multiple IVF cycles and weren't enrolled in fertility coverage. The traditional way of maximizing benefits dollars has been to reimburse providers less, but paying doctors less doesn't add value. Univfy thinks there's a better model to offer the best support to employees, employers and providers. Univfy offers a way to cut costs without penalizing providers. Based on firsthand conversations with benefits decision makers of mid to large sized employers, what employers really want to see is how their employees are supported in the best possible utilization of their fertility benefits. Dr. Mylene Yao,, CEO of Univfy Fertility, has tips and strategies for how to best position to employer benefits companies, and how to best position your employer benefits company to employers email Dr. Yao at mylene.yao@univfy.com or just click on the button in this podcast, email our web page for your free employer benefits, tips and strategies.



Griffin Jones  22:41

I want to ask the follow up question to this in a way that isn't so elementary for the audience, it's necessary for me but help us understand the jigsaw of the process of the that the clinic has in order to be reimbursed where the insurance company's processes on the other side of the puzzle to pay and I'm thinking of it, kind of similarly to AR and AP, we as a company have an AR process multiple and other companies have AP processes. And so we Jigsaw them together? How does that work with in surance companies and with clinics? And well first, give us a little context of that. And then I've got a couple follow ups.





David Stern  23:28

I think it's interesting. And as I've come into this field from the industry side, it was an eye opening and learning experience for me because initially I thought okay, you know, what you're talking about is when do you bill? And when do you receive the cash. And so a lot of centers that are smaller are on a cash based accounting system, right, you basically Bill somebody, you get the cash, you acknowledge that you get the cash. In an insurance situation, you almost have to be an accrual because what you're doing is you're performing services, but you're not getting paid maybe until the end. And so if you think about it from a calendar standpoint, somebody gets there. Day one, they have their period, they start drugs in the middle of the month, you start them as an IVF case in February, but they're not going to complete the process until March. Or if it's a freeze all it might be April or May. And so if it's cash, you they're not paying you cash when they start in February, they're getting approved. So their prior auth approval, you know, you're going to get some payment from them, but you also have cancellations. So if a patient gets cancelled, you don't get the full amount for IVF because they haven't gone through the full cycle. So it becomes very interesting in terms of when do you recognize the Cycle Start? When do you actually get paid for it? And so our accounting group or a finance group is doing that on a daily basis, putting in a claim and we know that At, we actually recognize revenue based on different milestones. So when someone goes to retrieval in our system, we say, okay, they've gotten to that, that point in time that you know, benchmark, which is retrieval, we can, we can recognize a certain amount of that revenue for the IVF cycle at that point, oftentimes, insurance companies, at least some of the ones that we deal with, don't pay you in full until a transfer occurs. So that could either be a fresh transfer or frozen transfer. So if you're doing a Pg t case, and you're freezing all the embryos, you might have started your cycle in February, but you're not getting the PG ta results until April, and you're doing a frozen embryo transfer in April or May. So you don't actually get that revenue. Until the full revenue, you don't get it until the transfer occurs, you may have recognized that it steps along the way. But you haven't actually received the the income





Griffin Jones  25:54

to delay on payment for PGT is one example. You also see a lot of fertility clinics. If you've acquired a few in the last couple years, you're probably going to acquire more in the next couple of years. And so you're looking at these things as you are getting into the due diligence with clinics, what are you seeing that clinics are missing from their processes to protect themselves? What are two or three of the most common examples.





David Stern  26:20

When you're dealing with insurance companies, I think the biggest the biggest opportunity is understanding what you're getting reimbursed for. And you might be billing something, but you're not getting reimbursed at 100%. And so when you're dealing with insurance, if you charge $200 for an ultrasound, and you submit your CPT code for an ultrasound to United Healthcare, Cigna or whoever it is Aetna, you might actually be getting 50% of that they might be paying you $100 Because their usual uncustomary is based on some other, you know, national charge. In fact, this happens a lot. You see ultrasound charges that may be billed and an OB GYN, abdominal scan, and you're doing a transvaginal scan, and you're measuring the size of follicles. And that takes a lot more time than a traditional abdominal ultrasound to just see is there a fetal heartbeat. But they're, they're billing or they're reimbursing you at national CPT code for whatever an ultrasound is. And that's one of the biggest challenges that IVF centers have is their billing, but they're not receiving the payment. So you have to really do a deep dive into what are you getting reimbursed for when you're dealing with insurance companies?





Griffin Jones  27:38

How do you do that deep dive? What does that audit look like?





David Stern  27:41

What we do is we actually looked by each payer, what we've submitted, and what we get billed on a patient level. So we do this, and there's even more challenging. So here's the crazy thing about insurance companies. And again, this this was a major learning for me. You think, Okay, someone has UnitedHealthcare? Everybody's got united, they're going to pay the same? Well, they don't, because the employer may have one of 10 different United plans. And the reimbursement is going to be different based on what that employer has bought from United. So yes, it's United Healthcare. But it could be their premium package, it could be their gold package, it could be their silver package, for lack of, you know, I don't know whether they actually offer that. But you're getting reimbursed at a different percent, based on that gold, silver and platinum. So just because they have united doesn't mean that you're getting paid the same for every United patient. And that was one of the the deep dives that we've done here. Looking at different insurances to understand what are we asking for? What are we submitting a claim for? And then what are we going to reimburse that. And part of the process that we've done is looking at there are certain insurance companies where we were losing money, we were getting reimbursed at a significantly lower rate than what our self, you know, self pay rate was to the point that it might have been under 50% reimbursement. And so we've met with the insurance companies. And it is something I think we should get into Griffin because it's really about understanding how do you position yourself to an insurance company. So we met with them, we said, you're giving us this this reimbursement. We're losing money on every patient. We can't afford to be in your network. We can't afford to treat your patients because you're substantially under we had a plan that was 50% or a little bit more than 50% lower than our average insurance reimbursement, not even self pay, but average insurance reimbursement. So he went to a couple of these insurance companies and present it to their medical director and to their senior level people. And one of the frustrating things was oftentimes it's bad Originally in smaller regional insurance plans, their medical director was a primary care doctor or an ER doctor who doesn't know anything about infertility. You explain to them the process of IVF and embryos and the ability to do pre Implantation Genetic testing. And they say, Oh, well, we thought you just put a bunch of embryos back and see what sticks. And we thought the success rates is like 20%. Again, when they were in medical school, 20 or 30 years ago, yeah, maybe it was when IVF first started. But now with all the improvements we've made in the lab, and growing embryos out to blastocyst and single embryo transfer, we actually put together a whole presentation to educate them on one of the big risks that insurance companies have is multiple births. So they're gonna pay up front and reimburse you for an IVF procedure. But the back end risk to them is if you have a twin or a triplet, they're paying $150,000 in NICU costs for a twin 500,000 or more for a triplet. And that's really where the risk is to them. So what we've tried to do is position ourselves by saying, We offer more than 90% 95%, I think of our patients get a single embryo transfer. I actually calculated our twin rate and our triplet rate based on our start. So it's published information on SART and showed the insurance companies why we actually were a better investment for them than some of our competing IVF centers because we represented a much lower risk. One practice actually had a $3 million multiple birth, Nicu cost risk based on their published SAR data. And we add 750,000 per 100 patients. So I said to the insurance company, look, we should be getting higher reimbursement. Because we're our our success rates are good, maybe better and but to you are Singleton's that's what's important to an insurance coming to you whenever healthy single baby twins and triplets is actually it's not a good outcome for patients. Some patients think it is. But it's definitely not a good outcome for an insurance company.





Griffin Jones  32:17

I'm kind of mixing topics here. But in a article that one of our journalists wrote a few weeks ago is about the genetics testing labs, and some of those companies closing their Rei divisions. And one of the reasons had to do with a lack of insurance reimbursement. And I remember reading it one of the sources said that insurance companies aren't motivated to reimburse necessarily because they aren't the same insurance company that is covering the obstetrics. And they're so if there is a multiple birth, that well, it's not. It's not the same plan. It's not even the same company. So but it sounds like what you're saying is it is enough to motivate people. Where how often is it the same insurance company versus how often do they see it as somebody else's problem?





David Stern  33:07

PGT A, is not generally covered by insurance companies. And I think they still believe and I guess you could argue and that's probably a topic for another podcast, you could argue whether PG ta makes a difference for patients or not in outcomes. I think some people argue for older patients, it definitely makes a difference. For younger patients, it's probably questionable. But insurance companies typically don't pay for that the employer benefit carve outs usually do. But it's a really interesting dynamic to and I answer your question first, and then I'll tell you the kind of the interesting dynamic for doing IVF because the patient is doing IVF and then having the baby nine months later, after they start IVF maybe a year later, there's not as much switching thing the switching occurs if someone's freezing, usually in two years, if they have frozen embryos coming back, then maybe they had started with a different insurance company. People change insurances, you know, every year or two employers will change insurance companies. But I think in the course of an IVF and delivery, it's pretty close enough that for the majority of the insurance companies, if they're paying for an IVF, they're most likely going to be paying for that upset. Typical outcome. The P egta. Though what's really interesting and again, really illogical, is Massachusetts typically does not cover for pgti. If you're a Blue Cross Blue Shield, Harvard tufts united. So a patient has depending on their insurance plan, maybe three cycles of IVF covered or six cycles IVF covered, but not pgti. And that's an out of pocket expense. So an insurance company, you do IVF they will not pay for your embryos to be tested. That's an out of pocket expense for a patient which could be three or $4,000 of additional cost, but they will pay for those subsequent frozen embryo transfer. Have untested embryos and subsequent IVF cycles. So we have patients that say, I have a small copay for IVF. For my frozen embryo transfers, I have to pay $3,000. For pcta. When IVF is covered, I don't want to pay for the testing, I'll just go through another cycle if I have to, because that'll be paid for. So it's almost this strange when I say illogical, because the insurance company would rather pay for a whole nother IVF cycle with all the frozen embryo transfer cycles associated with it. Then to pay a contracted rate, they wouldn't give us three or $4,000. If that's our self pay rate, they would pay a contracted rate for PG TA and the insurance companies don't do that. So there





Griffin Jones  35:45

are times where they're outdated information or their lack of completeness and what they're reimbursing for hurts them to.





David Stern  35:54

I think you could make the argument that economically it hurts them. They make the argument that in insurance, it's very slow. For example, egg freezing, some states have egg freezing as part of the fertility mandate. Massachusetts does not there's actually a bill before the Massachusetts legislature to include egg freezing cryopreservation for cancer patients. But today that's not covered. That's not a pocket expense. And I think the reason is that insurance companies still see even though ASRM lifted the experimental nomenclature probably 10 years ago at this point, they still see it as experimental. And they see PGA is experimental. I want





Griffin Jones  36:33

to talk more about positioning to insurance companies. But back to the audit. There's something that's still stuck in my mind, which is how does a fertility clinic even know what they could bill for? Does a an insurance company have to give them all of the possible codes that they could look into? Like I'm thinking of if you had an inexperienced billing team, they might not even know that there's a transvaginal scan that they could be billing for that, which is why they're only submitting for the abdominal scan? How do they know what's out there?





David Stern  37:06

I think from a billing standpoint, CPT codes are pretty much is so CP na CPT 10 codes are? They're published and the CPT reimbursement is generally based on Medicare, Medicaid. So the Centers for Medicare Medicaid, CMS, RCM is published publishes here are the different CPT codes. And here's the standard billing. But the fact is we don't see Medicare or Medicaid patients. So oftentimes what they try to do is they say, Okay, well, this is the closest CPT code to what we're doing. And so we're, that's what they're billing for. There is actually egg aspiration as a CPT code, embryo transfer as a CPT code. So there are fertility specific CPT codes.





Griffin Jones  37:50

You talked a bit too about how the customer service has suffered since COVID. And that was actually a question someone asked me to ask you. So I'm gonna get better at getting questions ahead of time from the audience, because I get all kinds of Monday morning, quarterbacks, David, and I love my Monday morning, quarterbacks I love when they email me and say you should have asked this, you should have asked that. It's like, Well, okay, I've got that for next time. I think we will have something where I get questions ahead of time. But there was someone that I knew that was struggling a couple of people that were struggling with their insurance companies. And so I said, Well, I'm going to be talking to David Stern about this, what do you want me to ask him and they one of those people wanted to know, if you had any advice for how you get a dedicated rep, if you're a smaller practice, because this person said the same thing that especially since COVID, they they can almost never get the same person on the phone or a person on the phone at all. Do you have any advice for how practices get a dedicated rep?





David Stern  38:49

Unfortunately, I don't. And we don't have dedicated reps, we're dealing with 1000s, like literally 1000s of patients with our local insurance companies. And we don't and in fact, we've asked for that as well from our insurance company. And that one example I gave you, and I think insurance companies look at this, you know, their businesses. Infertility is a very, very small segment. Even in a state like Massachusetts or Illinois, we're still a drop in the bucket for an insurance company that has millions of lives, and their prior authorizations. You have to get prior authorized for any elective surgery, any procedure. And there's so many things that insurance companies now put the onus on patients to get approved before they pay for it, that you can probably imagine the amount of approval and paperwork that's has just been elevated so much that they can't have one person that just deals with fertility. I'd be nice. We've asked them for that. But unfortunately, that's not reality at this point,





Griffin Jones  39:48

even in Massachusetts, even with a group the size of Boston IVF.





David Stern  39:51

Even in Massachusetts, I don't think the size of the of the center matters because in the Boston area, we have five or six IVF centers is all working with Blue Cross patients and Tufts patients and Cigna, you know, united? I mean, and between all of the IVF centers in Massachusetts, I'm sure we're talking about 2520 to 25,000 cycles a year. But there aren't any dedicated. Not that I'm aware of,





Griffin Jones  40:22

how much does the tactics of making the case for reimbursement change depending on what your market share is, and depending on how big your group is, so you talked about when you made the case, for when you were only getting reimbursed, maybe 50 50%, of what a cash pay patient would have been able to pay. And you were almost at a point where you were at a point where you couldn't afford to be in that market. It sounds like you made that case for reimbursement increase successfully. But how much does it vary. When you're in a place like Boston or New England where you might have more than half of the market share, you've got you've got so many Doc's that if they didn't do that, they would be really in a bind with it, the employers that they're contracted with, because now all of a sudden, my employees can't go to the majority of the docks in this area versus when you're in a market where you only have a couple docks, and there's several docks in the area. It's a game of chicken.





David Stern  41:20

And we it's we actually weren't successful, we went to three insurance companies in upstate New York, we were successful with one, the other two we were not successful with. And we said, Okay, we will not participate in your network anymore. And unfortunately, and this is one of the things that I think is frustrating. And you have a state mandate, but you're in a geographic area. So you're in Buffalo, there's a handful of IVF went through IVF centers in Buffalo. So we we're in, we're not in Buffalo, but we're in Syracuse, and we're on Albany, and the closest in network for one of these insurance companies is Westchester, or Rochester, which is a two and a half to three hour drive for patients. To me, this is a major area of concern for access for the state, the state has said we think patients should have infertility coverage. But yet the insurance company is not going to be paying the senator, what we feel is a reasonable rate. And it's not just us saying it's not reasonable, we're comparing it to other payers. And so in two situations, we said, we're not going to continue with your network, the third one agreed to increase and gave us a 67% increase in our reimbursement rate. And I said to them, Hey, we're also negotiating, and we're walking away from these other insured regional insurance plans, you should go after their employers, you should go to their employers and say, we have a network Boston IVF. And this other company that you may be insured with just dropped them. So it's a way to position maybe one insurance company against another one. But there's also another dynamic and one of the dynamics that you see where you have academic institutions, is they have a much bigger base for insurance. And they have much more leverage than an independent IVF center, Boston IVF. We've got an affiliation with Beth Israel, but we are an independent IVF center. So we probably don't get the best reimbursement that a Brigham and Women's or MassGeneral, which have their own hospital based IVF centers get. So even though we have a higher market share, yes, we could say to one of our large payers, if you don't give us this increase, we're going to go out of network with you. And it's a question of, hey, if they're a very large payer, do you really want to do that? Because you're now risking these large volume of patients, as long as you're making some profit, and you have to decide individually, what's the right amount of profit? I think it's a balancing act. So we been able to go to our reimburse to our payers and say, we put a whole presentation together we said, here's the inflation. If inflation right now is six or 7%. And you have a 2% escalator in your contract. That doesn't make sense, right? So we've gone back to insurance companies and said, You have to give us a higher escalator because the market dynamics have changed the environment has changed our costs to hire nurses, embryologist physicians has gone up significantly. And we presented that data to them and we said since the pandemic, our our internal cost to run, the practice has increased almost 20% A 2% escalator just one cutter for us, and so we're able to negotiate with them to get a higher reimbursement rate.





Griffin Jones  44:58

So in the cases where where it is, it isn't even chicken in that, like you can't sort of way because the only place you can go into is a wall like in the case of upstate New York, when you're talking about the two groups that you walked away from, listen, we can't be in network with you. And you talked about a strategy for the third that did give you that 67% increases, hey, listen, you are the ones providing access these folks aren't and consider going after their employers. You're kind of passing that along to them. But I wonder if it does it make sense for some groups to build a relationship with the sales teams of the insurance companies, because that seems like it both in this particular instance, and perhaps some others that could give you some leverage?





David Stern  45:44

I think with a lot of the typical commercial realist regional plans, not as much, but absolutely for the employer carve outs, where you have an A, we do a lot of joint partnerships with, for example, a progeny where we'll have one of our physicians go into a progeny employer and do a fertility 101. For other employees, they'll video they'll do a webcast, they'll record it and make it available to their employees. And we think that's a great win win opportunity, because we've partnered with them as a carve out, and they want to let employees know that fertility is covered. And oftentimes, the employer that is hiring a progeny or a win is doing so to retain their employees, because they think that fertility is a good benefit to offer.





Griffin Jones  46:36

Were you talking about the example of Boston IVF, and maybe having to decide of, well, they could go to bring women's they could or they could go to another hospital system and, and kind of deciding based on the market share. And other factors, I had one person talk to me about what MSOs often say fertility networks often say, which is we can help negotiate better rates because we have more volume. And there's a for utility, Dr. Practice owner that I know very well in a major market that has a good sized group that everybody would love to buy. And so far this person hasn't sold. And I talked to this person about this particular issue. And this person said, Well, the way I see it is that it doesn't matter what scale they have nationally, it only matters the scale that they have in my marketplace, that if there's 40 docks here, and they they can have 50 docks nationwide. But if they only have three here out of the 40, here, they don't have any leverage with the insurance company in terms of being able to position for reimbursement increases. But if there's 40, Doc's here, and we have 16, in the entire metro, we have 20 in the entire metro, then we really have that that power. And so can you speak to that dynamic?





David Stern  48:01

I would disagree with that. And the reason I disagree with that is there have actually been situations for practices that we've acquired, that were not on insurance, and we've been able to get them on a national insurance in the center of excellence, or get better rates for them. Because it's like, you know, very myopic, you know, what you know, but you don't know what you don't know. And so from a rate standpoint, if we're getting a certain rate of reimbursement outside of their market, they don't know what it is. And I think this is one of the benefits that national plans can offer is if we're in different states, Ohio doesn't have a mandate, Utah doesn't have a mandate. But with we're on a UnitedHealthcare, or a progeny are one of these employers, that is not an insurance group that's national, we can maybe get them a better rate, because we know what we're getting paid. In the insurance mandated states. We know what's happening in that market. And we've got relationships with them. So I do think that there is an advantage there. I think the other thing, Griffin is, like I just talked about, I shared my insurance presentation with one of our network IVF centers. And so I've done all the work, I've done all the analyses, I've put this into a presentation. And all they have to do is at a local level put in their pricing. And all of it's already been done for them. So it's a value added service that I think we provide to our network partners, because we've done the work because we're living Boston IVF the mandate in Massachusetts been around since like 1988 or 1990. So we've lived in this world for a long time and know how to be more efficient. Maybe we know how to operate with the insurance companies and how to talk to them and speak their language and I think that is something that we probably have to offer that. That's why I would respectfully disagree with the opinion of that individual practice owner. saying, Well, what can these other networks provide me?





Griffin Jones  50:03

You talked about ownership of the same brand of insurance company being different in different states. They're almost completely different companies in some cases. But is there any kind of, and we're not talking about legality, but the equivalent of case law or precedent that if you've negotiated something with Blue Cross of Illinois, that when you're then talking to Blue Cross of New York, that you could say, Listen, this is what we went through with Blue Cross of Illinois. And this is what they did. And so do you do reference any kind of precedent? And how helpful is that? Each negotiation





David Stern  50:37

is a separate negotiation, and they have different models. One of the things that they often look at is, what is their regional differences? So the cost of living is something that obviously, you know, differs, if you're in upstate New York, or if you're in Boston, the cost of living is very different, will have we have different pricing as well, we don't have one network price across all of our locations. It's very much market dependent. So I think in that sense, you're going to negotiate based on your local market environment. But there are absolutely national ways of looking, I mean, single embryo transfer, PTA use cost of multiples, all of that doesn't matter where you live. So yeah, you could argue that while our NICU costs are a little bit cheaper, yeah, they're a little bit cheaper, it's still 20 times what it costs to deliver a single healthy baby, you can argue with that. So in that sense, there are definitely learnings that you can take from one market to another market. But it might be you know, different. I think a center of excellence model is probably more of a trend where again, this is something insurance companies haven't caught up with. When you look at a group like progeny, they have a center of excellence model, because what they do is they set standards, and when they're selling into an employer, they're basically selling standards if they don't control themselves, because they're going in and part of the big message that a progeny is saying to their employers is your self insured, we can help you protect the risk on the back end. So for them, they don't want to be going into a practice that's got a 35% Multiple birth rate, you know, or someone that's doing 15% single embryo transfers with a majority of the transfer has been double embryo transfers, because that's going to hurt progeny on the back end. And I don't know, you could ask someone from progeny, but maybe there's some kind of either incentive for them to have a high single birth rate or a disincentive for them on multiples, I wouldn't be surprised if that's an employer, kind of employee player benefit manager contract,





Griffin Jones  52:47

who sets the terms for the Center of Excellence designation, because I have heard a practice owner, not be happy about not being part of a center of excellence. And from that person's perspective, their group was left out that it was negotiated with the other group, and that it was deliberate, and there isn't really a clear path for them to be able to become a center of excellence.





David Stern  53:14

I think that's a big frustration for for centers. And again, being part of a national group allows you to go with more leverage to one of these car ballots and say, hey, they're part of our group. Can you put them in, but it's like anything else if you're in a in a crowded market, and there are six or seven IVF centers? It's, it's almost like a game of an employer, Carvel could come and say, here's a rate war, if you take a 20% discount in reimbursement, maybe you'll come into our network. And we'll work on you to improve the rates or work with you to improve the rates. I think typically speaking, each each carve out will set its own standards of what they would like. And we get report cards. I actually like that we get report cards every quarter to see where do we rank? What are our statistics, and then at a national within their network? How do we rank against the whole network? And I think it's a great benchmark for us to look and see where we're doing better, where we're doing worse. And, you know, we can we can look at that as a group and say, oh, you know what, most of them again, because we're in a managed environment, we're probably doing better than than most average.





Griffin Jones  54:33

I want to ask you about the employer carve outs and what that's like in negotiating with insurance companies versus companies who that's their main purpose. You mentioned something earlier when you said companies like Cigna are starting to do more of those carve outs and that made me think, why didn't they do that? More recently, I think about this often David, like how was progeny allowed by the Highmark Blue Cross is the Cigna as the Aetna as the United How was progeny allowed to even become a big publicly traded company? But like, it doesn't seem like they're I know, it's a small piece of all of the things that they do, but they're also not in the business of leaving money on the table, I don't think and it seems like they did. And that's how progeny and carrot and that part of kind body came to be. Why has it taken them so long?





David Stern  55:27

I think it's specialization. Infertility is very, it's a very specialized niche field, right. And so when you understand the field, and you see a basic need, and this is where, you know, progeny, carrot, you have innovation happening, and there was a need for it. And it was created. I was just at Reproductive Health Innovation Summit two weeks ago, and I was on a panel with David Sable. And David made a comment and said, oftentimes, innovation doesn't come from the large companies, because there's no incentive for them to innovate. It comes from disruptors. And this is a perfect example of a big insurance company saying why do I need to provide that? Like, yeah, if you want insurance coverage for infertility, I'll give you a plan that covers it. But there isn't that innovation, it's like, yeah, sure, we'll just pass on some of the costs. And here you go. And what progeny has done, what Karen has done with Maven, kind body, all of these have done is they've said, Well, there's a need for this. One of the things that they do well is they counsel the patient, when you have a patient that has just in a state mandate, right, one of our big local insurance United or Blue Cross the patient's drone into us 10 foot deep swimming pool, and they're thrown in and they're saying, hey, go swim. When they're with an employee benefit management group, they have a care coordinator. They're given counseling, they're helped walking through the process in a white glove type of manner. And the employer pays for it. But it's a much better patient experience than just like any insurance, you go to the doctor, the doctor says you need to have this done. And you're thrown in the same pool of anybody with infertility coverage, you got to figure it out, you got to call the specialist area network, RJ network, what's covered what's not covered, all of that, that's our insurance system. So the carve outs have done a really nice job. For those companies that say this is important. We're going to provide this white glove concierge service. And we're going to help you navigate those fertility waters in a much better way than a commercial insurance like a united does, or Blue Cross,





Griffin Jones  57:49

who you and Dr. Sabel are talking about here is the principle or the theory of disruptive innovation. It's the blockbuster Netflix dynamic. And I know that because I've referenced this book a couple of times I couldn't remember the author or the book, Dr. Eduardo Harrington sent it to me it's called How will you measure your life the author is Clayton M. Christensen, he's a Harvard MBA was a Harvard MBA that wrote the theory about disruptive innovation, what David and David sable are talking about, and I've left the book in my office now as opposed to down on my home bookshelf so that I can remember it. So I guess that satisfies me a little bit of how they you know, of how those big insurance companies have allowed that piece of their market to go. And I guess now that now they're responding that the disruption seems to have been begun up. So what's it like? What's the difference in negotiating between those, what we'll call carve out companies will compare benefits companies progeny carrot kind body versus negotiating with traditional insurance companies





David Stern  58:50

with the biggest advantage is that you're negotiating with someone that has knowledge about the field, and they can appreciate, you know, what benefit PGA may bring to some patients. Whereas when you're negotiating with one of the locals, they often are they're not an expert. The people you're negotiating with are business people. You're lucky if you have a medical director that's involved in the medical director oftentimes has no inclination of what infertility is today. They know it from when they were trained in medical school, many times they're not even OB GYN is one of the things you just said though, Griffin kind of reminds me of the Shark Tank, which I know you love watching. I love watching as well. But they're always you know, Mr. Waterfall always says, Oh, they're gonna squash you like a bug. But that's the whole point is these companies. There's a need in the market for it. And yes, there are large companies that could squash them as a bug and if they get big enough, maybe they will. But it's, they're like little nuts flying around for these big insurance companies. Infertility. If you think about if every patient in the United States there's 12% for infertility, the amount of we have 300,000 As an IVF cycle is happening, I'm sure the 2021 sar data will be higher than that, let's say it's 500,000 500,000 IVF cycles is still a pittance compared to what these insurance companies are dealing with on a day to day basis. So I think that's why we see until something works. And they're like, Oh, so this one large employer, Google, or Apple just carved out fertility benefits, and maybe that's something I could have, and maybe I could get more revenue from them by offering the benefit. It takes a while for them to figure that out.





Griffin Jones  1:00:34

Sometimes it has to be a big enough bug worth squashing, am I right? I think about Kevin O'Leary's analogy, sometimes I think of the old imperial model versus rebellions. Like if you think of the empires of the Mongol Empire, you have rebellions going on in every little town in every little kingdom, fiefdom, or at least the opportunity to and you can squash up Genghis Khan can go with his whole army, and obliterate that rebellion. And very often he did, but he can't dedicate to every single one. In fact, when rebellions were successful, it was usually because he was off squashing some other rebellion. And same can be true for these companies, too, is that there's probably infinite opportunity costs that they could be pursuing. And so they're, it's about prioritization.





David Stern  1:01:25

And what you see in the insurance field today, which I think is very interesting is they're going on buying primary care offices, and they're buying specialty practices, and they're combining them. Because I think what they feel is that's more of a priority for them to save money is to control the costs on that end, in primary care, or cardiovascular, these very large areas of risk for them. And infertility is still a very, very small area of risk for them.





Griffin Jones  1:01:50

Another practice owner wanted to know, what do you do when the employer benefits companies come in strong, especially if they're new, they might come in a bit stronger, they've just raised a lot of capital, they're not so worried about particular profitability, or they think that they'll scale but then they slash reimbursements in year two,





David Stern  1:02:10

I think it's like any insurance company as well, you always have to do a business analysis, and you have to say, is the benefit worth the downside? And so if they're coming in, they're slashing I think, in this market, honestly, where everybody's costs have gone up, where inflation is, you know, PERS, what, five 6%, higher than we're normally used to. I don't see how insurance companies, whether it's a carve out or anybody else can come and start slashing. I think that's the wrong model. Everybody's a business. You know, you mentioned progeny, there. They've been very successful. They're growing their revenues, they're reporting it. So you can see that if they've grown by a million additional employees in their group, and they're growing their revenue, how can they come and say, we're going to cut our reimbursement to you, when your costs have gone up. And they know nursing costs, embryology costs, physician costs, all of that has gone up, not to mention supplies. So I would, I would say, no matter what your market share is, I think you got to push back and you have to say, okay, maybe it's not worth it to be in that network. If you can't make what margin you want to make. You have to do analysis and analysis to say, is that business worth it to me, and if it's not worth it, then you walk, and you use your feet and say, I don't accept those terms. And you walk away and you make it up somewhere else, and you have a better margin, and you'll be better off from a business standpoint.





Griffin Jones  1:03:40

That's the advice that I've given people. But I want to know, if you think that it's bad advice, at least to the extent that I'm that I've given it and when I give it, David, it's with an asterix. This is not my core competency. And I'm kind of guessing. So I let people know that, but I've just give them something to think about, which is if you have an employer benefits company in your area, and only a handful of your patient base works for companies that they're contracted with, and you've got a big waitlist, and you're seeing lots of people, and they really are nickel and diming on certain procedures. And I have had clients and other people show in reimbursement comparisons. And again, not my field of expertise, but it's like wow, that is low. That's that's pennies on the dollar. And so I say if you're in that situation, and you've got the waitlist, you've got the market share, and there's such a small percentage of it, do what you say and be willing to walk away. Is it bad advice, though, if then that company does go on to sign 12 more employers in that area and three years down the line? We're talking they've got 40% of the market. My viewpoint has always been what well, then you just negotiate in the terms that you're in And then I don't think you're gonna get any, like loyalty points for having taken a really crappy deal now, but is there something that I'm being short sighted about what that advice?





David Stern  1:05:10

I would say that's probably good advice. One of the things that you mentioned which, you know, every every practice has a different dynamic, but if you have a waitlist, and you know that you've got patient a man, you don't know what that's gonna look like in a year two, three from now, who knows? Right? But none of us do. We don't have a crystal ball. But if you have those patients, I would say, it's better to take those patients and give them the best patient experience and hire an additional nurse, or, you know, hire an additional person to answer phone calls or answer questions and forego that contract. If you can't get the reimbursement you need. Take care of the customers you have, or the potential customers when you have a waitlist. I mean, that's a great situation to be in. So to say, we're going to now add additional patients into the waitlist and have less, less margin to do it. So we're going to skip because we can't hire the people we need to hire, then it's not a good situation for anybody in your actual I don't know that your results will suffer. Maybe if you can't hire an extra embryologist it will, but the patient experience is going to suffer. And in the long run that might harm you more than not taking that contract. We have covered





Griffin Jones  1:06:19

a lot of ground today. How would you like to conclude about what clinics need to know or what they need to make payers know in the in clinics relationship with payers.





David Stern  1:06:30

Griffin, I appreciate you having me back on. It's always a pleasure to talk to you and the time flies by I think first and foremost a physician who is running or owns an IVF practice and to think about it. You are a physician you're giving care. You want to help people have children and build families. But you also have to understand it's a business. And you have to understand and identify where are your margins in the business. And we've seen practices across the country. Some of them have fantastic margins, some of them have not good margins. You got to understand what are your expenses? Where's your money coming in? Where is it going out? At at the end of the day? What helped us was one of the first things I did when I came in as CEO is I'm out I met with our CFO and I said I want to know all of our reimbursements by insurance contract, because I want to understand who's paying us well who's not paying us well. What is it cost for us to deliver care to one patient and that was the first thing I said, very high level a patient comes in. Here's how much nursing time physician time embryology time, here's our costs to deliver care for an IVF cycle and IUI cycle Clomiphene timing intercourse, I want to know what my cost is. And then we can evaluate where we're getting reimbursed. So it's no different than any other business. If you don't know what it costs you to deliver care. That's where you can really get in trouble. And if you wait until your accountant provides the numbers of the end of the year, you could either be really happy or really set.





Griffin Jones  1:08:09

The Time does fly by David. But don't worry, the Monday morning quarterbacks will give me plenty more topics for us to have an excuse to bring you on a third time and I look forward to when we do David Stern CEO of Boston IVF. Thank you very much for coming back on the inside reproductive health podcast. Thanks, Griffin.





Sponsor  1:08:26

This episode is brought to you by Univfy. E mail Dr. Yao at mylene.yao@univfy.com. Or just click on the button in this podcast, email or web page for your free employer benefits tips and strategies. 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. 


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 fertilitybridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to Inside Reproductive Health.







177 More Than 1 New IVF Center Per Week: India’s 0-40% Fertility Network Market Share Growth



This week’s guest, Vinesh Ghadia, CEO and co-founder of BlackCap Equity’s fertility vertical in India, talks about the exponential growth and consolidation happening right now in India in the fertility space. How is it possible to have 60 to 70 new fertility centers per year opening, with no shortage of fertility doctors? Tune in to the the latest episode of Inside Reproductive Health to find out.

Listen to hear:

  • About the five to six biggest fertility chains in India, and the four to five that are on their way up now.

  • How India is averaging more than one new fertility clinic per week in the country.

  • What the US can learn from India in terms of consolidation, comparatively, where a network with 35-40 clinics is considered a midsize chain.

  • Why Mr. Ghada believes India will be the biggest market for growth in the ART space in the next decade.

  • What Indian fertility companies did to solve their fertility doctor shortage problem, and what they may do regarding the embryologist shortage.

  • What Vinesh thinks is causing the falling price of PGT-A.

Vinesh Gadhia’s Info: 

Website: Black Cap Equity Management
Website: Star Fertility Prive Ltd

LinkedIn: https://www.linkedin.com/in/vinesh-gadhia-56a00890/

Twitter: https://twitter.com/gadhiavinesh?lang=en

Transcript

Vinesh Gadhia  00:00

Nice Jean. But 30% of IVF cycles were done in the organized ci 16% clinic 3% in ownership 30% in cycles, at present as we speak 35 to 40% of India's IVF cycles are part of organized chain and the rest 60 person is still fragmented and organized. So starting from zero to 40, it only took one decade.


Griffin Jones  00:32

60 years 70 New Fertility Centers per year, no problem getting doctors imagine that that's according to our guests, Dinesh Gadea, who is the CEO of the IVF vertical in India and the emerging markets for black cap equity. He had been the CEO of RT fertility clinics. He had been the ce o of Nova, part of the Evie network or partner of the Evie network. And he makes that clarification finesse started in the IVF world in India in the early 90s, at the ripe age of 21. At a time when there were only four or five fertility clinics in the entire country. We talk about the five or six biggest chains and fertility clinics in India and the four or five that are coming now we talk about how more than one new fertility clinic a week on average is coming to be in the country. We talk about what the United States can learn in terms of consolidation because this is a marketplace where roughly a decade or so ago 0% of market share was under fertility clinic chains. And now 40% is in India and network with 35 to 40. Clinics is a mid sized chain, Vanessa is looking at buying some of those mid sized chains and consolidating them into a larger group. He talks about that and then I make him put in demographics in numbers and in figures why he believes that India is the biggest market for growth in the assisted reproductive technology space in the next decade. He talks about the scaling opportunities for companies growing into the fertility space in India and their internal rate of returns or expected IRR. Anyway, he talks about what Indian fertility companies did to solve their fertility doctor shortage what they're doing and might be doing to solve their embryologist shortage. And we talk a bit about career tracks for young fertility doctors, which I think is probably the biggest difference, at least that I heard in a short conversation between the United States and Canada. And what seems to be happening in India, according to at least this account in a very small conversation. And if we didn't talk about enough, he talked about the falling price a PG TA and why he believes that that is going to make the total percentage of cycles that use PG ta go up from five to 6% to about 25% of all cycles that are done. This little bit of coverage that we've done on the assisted reproductive technology space in India is only the tip of the iceberg for covering what's happening in that country. We plan to do a lot more of it. So I hope you enjoy this conversation with Dinesh Gardea, Mr. Gowda, the Nash, welcome to the Inside reproductive health podcast.


Vinesh Gadhia  02:52

Thank you very much Griffin for having me. It's an absolute pleasure and my privilege to be speaking and talking to you on your podcast. It's very interesting space. For me and us. I think it's becoming interesting space for millions of couples in India and globally. Thank you for having me here.


Griffin Jones  03:09

I think it's becoming an interesting space for people that worked in the fertility field all over the globe. And I said to one of our recent guests Dr. GHOSH dusty Dyer, that 5% of our subscriber base comes from India, people that work in the IVF field in India. And previously to that episode, I had never created any content specific to the marketplace in India and I look forward to covering more this year with Dr. GHOSH dasa, we laid the groundwork of the history of IVF. In India, how some practices are set up there, you have a lot of experience at the home of some larger groups. And so I'd like to talk to you about the history of some of the large clinic groups of the business landscape and then what you see as some of the unique scaling opportunities and challenges. Let's start with the clinic side, can you walk us through the history of the large fertility groups in India, who are they and how did they come to be


Vinesh Gadhia  04:10

when we talk about fertility groups is more about organized change of IVF clinics in India, but to just to understand my narration in in detail, I would take a little bit historical background on how our as a country we have evolved. I have started working in this space in early 90s. This is my 30th year in IVs space from Day Zero Day One of my professional career at the tender age of 21. I fell in love with this space because it's something that helps to create more happiness and I'm the author in the universe in early 90s. In India, fertility infertility or fertility was considered as personal shortcoming and it was considered as destiny it was neither accepted as medical treatment or Medicaid disease. And and most doctors I would say now 85% of gynecologist who are treating infertility did not have a chapter of infertility in their final year of master's in gynecology. So that was the state and I come from that background where I've seen this industry growing from ground zero. So, very few IVF clinics in early 90s, maybe four or five, and then it started growing towards the end of the decade, early 2000 is where infertility treatments started becoming a little popular amongst the patients and also wants the doctor I have been on pharma side for 16 years kneading and launching large IVF business from the pharmaceutical companies and I crossed the bridge in 2011. When I came towards the service side, I was one of the founding member of India's first organized IVF chain backed by a private equity company. So, it was only in 2010 Later, large fertility groups started coming into existence. It was a group of venture capitalists and private equity in healthcare business. And they thought that possibly IVF is complementing to the naked healthcare model. It was it was group of venture capitalists and backed by one large private equity. They reached out to one senior doctor in India, Dr. MANISH banker, and Dr. banker and me used to be very good friends because I was from pharma side and he was my key account. He reached out to me, we went and did a presentation to the board about business case and scientific case. And we started we worked three months on the strategy board on the ground zero business plants and also in business model. And then started our first step is India's possibly the first ambitious plan for a large fertility Qi. What did


Griffin Jones  06:47

you have to prove at that time? Dinesh, what did you as you're building the business plan? This is something that is pretty new to the venture capitalists and private equity partners and you're working three months on this business plan, what did you really have to focus on to prove in that business plan?


Vinesh Gadhia  07:05

Very interesting me nobody in during that time in India believed that this fragmented Doctor owned IVF clinics, this market can be organized, the biggest challenge was to present the business model to the private equity and the board. And one of the interesting fact which I was driving and and there were not many takers in the boardroom also, is that we will launch a PRK IVF business first time in India, where in the IVF clinic we will not have any neighbor room. No guyhnic practice no obstetric practice, because what investors were thinking is that if we if and once we grow IVF business, we have readymade pregnancies from our IVF business. So we will do delivery business also, let's birding business, where I was very sure in the model that it has to be pure plain I had my logic ended. Second from where to bring patients in India. So the belief system was that it's word of mouth. And I was very, very sure that because infertility is not talked about, there are meats and taboos, there is stigma around it, people take very few people first come forward for treatment. And people who get positive results don't speak about IVF amongst their friends and family. So word of mouth is extremely slow. It takes very long time to develop business on word of mouth. So I had why business plan which was based on a very new concept of meeting 1000s of gynecologist convincing them to refer a patient to us and the business model. So there were a lot of challenges. There were too many no naysayers that did not work. I think in deep in my heart and along with the Medical Director Dr. MANISH banker and his partner, Ravi Patel, we were convinced that this will work. It took heart time to convince the board. But the first step was defining I think in business model.


Griffin Jones  08:58

You had your reasons for wanting to go the pureplay IVF route when other traditionalists may have also wanted to include obstetrics, what were your reasons that you felt strongly this has to be purely fertility treatment.


Vinesh Gadhia  09:14

So Griffin it's very interesting if you if you analyze the full funnel approach, millions of couples in India suffering from infertility majority I'm talking about 2010 majority believes that their treat they can be treated by astrologers by cracks and they would of course, I'm a God believing person so they would go to church mosque temple. My belief was that if you are a God believing person suffering from infertility, which is a who classified medical disease, you have to fight God in a doctor an immunologist, and not in the temple because you will not get a cell there. Out of that few million couples who would not even come for medical treatment, the large segment of the funnel, who accept Did and understood in and largely in urban area that it's a medical issue. Sadly in India it is still considered woman's problem medical it's a couples problem. So, so out of these millions of couples many are most of them accepting it medical disease but woman's problem will go to gynecologist so 70 80% of infertile patient in India even today will first go to gynecologist medically right or show because GYN they can treat majority of infertility and not everybody requires IVF so, why in gynecology see 10 patient of infertility two or three will require IVF but they will not refer because the standard on IVF clinics in India are also doing obstetrician birthday. So basically it was not referring but it was losing patient to a competitor or your colleague right to get my point. So this ref net ne identify identifying patients requiring IVF we're never referring to another IVF specialist because the patient will never come back to the doctor because they themselves are competiting to the birthing and upsetting business. Now it took very long time, a long time for me to convince my board and my investors that the majority of untapped potential in India is live with gynecologist so we did a small Deep State study, meeting 500 gynecologist 500 is small in India and asking them do you see infertile patient? Do you see patients who require IVF? If yes, whether you refer or not. 100% doctor said that they get infected patient 90% of doctors said they have patients who need IVF. All 90% said we don't refer when we should why. So when we refer a patient, we lose our patient. Second, we don't believe IVF is great results. Third, we believe IVF is expensive. I had presented the study to the to the management and saying that this is where they can work. And we can explore untapped potential, get patient for our need, not from other IVF center because that's very small. But from the market, which is not, which is not tapped so far. So we were we were getting into an untapped potential of the IVF business. It took six months one year for me to prove that this is the model which will work for that business to come in from referral network or from gynecologist referring to IVF specialist, we cannot compete with them. So we cannot have no neighbor whom in our clinics we cannot do badly.


Griffin Jones  12:35

So you finally are able to prove this concept to the capitalists behind the private equity that are investing and you and Dr. MANISH banker ostensibly get your business proposal accepted, then what happens?


Vinesh Gadhia  12:51

So we started with the first clinic of Dr. Banker acquiring the clinic. And we had a very, very ambitious plan of starting a chain of 25 clinics doing 10,000 cycles in a in a year. When I used to say this to industry experts in India, and also across the world. I used to attend global IVF conferences. Yeah. Most people used to not believe it that this is possible. Half of them used to laugh not in front of me but behind me.


Griffin Jones  13:20

How many cycles was it that you were a plan


Vinesh Gadhia  13:23

was to reach 10,000 cycles in a year.


Griffin Jones  13:26

And that was laughable at that time.


Vinesh Gadhia  13:28

Nobody could believe that there was no group doing 1000 cycle. So when we were presenting our plan, most people thought that it's on paper and cannot be executed or it's difficult to give life to this pen. So we did our first clinic in Ahmedabad which was a brownfield acquisition. Then we started creating Greenfield clinics, hiring young doctors hiring young embryologist, a very young business t, which is sales and marketing and the ops team. And we progressed when, in the first three years, we really ignited the market growth. There were five change slots, which are now changed which were launched after success of Nova. In 2015. There was an EY report white paper on IVF potential in India, which was published by Ernst and Young, which which shows Nova IVF as the leader in the industry with nine clinics doing highest number of IVF cycles and having best in class students. I think if you asked me that was the igniting point in India, where more groups started investing shattered and visualizing the plan and from from practically zero organized business in 2020. In India we have about 35 to 40% of IVF cycles which are with organized change and now there are several chains in India.


Griffin Jones  14:50

You live in Mumbai did your original financiers also come from Mumbai? Did they come from other parts of India? Did they come from Spain? Did they come from other parts of the world? world where were the original people that bought into your idea with their dollars come from


Vinesh Gadhia  15:06

the first seed investment came from an American venture capitalist GTI capital, global technologies investment. Second major investment came from a, again a venture capitalist from us, any new enterprise associates, third came from Middle East, which was born exist, it was submit a Middle East based venture capitalist. The turning point was when we launched our fifth clinic, Dr. Banker also realized that to run one clinic of excellence is a different ballgame. But to run a chain is very different in terms of having all the standard edition inishbofin protocols in place, so we got in touch with world's largest chains, which were based out of Australia and Europe. And we finally zero in partnered with Spain, which at that time was also needed in the world. So Evie spent came as our technology partner and after that, we got Goldman Sachs on board as our private equity investment leading investment was was from Goldman, which gave us a lot of confidence on our modern on our progress, which was made in in the first couple of years and gave us definitely a ability to invest in quantity and in infrastructure and standardization. So, we took off from from Ed coming in and Goldman coming in. So there were basically five investors put together it was also backed by one individual doctor from Bangalore as a promoter along with the CD and Misha Doctor nationality. So, we had good mix of venture capitalists and private and large private equity like Goldman Sachs.


Griffin Jones  16:48

It was so as Nova is growing and then eventually merges with Evie in Spain and is financed by Goldman what what other groups are merging? You said that five other chains came after Who are they and when did they come about?


Vinesh Gadhia  17:03

So I would just clarify that it was never a merger with TV Evos our technology partner we had a royalty agreement with them and a sweat equity diverse chatted for or whatever they were helping us and they were very valuable partner for our quality improvement in their IVF currently India's largest IVF Qi one of the largest in the world, there are more than 100 Plus clinics across the country. And they have they have done some very very I would say phenomenal execution of of plan entire to tie efficiently largely was next they started their journey from a very small town in India you know the poor which is in upper upper west western region. And after naoise initial success Indira started expanding when there was another health care healthcare group, which was Manipal health, which is again eat today also is number one number two health care group in India they folded into IVF with a chain called encore Manipal there was another encore player in India backed by private equity their company name is healthcare global at CG they forward into IVF chain called a teaching the lab the biggest healthcare group in India is Apollo Apollo forward into IVF shade or depo fertility at present as we speak, in last three years in spite of COVID time, there are four or five new chains which are launched in India and they all are expanding, expanding robust and doing investment of millions of dollar in north there is a new chain which has come up with 16 connection as to your CKB luck, there is a chain in southern region called 49 Do we have seven clinic there is a chain in southern most state in India and Kerala HRMC there is you name it and in India you will find find them mid level change chains. And it just took off. And as I said in 2016 17 16% of clinics were organized part of organized change. But 30% of IVF cycles were done in the organized change to 16% clinic 3% in ownership 30% in cycles at present as we speak 35 to 40% of India's IVF cycles are part of organized chain and the rest 60% is still fragmented unorganized. So starting from zero to 40. It only took one decade.


Griffin Jones  19:42

What do you think is going to happen in the next decade? And perhaps before I ask that you may have answered my question about consolidation but maybe not so 60% of the market is still being done by those clinics, not within a network. In the US and Canada networks are running out of clinics to buy and it's not because they've consolidated all of the clinics, there's still plenty of independent clinics, but there aren't so many 4567 etc Doctor clinics left in the US in Canada that are independently owned. Is that problem on the horizon yet in India? Or do we have a long way to go before we run into the problem of not having enough sizable clinics to buy


Vinesh Gadhia  20:28

very in cushion Griffin again, some demographic detail piece today across the world we talk about India being the growth engine of the world economy IVF is also very similar or even better. India has highest young population in the world. As of 2010, we had 247 million couples in reproductive age, as of 2010, can you imagine in 2020 are expected we still have to do our population census which we do once in 10 year because of COVID. This time, it was delayed in 2020 10 years later expected couples in reproductive ages 434 million from 230 to 47 to 430 4 million. It's a huge demographic shift. Even if you consider same infertile patient, which was recorded and published by Indian government in 2010, acknowledged by EY report in 2015, which is 9% infertility, it has increased in fertility in India, but even if you consider safe from 30 million infertile couple in 2010, we are now 62,000,050 2 million infertile. So, we have a huge demographic dividend ifcn population in the world highest one of the highest urge of parenthood in the world, which is not there in most developed countries in India. I would say 9.9 out of 10 people in their in their young age will get married and nine out of 10 people will opt for becoming parent. It's a societal cultural strength in India that we are very high urge of parenthood. Now, highest in population highest urge of parenthood, but ever changing lifestyle. There is a published study in fertility sharing dream it's an indoor Spanish study done by Nova AV Indian woman peaks fertility potential at the age of 25. Whereas in Caucasian woman, its fertility potential at the age of 31. There is an inherited genetic and difference of six years. Why concerning we used to marry early is because of this. Now, while we try and copy western lifestyle, our genes don't change. This brings very high burden of infertility in India because we are now marrying late in India, copying western lifestyle, whatever genes remain the same. This all put together even if we have 2000 plus IVF clinics now. We do 250,000 cycles in India now, which is number two, number three in the world. We are still under 10% of the real potential so far as the market which looks very big, but we are just taking off. answer to your question. Our cruising altitude or saturation is 1015 20 years away. So current growth in agribusiness is launching new clinics launching new chain every week. We add 60 to 70 IVF clinics every year, which is one clinical week. So consolidation in India as I would say, just from where I am seeing it is just beginning. So we have 1000s of clinic in India to vie shortage of IVF clinics to consolidate or IVF chains to get consolidated. That shortage is 10 years of at least 10 years away. Because we have a long runway in front of us too.


Griffin Jones  24:10

Is it more common to consolidate clinics? Or is it more common to start a clinic de novo if we're one of these six or seven chains? Are we more likely in the course of a year? Are we buying more independently on clinics and bring them into our group or are we creating more clinics de novo


Vinesh Gadhia  24:30

so all the chains today including Nova Indira Mila Apollo 14 Nine PRMC you name all the chains I would have missed a couple of names sir I'm sorry about that.


Griffin Jones  24:43

I do I always miss a couple of names initially I know that a couple people will curse me and and maybe your contemporaries will curse you for leaving them out too but welcome to The Club.


Vinesh Gadhia  24:55

So all of them today are are are launching in you Kleenex organic, because that's that that's enough market for everybody still to be tapped. I would I give you once very small I mean, not inside example. So I am at present working on an IVF platform story where I am in discussion with four or five mid, mid level organized chain to acquire them for the platform. And my strategy is to buy and built by four or five chain that is certify 40 clinics and wait maybe 3540 clinics in next seven a year and have an exit insight in 2030 or 2030 278 years to 10 years of business plan. I think even though I started looking at some assets is they want to add to their portfolio. Choi is Indira and other chain. This has just begun in last I would say sick since 2022. Largely because now there is an ARD regulation in place. So government has passed ARD Regulation Act. And because regulation is enforce many single doctor on clinics believe that it is better to be part of organized network where there is a bandwidth, there is management bandwidth, there is professional handling of all the department including quality departments and audit departments. So that when there is a regulation in place, there is better bandwidth to handle the larger business. Also, it's just last one or two year, most senior doctors are many successful IVF clinics, led by doctors have realized that organized chains are growing much faster compared to single doctor on clinic because of the management bandwidth and because of capability of investment. So they also started believing that joining hands with an organized chain. Current chain is basically a good idea. And it's Win Win partnership for both. So the word consolidation just started shortage 10 years away.


Griffin Jones  27:01

I'm catching my breath because this is a order of magnitude that we haven't totally seen. And when I'm seeing my colleagues, LinkedIn posts of them visiting Indiana I'm seeing this more than I've ever seen it before, partly because no one could travel for two years, but also partly because something's clearly happening in the country. And you're starting to give numbers to that story of what's happening there. How are you getting doctors in the US and Canada people are consolidating, but then they're running into challenges, staffing them with REI, as I talked with Dr. Bheeshma pushed us er in that episode, that's the REI fellowship doesn't exist in the same way in India that it does in the US, but how are you finding enough physicians to be able to staff these programs?


Vinesh Gadhia  27:50

So good. Again, anything you asked to me? I sound very ancient. It's very interesting possibly because I love to speak about IVF business in India. My first designation in an organized chi no IVF was Director Dr. empanelment. Because the my it was the same question. My private equity investor or my board believed that finding the doctor will be difficult. Recently I was working with the art fertility clinics again a Middle East based very high quality IVF chain again backed by a private equity capital. When I was sitting with the board before joining presenting my business plan, the only question was asked to me by the management team of Gulf capital is that from where would you find out? So all questions are similar my answer is very, very simple. In India, they have 40,000 gynecologist for zero 40,000 highest number of medical consultant across the world. We are blessed with talent in our country. Out of these 40,000 gynecologist 10,000 diagnosis actively practice infertility and all of them aspire to become a specialist. In India, we have plenty of organized chains who are doing fellowship course starting from three months to six months to one year to two years. Some very good fellowship course which are led by Milan Dr. Kamini route and led by Dr. Norma the shockcraft. Very very good fellowship course led by EV along with Dr. Banker in Nova. Fellowship courses are done in small chains with mid level change even in 49 Even in Oasis. Now to train a gynecologist who is already doing good level of surgery, incision injections and large endoscopic surgery, on skills for own pickup is if you ask me, I don't know if doctors will like listing this. It's not difficult. It's a three month training. A gynecologist who is already practicing Infertility can be trained to become a specialist. We have enough plenty of one year courses in India. So there there will be no challenge and I'm repeating no challenge in finding good is specialist key like a specialist. Absolute No. The challenge will be in finding right embryologist we never had any university in India who offers embryology nobody in India understood the potential of requirements of embryology which will come money fall. The Health Care Group which I referred before started IVF chain is one of the most reputed medical university they started embryology course, seven, eight, maybe nine years before but they were they were giving six embryos a year now, I think they are doing some 20 or 30. Now, in India, there are six or seven universities who have MS in clinical embryos, but it is thin skin shortage in India. Severe skill shortage is embryologist, not doctors. What can


Griffin Jones  30:54

be done to solve that embryology shortage Can the same solution that was done with the chains themselves starting these three month to two year training fellowships Can the same clinic networks also create the infrastructure for embryology training, because if you're creating at least one fertility clinic a week in the country, and it sounds like with six or seven embryology programs at the university, and maybe a couple others that you're not on pace to fill that clinic growth with embryologist staffing the labs behind them can the clinic networks offer the same training that they did to cover the DR solution.


Vinesh Gadhia  31:37

In 2013 14 we when we were on the journey of a very robust growth in Nova, we realized this challenged that we cannot depend on acquiring empanadas from market. First thing we did was we joined hand with the first university and we used to offer internship course to all the students of Manipal who are passing out MSc in embryology and we used to have the first look at them and do and pick up the best talent from that but that also not enough. The alongwith EV Kochi co curated 180 day course for a master's in life science student whichever which which you can find in plenty in India. And we had 180 days of logbook training program co curated supervised by embryologist from eenie so we created our own bench strength and we never face shortage because of these two things, join hands with universities and took all of them as our intern and absorbed most of them as trainee in our in our clinics and out of our say Soviet 19 clinics one and I when we divested to TPG 910 large clinic can have two embryologist anytime which can be trained in our logbook training program supervised by EB so we created our own band strength in there actually cracked it even better. They have a company training school in their headquarter for Dr. And Mr. Rajesh and they have a crash course of three months. Any ml Masters in Science student can be trained under simulators, excellent training ecosystem, very documented, they churn out their own embryologist and own doctors IV specialists. So two large chain wide Indira cracked it very well. The way forward is either all the chain have there is one clinic as their training training hub, take science students in India, which are available in plenty and trade create a training ecosystem. Second is I mean, I have this dream in my mind that we should have a school of embryology in India having 50 100 students every year of coming from science master's in science and we have best of the minds in the world who can be brought in as faculty and we can develop a very robust training ecosystem in India. I mean, we have students from Oxford University in India, many from Oxford doing MSC Ammirati that we have students from Monash University in India from Nottingham from ICL from UC and you name reputed universities offering MSc in embryology. We have students in India from the who are practicing embryology. So it's high time that in India, we create more infrastructure for embryology training program, which is very doable.


Griffin Jones  34:35

I would say it's high time as well, because there could be another vulnerability that there's already an embryologist shortages in India. But what if some richer countries namely the United States figure out their visa mass that they have been struggling with the last few years? What if they figure it out and say okay, we are going to start taking this seriously and get some more skilled people from the sciences. With embryology being a focus, then you would certainly want to make sure that you had enough embryologist, if something like that would happen.


Vinesh Gadhia  35:08

I think you are giving secret sauce for the US IVF industry. I was talking to one of colleague in IVs business in us about a month before. And I was saying that they keep seeing me that we have a shortage of embryologist in us. And I said if there is a special visa visa for embryologist in the US at least I know 100 People from India will apply. So I completely agree that if this happens, so there are many embroiders in India, who go to UK and to Canada but not in us because getting visa is not east,


Griffin Jones  35:42

our embryologists able to buy into the equity of clinic groups.


Vinesh Gadhia  35:50

Wow. Again, interesting point, which has a strong belief system in India. Now, with more it becoming organized with more shortage, the venue of employees have increased in the last five years recently. Not to the extent of what that they can buy equity or they are offered Aesop's in India still. But I strongly believe that it's not a very fact that this will happen in India, because it was largely a doctrine lead. And now I think, at least in organized ecosystem of IVF the value of embryos this is when understood, still not to the level of being a critic. But


Griffin Jones  36:34

how does the track look for young doctors? Are they buying in at the practice level that the local clinic level are they buying in at the network level are both happening neither happening? What does it look like for young fertility Doc's


Vinesh Gadhia  36:50

a young guy, Nick Norris, who is doing birthing practice does not have work life balance in India, it's a huge business, and potentially very high because we deliver the highest number of babies in the world. So I don't need to dive deep dive into the numbers. There is a current trend in India, which is changing that the young inequalities who are who are passing out, they want, they are the current generation, right. So they want work life balance. So they we have more and more doctors who want to be in IVF rather than going into birdie. and taught them if they want work life balance is a fixed time job. And there is an men management ecosystem. Well, well trained operation staff, well trained nurse so that once the name clinic, they don't have to keep bothering about anything. So the young talent, who doesn't want to be in birding practice, but in IVF, are more attracted towards organist because you have a better work life balance. And you can learn and you can grow in an organization, you can learn a lot of things.


Griffin Jones  37:58

So younger dogs might also not have the leverage or the focus, or there's other things we offer that they're not totally focused on buying in yet. What about those that are medical directors? How are those folks building their career, so you have a number of OB GYN who are just simply happy not to be practicing obstetrics, they're happy to have office hours, maybe make some more and be part of the growth, it's happening within their continued education as well as in the field. But then you're going to have some of those that are deeply entrepreneurial. And they say, I want to start a network, I want to become this chief medical officer of this network, what are their career tracks look like?


Vinesh Gadhia  38:39

So in an organized setup, there is a structure in place where if you're heading a clinic, so in clinic, the the org structure is that there is IV specialist, and there is a medical director, or the or the chief, the cdmos doctor in the clinic. And there are a large change which are shaping up in India. So there are regional directors who look after five, six clinics, they also practice in one of the clinic, and they look after as leader in in five, six clinics, around 10 to 15 doctors, and then there is a national medical director. So there is a career path for a doctor to grow. But at the same time, it's not very clear. It's not very visible. For a doctor to like any other employee visionary, there is a very visible career path. For a doctor. It's not very visible or not very easy to grow in the career. Most doctors in India tend recently believe that increasing that practice and increasing their commercial take home is that growth, not they never look at career growth of handing more clinics or being in leadership position. I would say in the last 10 years it has started evolving, but still it's not very established. So for a doctor if they're doing five cycles, 10 cycles a month, it grows to 25 a month, or it goes to 50 a month. So their professional growth is more work. And they take home more money, rather than growing up in the ladder, that desperation not many doctors have in India,


Griffin Jones  40:16

I can hear a lot of American doctors groaning and saying, Oh, don't worry, nice, you're gonna have to deal with this problem. 10 years down the line when they want all of it and the American doctors that grew up with the career path that you just talked about and worked really hard on it sometimes feel that some of the younger doctors now want to skip that path and move into where they are. So that'll be a barrel of monkeys that comes as part of the fruits of the labor of having a growing market. It's a it's a good problem to have, I guess, because that means that the companies and the marketplace has gotten to a certain point, I want to ask you about other growth challenges. But we've spent a lot of time talking about the clinics, I really wanted to have that understanding tell us what's going on elsewhere in the fertility industry. In India, we talked a lot about the network's coming up, how 10 years ago, they had almost no chair of the market today, they have 40% of the market, there's a lot more growth, there's a clinic happening at least once a week with 60 or 70 a year. But what's happening on the industry side genetic testing lab manufacturing pharmaceuticals, what artificial intelligence other things that I'm not even thinking to ask you what's what's happening on the industry side.


Vinesh Gadhia  41:37

So India, as a country is the to date in adopting new technologies. What has changed in the last five years is adoption of fitness systems by 234 chains in India, which is an onshore alarm systems. Genetic testing in India is a very interesting curve, it's going through a very interesting curve from nothing about five, seven years before. Today, it's about 5% of the cycle, genetic testing. Now, very quickly, I will I would, I would try to address this as a patient if you have for for good quality embryo slash blastocysts. And if you what, what is the dynamics in India, I'm not saying scientifically what is right or wrong. If I if I if I offer patient genetic testing that out of these four, which is the best embryo which I can transfer to you, so that you are time to pregnancy is reduced. And we identify the best genetically the most normal embryo where a patient believes that if you transfer two out of four, if I don't get pregnant, and the next cycle in frozen embryos transfer, you transfer the remaining two. So what is the advantage of going through genetic testing where I'm spending so much of money. So it's difficult in India because 95% patient pays out of pocket and the cost of genetic testing. When we launched the first genetic test India, which was Evie company launched through novice legal entity, it was as good as one IVF cycle, it was very difficult for a patient to spend four to IVF cycle for genetic testing other they will, they will, they will do more frozen embryo transfers. Now the genetic testing percentage is going up, the price of egta is going down once the surprise of PGT even match to the frozen embryo transfer price which is very close now. This will suddenly flip it's a tipping point from the current five 7% of cycles undergoing pcta It will go up to 25%. By next five years is what I believe. Now there are 10 companies who are offering genetic testing. There are good pgti models available in India. And the pricing is going down as the number of testing is going up. We are still about a year or two away from the tipping point is what I believe I keep advising to some large global companies that this is a great business opportunity in India. If you can burn money for one or two year or not earn much one or two year. This one's cake. This is a business of scale. about artificial intelligence. Two companies are launched in India to change they're adopted as a trial method one is embryonic another is nightmarish but I think it will grow it will start going well. Genetic testing artificial intelligence sickness system alarm system, standardized high quality lab protocol I think are now prevalent in most organized CI but it are these are at very different levels. If I can speak at fidelity in India as only six clinics, it is based out of Middle East backed by private equity is at a very different and noon, if you see any arts fertility clinic you will not feel any difference between the clinic in New York, London, Tokyo or India. Indira Noah up to the notch of international standards, other chains are following to that standard. So over on lap parameter quality parameter or standardization, IT infrastructure is being growing very fast in India but led primarily by organized cheats.


Griffin Jones  45:26

What's causing the price of PGA to drop?


Vinesh Gadhia  45:30

It's basically sequential know if you are if you are running more sample in one cycle, it will reduce the cost per sample. I'm not a genetic specialist, but I can in business sense I know I was one of the member who had developed the Strategy Board for first genetic company in India, which was EVs company, it was known Evie omics at that time. Now, it is very popular e genomics, why it's no money the company now show the more tests you do, your fixed cost remains the same. And your consumable costs remain the same. Because it is cycle of sequencing, it will reduce the cost of testing for that provider. So you can offer less cost to the IVF service droid. Are the


Griffin Jones  46:15

networks doing deals with the genetics testing companies to be their either exclusive or the preferred group. And so when you talk about scale, is there a risk that of not winning the scale game because I think of in vitae, closing their fertility division and some of for closing their fertility division. And they talked about lack of insurance reimbursements in the United States. But another thing that people talk about is that they're losing the game of profitability with the MSOs with the network's than the network's are negotiating deals that are ultimately not profitable for most and so they have to lose money, as you said for some time, but maybe they can't do that. Maybe it could could have been the case that in vitae couldn't do that, that semaphore couldn't do that. So is that is it a dangerous game to try to win. And I'm not just picking on PGT companies here, but really anybody that thinks about scaling in this way and thinks about having to lose money for a little time, that's always a risk is that risk greater in India that you you don't actually win and you just lose money and go out.


Vinesh Gadhia  47:32

So, you take example of numbers 250,000 cycles growing at 17 18% CAGR, we will be about half a million cycle in next five year expected to be million cycle by the end of this decade. From current 5% of genetic testing VG da it can go up to 20 25% which is largely still less less less compared to Japan or us or most of the country. The scale is is phenomenon in front of any genetic company now, where if your mix was launched in India, when it was an Eevee company not not invested by private equity after that, it was some private equity now, it is vitrolife company it broke even company level and second year most genetic company in India new companies are also making money even today. So, at 20% more cost per genetic testing compared to a frozen embryo transfer in India 20% More mostly genetic company and making money. What I'm trying to say is there if they bring down the cost and allow the market penetration to go up, and it crosses a tipping point of equivalent cost of frozen embryo transfer, this will boom it will go up phenomenon the company which can do this is Cooper fertility, they are a global company they have about close to a billion dollar revenue now highly profitable, they are still not launched their pgti model which they have launched in Europe and US in India now keep and keeps the question that if they can bring it x price and still either make very less money or no money, if not burn the skin and and tap into large groups who will ready to a pledge X number of testing. It's a good model it


Griffin Jones  49:27

Cooper's not in the business of losing money. So seems like they may not have figured it out yet. And I wonder is there a different model that these companies can do? So they you talked about the scale which is enormous and unprecedented anyplace else in the world? He talked about 243 million people of reproductive age, I believe it was over 50 million people who need assisted reproductive technology. Nine out of 10 of the young people are going to want to have children even at as their maternal age advances so that the scale is there, just the pricing model need to have these networks in place in order to be able to put forth a model that works for them to like, if we sell 100,000x, then the price is a if we sell 100, if we sell 1,000,000x, and the price is B, if we sell 10 million, then the price is C do that, is there a gradient model that they need to be able to work on in order to be successful? And do they need the networks to be able to do that?


Vinesh Gadhia  50:34

I think what you're seeing is is very right, at just let's take an example. Today, the one of the chain, which which say for an example, I'm reading a chain, it is doing 5000 cycles, IVF cycles, and we are doing genetic testing of two or 3% of patient at x price, I can go towards genetic service provider that at why price this to 3% Can I can pledge 10%. And there are five chains who can come together to work on the table, and pledge, all put together a huge number of genetic testing in one year, which is more than the total country which is doing a survey spread provider, a global service provider, it's a very good business model. It will help industry to do more testing, it will reduce time to pregnancy, it will reduce the current abortion, it will improve results. And it will help industry both the base and then I think there is no written it's a it's a it's a patch which will then go robust towards growth.


Griffin Jones  51:36

But as you've been a wealth of information during this conversation, you walked us through some of the history of consolidation in India, the formation of networks, the early days with private equity, the training of fertility doctors, and somewhat and soon to be more so embryologist, the expanse of the demographics the expanse of growth from clinics, you talk to us about the scaling potential that industry side companies have PGT just being one of those examples. How would you like to conclude with our audiences, mostly US based but it's increasingly global increasingly from India as well? How would you like to conclude about your prospects for the future of the marketplace?


Vinesh Gadhia  52:24

So Griffin I really strongly believe and I think everybody in the world that would have to have a great business. What is required is right market condition. Right capital, right people? Right? I don't think timing can be better than this in India. It is yeah and population one of the highest urge of parenthood changing lifestyle and increasing infertile patient in vignettes all want to become parrot timing is right. There is no shortage of global capital investment in India in sunsense sector like healthcare and IVF. We have enough talent in India accepting embryologist. I mean at 250,000 cycle number two number three in the world in India is on firm track to become fertility treatment capital in next two to three years.


Griffin Jones  53:12

I hope we get to have you back on a couple of times during those 10 years the nest Gadea thank you so much for coming on the inside reproductive health podcast.


53:22

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

176 Nurse To CEO/Investor: A Career Map For Fertility Nurses, Featuring Lisa Van Dolah

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.





How does a new grad pediatric nurse climb to the ranks of fertility company CEO and investor throughout the course of her career, while building a family of her own? Tune in to the to find out if you could benefit from a similar path, as Griffin sits down with the CEO of Ivy Fertility on the latest episode of Inside Reproductive Health.

Listen to hear:

  • Steps and career changes Lisa made to end up where she is now, and which aspects she found most critical.

  • Different roles shaped Lisa’s perspective of her field as a whole, and how it benefited patient outcomes, employee satisfaction, and operational success.

  • It takes to marry clinical outcomes with organizational outcomes, and how that in itself can advance your career.

  • Lisa has to say about the 80% rule, and how it can help empower your team.

  • Characteristics she believes makes up a person with C-suite potential.


Lisa Van Dolah’s Info: 

Website: ivyfertility.com

LinkedIn: https://www.linkedin.com/in/lisa-souza-van-dolah-68b51a15/

Transcript

Sponsor  00:16

This episode was brought to you by Univfy. Download Univfy’s free IVF Conversion and Revenue calculator.




Speaker 4  00:31

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  00:56

Are you a natural when it comes to business? Many nurses are not, I am not in many areas of business. And that's how you know, the business books that I write at the end of my career are going to be really good ones because I sucked at so many of the principles that I'm trying to master. And I'll be able to deliver really good insights with Nuance having struggled with many of them for so many years, be able to give real-life examples, and really determine the nuance of this lesson versus that lesson, and be able to explain the principle, as though someone was a third grader, I have a feeling that a lot of these business principles that we talked about today come naturally to our guests. That's just the impression I get from the way that she thinks about her answers. She's Lisa Van Dolah. She's the CEO of Ivy Fertility an MSO that has many clinics on the West Coast, most recently an acquisition in Memphis, and presumably soon to be other parts of the country. She was the CEO of San Diego Fertility Center for 20 years. And she has a nursing background, she started off as a nurse, she got her MBA, and we walk through that career path. So for the nurses listening today, we talk about what it's like to go from nurse to a CEO, investor of a private equity-owned network company that owns multiple fertility clinics, starting off as a nurse going into research but with an administrative role that gives you some experience with project management. So project manager, then getting an MBA, then going into a management analyst role, helping to staff senior management teams, getting that exposure to the role of the people at the top the roles of the people at the top working on process improvement, leading to a vice president role, leading them to a CEO role, then to a CEO role in a much bigger company. And as a capitalist, as an investor. We go through each of these points today. And we talk about things like what education is necessary at different points, what skills are necessary, how they relate to nursing, and I press more on how they might not relate to nursing. We talk about negotiation, and hopefully, we light a map for the nurses and nursing managers that listen to this show that are thinking about what the next step of their career is, and how it might look for the rest of the career. Hopefully, it illuminates some possibilities. And if you are thinking about taking action, maybe it gives you the impetus to do so hope you enjoy this episode with Lisa Van Dolah, CEO of Ivy Fertility. Ms. Van Dolah. Lisa, welcome to Inside reproductive health. 




Lisa Van Dolah

Thank you, Griffin, really glad to be here today. 




Griffin Jones

I was interested in having you on because of a career path that I'd like to paint for the nurses and nursing managers that listen to the show for everyone. But I don't think it's terribly common to even find nurses that become sales directors, maybe it's more common than it used to be. But CEO is a different story altogether. And so I'd like to go back into your career and then use that as an opportunity to paint a potential map for those that are listening. And I've got in my notes that you were the CEO of San Diego Fertility Center for 20 years, is that right? 




Lisa Van Dolah

That's correct. Yeah. 




Griffin Jones

And that was prior to your current role as CEO of Ivy Fertility was so when's the last time you functioned as a nurse? 




Lisa Van Dolah  05:00

Well, I maintained my licensure and certainly during my career at San Diego Fertility Center over 20 years, I stepped into the nursing role periodically, mostly out of the opportunity to connect with our patients, but you know, provided bedside care and the pacu and other various functions in infertility. So it's probably aWe've been about five years since I, I think I've actually functioned as a nurse in one capacity or another 




Griffin Jones 

Was CEO your title that whole time since 2003, or whenever your 2000 whatever it was, or was it practice manager at first executive director, President, like Did, Did that change or was it CEO.




Lisa Van Dolah

The whole time it was CEO the whole time it was an evolution of what that role meant. But certainly, I stepped out of hospital administration into practice administration at Seneca Fertility Center with the title of CEO. 




Griffin Jones

Tell me more about the interim intermediary roles between no starting out and CEO. So what was your first job after nursing school? 




Lisa Van Dolah

Yes, I started my nursing career at Children's Hospital-San Diego, now called Rady Children's but started that as a new graduate out of college, the primary role and responsibilities I took on as a new graduate was hematology oncology nursing, so we did pediatric oncology treatment. And that was my first career as a nurse and I did that for about three years at Rady Children's




Griffin Jones

And then you went into women's health or you first became a manager in PCMark. What happened?




Lisa Van Dolah

Yeah, yeah. So the journey is fun. My, I received rewards and knowledge and skills, I think at each turn, so I took a job after being a pediatric nurse in oncology at Rady I moved into infectious disease research, I looked at as an opportunity to learn some more administrative obligations, regulatory requirements, the research and looked at it as a whole nother way to apply my nursing degree. I did that for the Infectious Disease Program at Rady Children's in San Diego for oh shoot probably three or four years and then expanded into actually homecare nursing at Radies. That took on a role primarily interested in doing outpatient care for children, but also afforded me some flexibility in my career while I was having children, and needed a little bit more flexibility in my schedule, which is great nursing offers that many times to us. And so that role in in-home care nursing provided me the opportunity to work with a little more flexibility while I was raising my kids. And so are you a manager at this time or your nose during nursing care at this point, in nursing care, my infectious disease physician was more in an administrative role organizing, coordinating and managing those programs. And then about the time that I was, I was ready to step back into my career full time I went back to school and completed my MBA while I was working as a nurse at Rady Children's. So that was a the time in my career where I was looking at opportunity and picking up more administrative skills, business skills, you know, knowledge of accounting principles and other things that I learned during my MBA program. 




Griffin Jones

Why did you get an MBA instead of an MHA?




Lisa Van Dolah

Good question. I started my nursing master's in nursing and felt like that was a great opportunity for me but wanted to broaden my skill set and knowledge into ideas around brand, Being marketing, business development, plain old accounting planning, and I felt like the curriculum to the MBA program would give me a little bit broader, broader knowledge base. 




Griffin Jones

So you had gone back to school, you were in the master's program for nursing. And while you were there decided to switch to MBA. 




Lisa Van Dolah

That's correct. 




And up to this point, you hadn't really had management experience yet. 




Lisa Van Dolah

Right. 




Griffin Jones

Am I understanding that correctly, you had administrative experience with in infectious disease research, but was that more like project management?




Lisa Van Dolah

Correct, right. To have wide authority management or any other you know, I hadn't stepped into an opportunity for maybe a team lead role or other kinds of leadership roles in nursing. At the time, I decided to go to school to get my MBA.





Griffin Jones

Tell me more about the decision then because it seems like it was a radical departure if we're just looking at it linearly. But what else was it that had been in the back of your mind or this was not in the back of your mind, but rather forward thinking that you want to do achieve? 




Lisa Van Dolah

I don't know if I really felt at the time I was I was making any dramatic shift in my in my career path. I think as I approached any of my nursing, if you will, roles, I looked at those roles to be broad in nature, certainly contributing to the team that I participated in both from a you know patient care perspective but also as an as an employee and part of a team and looking at the services we were delivering. So for me I think it was, it was just a natural evolution and seeking more of knowledge in regard to that. 




Griffin Jones  10:06

Did you see yourself as running an organization?




Lisa Van Dolah  10:09

No, I saw myself as participating in, in an organization, I certainly, simultaneous to starting my MBA program, I started applying for jobs that may utilize more of those skills. So I started to apply for roles, like analyst roles, maybe many middle early, early functions were things that would support the nursing departments and in analyst type behavior, more of the research bases. And then as I completed my MBA, I was then applying in the same hospital for a management analyst role, which provided me opportunities to take on understanding the departments of hospitals that maybe nurses with, but not necessarily have any exposure to like biomedical department or person management. And in that situation, actually stepped into an acting Materials Manager role. And then in the biggest compliments I got were from the nursing units that said that, you know, I had to help them restructure access to supplies, that made their jobs easier that I understood that nurses don't have time to seek and find, you know, supplies and so as I looked at my role as the manager for materials management, which was obviously, initially way outside my skill set, I think I was able to apply a lot of my bedside nursing and nursing science to, to provide, you know, access to supplies, in this case, for the nursing units to make their lives easier.




Griffin Jones  11:46

You had that operational empathy because you weren't just looking at it from the 10,000-foot view, you had been one of the nurses that had to get supplies at some point, did you that management analyst role was that something that you sought before you went and got your MBA, or that was a result of having gotten your MBA that that opportunity opened up to you,




Lisa Van Dolah  12:09

I think it was both I actually applied for the job before I completed my MBA, and I was afforded that opportunity, you know, coming with my bachelor's degree in nursing and, and in my MBA in progress, but so that was a that was something that, you know, I have supported the senior management team at the hospital, in this analyst role, it was a wonderful opportunity to do that. Simultaneously, we're getting my, my degree,




Griffin Jones  12:31

I'm trying to tease out if it's a good idea for nurses, for anyone, but in this case, nurses to go get a degree like an MBA, if they're not, if it's for the means of tasting and exploring rather than the means to an end. And I think a lot of society would say that higher education is a great place to taste. I'm a big believer that that's the reason for the multi-trillion dollar debt crisis that we have in this country, that people very often on the undergrad level, but increasingly at the graduate level, are going to taste and they're tasting something that one isn't the most efficient means of tasting to certainly is nowhere near the most cost-efficient means it's extremely expensive, and then might not be what they want to do at all, I'm more of the Cal Newport ilk of you only pursue any given degree from any given institution, when you can map your desired outcome. Like I want this particular job, I want this post, and I know that this degree from this institution is far more likely to land me that role than not. And that's when you get a degree. I think that should be true of undergrad too. It seems though like you did get some of the eye-opening tasting from that. And then that led you into the next step of your career path. So what do you think? Is it a good idea for a nurse to pursue an MBA if it's in the interest of exploration, but




Lisa Van Dolah  14:07

it's a large commitment time? Right. And it's, it's, like you mentioned likely quite expensive, so I would not use that as the opportunity to evaluate whether or not an interest in in management is, is a value to a person. I think that nurses, you know, when the skill sets that they develop and the opportunity in their roles to step into team lead roles and other areas of responsibility. I think that's where you learn whether or not this is of interest to you not certainly through an education program. You know, certainly I support higher education. And I think that the value of that, for me was tremendous, but a lot of that was through my colleagues that I was in my coursework with, and learning from professionals that had experience that they were sharing. You don't need to get that through a program. You certainly can do do that, you know, with your colleagues at work or volunteering to take on more responsibility or seeking that opportunities through a current employer, even if it's just a project at a time. So, you know, nurses, nurses, nursing education is already fairly broad and, and affords you the opportunity to look at roles, I think without having to pursue education, necessarily, or a degree, I guess.




Griffin Jones  15:24

And then you could always then pursue the degree if you developed enough of an interest and realize that that is the intermediary between the next desired role. I want to talk about the management analyst role some more, but Well, at this point, the management analyst role, are you starting to manage people there




Lisa Van Dolah  15:44

I am, and that the fun thing about this role, which, you know, I think I love to create them in the environments I'm in because it does provide people interested in stepping out of what might be their traditional, if you will, roll channel, mind nursing or clinical, if you will, into something that can support a management team in a variety of ways. And so, the management analyst, analyst role was really to staff the senior management team with a resource that they could deploy in a variety of different ways. And it gave me a huge opportunity to explore anywhere from you know, direct line responsibility, or analytics on whether or not a business plan makes sense, or, you know, stepping into an interim management position, while we were filling that role, or even, you know, process improvement type of project. So, it gave me a broad scope. And I like to see that for people in organizations that you may be stepping into something without really any previous experience but willing to learn and, you know, support a management team. So, for me, it was a wonderful opportunity to explore all of those different variations of skills and responsibilities and, and then gave me and pointed me in the direction that I wanted to step into more of a direct line management role, which is the next job I took in the hospital. So, you know, it afforded me you know, a learning opportunity, you know, outside of education.




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Griffin Jones  18:44

Do you think that your administrative experience in research was necessary for you to be able to step into that management role? No, not necessarily.





Lisa Van Dolah  18:55

I think it provided, I think was everything, I think there's a big learning that can occur for individuals is an example of nursing is to step kind of outside what you've learned to be your role and look at the organization from a broader perspective. And so for me, research offered me the opportunity to understand regulatory require, you know, patient protections around informed consent, and those kinds of things that, you know, as you're, as you're in your, your nursing role, you may not look at it from that perspective. So I think, you know, in any role whether it's nursing or embryology, lab or administrative, you know, if you if you have the opportunity to step in and look at it from an organizational perspective. And you know, what you're trying to achieve together I think it gives you the opportunity to to bring more value to what you do. So for me, the research component of that just helped me step outside of what was kind of considered to be treasured traditional have clinical work and look at it in a broader scope. So think





Griffin Jones  20:03

project management is good training wheels for management. In many cases, I've had good project managers. And as I'm trying to counsel them on the next step of their career, it's like, this is where you start to practice your management muscles. Because the project manager isn't really a manager, they're not directly responsible for people there was, they're responsible for timelines, and that involves people. And so in fact, if you can be a good project manager, you're probably going to be a good manager. And if you can be good at the people part of project management, that is, because you can't really fire him. In a lot of instances, you don't have a lot of the stick that is part of you know, the carrot stick incentives, inspiration, etc, that whole mix that characterizes management and leadership, you don't have many of the tools as a project manager. And if you can be successful in getting people to achieve a cohesive outcome. Without many of those tools, it's likely that you're going to be successful when you do have more of those tools at your disposal. But you saw more of the value in terms of being able to see the bigger picture, which is what I like about how you described that role of staffing the senior management team, because then you're really getting a lot of exposure to different areas. And at a high level, at a at a phase of your career, which I don't think is terribly common for that, that maybe intermediary phase to have that much exposure to the, to the senior team and, and that many of them either. So what came after that role.





Lisa Van Dolah  21:47

So after that role, I stepped into a it was a vice president role at that point of clinical programs at Rady Children's read children's hospital back then in those days. So I had direct responsibility of a couple of departments that were not necessarily clinical departments, like I said, some of the back of the house departments, which was great, because it gives you the opportunity of how to run an organization that's not just always clinical in nature, I think. So that would that was my next role. And I wanted to go back to a point. And I think it's really important, and I think nursing brings this skill set just as a result of some of their training experience. And, and that's the ability to influence people without the authority to do so. And you mentioned that with the project management role. And I think, you know, nurses many times are in a position with our patients to influence them and help them move them to a place that hopefully is better for them without having really necessarily authority over them. Right. And so you learn that skill set. And I think that that's one, like you said that a good project manager can learn how to influence drive towards results, moving people and influencing people towards a common goal without being their boss telling, they have to do it. And I think if you can learn that skill set and apply that you become a very good leader, you know, because you, you are able to motivate aligned towards a common goal without necessarily having the authority to do that.





Griffin Jones  23:20

You also when you do have more authority, you have more of those tools, you also have more responsibility. And it isn't just getting a couple things done here or there. It's critical to the outcomes that the organization is pursuing. And so what's that, like? Where, where's the departure from what many people might be used to in nursing from when it starts to become Okay, now, I really have to be a manager and a director. So we talked about the similarities, where's the departure?





Lisa Van Dolah  23:52

That's a good question. You know, I don't know, I think you can apply your skill set as a nurse to your role as a manager, I think the area that may differ is just being able to approach the question from a broader perspective than just a clinical in nature response. Right. So, you know, understanding the needs from a clinical perspective, whether that be, you know, quality of care and in service delivery and training, but also then understanding the context of what you're trying to achieve as an organization. And I think, you know, that's that next level that that we as nurses need to challenge ourselves to do, because as you do that, you can then advance your own specific, you know, if you will objectives but in the context of what the organization is trying to achieve at the same time.





Griffin Jones  24:46

And this is happening while your vice president at the head of one of the clinical teams, and then when does fertility come in?





Lisa Van Dolah  24:55

I got a great call and I had two physicians in San Diego that were interest Started in starting their own fertility practice and asked me to help them and advise them on setting up a laboratory, building out a surgery center, understanding what the regulations look like the regulatory requirements, you know, the facility components of that, and then building out that team. So it was two physicians that had two clinical office staff. They were leaving the hospital that had the lab and surgery center, and they asked me to join them.





Griffin Jones  25:26

Did you know The two doctors or were you headhunted by a recruiter?





Lisa Van Dolah  25:30

No, I knew them through connection. So because I was a pediatric hospital, we did a lot with Women's Health, Labor and Delivery. So I knew them through that relationship. And you know, that was back in the era when most of these physicians were leaving larger institutions. And, and honestly, I thought at that time, in fact, I think that was part of my first hire objective that it was a temporary part time consulting job. I thought I would consult with them on how to do this. And I would gravitate back to pediatrics and famous last words, we know what happened.





Griffin Jones  26:03

So you go off with these two RBIs. At that time, it was two dogs. And how many people did you hire originally,





Lisa Van Dolah  26:12

so they both had each had individual practices with about maybe five employees each. So 10 employees or so together came together, and then we staff the surgery center in the lab, we fortunately are able to recruit one of the embryologist that was with them in their former labs. So he joined as well, in fact, he's still working in the same location. But after that, then it was building out kind of the team as we grew that center.





Griffin Jones  26:40

So when it was 2021, or whenever you went up from San Diego Fertility Center to AV when you had two physicians and 10 employees to start, how many physicians how many employees when you made that transition at the end,





Lisa Van Dolah  26:59

five physicians and 120 employees.





Griffin Jones  27:03

So a 10 employee organization is almost doesn't look anything like 120, employee organization, and we





Lisa Van Dolah  27:13

entered into other locations and also expanded kind of geographically,





Griffin Jones  27:19

your, your title this whole the whole time as CEO, but it's clearly a very different job from when you have 10 120. And you have one office or two offices versus covering multiple geographies? What were the biggest changes in that time period? They, of course, he could say a lot of different things. But think of it in milestones. What do you what do you view as the biggest milestones over those 20 years in terms of the changing in the development of your role?





Lisa Van Dolah  27:48

I think it's, you know, well, all, it's always learning, right? I don't know that the role changed, the scope of responsibility obviously did but you know, with the 10 employees, my job was to bring two centers together and to align them with a common vision. And to help them understand change associated with taking on a surgery center in a lab, and then take on change on how they work together versus two centers. My role really changed like much, you know, 20 years later, was very similar, it was just moving more people and, and many times more, more movement in a faster period of time. Right? And, and how to communicate that and how to how to align my teams around what we're trying to do much easier when you have 10 people you can gather together versus geographically disparate groups and in a much larger dynamic. So you know, certainly hiring and recruiting physicians, you know, got added to the mix as, as the two physicians and I decided that that was how they wanted to grow their business, certainly working with international bass programs, you know, learning regulations, learning how to find paths to grow our center, you know, improve outcomes for our patients. So, you know, a lot of that just evolved, but I think that you're applying the same skill set, whether it's 10 people or 1000. People, you know, it's just how you do that.





Griffin Jones  29:16

I noticed you didn't say anything about middle management, how much hierarchy is there when you have 10 people?





Lisa Van Dolah  29:22

There's none. I mean, we have team leaders, Surgery Center, Team Leader and lab director, we didn't end up with a lot of hierarchy when we had 100 People either really, it's, you know, a team based structures. So, you know, people have the opportunity to step into leadership roles relative to, you know, staffing an area, maintaining regulatory requirements, but, you know, even in 100 person environment, there's not a lot of layers,





Griffin Jones  29:47

there isn't a lot of lead that surprises me because as you start to delegate decision making authority that in and of itself, build somewhat of a hierarchy that person that you know, might be I'm seeing patients isn't making the same decisions as who to hire in for the nursing team, or what the standard operating procedures should be, etc. And so what was that delegation of decision-making authority, like, then I kind





Lisa Van Dolah  30:19

of look at it as kind of an empowerment model, which I think comes back from nursing ranks, you know, this is about identifying, you know, by teams, what, what the team wants to how the team wants to manage themselves, and sometimes that they empower themselves to be self led, and sometimes they prefer to have some authority structure. So, you know, we, we evolved our teams around kind of what, what interests we have, by our employees to step into areas of accountability, and, you know, kind of meet the demands of what was what was being asked of, of them at that time. So I, you know, it's, it's hard for me to say, I think, you know, when you live it, it's kind of hard to go back and analyze it, but I think, you know, the evolution of our field and fertility has been exciting and, you know, certainly has taken on tremendous opportunity for for our employees and team members nursing embryologist physicians to really, you know, step outside of that role and, and learn how to evolve their business. And so, you know, we didn't necessarily do that with a, with a real structured process,





Griffin Jones  31:36

I'm having a hard time analyzing it now, eight. What does it do to continuity, though, like, I see a lot of Fertility Centers having a challenge where people are practicing very differently from one another in the same practice. And people are using different standard operating procedures, and I am not a clinician, I'm not qualified to speak on it, I just see a lot of operational disparity. And it seems to be like, it's one of the things stopping the field from scaling, because I see all of these solutions that are coming into the place in order to be able to scale different people's workflow to be able to automate to be able to use artificial intelligence. And I see a very slow adoption, because people are doing a lot of different things. And it would be difficult to make things uniform in such a way that they can adopt those solutions at scale. And as a result, we've got bottleneck problems all over the field, that's what I can see is, is not having a hierarchy is not having like very specific, you know, rigid structure. I don't want to say rigid, it should be flexible, but certainly delineated is, is that a challenge for being able to scale of fertility center?





Lisa Van Dolah  33:05

I don't know, I mean, I'd like to kind of hear more about your observations, and maybe using a specific example to help, you know, I, I haven't seen, my feeling is that maybe all the things you just described are true, I don't know that. A rigid structure is necessarily going to achieve, you know, be the tool that you necessarily need, because they want to understand more about the question.





Griffin Jones  33:33

I don't mean to say rigid, but I do mean to say, delineating. So rigid, would mean inflexible, and it should be flexible, but it should also be eye, identifiable. And one of the things that I see it's very different, you can go into a clinic and this doc is doing the workups after the first visit, this doc is doing workups before the first visit, this doc is having an ultrasound tech to the ultrasounds and this doc is doing it themselves. And I can't speak to what's the right answer. But it seems to me like when you have such disparity, and as you add provider after provider, and then all of the teams that come with each provider, that it makes it really hard to adopt solutions that you might use to take what might be 500 cycles a year to 5000 because everybody's doing things a different way.





Lisa Van Dolah  34:34

That makes sense. And I think you're you're correct. We have always tried, you know, a model it that is agreement on some standardization, right, you're gonna have your 80% rule 80 Plus, right, so 80% of the time it should kind of follow a similar process. And I think what happens there's always exceptions and patients are not unique individuals, I mean are not identified, you know, identical individuals and they need unique applications. So, you know, truce 100% standardization, I think it is not appropriate. But, you know, as you think about processes, right, and, and empowering our teams to be independent actors on a daily basis, they need a structure that they understand and that they're supported if they follow. So, you know, what we always looked at was less work with the physician, clinical team, if it was clinical in nature from a process perspective, and let's get alignment, let's get agreement on what is the 80% rule? Right. And, and there's always gonna be exceptions. And then how do we communicate those exceptions so that the people that are expected to follow the process, understand when those can be deviated from and it empowers your team. So if you think about the nursing coordinators, if they have kind of standard operating protocols that the physicians traditionally follow with within certain parameters, it makes their job easier and clearer. And they have the authority to act within their scope of practice. That doesn't mean you can deviate, but then how do they know you're going to deviate? Right? And so I think a lot of it is around just clarity on what is expected and what is supported. And then you need your team to support those, right? You can't have the undermining going on where everybody agreed to a process. And so and so voice goes around the process, right. And you know, that's a hard, that's a much harder thing to do than it sounds right. But getting those in this case may be physicians aligned around how are we going to try to standardize things within some parameters. Knowing that as an individual practitioner, we can always vary that with some exception, but if we want to make our organization as efficient as possible, and supporting us in the most efficient manner, and give some independent Accountability and authority to our employees, then let's provide the structure that they function within.





Griffin Jones  37:07

That might be what we're talking about. And I hope I'm not straying from the career path for nurses too much that they're listening and starting to get bored, I hope that it's still germane to the conversation, because if you want to be a leader, this is the type of thing that you're going to have to struggle with, you're going to have to think about these kinds of things, because I'm going to write a few different business books. Later on in my career, at least one of which is going to be a coffee table book of all of the pieces of business advice that contradict each other, all of these axioms that you see on LinkedIn, there is another axiom to contradict it, and you could take either to an extreme and becoming a really good leader is understanding all of the Asterix is that qualify each of those axioms, I really believe that it's gonna be a great coffee table book. But





Lisa Van Dolah  38:01

tell you that back to nursing, I think as nurses mature in their own role and field, again, we're applying the same principles, you, as a nurse have a foundation and a framework to approach every patient situation, you're always gonna have variation. And in understanding when you can vary from that versus what is and why. But, you know, the nursing the nursing profession is exciting, because I think you have a tremendous platform for you know, different channels, depending on your interest and, you know, pharmaceutical lines education and development, areas management, you know, there's a variety of different ways you can take the science of nursing and apply it to other professional tracks.





Griffin Jones  38:52

How many nurses what percentage that you've worked with over the course of your career, which is a lot do you think have it in them? To be an executive and do not say 100%? Do not say all of them, I don't want I want any kind of fluffy millennial feel good answer. A ton of people ballpark what are the percentage that you feel like really have it within them that they could be not manager, not director, but Taapsee, sweet.





Lisa Van Dolah  39:25

Anything buddy that sets their mind out to do it can do it, but you have to be willing to learn and step out of kind of a comfort of a clinical based mindset. And I think many nurses don't want to have anything to do with that. They went into the profession to be a clinical focused expert, and they should that's amazing and they should continue to explore that how they can continue to contribute there. You know, there's only so many individuals that went into nursing originally that then look at organizational you know, goals and organizational You know, success as being something that they're even interested in, in being responsible for. So, you know, we all can contribute at every level of nursing to that organization's success. Whether or not you want to be the one that's, that's thinking about that 100% of the time, is, you know, it's only interested certain, certain individuals. And you know, but I don't think any nurses limit themselves to that possibility, if that's something they're interested in doing.





Griffin Jones  40:27

We've talked about how many similarities there are between what a nurse has to do in his or her day to day responsibilities and what's necessary for business leadership. I also think that there are some places where there is more of a departure in terms of the averages. And I talk sometimes on the show about the Big Five personality traits, conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion. And people that are in positions of leadership are usually not the most disagreeable because they have to, they have to advance other people's interests. But they're, they're seldom highly agreeable people, they're usually kind of in the middle. And I think that there's literature, I can't, I couldn't possibly reference it to you. But I think there is literature showing how much more nurses are agreeable on average, than the average person. And so I think that's an area where you might see a difference of, well, in one scenario, your role is to totally care for someone, and you're really, you're really having that interest at heart, and you need that quality and leadership, you have to have that otherwise, you're a tyrant. But you also need to make really hard decisions and not be popular in many cases, and feel like, gosh, you know, I disappointed this person sometimes, because it's the cost of, of making the right decision for the future of the organization, did you feel like you had to make an adjustment? Or is your personality already kind of, you know, in the middle of the road anyway,





Lisa Van Dolah  42:26

I must be in the middle of the road, I didn't feel like I was making that adjustment. But you know, I also felt like, even in my nursing role, you know, there were times where you were doing things that weren't making your patient, happy, they didn't fact like you, because you were doing what was best for them. Certainly, as a pediatric nurse, I found that out, but you knew that you were making the right choice, given, you know, the circumstances you were in, and in that case, on your patient's behalf. So I don't know that, you know, I necessarily felt like I had to be a certain personality in order to tolerate some of those difficult times when you are making maybe unpopular decisions, I think my role is to be able to support those and, and communicate those. And that's how I felt as a pediatric nurse that maybe I wasn't, you know, providing chemotherapy to a child that really made them happy. But I felt good about what what we needed to do. And I could explain it to the best of my ability of why we need to do it. What separates





Griffin Jones  43:26

a manager or director, someone at that level from top exec in your view,





Lisa Van Dolah  43:33

Governor responsibility? Really, it? I don't know that necessarily. It's a different skill set.





Griffin Jones  43:38

If it weren't a different skill set? Or if it weren't a particular development of some of the specific skills, then wouldn't we expect everybody to have a the same career path? So we have very few people at the tippy top, and they have something that got them there that others didn't? You can't think of what that might be.





Lisa Van Dolah  44:05

I feel like anybody that wants to achieve it can so I guess it's just maybe a personal choice. This wasn't the next, you know, next, if they felt that they had to achieve the next level, if you will, versus contributing significantly at the place that they are, whether that be a team leader, Director, you know, I don't see it necessarily as being something that everybody really necessarily wants to take on his level of responsibility. But that doesn't mean that they're not any less capable.





Griffin Jones  44:36

Why wouldn't someone want to take it on if SEO is the most glamorous thing that somebody could be in an Instagram world where being a CEO being an entrepreneur, being at the top is, is the most glorious thing why wouldn't someone want that?





Lisa Van Dolah  44:53

I don't know that. I'll speak for myself. I just I didn't aspire to be a CEO to be to have a big glamorous, certainly doesn't feel like it all the time. So it's, you know, for me, it's a choice to lead an organization towards the goals that I feel are important. And it's not about glamour, it. That's not why you take this job. Because if you do that, and you're taking it for the wrong reason, well,





Griffin Jones  45:20

and the answer might be because it sucks sometimes. If you're what you're looking for is glamour, it's you're not going to see that very often. Maybe you perceive that it doesn't suck very often, because you're just wired to do you're just wired to do it. And that's how you found yourself in this role. Does that ever suck? Sometimes?





Lisa Van Dolah  45:41

No, really, me.





Griffin Jones  45:45

We went from nurse to not project manager, but research analyst with an administrator was working in research with the administrative function, you went back into home care, then you went and got your MBA, then you started working in a management analyst role. And then you started working in staffing, senior management teams. And that led you into process improvement. And that led you into a vice president role eventually that you came over to fertility and CEO. And then you took another leap recently, where you went from the CEO of a group that was owned by a few physicians, and maybe a lab director to a company that has more people as financiers, and presumably more sophisticated financiers, did you own equity in Fertility Center of San Diego at the time of sale? No. Do you Do you own equity now as CEO? Part of Ev?





Lisa Van Dolah  46:49

I personally invested in it. Yes.





Griffin Jones  46:52

So then you've you've gone from contributor, project manager, manager, Vice President, CEO, and now you're also capitalist. So what have the differences been? What have you had to learn? When now we're working with private equity folks who have limited partners? What were some of the things that you had to learn that you even if you were familiar with them, you really had to dig deeper into?





Lisa Van Dolah  47:19

Well, I go back, first of all, tell the people they're adding up all those years of work, and not as old as actually I am as old as it sounds. So it's





Griffin Jones  47:30

a smell that we never specified most of the years. So





Lisa Van Dolah  47:34

paper parcel years, right? Job hop very quick. It's, it's like anything, it's learning relationships, and, you know, moving from a hospital system, where the relationships had to do with boards, board members and, and nonprofit organizations and physician relations and moving into private practice, it was different, you know, we had less, you know, less equity, you know, equity participants, I had to start but, you know, it's with everything. It's it's learning those relationships and, and aligning goals. But it again, you're just applying the same skill set that you did back when I ran a materials management. Yeah, but





Griffin Jones  48:21

what specific skills? Did you have to bone up on like shareholder rules or types of, you know, like, what did you have to learn more of?





Lisa Van Dolah  48:31

I don't know that I have, you know, I understand obviously, the legal structure, you have to read the papers and understand the documents and know what what you're building and what the structure is from when you're talking to, you know, employees or physicians or others about how the structure works. But it that's not really a skill set. It's just understanding it, so you can explain it.





Griffin Jones  48:54

I want to let you conclude with how you'd like to conclude for nurses that might be listening and thinking about their career path. But before we do that, what do nurses need to know about negotiation?





Lisa Van Dolah  49:11

negotiation? I think you just know to believe in yourself and be clear on what you are representing and what you need by what you're asking for, and how that adds value to whether it's your patient or your carer or your role or your organization. And the negotiation after that is should be easy.





Griffin Jones  49:34

Are they used to it? I am asking this because my maternal grandmother was a nurse. My paternal grandmother was a nurse. My mother was a nurse, my sister was a nurse. All labor and delivery, by the way, are awesome. And these are people that are reluctant to ask for like a refill for their water at a restaurant. So it All right, are there things that you did to practice negotiation outside of just doing it? Were there particular pieces, lessons that you needed to get better at? And if so, what were they? or were there other things that you studied that were helpful?





Lisa Van Dolah  50:17

Not really. I'm probably just like your mom, I probably don't. If my meal comes out, I don't like it. I don't return it.





Griffin Jones  50:24

I never do either by though I seldom do No, I





Lisa Van Dolah  50:27

again, I think it's, it's, I always say get clear on the why, why are you asking for this? And be able to articulate why whatever it is, and if it is meaningful, and and right, in your own mind, you have the white clear, then it's not really feeling like you're negotiating. It's just that you're articulating what's needed. So I'm not sure





Griffin Jones  50:46

what is the right is entirely in my self interest and not in the other person's,





Lisa Van Dolah  50:51

then. And you're probably going to learn how to negotiate skills that I bring to the table,





Griffin Jones  51:01

then learn the hard way could I do I do see that. And I am also a little bit more on the agreeable end of the spectrum. I'm not far on agreeableness, I'm still probably on the bell curve. But I'm on the agreeable side, I think it's actually a good place to be in business, because I am agreeable enough to I really want to advance other people's interests. And if I'm ever at a place where there's a client feeling like they didn't get enough value, I can't sleep at night, not even if if, you know, I've never had things that are real bad. But if they're even just like, yeah, that was okay. It's like, oh, I can't stand and I want to advance other people's interests. But I'm also not so agreeable, that I'm going to work for little money or take on really bad terms that aren't in my interest. And when I started negotiating, I very often would get trapped in the desert of rent. Well, I desert I did this, therefore. And I see people, especially those that are more agreeable, when they're learning to negotiate, they're starting to do it, they tend to get in deserved mode. And I realized it's least in my view, is very useful to just eliminate deserve from the entire lexicon has nothing to do with me deserving things. I think having clients as opposed to having one employer over the years has been helpful for that. There's no me saying, I just deserve that if I can't prove a value to the client, they just let us go. And so it's always he, this is how this advances your interest. And sounds to me, like, you probably maybe already knew that instinctively. And so that's why you're not even thinking of like, like, when you say clarifying the why. Maybe you just had that to begin with. Yep. How would you like to conclude for the nursing manager, let's say the young nursing manager listening right now that thinking, maybe I want to take the next step in my career, what advice would you give to that person and, or any other thought you'd like to conclude the show with? Well, I'm





Lisa Van Dolah  53:10

speaking to one I just hired in Memphis, she's coming out of a hospital or surgery center experience, and she's stepping into the practice administrator role. And, you know, first her and anybody else, if this is a role that you want to learn, we'll be here to support you. And so if it's something that you want, as a nurse to step into something that maybe is outside of what you perceive to be your training, I think you need to seek that opportunity and ask for those around you to support you in learning things that maybe you don't have any experience in yet. And I think nursing has tremendous foundation to offer you the skill set in a variety of roles, whether it's administrative management leadership, or you know, like you said, project management, sales, marketing, business development, all of those things are are ways training, teaching for nurses, to advance their career. So it's not just one path, but I think they're seeing has a tremendous foundational value that you can build on if you're interested in.





Griffin Jones  54:15

So for those of you that are on the fence, maybe you take a shot because we could probably use a couple more nurses at the top. Lisa Van Dolah. Thank you very much for coming on inside reproductive health. Thank you.





Lisa Van Dolah  54:28

Thank you very much for the opportunity. 





Sponsor  54:29

This episode was brought to you by Univfy. Download Univfy’s free IVF Conversion and Revenue calculator.






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 dot com to begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health





175b How To Attract The Best Applicants To Your REI Fellowship Program, With Dr. Jaimin Shah



Wondering what nuances separate the most desirable REI fellowship programs from the rest? This week, Griffin chats with Dr. Jaimin Shah to differentiate what criteria sets certain fellowships apart, and what you can do to make your program more attractive and more accessible to the best applicants.

Listen to hear:

  • What made the difference between the 18 Fellowship programs that Dr. Shah chose to interview with and those that did not

  • His  6 criteria for ranking programs

  • What other applicants were talking about during the application and interview process.

  • What the dealbreakers were for some programs, and how your program can avoid making the same mistakes.

Dr. Shah’s info:

Website: https://www.shadygrovefertility.com/
LinkedIn: www.linkedin.com/in/jaiminshahrei

Transcript


Griffin Jones  00:04

How do you get the nation's best doctors to rank your fertility program your Rei Fellowship Program at the top of their list, not just apply. But to be at the top of the list. I go through that process today with Dr. Jaimin Shah. Now he's an attending REI at Shady Grove Fertility in Houston. But not too long ago, he was a fellow at Boston IVF and Beth Israel in New England, and we start his journey from when he was a resident at UT Health Science Center at Houston. Dr. Shah applied to all of the REI programs that were at that time 40, some was offered interviews from 30 of them chose to interview in person at that time, it still was at 18 of them. We talked about how those 18 got a shot and the other 12 Didn't we talk about Dr. Shah’s six criteria for ranking the programs that he made a real time rank list for the remaining 18 programs at which he interviewed I asked him about what the other fellow applicants were saying at that time, how they were communicating with each other and what they were talking about the secret sauce, he talks about some of the deal breakers that had some of the programs eliminated from the list, and I haven't go through each of those in detail. If you're an academic program, you have an REI fellowship program, you may want to listen to this so that you're getting the best applicants, you're ranking higher in their list. And even if you're not an academic medicine at all, I think there is a lot more upskilling of OB GYN is to happen. And I'm not saying that this is going to replace fellowship or anything. Dr. Shah doesn't even get into it. I'm just saying as you start to recruit more in different types of providers, and one of the ways that you're recruiting them is by showing them a career path. There's a lot of parallels in the lessons that Dr. Shah has to offer. So whatever type of medicine that you're in, I hope you enjoy this conversation with Dr. Shot. And if you want to listen, you can listen to a different one, that he talks to applicants, OBGYN residents about how they should rank programs, what they should think about the questions they should ask. And you can get some more secret sauce there. But this one is a bit more tailored for you. So I hope you enjoy either one, starting with this one. Dr. Shah Jamin Welcome to Inside reproductive health. Thanks for having me, Griffin, there's gonna probably be a couple of people that listen to both episodes. For those of you listening now our regular audience of practice owners fertility physicians, we did a different episode where Dr. Shah spoke to OBGYN residents coach them on how to discern the REI fellowship program that they want to get into most, how to rank it, how to present themselves and be most attractive so that they can get into the programs that they want to and hopefully get into the program that they want to. And then that gave me an idea. While we're doing that, well, why don't I just pick his brain and we'll make an episode for our normal audience about those of you that want to attract OB GYN residents into the field. And specifically for those of you that work at academic departments, you division chiefs, you other faculty members that want to attract the best of the best to your program. Now Jamin might not say he's the best of the best, but I think he's at the top. I think he's, I think he's at the top of list there. So Jim, why don't we just start with where you did your fellowship, where, where you did your residency, where you did your fellowship training, and then where you're working now and then we'll start to ask about what it was like when you were looking at fellowship programs.


Dr. Jaimin Shah  03:37

 So I did my residency in Houston at the University of Texas at Houston OBGYN residency program. And then I ended up going to Boston for my fellowship at Beth Israel Deaconess Medical Center in Boston IVF. And I'm now back in Houston, as a private clinician working for Shady Grove fertility decent. 


Griffin Jones  03:57

So you apply to how many programs to start with out of between, there's always between 40 and 50, in any given year, let's say 44. But however many there might have been that year, how many of them did you apply to apply to all of them? And how many of them reached back out to you for an interview?


Dr. Jaimin Shah  04:18

I was fortunate I had obviously had a good number of interview offers, which was great. I had about 30


Griffin Jones  04:25

Is that common to apply to all of them, but when you talk to the other fellows did they apply to every program to


Dr. Jaimin Shah  04:32

I think a lot did I think some that were more restricted by geographic constraints meaning that they they needed to stay in a certain area due to a partner or for whatever various reason. Some only applied to certain areas. What I would feel like probably more than half of applicants probably applied to all programs, knowing that some that they wouldn't get a necessarily an offer. But it's always this kind of to throw your hat in the ring early on versus trying to add it you know A month later when all the interview slots have gone. So that's usually what I recommend to most applicants, if they're, you know, have the ability to, to go anywhere or have the flexibility to try applying to all them.


Griffin Jones  05:12

Okay, so for some of you listening, you're not going to get everybody to apply to your program, that because maybe you're on the East Coast, and some people want to be on the West Coast, you will have a percentage of people that apply to all of the programs, but some of you will be starting off with less applicants than others. So you, Jim, and you got about approximately 30 interview offers, how many interviews? Did you end up going on?


Dr. Jaimin Shah  05:41

I went on about 18?


Griffin Jones  05:43

What eliminated the 12? So if we started off with 30, you went on 18? What does what put a group of those who you actually went to interview with in person and those who didn't into different piles?


Dr. Jaimin Shah  05:57

Yeah, so kind of looking at it is, I think, first kind of the prestige of the program. And I think you can kind of gauge some of that by your own education, understanding of the program's IVF cycle volume, you can learn some of that, by talking other fellows and other applicants, I also looked at the number of REI faculty members, right, I think you need at least two to maintain a program. So some that only had two might have kind of went lower on the list, versus some of that might have had, you know, four or 567 faculty members kind of shows that maybe their program would be less less at risk, compared to some other programs. Location has obviously was another contributing factor. Also looking at newer REI programs, I think it's great that we're having newer newer programs come about, but obviously, that comes with, I think, some a little risk to some extent coming into a new program. And so I think that has to be factored in to some extent. Also, you know, speaking with other Junior mentors, who interviewed recently, who have an insight on some of these programs, it was also a key factor into my decision, decision making, and then also just date complex if you couldn't swing it with your residency program, or yet another interview on that same day.


Griffin Jones  07:11

So you talked about needing to REI faculty members to maintain the program, you were worried about some programs, not making it?


Dr. Jaimin Shah  07:21

Yeah, I think it's always a concern. I think whenever I was a fellow I know, there was a couple programs, that were a program when I interviewed and that were no longer program when I was a fellow. Right. So I think that highlights that being factored into the decision.


Griffin Jones  07:38

For sure, good food for thought for those that are in that smaller faculty range, that they might be thinking about different ways to preserve their future. And it may be important, not just for the immediate, obvious concerns of preserving the future, but even for recruitment that it's, you might be less likely to be able to recruit the people that you want if if you appear vulnerable, even if you're not vulnerable, even the appearance of not having the staying power that some of the programs might so you also talked about prestige, you said you could kind of gauge that on your own. But what does that mean?


Dr. Jaimin Shah  08:18

I think just kind of the, the looking at the programs and looking at kind of when you rank at top tier versus middle tier, and kind of the reputation of that name. And that kind of thing only help you long term with with careers and opportunities for academic positions or kind of next steps, even a private practice. 


Griffin Jones  08:40

Such a nice guy. And notice that he didn't say bottom tier, he just says top tier, middle tier, and then there's no bottom tier, because you're a nice guy like that. What How did you I guess, like, what are some of the things that in your research made you perceive that one program might be higher prestige?


Dr. Jaimin Shah  08:59

Honestly, this more subjective? is kind of my subjective lesson. It's kind of similar. What do you think about colleges and residency programs? Right? Certain names are going to kind of carry a maybe higher weight on your CV than other programs, right? It's another thing of saying you came from, you know, you know, Columbia or Stanford or, you know, you know, Harvard program, right. So those just carry a little bit more weight, I think, to some extent. And so I think it's subjective, right to my own personal opinion, but also talking to other other recent fellows and other recent graduates to get their input as well. And I think a lot of them kind of share a similar sentiment.


Griffin Jones  09:40

The reason I'm teasing out is because if it's subjective, then that means there is a range of melee ability that the program can effect and so did it typically have to do with the prestige of, say the university or did it have to do more with the program? What I'm trying to find out is can the program do more if, if they're not one of the household names of universities, let's say, at the very top of the top in recognition, then can they do other things to showcase their program that elevates their prestige? Or when you perceiving prestige? Does it typically have to do with the institution rather than the program?


Dr. Jaimin Shah  10:21

I think it's more with the institution. Right. I think collectively, you know, certain medical centers, right, carry, I think, some a little higher weight, versus trying to make your program a little bit more prestigious. I think that's great to do that. But I think, underlying you have some prestige with the institution name itself.


Griffin Jones  10:39

And this is all pre-COVID, that you are doing these interviews, right? They were in person. Correct. So then you went to 18 interviews? How did the wheat start to be separated from the chaff?


Dr. Jaimin Shah  10:55

Well, to be honest, I use that same, that's that same, you know, seven, eight lists that I just mentioned. But then also, you know, really talking to current fellows or recent, younger clinicians in the field, trying to find programs that they enjoyed that they, you know, would recommend compared to some of the other ones. So some things that I asked about was education versus service. You know, what do they know there was a fellows clinic? Did the fellows get to do embryo transfers? Was this more of like an academic versus a privademic model? Was your thesis project more? So you had to do basic science project? Could you do a translational project? Or could you do a more clinical project? Those are some of the other key factors that I tried to tease out when talking to a couple other fellows, current fellows of the time and other recent graduate graduates to kind of pick their brain. And that was kind of the other way that I helped to formulate some of the other programs I interviewed at


Griffin Jones  11:56

how malleable Did you find your ranking ended up being? Did you go in with really strong impressions of where you thought places would be?


Dr. Jaimin Shah  12:07

I did. But I also told myself to go into every interview with an open mind. Because you never really know which program that you would really like, despite the location, or just by other factors, just trying to go in and trying to trust your gut was a big was a big portion of that.


Griffin Jones  12:25

If you can think of anything, was there anything that someone who may have been lower down on the list that they did to make themselves rise up on the list? Like you thought, well, I didn't think that I would, but rank them as highly as I did, I didn't necessarily think that they would be among my favorites. But they did a and b. And now they're in consideration. Can you think of anything off the top of your head?


Dr. Jaimin Shah  12:49

Yeah, I mean, I think one thing I really learned was having certain flexibility in your education right now. You're, you're a grown adult, you've done a lot of training. Now you're in your final stop of training. And at that juncture, if you have flexibility in your education, of saying, Hey, I've done XYZ, so many times, I feel pretty competent in that, let me take that time and move it to something else. Having that flexibility of saying, where you really control your own education, you really autonomy to some extent, and have the independency and have that flexibility within fellowship, that was a cool thing that I saw in a handful of programs, which kind of stood out to me, policy of the you know, the fellows clinic that I mentioned, having like a true fellows clinic where you're running the show, your your your your own attending to me, you have some oversight. But that was another thing that stood out. And also just the ability to do kind of larger scale projects and or have the breadth of doing not just retrospective research studies, but also do prospective and have the ability to do RCT if you wanted, or some other things that come to mind.


Griffin Jones  13:50

Was there a difference in the amount of information that you had on each program? Did some programs you had a lot of information on and some programs? Not very much,correct? 


Dr. Jaimin Shah  14:01

Yeah. And I think that comes down to you know, trying to find a handful of other current fellows or recent recent graduates who went through that process. And I really pick their brain about some of these things because they remember some of these aspects because they were closer to it. So that was definitely important.


Griffin Jones  14:19

So the ones that you had more information was that where you had gotten more information by talking to people who had already went through that program?


Dr. Jaimin Shah  14:28

Correct. And it was it was just one of those things that I you know, going into you had more information which was great. But if I didn't, that's okay. Then I just start with the with a blank slate and really trying to learn more about it if I was intrigued enough to, to go with the interview, over worked well with the schedule for whatever reason.


Griffin Jones  14:45

So treat your fellows really well and use them to showcase them so that people feel comfortable reaching out to them because they're going to either way, so treat them really well and then showcase some is probably good advice. What? What did the least attractive programs do, if anything or not do?


Dr. Jaimin Shah  15:10

So some things that I learned, you know, being an OBGYN resident, right, there's a lot of service involved. In addition to education, right? You need the OB GYN residents to run the program, you need them there to function. As a fellow, I thought some programs that really focused on service over education was one thing that I wasn't really interested in, I wanted to make sure that my education was over service. Meaning that, you know, we didn't necessarily need to be around to have the IVF program function, right? If we all needed to go to a conference or for whatever reason, you could have that ability to still function without it. And I think that was key, you can really tease out some of those things that certain programs might have thought was really important in their eyes, but from the lens of a an RTI applicant, right? Some of those things, the certain perspective fellows wouldn't necessarily thought was a key measure of, of education in that model. And so then the other other ones that I saw some programs do is obstetric call, obviously, that was not something that I was really interested in, I think most applicants weren't. And I think that's kind of fading with time. Other Other things I noticed was additional gynecology call that was unpaid. You know, you could we had this discussion amongst all my current friends that were in fellowship of like, certain people had to take gynecology call that was a part of their curriculum, and they weren't getting paid for it. And then some that were doing it as an optional service and getting paid for it. Right. So it was just kind of seeing that dichotomy of my other applicants that, you know, we're sorry that my other friends that were in fellowship, after the after all said and done, that you can see that split. And that was one thing that I noticed, and also the rigidity and like the thesis project, if you wanted to have that flexibility of trying to design your own thesis project, or if you were kind of position that you had to do this kind of project in this kind of lab, right? That that is kind of sometimes maybe a turn off for some applicants, some that might say, Oh, I like that guidance and direction. But those are something that come to mind when I thought about maybe some of the programs that were at least less interested in my eyes.


Griffin Jones  17:21

This could be my ignorance, not being a physician, but why are people doing obstetric call if they're in fellowship training to be an REI is it's simply because they're part of an OB GYN division, and everybody in that division and overall department have to do obstetrics or gynecology.


Dr. Jaimin Shah  17:43

Yeah, there was there's some programs that did have that part of the curriculum that just a part of their division, and they had to change out of that model, I would say, probably less than 10% of programs are doing that when I was interviewing, I think it's now switching to through the ACGME, where that's not necessarily allowed anymore. And I think that was a change when I was a fellow. But I do know when I was interviewing that was still coming about on some interviews. For sure.


Griffin Jones  18:10

Yeah, it seems like if, if it's just a case of getting that experience, you just had four years of that experience, it would seem to me You're here to do something, 


Dr. Jaimin Shah  18:19

it should have been an optional thing that if some Rei fellows wanted to do that, by their own choice, sure. But I didn't necessarily think that it would should be required thing. Given that, you know, we are phasing out from the obstetrics standpoint and more into the REI family. 


Griffin Jones  18:37

What questions did the best programs ask of you, if any,


Dr. Jaimin Shah  18:43

they were all more. It was a lot of very similar questions. It was more asking about, you know, which, which research projects you really like, Tell me about a certain project. They would maybe ask your general research questions about your CV, goals for fellowship goals for post fellowship, and then really try to ask me about different experiences you might have had, that stood out to them on their CV. It was a lot of these interviews were more just general pleasant conversations, about your experience about their experience, they were all very similar. For the most part, there wasn't really one that stood out there was such drastic type of questions.


Griffin Jones  19:22

One thing that I'm thinking of now is when you have potential fellows reaching out to you, well, one does that, how often does that happen to when it does? What are they asking of you?


Dr. Jaimin Shah  19:35

They're asking a lot of the questions about the nuts and bolts of the program, what I thought of that, you know, what, what research did you work on? You know, what, what was the call structure? Like, you know, how many faculty were there? You know, were you doing procedures. So a lot of the things that I was talking about, are the questions that they want to know about, you know, what is the volume like, you know, you know, how many projects do fellows normally work on? What kind of things could you Do which things you couldn't do things that you didn't like about the program when you were there? What was the surgical volume like? So those are all things that you can slowly tease out. And that's kind of what I was doing, you know, with my, with my mentors at the time to ask those questions.


Griffin Jones  20:15

You know that every single topic that you just said is a TikTok video, right. And of those 44 programs, if some of you are listening, some of you have two or three fellows that are tic tock all stars, if you just take every topic that Jamin just said, and have them make TikToks for it, I bet you you will increase your applicants by 20%. Out away wager a drink at the next conference about it? How many of your peers would you say that you were talking to closely while this was happening? Well,


Dr. Jaimin Shah  20:47

I would try to I was trying to talk to as many of my new friends at the time as possible. I think there was probably a handful of like, four to six that I was getting closer with that was having more in depth conversations about But 


Griffin Jones  21:00

how were you meeting them? Were you meeting them? Like on the interview, sir? Yeah, like?


Dr. Jaimin Shah  21:05

Exactly. Yeah. And that was the one nice aspect of the whole interview and in person was I really got to meet my now good friends that are going to be lifelong friends. Obviously, I hurt my pocketbook to do all these things. But it hasn't with the upside of, I really got to make some friends that some of my stuff some of the current applicants don't get to do because they're doing no virtually. But I was trying to talk to as many people as possible, because everyone's input is very helpful, they might have had something a different takeaway that I might have had. So especially if there was an interview place that I hadn't interviewed yet that I was upcoming, like, tell me about this, like some program that I was specifically interested, I would really try focusing on those things. Or if there was a program that I had some other questions or something that seemed kind of weird or odd, I would try asking like, what did you think about this thing, or this topic or this subject matter and get their input? And that was really helpful. Because especially if they kind of agreed with what your takeaway was, then it's like, okay, then it wasn't just you. It was actually that's kind of how things are going to be run, or that's the answer to that question. We also made a case, remember, one of one of our colleagues made a, I think, a whatsapp chat, that we slowly added people that were going through the application process at that time, which was very helpful, because one, we could use that to, you know, share Ubers, share hotels, ask questions. And that was a great way for us, even though you didn't know everyone that was a great forum, to relay some of these questions and concerns or whatever you might have. And I hope that's good option for the potential Rei applicants, given that they're doing all this virtually, to have someone create like a thread and then add applicants slowly, because that's a great way to communicate, and a safe way to communicate, I feel like amongst your peers, it's a useful thing that programs could do to help fellows introduce each other. It always benefits in networking to be at the center of the network, and it helps to connect other people together, because by virtue, you become the hub, if you're helping to connect the spokes together, I think that would have definitely been a huge benefit. If anybody thought of that in 2020, and 2021 are things back to in person now, as far as you know, I think they might be staying virtual. They switch to virtual for the few years that I was in fellowship, I'm not sure if they're going back, because I think, to be honest, I think it's much easier for applicants. This one around and it was was challenging yet to get really creative with your schedule. So as far as I know, I think they're staying virtual for the foreseeable future. I'm not sure if they're flipping backwards.


Griffin Jones  23:48

And that doesn't depend on the program. Is that a universal things that everybody's interviewing the same way?


Dr. Jaimin Shah  23:54

Correct. And I think that was kind of had to be universal decision amongst all the program directors did make it all virtual, or all in person. And I think, as far as I know, it's still all virtual, but that that might change in the years to come. But as far as I know, I don't think it is.


Griffin Jones  24:10

Well, then I think everything that you've said in this interview is even more important, because every thing that Dr. Shah has talked about is content. So if you want to think of of what your content strategy is for positioning yourself, start this episode from the beginning and make content for each of these pieces of questions because then it's all the more important if people aren't able to have some of those by chance, interactions, meeting in person, the having content for all this stuff, having your fellows talk about the different questions, having your different faculty answer the questions and and certainly any ways you can do it creatively help but but just start by answering them straightforward, is going to be useful. So David, I think this is a good topic for those that are in in academic medicine, but the more you talk, the more I'm thinking. There are a lot of private groups, private ethnic groups, network groups that are inevitably going to be training OBGYN to do more things other than obstetrics and gynecology. I'm not saying what's right or wrong. I'm not saying what can supplant fellowship and what can't, I'm just saying it's inevitability. And some of what you talked about, is relevant to a career path that those programs can offer to OBGYN that they're trying to recruit. I'm not saying exactly what and exactly what level of training but just in terms of recruitment, I encourage listeners to think about that, that people are looking to advance their careers, to develop their autonomy, their mastery and purpose in different ways. And the outline that we've given for fellowship programs also make sense. If you're trying to get more docs into your programs, and trying to use the idea of upskilling them as part of the benefit, some people are gonna get pissed that I even suggest that I'm agnostic to the clinical value of it, I'm just talking about the recruitment value. So all that background laid down knowing that it isn't just division chiefs that are listening. It's also some practice owners and other folks, but let's we can we can go with the whole audience or part of the audience, how would you like to conclude with them?


Dr. Jaimin Shah  26:37

You know, I think, you know, for for program directors out there is to try making a lot of this information accessible, because it says, obviously, a lot of information to try obtaining during the interview day. So as you try think about to make your program more attractive, having this information more readily available amongst the fellows or creating slide decks that you can review all this with potential applicants would be very helpful. Because these are all questions that our applicants are wanting to know. And if you're applicant listening, is to do your homework, make your list of questions, things that you think about could affect your fellowship, to the day to day operations and try picking the brains of anyone in the REI field, such as current fellows or recent graduates, because they're going to have some insight that you may not have thought about. So really just network and talk to as many people as possible because you'll learn a lot and you'll learn a couple of different nuggets along the way. So and I think then you'll have good chance of success, hopefully getting into the field.


Griffin Jones  27:42

Dr. Jaimin Shah, thank you very much for coming on the inside reproductive health podcast. Thanks for having me.


27:48

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.

175a What OBGYN Residents Need To Know When Applying To REI Fellowships Featuring Dr. Jaimin Shah



Research, letters of recommendation, drive, ambition… If you are interested in applying to REI fellowships, this episode of Inside Reproductive Health is for you. Griffin sits down with Dr. Jaimin Shah to discuss what it takes to land at the top of the applicant pile.


Listen to hear:

  • Dr. Shah’s tips to those interested in entering the REI field.

  • What REI fellowships are actually looking for in an applicant.

  • What Dr. Shah did to secure upwards of 30 acceptance invitations to interview for fellowships. 

  • What you can do to stand out as an applicant, and when you should begin preparing.

Dr. Shah’s info:

Website: https://www.shadygrovefertility.com/
LinkedIn: www.linkedin.com/in/jaiminshahrei

Transcript


Griffin Jones  00:00

If you're a regular listener to inside reproductive health, this might not be the episode for you. This is for those who are not yet in our field because we sometimes get people that are still in residency, maybe sometimes still in medical school, they're looking into the field, because they want to come work in your field, and they use this podcast as a resource. So I took advantage of that with Dr. Jamin. Shaw. This episode is really for OBGYN residents who are applying to REI fellowship or maybe to some med students that are going into residency but know that they want to sub specialize or at least strongly feel about it. For those of you that are in the field, I'm going to do a different interview with Dr. Shah about how to attract those candidates that you want. But this is for those folks that are doing the applying and if that's you, but I've talked about what Dr. Shaw is how you find your mentor, the difference between senior and junior mentorships a delineation that Dr. Shah used that I wish I had used in different aspects of my life, how to attract those mentors or how to reach out to them. We talk about what kind of networking OBGYN residents need to do we talk about what the average candidate looks like to REI programs we talk about the importance of offside rotations is a competitive advantage. And speaking of how to candidates look to REI programs, we break candidates into three different tiers based on the amount of research that they've done. And Dr. Shaw gives us numbers of first author publications that make sense for each tier, Dr. Shah applied to over 40 programs, he got interview offers from at least 30 of them, he went on 18 interviews, and he got his second choice. And this is a really competitive field. So I hope you take advantage of these tips. And if you are to join this field, welcome. I hope you enjoy this conversation with Dr. James Shaw, Dr. Shah Jamin. Welcome to Inside reproductive health.


Dr. Jaimin Shah  02:06

Thank you for having me today, Griffin,


Griffin Jones  02:06

it's good to have you on because we became friends from you listening to the show, and then us corresponding and then we got to meet in person. And that was probably a couple years ago that it started. And now I consider you a friend. And it's cool to have you on to do a topic for an audience that normally isn't a part of our audience. But I still find some of those folks. So a lot of times we're not covering content for residents, we talked to REI fellows a lot, but have not really created anything further up the channel for those folks that are considering going into Rei. And I want to take advantage of your experience to have that for that little audience, invite those folks that aren't even in this world yet. And talk about what they need to know to make them more attractive for getting into the REI fellowship program that they want to so can you give us a little bit of context of your self and what your process was like? And then I'm just going to give you more specific questions.


Dr. Jaimin Shah  03:11

Oh, thank You that mean, it's great to you know, broaden the audience. I think the REI potential, you know, the residents that are potential interested in Rei fellowship are obviously the seeds to make our field grow. So I think trying to reach that group is important. But I you know, I came from UT Houston, OBGYN residency, so it was not affiliated with an REI program. And learning that process from a resident perspective. And working with various mentors was was key to my success in matching into Rei fellowship. So I do have a couple of tips. You know, I wanted to share with other potential residents interested in the REI field.


Griffin Jones  03:54

How early did you start? Because it seems to me that some people know that they want a sub specialize even before they go to medical school, and then other people don't know until well into residency. When did you start the process of deciding this is something that I'm going to move on to do?


Dr. Jaimin Shah  04:13

Well, to be honest, I was doing quite a bit of research when I was a medical student because I stayed the same medical school program and to residency. So I was doing lots of research in GYN oncology. Actually, that's I thought the route I was going to be taken until I pivoted during my intern year. So I started pretty early on doing the research. And that's one thing I'll touch on later in the episode is that starting on any kind of research is important early on, even if you think you might have an inkling that you might want to do any sort of fellowship.


Griffin Jones  04:41

So what was the first research that you did? What did that look like?


Dr. Jaimin Shah  04:45

I mean, I started as a first and second year, medical students doing Emergency Medicine Research. And then because that was one of my initial interests, and then I kind of slowly pivoted into women's health into OB GYN and doing GYN oncology research with MD Anderson. And then that slowly pivoted into when I was an intern transitioning to more fertility preservation, and then trying to broaden my horizon onto other different Rei topics, in addition to I was also contributing on MFM research because we had a robust mmm department. What


Griffin Jones  05:20

are Rei fellowship programs looking for in your view? Well, what


Dr. Jaimin Shah  05:24

they're looking for is, first of all, a well rounded applicant with research experience, I think research is a big part of what they looking for what your prior experience was, even if it was Rei research, or non REO research, trying to find someone with a passion to learn you research techniques and interviewed research projects early on. Also having an applicant with good letters of recommendation from REI and non Rei mentors, who can speak on behalf of their abilities, and speak on their experience of working with that specific resident. And then most importantly, obviously, trying to find a hard working resident who could be a good fit for their fellowship, who could flourish and utilize all the resources that would be available in that fellowship program.


Griffin Jones  06:11

There are how many Rei fellowship programs 4044 Do you know the exact number?


Dr. Jaimin Shah  06:16

I don't know the exact number. I feel like it can range between 40 and 50. I think my year there was like 41, because there was, you know, handful programs that took internal candidates. And I think it varies from year to year. But I think that's a general ballpark of about 40 to 48 or so.


Griffin Jones  06:29

however many there were your year you applied to all of them why?


Dr. Jaimin Shah  06:36

I think as an applicant, obviously I had, I wasn't limited by geographic constraint. So I wanted to kind of put my hat in the ring for all all programs, right, I think it's always better to try to apply to all programs early on, versus trying to add programs later down the line. Because you know, programs are going to be reviewing applications from the get go. And so trying to be in the front of the line is is important, I think,


Griffin Jones  07:02

did you make that known to the programs that you were applying to?


Dr. Jaimin Shah  07:08

No, I mean, I just applied to all of them, right? You submit the application, it's one application, you have your letters of recommendation and the kind of the portal, and you can you can submit to All Programs and then see if they would be interested in offering you in an interview spot.


Griffin Jones  07:23

And you got quite a few you got 30 interview offers, or about that out of low 40s. However many it would have been, what do you think that you did to get that many interview offers?


Dr. Jaimin Shah  07:38

I think someone told me early on was from a research perspective, you know, there's different, there's different tiers. As far as kind of the number of publications you can have there, you know, most, most resin applicant applicants will kind of have one or two first author papers, I think the next tier might have three to four. And I think in the top tier of, of applicants might be you know, five first author publications in addition to other research that you've contributed on. So I think that is one yet you kind of have direct control about as a resident. So if you were in that category, you could potentially stand out a little bit more compared to other applicants. Someone told me that early on. So then I took that to heart and said, You know what, I want to try to be that top tier and, and tried to work very hard to get into a lot of research out and learn the process. And in that I think that was one thing that did stand out my application.


Griffin Jones  08:29

Sounds like you did because if I have my notes, right, you did 10 first author publications while you're a resident. Yes. And our tiers were so the third tier is what one or two, you said,


Dr. Jaimin Shah  08:42

I think the third tier would be kind of five plus?


Griffin Jones  08:46

Well, you and I are going backwards. Third, bottom one, bottom one is one or two, I would say So on average, and middle is three or four. Correct? And then the top tier is five plus. So you were like I'm gonna comfortably set up in this top tier here. When did you start on that? The very beginning of residency,


Dr. Jaimin Shah  09:12

like I said, I had some projects I was working on as a fourth year medical student that were more Juhan oncology specific. And then kind of pivoted into kind of fertility preservation, and then more into Rei based projects. So I started I would say fourth year medical school and then really going in, in my intern year, my first year residency.


Griffin Jones  09:33

So if you want to be in the top tier for the number of first author publications we're referring to, you have to start pretty early. In your case you started even before residency, is it too late by the end of residency


Dr. Jaimin Shah  09:49

by the end of residency is too late because obviously you'd be graduating. You can continue after residency, but you're going to be applying for Rei fellowship during your third year of residency. So, it's really good to know if you have an inkling to do any sort of fellowship. And that's what important to start on any kind of research early on and your residency training. And even if you pivot to another subspecialty, like I did, it's still show that I saw I, you know, developed a project, you know, created, developed it, collected data, presenting at a conference and then published it. And so it kind of shows fellowship program directors that okay, this applicant, you know, created a project with a mentor, saw it through, presented it and published it, right, it shows that that that resident applicant is capable of learning research and doing research, and you have to understand that certain constraints, but certain programs may or may not have as many resources, like an REI division or not.


Griffin Jones  10:49

So you did that, and it made you attractive enough to at least 30 programs to offer you an interview. Is there other things that you think other than the research that you authored that made you invited to those interviews?


Dr. Jaimin Shah  11:11

Yeah, I mean, it's more of a general, you know, I think there's six other points that I think you know, apply apply to my case, but more broadly, would be trying to find good mentors, junior and senior mentors, considering away rotations, making sure that you're networking as much as possible throughout your residency career, utilizing your available resources, you know, thinking about different Wow factors that you might have in your prior experience. And then there's, I think the other component is criado scores.


Griffin Jones  11:43

Let's talk about the network and for a minute, because there are some conferences in our field that are very fellows heavy, but residents sometimes go there for whatever, maybe they work on a paper and they get to submit their abstracts, somebody sponsors them, they get a scholarship, some, some kind. And I have talked to a couple of those people, and they're not totally sure if they even want to sub specialize in reo. Let's pretend they're a first or a second year resident. And somehow they get to one of these conferences. I know people who said you can't go to PCRs or whatever. Some other conference, if you're a first year resident, you can I've seen them there. So they're there sometimes. But so let's say they're early on in residency, what should be they be doing to network there, if they find themselves in one of these conferences,


Dr. Jaimin Shah  12:32

I think beforehand, trying to reach out monks, other local fellows in respective programs and trying to get to know them get their numbers, that's what I did. And some of those fellows kind of took me in there under the wings and introduced me to people. I was picking their brains about how they went about it. You know, they introduced me to their mentors. So I will basically trying to talk to as many people as I could to learn their experience, how could they help me? Or how could you know, they give me some advice to make sure further my agenda, making sure I, you know, successfully match into Rei fellowship.


Griffin Jones  13:06

How did you decide upon which mentors, you wanted to mentor you?


Dr. Jaimin Shah  13:11

Through your question? So I had Junior mentors and senior mentors. So Junior mentors, I would say, our fellows, you know, I had yield Chappell. He was Baylor fellow, and I reached out to him and a bunch of fellows. And he kind of took me under his wing, and it was great to kind of get his experience and get his advice. And so I worked on some projects with him, right, so he was more of my, my Junior mentor, you know, senior mentors, you know, we had some affiliations and some private practices. And that was just me networking, reaching out to different programs, you know, Baylor and other private physicians and trying to find positions that might be willing to take on a resident on a certain project, and then really kind of diving into learning more about their experience and kind of how I can better myself as an applicant.


Griffin Jones  14:03

Earlier in my career, I was really obsessed with learning how to acquire mentors, I find that as you advance in your career, and you get better, it's actually easier to acquire mentors, because you sometimes just start doing business with them, or you have similar interests. And so you can acquire mentors a little bit more readily. But in the beginning of my career, I had to be really intentional about it. And I never thought in terms of junior and senior mentors, where did you come up with that framework?


Dr. Jaimin Shah  14:37

It was something I just learned along the ways because you'll get advice from two different people. And they could be doing the same exact thing but one is a little bit more senior and one's a little more junior, and I think they're closer to the experience of REI fellowship. And I needed to get that advice and input of directly have over these next one to two years that are going to be critical to my success of the In Rei fellowship, how did they do it? What suggestions do they have? For me? What did didn't work for them? What did you wish you knew? Right? So those are all the questions I was asking you a lot of REI fellows. And they have that. That direct insight because they're loved. They're living in that process recently versus someone who might be 10 or 15 years out and just a little bit different of how they came about that process.


Griffin Jones  15:23

I think you are smart to not view each of those as mutually exclusive. Like, I struggled for a long time thinking about this for financial advisors, because I look at a lot of the younger financial advisors and like, well, they don't have the experience, they never actually really built wealth, because in order to build wealth, it has to stand the test of time, there's got to be decades, but then I worry about some of the older financial advisors if they are leaving things on the table, ignoring some of the new technologies, the new types of trading the new types of asset classes and everything else. And I always kind of viewed it as it had to be one or the other. And I think you more wisely said no, I've there's two different classes, and I want each of them. Correct. For those that were more senior, how did you approach them?


Dr. Jaimin Shah  16:16

You know, we were affiliated with the private Rei group. And I knew that constraints to that in the sense that, you know, the private clinicians, they don't have as much dedicated time to education and to reach out to residents. So I kind of reached out to different Baylor faculty reached out to other other private clinicians, I literally emailed and called different problems in the city of Houston to figure out who could pick me on as a resident for research and then kind of use that as a as a segue into kind of trying to pick their brain and and trying to see if they could be a mentor for me,


Griffin Jones  16:50

picking up the phone and calling the office.


Dr. Jaimin Shah  16:53

Yep, sometimes if they didn't respond via email, then I reached out to the next source and saying, Hey, can I get in touch with his doctor? I'm a resident in the local area interested in in talking to them? And that's what I did for a lot of programs around the city.


Griffin Jones  17:07

How often did it work?


Dr. Jaimin Shah  17:07

Most times it usually worked.


Griffin Jones  17:11

Were you nervous about being perceived as a salesman? Or does the distinction that you offer really quickly, hey, I'm a resident, did that help?


Dr. Jaimin Shah  17:21

I think it helped when they said, when I said I was resident, and it was one of those things that I learned very early on in my career, the worst that someone can say is no. And so it's okay. If someone said no, or didn't call back or didn't reply back to email, then I just tried to the next one. One


Griffin Jones  17:35

of the other tips that you gave, in addition to networking was and mentors was offsite rotation, something more about that?


Dr. Jaimin Shah  17:46

Yeah, so I did an away rotation. And I use that as a strategy to learn more and go to a different program for a month to, you know, continue to work on research, and to also try to find a good mentor that could you know, write a good letter recommendation, in addition to getting great experience. You know, I came from a non Rei I didn't have an REI division, for as far as the fellowship goes. So I was trying to utilize doing an away rotation as another way to kind of think outside the box of how to make my application a little stronger. And that was one idea that a previous resident had done before. And I kind of utilize that as a great idea to try to do an away rotation. And it was a great experience. I learned a lot. And now I got kind of a lifelong mentor, wanting the process,


Griffin Jones  18:42

like how much do you have to do to do in a way rotation? Do you have to go through your program? Can you submit that to your own program? Hey, are these other places that I would like to rotate into how does that work?


Dr. Jaimin Shah  18:55

Well, first, you have this makes sure that your residency program allows and has the ability to do a one month rotation, luckily, my program had the ability to give me that opportunity. And then I talked to you know, the different Rei clinicians in town who maybe had some suggestions and some insight and some programs, and that's kind of how I use that route. And they kind of put me in touch with that mentor at that institution, and then connected me via email, and they agreed to take me on and that's kind of how that process started.


Griffin Jones  19:26

So not every residency program allows for rotations. Yeah, I think it just depends on the curriculum. And then does it also vary, per programs curriculum, what types of institutions that you can do that rotate? Does it have to be an REI division within an academic system? Can it be at a private practice? What's that like?


Dr. Jaimin Shah  19:50

I think it's kind of enlist as far as the the kind of the different type of programs you can go to. I wanted to go to a program that had an REI division. Um, that was more academic affiliated, just because of thinking about a potential mentor who could, you know, write you a good letter recommendation? You know, that's something you have to take into consideration as well.


Griffin Jones  20:13

What tips do you have for applicants as they're going into the interview?


Dr. Jaimin Shah  20:20

As they're going into the interview? You know, I think you want to create a list of questions that you want to ask all programs, I would recommend asking the same question to multiple people during the interview process to see if you get the same answer. In try to think about, and I would recommend talking to it and current Rei fell, it helped create some of these questions for you. You know, I have a list of them, too, that I created with a bunch of different Rei fellows that they felt were important to ask about numbers and about hours and about monitoring and basic things you might not think to ask. So I would ask a lot of the same questions to most people to interview to see if I got similar same responses or different responses. And that was kind of a telltale sign if there was, there was some discrepancy. And another thing that I found very helpful going in the interview process was to make a real time rank list. You go through the process, and a lot of programs blend, like, okay, every program, most programs are really good, they're going to get you a great education. But you really got to find calm and try to find, look at the fine details. And that can get very blended when you go on multiple interviews. And so I would, I would jot down notes, and mainly when I left when I was in the car or in the lobby, and just


Griffin Jones  21:42

want to make sure physically, when you say a real time rank list, you're talking about physically, not just up in your head, you're you're noting it out,


Dr. Jaimin Shah  21:49

I had notes on my phone, and I would I'd started ranking programs, because it was one of those things that you want to trust your gut, as far as kind of what what did that program really make you feel good? Did you feel good fit? Did you feel welcomed, etc. So I would go before I left the premises, I would jot down notes of the things that stood out to me things I liked, didn't like things I need follow up questions on right because was fresh in my mind. And then I would go to my next tab and go put my rank list together. And I literally had a running rank list. And it was the best thing because by interview 10 or 12, they really started blending it together like Did they do monitoring? How many retrievals? Did they do? Did the fellows do transfers, like do have to take call or like what's the call structure, like you know how many faculty like those little things are very hard to remember. And it's very hard to go back. And so that was one thing that I learned from someone that and I was it was a blessing. Because if I didn't do that, it'd been very hard to really comb through some of those details. So that was also really helpful. And the other tip was, pick the program, you think you're going to be the happiest app, don't pick the program that you think that you need to be at. I think now going into the REI fellowship, this is kind of hopefully the last stop for you. You want to pick a program that you think you're going to excel at, that you're going to be happy at. And that was one of the biggest things that I took away from that is don't necessarily assess the interviews as a way for you to make your rank list. Because to be honest, most interviews are pretty relaxed. They're very conversational. And you think honestly, every interview goes well, at least how I felt in the REI fellowship realm, because everyone is very happy. They feel that the conversations are very nice. So it's really hard to tease out a, a pleasant interview experience versus Do they really liked me, because to be honest, I bet they are like that with pretty much most applicants, because that's just the general nature of the field. And so I think that's where you got to trust your gut and pick the person that you're, you think you're gonna be the happiest set and not the other way around.


Griffin Jones  23:58

So when you say pick by where you think you can be the most happiest you're saying as opposed to where you think, as opposed to thinking based on how they're ranking you?


Dr. Jaimin Shah  24:09

Correct? Because it's a rank system, right? So it's supposed to be in favor of the applicants. So I think you have the trust of where you think you've been happiest. And it's all going to work out in the end. And it does when you talk to most of my other friends and colleagues around the country. It all works out kind of how you make the rank list.


Griffin Jones  24:28

In your real time rank list. Did you put those different factors that you have in one kind of general note section? Or did you have very specific criteria in different columns of your rank list so that you made sure that you were comparing each of the programs on similar criteria? It's a great,


Dr. Jaimin Shah  24:48

great, great question. So I actually made a note section and I kind of had my free hand notes for every program. And then it was actually my my wife's idea to make Have a an Excel list and do exactly what you said kind of put surgical volume, number of embryo transfers, geographic and certain geographic location, you know, call structure, research opportunities, and put some of those. So I could actually rank each program for those specific categories. And that was actually really helpful to look at my first rank list and then look at my final rank list. And it actually turned out to be very similar in the end, but it was a good exercise to go through it. To really look at some of the nuances to the interview process.


Griffin Jones  25:36

When you say that it was similar your first rank list and your final rank list. You mean, before you ever went on the interviews, you


Dr. Jaimin Shah  25:44

should rephrase that. It's actually when I finish the interviews, and like my running rank list, compared to my final rank list, after looking at my kind of Excel file that I went through,


Griffin Jones  25:55

how long did you take to digest from you've finished your last interview, you've got your running rank list versus, okay, now I have to make my final decision. How long did you give yourself?


Dr. Jaimin Shah  26:07

I had a few weeks. And I kind of after my last interview, I gave myself a good four or five day just pause, just to kind of process and digest and just kind of reflect and then went back to the list. And back to the criteria to help me rank


Griffin Jones  26:26

for the running list, did you you're going into interview number eight, you walk out of there, and you're like, Okay, I think that they're number three, and so you just put them at the number three spot? Was it in real time like that? Yep, exactly. Did that skew your perception in any way of thinking? Like, okay, now I have to? Well, you know, I've already got these eight. And I feel so strongly because this one has been number one since the third week. Did that? Does that skew your perception in any way?


Dr. Jaimin Shah  27:01

No, it kind of just, it kind of really, when you have a couple good, you know, three or four poems that you really liked? It'd be very hard to choose from. Right? Those are a good comparison, when you go into a new interview, as far as well, I like this about that. I can do transfers, and I can do as many retrievals as a fellow. Right. I think that's a really good thing. Right? So that was really a thing that was important to me. And so when I heard about oh, yeah, you would get to do 10 transfers across the whole fellowship and union, you get limited experience in retrievals, or things like that, right, like, so those are things that you had a benchmark of saying, Well, this is where I've heard a programmer would allow me to do such things, or I would have this access to this research opportunities that this program doesn't have. And you can internally figure out when you go out the interview process, what you value and don't value for your future education.


Griffin Jones  27:47

Do you remember the criteria that you had, in your real time list what you said, I think cycle volume or a number of transfers, what were the criteria as far as you can remember,


Dr. Jaimin Shah  28:00

procedures, that was definitely one one big one, looking at transfers, retrievals. Looking at the your research opportunities, what have prior fellows done, I wanted to get really into like, prospective and randomized controlled trials, I wanted to go to a center that would give me the ability to do that as a fellow versus just retrospective studies, I wanted to have the ability to do translational research, wanted a program that had you know, you know, decent surgical volume, not heavy surgical volume, but not very low coming something in the middle. I wanted to have the ability to have my own fellows clinic, where I was the attending and I had supervision but I was the one making the decision because I think that's really important. I think geography was also a factor lower factor. I had a wife category in there as well, my wife had to say for my partner had to say cuz you know, happy wife happy life, right. So that was also an important factor in that as well of where she might want to go where opportunities would be good for her. So that was another piece. I think those are the some that kind of come to mind.


Griffin Jones  29:08

Many of those things are an individual's preferences. Are there some things that you think are must haves or should be must haves, regardless of someone's preferences? So the amount of clinical work or if there's a fellows clinic, where they can be attending or if they, what kinds of research opportunities are available? A lot of that will have to do with someone's preferences, but are there a few things that you feel should be in everybody's must have list and if so, what are they?


Dr. Jaimin Shah  29:41

I think procedures as a fellow is key. It's a small thing in some people's eyes, but I think it's a big thing. In most people's eyes. I think there's a lot of buzz about transfers and retrievals I think that's definitely up there. The ability to do other ancillary procedures HFCs water ultrasounds, just being able to do lots of hands on procedure and surgical Other things that are important. And I think the fellows clinic of really getting a robust clinical experience not just working with other attendings, but actually having your own true clinic, where you're kind of running the show, I think is really important. I think those are the two main things. Because you know, every program is going to have research, just different facets of research.


Griffin Jones  30:23

How common is that or not, is that to have a fellows clinic where you're the attending,


Dr. Jaimin Shah  30:29

I felt like half the programs kind of had it to some extent. But, you know, the program I ended match now was kind of at a true fellows clinic, where you're running, you're running everything you have is assigned team, you have nurses, you have financial counselors, right, that are kind of assisting and doing those things. And then you obviously have attending supervision to some extent, but it was really kind of my own clinic that with my own patients that they were booking under my name. And I think that was a great, really great experiences as a fellow that really have the autonomy to make those decisions, cycle my own patients. And that taught me a lot.


Griffin Jones  31:05

So you were talking with other folks that were also applying to fellowship, and you gave the advice to ask the same question of multiple people in a program. And you you rattled off a few of those questions, just making a different point. What were some of those questions that you made sure that you asked every person in any any given program?


Dr. Jaimin Shah  31:29

It's kind of touching the same stuff, you know, the research experiences, what? You know, what have prior fellows done? Are there any limitations on what I could do as a research research perspective? Could I do randomized control trials? Can I do prospective trial? Has that been done before? Understanding the numbers, When can I start doing procedures when we start getting that experience? Asking about, you know, the call structure understanding? You know, will you have moonlighting opportunities, you know, understanding that call structure, I think is important. Understanding the structure of the program, certain programs are structured differently, do research or new clinical first, understanding some what flexibility may have in that you understand if you want to do other electives that you might have an interest in. I think that's also important to ask, too. What is the average


Griffin Jones  32:19

candidate look like? In your view, and I'm going on a bit of an assumption that you are, we're not an average candidate, and didn't appear as an average candidate to most of the programs, because you had done a lot of research, you've thought a lot about the and by research, I mean, research into different kinds of fellowship programs, but also what you authored as the President having 10 first author, publications, having four other papers that you contribute into that being at least double what we would consider the basement for top tier here. You don't have to be humble about this, I actually want to know, what do you think the average candidate looks like to in the eyes of pro work programs,


Dr. Jaimin Shah  33:04

and being on from the applicant side, and then being done on, you know, the fellowship standpoint, to kind of see kind of the trend of applicants, I think the average candidate, you know, would have one or two first authored papers with being on maybe two other papers that they contributed a second or third author. I think most applicants would have at least one national Rei conference presentation, either poster or oral presentation, a lot have more. And then coming in with at least one or two very strong letters of recommendation within the REI community,


Griffin Jones  33:44

Jim anniversary a lot. And you've given us a lot on how to select a mentor, how to approach a mentor, how to network, how to think about getting other opportunities, if there isn't the rotation that you want through your program, how to think about getting started on research? How would you like to conclude with this audience that I haven't created that much content for in the past, but these are the folks that are either going to be your colleagues or not in the next couple of years, but they might be your peers, and they're making that decision? Now? How do you want to conclude with them?


Dr. Jaimin Shah  34:24

Find good mentors early. Don't be afraid to reach out and kind of extend yourself. The worst that someone can say is no, move on to the next. Work hard to organize your research projects early on, present at national meetings, and carry through at the end and publish that paper. So truly try to get a few first author publications and get on a couple other projects with other colleagues and establish connections, build connections, learn from the junior and senior mentors that you have within your program or in your local area. And I think the most important thing is be a great resident and be a team player. I think that really helps you develop as a resident and then hopefully develop as a great fellow.


Griffin Jones  35:06

And I think you are both. And you're also a great guest to have on for us to give some generous counsel for those that are thinking about this step. And hopefully many of them will consider it because we love adding to the number of good areas in this field and the field has nothing but upward to go. So I appreciate you coming on to cover the topic. Thanks for having me.


35:34

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.

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



173 How AI/ML Is Being Used To Improve IVF Conversion And The Provider-Patient Experience, With Dr. Mylene Yao

Univfy increases IVF conversion by 2-5 times, translating to more than $1-3 million in increased profit. Click to download this free tool to set and achieve your own revenue goals from IVF conversion: www.univfy.com/ivfpatientretention

DISCLAIMER: This is a featured sponsor episode with paid sponsor content. Advertisements are not an endorsement from Inside Reproductive Health, nor their personnel.


Univfy supports fertility centers in increasing IVF conversion, outcomes, and revenue. Providers who counsel patients with the support of the Univfy PreIVF Report see a 2-5x increase in IVF conversion. That means if you make $10 million in IVF revenue today, you can make $3 million more with Univfy. This week, Griffin hosts co-founder and CEO, Dr. Mylene Yao, to discuss how Univfy is working to make family-building more accessible, predictable, and successful, and how their technology has proven to benefit both fertility centers and their patients.

Listen to hear:

● How Univfy uses AI/ML to increase IVF access by helping patients to move past key decision points in the provider-patient flow.

● How Univfy services are easy to use.

● How AI and predictive outcomes have transitioned from a “nice to have” to a “need to have” as Gen Z and Millennials overtake the fertility space.

Click to download this free tool to set and achieve your own revenue goals from IVF conversion:

www.univfy.com/ivfpatientretention

Mylene Yao’s Info:

Company: Univfy

LinkedIn Handle: https://www.linkedin.com/in/mylene-yao-m-d-049a2915/

Website URL: www.univfy.com/providers


Transcript


Griffin Jones  00:46

80% of patients are not helped in the IVF patient journey, because they don't make it all the way through could be the case I explore this today with Dr. Mylene Yao, the CEO of Univfy, and we go through the patient journey at different points talking about IVF conversion, talking about patient dropout, we talk about how AI is using individualized predict predictive outcomes, and specifically how Univfy is using that AI for individualized predictive outcomes to solve for challenges on the provider and, and on the patient. And you can actually see this visual too for free. If you go to univfy.com/ivfpatientretention, this is something for you to look into AI is here, Univfy has been using it for years, it's impacting every point of the patient journey, every point of your workflow, and IT needs to work in your favor. So this is a solution for you to investigate. And the more the demographics of our patient generations advanced, the more this becomes a must have for previous generations, artificial intelligence and develop individualized predictive outcomes may have been a nice to have now they're a must to have. You have Millennials, you have Generation Z entering your practice, and they're not satisfied with generalized outcomes. They want individualized prediction models they want coming from artificial intelligence. They want it coming from your data. They need it in order to make decisions in many cases, Dr. Mylene Yao. Welcome to Inside Reproductive Health.


Dr. Mylene Yao  02:23

Hi, Griffin. It's great to be here. Thanks for having me.


Griffin Jones  02:26

It's my pleasure. I knew you first. As an entrepreneur, I think the first time I knew of you was actually at an arm event, some years back, it must have been several years back now because it's been a long time since arm has been in Chicago. And so I knew you first as CEO, and then come to find out, you are a physician by training and then come to find out some more, not just a physician, but you actually were an OBGYN. You practice in women's health. Is that right?


Dr. Mylene Yao  02:57

Yeah, that's correct. I started my career as an OBGYN. First really focused on the clinical side, I grew up in Toronto, did my medical training in Montreal, did my residency there at McGill University and graduated from University of Toronto, and then really felt passionate about reproductive health and went to Brigham and Women's Hospital in Boston. To do my clinical REI fellowship there, I learned a great deal from really amazing people. And then cut the research bug and went into academic research, which I really, you know, was passionate about as well.


Griffin Jones  03:37

You go on to start a company and I want to talk about how that journey came to be. I'm also interested in the problems. It's all because when I think of Univfy think of IVF conversion. So was that the first problem that you sought out to solve? Was there another problem that you came across your research that made you start unified, which came first?


Dr. Mylene Yao  04:01

I was really an academic researcher. I was faculty at Stanford University, in the department of OB GYN where I lead NIH funded research projects that focused on embryo development, early embryo development, on site development, and so on. And one question, and I think that's the benefit of, you know, being a clinician scientists at the time, is, you know, when I saw patients in the fertility center, patients just really want to know, what are the chances of having a baby? So I think that was my, you know, initial motivation and still is, we want to be able to give very accurate and personalized information to patients so that they can make the best decisions about how to proceed to have a family


Griffin Jones  04:48

meal and how does how are you using artificial intelligence to solve this because one of the artificial intelligence for I would say three years ago, it was good enough to kind It just talks about generally in the field, oh, here's how it's going to come in. And then I've heard it SRM and PCRS. When someone's talking about AI, they'll say, Oh, this is the same talk, it's going to change the world. And people are interested in the specific use cases of AI now, and so that this is a good opportunity to see how AI is not down the road. It's here. And what, in what cases? Are you using artificial intelligence? Now to solve this problem?


Dr. Mylene Yao  05:30

I think recently, just with a lot of interesting stories in the media, we're all made more aware of the power of AI. And but maybe let's start with, I mean, there are many different types of AI. So there's no, right now, there's not a robot a chat, GPT doing your IVR prediction model. So like, so in, kind of, in the field of AI, there are different types, like, there's the original vision that, you know, AI experts had from long ago that AI is going to be this super intelligent, kind of machine that can do everything, like a human and better than a human, you know, can talk can have motions can do all these things can calculate numbers that we can't, can run faster, whatever. We're not talking about that kind of AI that's more like general AI. And that vision, I would say, the world is getting closer, but there's still a huge gap. And we're not focusing on that. Right now. There's another kind of AI, which is really what is behind a lot of processes now, which is narrow AI, and narrow AI. Sounds narrow. And it is, for good reason. narrow AI means using AI to do a very specific task very well, better than humans faster than humans more accurately than humans. Mostly not because humans are not smart. Because it is really leveraging, you know, cloud computing, and can do a lot of calculations in a very short time, at very little cost, right. So narrow AI is what we do. And that's what most you know, businesses do to support their customers. And within that, there's also there's, you know, machine learning is a big part of this narrow AI, and kind of bring it to the healthcare. In general, you have a lot of healthcare now use AI to do to support radiologists to support pathologists. And that's where you're using really imaging and deep learning to use imaging to support kind of call out some, maybe an MRI that is more questionable, more likely to have cancer or something like that. There are tons of studies and tons of applications there already. And you know, but there's also a different kind of AI in the general healthcare, like, oh, which patients are most likely to come back to the ER after we discharge them from hospital. Because if we can identify those patients, we can implement better prevention programs, or which patients in the ICU right now have a high risk of crashing, and less put more kind of monitoring on that patient. These are things that already are being used. And then in our fertility space, what we do see right now that are really emerging, is you hear a lot about what embryologist talked about which is using imaging AI to try to detect the embryos that are most likely to be viable, and so on. So but what we're talking about here, what Univfy does, is not that at all, is a different kind of AI. We're using AI and machine learning to analyze structured data. And structured data means the datasets, the data that is in your EMR, the data that is in your start export, you know, or in your billing data in your billing records, is really making use of that data so that we can get the smartest information out of it to inform all the things that you need to do in the clinical setting. So that's the AI that we're focusing on. And in particular, our platform is designed and we got very good at building IVF prediction models for you know, each specific clinic using a clinics own data validated by their own outcomes. And we have, you know, we're I think the only company with this high scalability of being able to do that we're We're really having a lot of quality assurance in order to provide this level of service at the point of care where you can use it with your patients. So I think that maybe helps to frame you know, what is the AI that we're using? And, you know, going from there, you know, now with that kind of prediction model that is specific to your patients, you know, what can you use it for? What are all the things that you can do? faster, smarter, better, as a result of being informed by that model? 


Griffin Jones  10:34

Yeah, one of those things that I want to zoom in on his financial risks, how does that AI that use of AI that you're all doing go far beyond the reconciling of financial risks, to remove financial risk, and what's the difference between those two things are.


Dr. Mylene Yao  10:51

An important part of our platform is that we're very adaptable. We already start off with many questions and analysis that most centers want, and need. But we're also very adaptable. Like if there are specific unique situations that you want to analyze, we can do that too. But we also in addition to the IVF outcomes model, we also analyze utilization of care. So, for example, we've now analyzed utilization of care for over 100,000 unique patients. And so what that means is we can chart for every UD patient, what are all the services that they kind of received from your center, and over what period of time because time matters to the patient, because, you know, their biological clock is ticking. But time matters to the clinics too, because you are investing in the patients that you see. Because you're investing a lot of manpower and a lot of support, to help them get to having a family. And so we take all of that into account. So the analysis could be, you know, really accounting for the operational cost, the utilization. And the reason this IVF outcomes prediction model is important is not surprisingly, patient, let's say you have four prognostic groups, right, just making it up, it could be three, it could be four, it could be five, whatever, the people with the best prognosis in that group, they actually will have a lot more utilization of FGTS, because they have more crowd preserved classes, and so on, and so forth. And maybe patients within the lowest prognostic prognostic group may have the least number of FGTS. And so the kind of average weighted revenue that you would get, as a business from these different groups, this can be very different. And so again, if there's not a stratification, you're really looking at all operational costs, all revenue, as kind of a lump sum. And that's really can, you know, really doesn't help you to optimize, you know, strategy and growth and planning or, you know, making your operation more efficient. So those are the ways in which what started out as an IVF prediction model that is so important to support the patient counseling gives patients what they want, is also the fundamental model that can support a lot of business decisions as well.


Griffin Jones  13:41

There's a lot of uncertainty in the patient journey. And we just had an event about it through arm yesterday going through the whole patient journey. And there's countless points where there's uncertainty and there can be points for drop off every time the patient feels like they have to make a decision, and they don't have the information or they don't know how to weigh the pros and cons of the decision. Indecision is always a motivator for inaction. And so for you all, what were the biggest points that you were seeing where patients were dropping out? How did you look at that?


Dr. Mylene Yao  14:21

Patients want to have a family, they're already seeing a doctor, which means they're motivated, they want to do something about it. And not knowing your personalized, you know, probability of success is a big barrier, especially since many patients know, maybe friends or have heard in the media by now. I mean, everybody has heard good and bad experiences from IVF. But the problem is that all of those stories aren't personalized to them, you know, what happens to another person may not be their situation. And so, you know, the most important thing is you really to figure out based on the patient's profile, what is really hurt, probably of having a baby from not just IVF, but compared to other treatments such as IUI, or other options, or even not doing any treatment, so that people can have some visible, you know, good visibility as to, you know, the pros and cons of different treatments, but also the cost, of course. So, and it's not just that it's expensive. I think this is complex, because, in addition to the expense, you know, if someone will talk about people they're paying out of pocket, and then we can talk about people with coverage, people paying completely out of pocket, in addition to the expense, there is a chance that it might not work, which means the money to them, the way the patient's right fully would perceive is the money went down the drain, there is no purchase. And in the US, let's say the cost of IVF, justifiably is high because of all the expectations we as patients have from this treatment. So it can depending on where you are in the US, it could be somewhere between 10 to 20, or even 30,000. All in, by the time you include everything, you know, FET IXI, and if you choose to do PGT, so for the patient there, I mean, for us consumers, there's really no consumer purchase like that, where you pay that amount of money, and you may not get the product, which is the baby. Now from the provider side, we care a lot about provider empathy providers are working so hard, their teams are really going all out for these patients. So they're providing top quality care. So the question is, well, how do you reconcile, you know, the two things, you have centers providing excellent care, you have patients feeling like they paid and didn't get what they want? So that's kind of the question we more and more we look, I didn't realize this, I started out as an academic researcher and a clinician, too, you know, so my journey with Univfy and leading Univfy it was like peeling an onion, one layer at a time, like, oh, patients need individualized care patient needs, patients need personalized prognosis. Oh, patients need a way to cap their financial risks, not necessarily even cost, but the risks that they perceive, oh, patients need to be educated because, you know, many people may not succeed on the first try, even though IVF is a very effective treatment, and is the most effective and safest treatment. But they may need more than one treatment to have a family. And some people may not succeed, even if they try three times. But how do you put that together to educate the patients, so they see it as a course of treatment, but also so that the pricing can reflect that what


Griffin Jones  18:06

you're talking about what you're tugging at is that there is something beyond clinical outcomes relative to the standard of care, clinical outcomes are requisite. They're they're absolutely necessary. They're insufficient in terms of just categorizing all of the standard of care if we when when you're talking about you have the quality of treatment, that's kind of like the product when you're talking about the market problem is really talking about the delivery. And if we were to use a simple example, let's say we have the best pizza in town, it's the very best pizza. That's the best product or clinical outcomes. But then you also have, if we don't have parking for the pizza parlor, if there's no way to order, they don't answer the phone, they there's no way to order via app, if they can't take electronic payment. If it takes an hour and 45 minutes to get your pizza, it doesn't matter how good the product is. Because the delivery, what you're talking about the market problem is irreconcilable to how good the product is. And that when we think of the standard of care as just clinical outcomes, that's what we're doing. We're thinking of just the pizza and what you're talking about is talking about the rest of what the the standard of care is.


Dr. Mylene Yao  19:26

Well, Griffin, that's that's a great analogy. And I would maybe expanded a little bit. clinical outcomes are the most important things, but it needs to be stratified and personalized. When you lump everybody together and call it clinical outcomes. There's really no visibility to what are you improving? So for example, I think you don't need to be a doctor to know by now we all have friends and family that have you know, been touched by care Sir, right? So if you were to go through a pit, every patient knows, even if you don't have cancer, well, you, for people who need chemotherapy, there's a course of chemo, you don't just go in once and say, Oh, what's the remission rate from doing one session, your oncologist is going to tell you, Well, this course of chemo is going to consist of, you know, three visits, or six visits, or whatever, or this is the junk therapy. And this is the remission rate that you could expect. And so, you know, there's kind of a framework for that. And that's also going to be stratified by, oh, this, this patient has stage one, this is the right protocol for her, or this patient has stage two of this particular kind of cancer. Now, fertility, fertility, you know, conditions, not cancer. But if you, I think there are many studies that have shown, when you ask patients, they do, you know, kind of explain the stress, and, you know, the mental burden is really similar to what, you know, patients with other conditions are, you know, can experience and but we, I think as a field, we don't do a good enough job, to really kind of figure out this course of treatment, so that we can give patients a view of what their maximum potential of having a family could be like, and also package it in a way so that they could actually, you know, afford it and achieve it. And I think the what a lot of people don't know, is this does not have to come at, like a huge cost to the Fertility Centers. And this is what is not like, you have to give anything away for free, you can still be growing profitable, F very healthy, you know, really successful business, but there's a way to package it. So that is a win win.


Griffin Jones  22:05

I also want to touch on this stratification piece a bit that you brought up because it there's a cost for not stratifying it so you were correct in saying it, the clinical outcomes need to be stratified. And they do because when we just say things like IVF has an 80% success rate, there is a big Asterix and what Dr. Yao is talking about is you have to stratify that Asterix and I can tell people on a marketing side or patient satisfaction side, if you don't, if you don't stratify that from the beginning, you are you begging to have consequences to your online reputation. That's very often where the negative reviews come in, is where people feel that they're misled. I know none of our listeners feel like they, they mislead people. And I know they don't intentionally do but I hear clinicians all the time really and say IVF has an 80% success rate. It's like yeah, if A, B and C or if you're under 35, if you're doing three cycles, if we just say IVF has an 80% success rate, then inevitably we're going to disappoint some people. And so Griffin,


Dr. Mylene Yao  23:15

that's really interesting, because you're seeing I'm actually seeing the a bit of the opposite. So there are two flip sides to this. A lot of patients when they Google online, they're gonna see the average IVF success rate from the CDC. And what they're seeing is a number in the 30s. Okay. So there's that site like so you and they come in, they can come in feeling like, oh, IVF has such a low success rate. And in fact, you know, a lot of people I've heard would say, why is IVF? Why does IVF has such a high failure rate? And at first, I was like, What are you talking about? IVF is a very effective treatment. And we're all talking apples and oranges. And your examples. Great, too. There's the other flip side. And so I feel like, you know, everyone's saying this, everyone is factual. But everyone's talking about different things. And then we want to bring kind of some, some ways for this communication, to really be very clear. And in fact, what we find is that when we you know, we're in the business of building IVF, success prediction models. We have, you know, built models and analyze IVF cycles and outcomes for many clinics now, very diverse kinds of datasets that we've seen, all the way, you know, from smaller, you know, private individual centers, all the way to large academic centers, or, you know, centers with multiple locations and so on. So we've seen really a wide range of patients clinical profiles, and different socio economic demographics. And so we're seeing that, in general, doctors are underselling IVF, when the prognosis is not personalized, because actually, what we do see is, most clinicians are really kind of shy to talk about IVF. And how successful it can be. Just because they feel like, well, I don't want the patients to feel I'm pushing them down this path, because it's more expensive. I don't want them to feel like I have any business agenda. I better not, you know, sick, you know, give them some high numbers. And that actually, is not doing patients a service as well, because and we see that a lot, actually, when we talk to senators and, and they would say, Well, maybe some doctors feel more confident, some really are more shy about it. But at the end of the day, is because there's not a model and the data driving their conversation that is tailored to their center. So the doctors don't really know. Well, I really think if you asked me, honestly, I think this patient has a 70 to 80% success in one cycle, because I think she has all the best, she's has the best profile. But I feel worried to tell her that, because I don't want her to think that I'm being pushy, or, you know, get a bad review, like you said, because there's still a one in five chance that it may not work for her in the first cycle. So in that situation, what we're seeing is actually being too conservative, is also not doing a service to the patients, because they come in, they want a family, they want to know, you know, whether they should do this treatment or what they should expect. So there's really one very, I would say easy, because it's available now, which is well just use the data driven approach, we can build an IVF prediction model, that is using that clinic specific data, their own data, validated with their own outcomes, and really kind of customize in a way to in the patient report, which is the report used to counsel the patients, and the doctors would use this. So Univfy is not part of, you know, providing the medical counseling at all, we're just supporting the providers. And in that conversation, the doctors can feel confident this is based on data from our own center, this has been validated, it just makes them you know, really be able to communicate the actual, you know, facts without worrying about, you know, patients, not trusting them or anything. So in fact, we find that, you know, patients, it really helps patients and doctors to build confidence in that relationship, as well.


Griffin Jones  28:12

I recommend that people go to the Univfy website, we'll link it in the show notes, we'll link a couple of different things that are useful visuals for our listeners, for the concepts that we're talking about, you can actually see some of these things. And there's a sample three IVF report that you can see on the Univfy website. So I recommend that people go and take advantage of that. And I get as as you're talking, we learn I'm thinking, oh yeah, this is why you need individualized predictive outcomes, because you can err on either side of the spectrum, you can either be too bullish. And then ultimately, even if you're not saying, and I don't think most people are saying, oh, there's 80% success rates, but they feel like, Oh, we're gonna get you a baby and it doesn't always happy. It's it doesn't always happen. It's to anecdotal, it might be to based on temperament or to based on optimism. And on the flip side, very often we see we wasted so much time with this clinic because we needed IVF. And and they didn't tell us that and we went some other plate, right? So you're right. It's a spectrum, you can err on other side. This is why you need to have individualized predictive outcomes. And you're seeing this on all of the patient side. So on the provider side on the clinic side, what does it look like for dropout and conversion from start of have someone coming into the office and having a consult and then leaving with a healthy baby? What are the dropout points that you're seeing? Typically,


Dr. Mylene Yao  29:45

right. So I'm kind of speaking this generically, but what we do just so that you have the context for you know what, we're all about data and we're all data driven, but everything that I say is really fun. AR platforms firsthand experience and analyzing data. So when we work with providers, what we do is we actually analyze the utilization of care. And that's how we would know at every step, you know, let's say 100 100 people, 100 patients come in and make appointment for new patient visit. And they are candidates for IVF. We're not talking about people coming in for surgery or other things, right? And what happens to them? They also, a lot of times patients are thinking about what's less expensive? Should I do IUI? Should I wait? Should I try on my own a little bit further? You know, should I, you know, go to another clinic and see what's available there. These are all very, you know, typical kind of mindset and questions that people have. So they come in, and, and every place is going to be a little bit different. I'm just kind of making it more general right now. So we look at, you know, patients coming in for the initial consultation, and what percentage of patients actually complete their diagnostic workup. Let's say they're new patients. And that's very important indicator, because if you can't complete the diagnostic workup, I mean, it's difficult for the provider to make a diagnosis and offer you to treatment options. And then but at that point, when the patients come back, after they've completed their diagnostic workup, and the doctors telling them oh, you know, based on the testing, and your history, and you know, examine you this is your clinical diagnosis, you know, you have tubal factor or you have PCOS, you have malefactor what have you, or maybe you have more than one diagnosis. And here's my recommendation, you have an option to do IVF, blah, blah, and this is your success rate that you can expect, or you have an option of doing IUI. And doctors are really excellent in explaining the pros and cons of different treatments. But patients really need more than that, to really help them make this decision. They really want to know, especially if they don't have full coverage, they really want to know, okay, how much am I spending? And what does that mean? And now, if they are sophisticated, and having done a lot of research, they might say, Oh, what if it doesn't work, you know, and, and if they're not, the counseling should also support that. Because otherwise, if a patient has not been kind of educated in the risk of failure, and what might happen next, then where, you know, the dropout rate could be very high. So for example, all comers and, you know, so that we're just keeping things general. But when we do that, when we do this analysis is specific to each center, to help inform how they can improve their patient awareness programs, and things like that. So but generically, for patients who are paying out of pocket, the dropout rate can be as high as 80%. And that's really, really unfortunate, because that means these patients are not benefiting really maximally from IVF treatment. And a lot of times, it's not just that they can't afford another treatment. I think it's just seems really intimidating to be paying another amount, not knowing whether you can have a baby or not. And so that's why by educating patients and putting together not, you know, in addition to a personalized medical prognosis to put together a financial plan that can help them achieve that, even though Okay, nobody has 100% success rate, but how can we put together plan to help you achieve 80% success rate, or 70%. And for some patients, maybe they have very poor prognosis, maybe three cycles could give them 50% success rate, or patients who want to who may really be a good idea for them to start thinking about donor egg to really think about that as like an overall plan or an option. So those are the things that, you know, the Univfy report, can support. And we can also support, you know, the clinics in designing these pricing programs in a way that's, you know, really a win win. And, you know, patients feel really comfortable knowing that, you know, they have, there's a way to you know, achieve a certain amount of success.


Griffin Jones  34:58

I want to talk to you about How you help clinics implement this because you all have been around for a little while. And one of the differences between the companies that have been around for many years versus those that run through their VC money and then they're gone in a year or two is that they can't figure out how to get the clinic to adopt the solution with the clinics, workflow. clinic workflow, as we say every other episode on this show is one of the biggest barriers to scalability in this field, because there's so much variance between clinics workflow, and it makes it hard for people that even when they do have a really good solution, again, this kind of goes back to product quality of product, but you also have to have quality of delivery or else even though the quality of product comes first, it's a moot point if you don't have the delivery to be able to do it. So I bet you've learned some hard lessons


Dr. Mylene Yao  35:55

analogy. Yeah, definitely. We at one point, when we first started, we were that best pizza parlor. That Oh, but how do we do this? How do we get the pizza? Right? So we definitely had some tough lessons that we learned. And, you know, I think all of digital healthcare, had to learn some tough lessons early on. And oh, and we're really excited. There's one thing maybe I you know, just to mention. So recently, we've been named Top 150, global, digital healthcare companies, by CB insights. So that's a really great honor. And I think a lot of what went into that, to being named there is the delivery. And so I think we start with the philosophy in our company. And this is a philosophy that across the company is top of mind all the time. Of course, we're all doing this to support the patients so that they can have a family. But that is not possible. If we don't have provider empathy, provider empathy. We always talk about patient empathy. You know, that goes without saying, but provider empathy is not something you hear people talk about a lot. And we really focus on that, oh, what does the provider team have to do? Picture what they're dealing with all the things that they have to do to support their patients? So how can we, as a technology company, make it as easy as possible? So now, what we have, I won't, you know, I won't walk you guys through all the phases of how we got here. But what we have now, and I'm really also grateful to the providers that have worked with us, and have given us so much feedback, and put their trust in us to let us improve on our delivery. And so what we have today, is really that white glove ai plus human expert platform, the human component is so important. It's always been there. But we realize we shouldn't call this an AI platform as human plus AI, because we have you really amazing humans kind of, you know, shepherding, you know, the process. So what we can, what a provider can expect is, you know, there's not a duplicate data entry. You know, if you put things if you put data into the EMR, there's EMR integration. And a big effort was actually, that we're really excited about is that recently, we completed integration on the back end with E IBF. And so there is this very seamless and customized integration for each clinic, we understand that clinics use the EMR modules in different ways. And so they don't need to worry there that all that is taken into account. And so it's been amazing to work with the IVF team to be able to bring this integrated service. So now with a click of a button. Patients can I mean, provider teams can generate a report and give it to their patients. However, we also have some clinics that say, Oh, well, we really want to be supported by you know, your your team. And there we also have unified fertility concierge, which is a team of just amazing people, you know, that are registered nurses and they have decades of experience working with providers and patients, knowing the language knowing that what it's like to be in a busy clinic. So we have a lot of empathy there. And unfortunately, concierge can support our clients by really helping them run the reports as well, and even keeping track of so many things. So you could be using Univfy report And hardly lifting a finger and not needing to track a lot of things. And we can do a lot of tracking. Oh, we see these patients are going to be coming in for their recons out, hey, here are all the unified reports ready for your doctors to use. That's the kind of white glove service that we have. And of course, there's some hybrid. So, you know, whatever clinic needs like, oh, we want some IT support and some human support, whatever that is, is already can be configured as well.


Griffin Jones  40:32

I think if you can't figure out how to help clinics implemented it, it's just a moot point. And frankly, it does take a lot of hand holding it does take it isn't just here's your automated solution.


Dr. Mylene Yao  40:46

And a very big part of what we do is, is always customer first. So while you have a e IVF. Integration is the first that we accomplished. Many customers are requesting EMR integrations now, and they're using other EMRs. And we are doing that as well. So we do whatever is needed, whether it's E IVF, or another EMR, we do whatever is needed, so that the customers can have the best experience. And I think that in turn, when the provider team is less burdened, they in turn can give better service to their patients as well. So we really believe in, you know, supporting the provider team so that ultimately the patients will get you know, the right kind of attention,


Griffin Jones  41:35

you must have somehow also figured out the other sticky issue, which is pricing, because sometimes it just it doesn't work, it ends up being too much of an intermediary. And you can either take a piece of the pie, or you can make the pie bigger and the way that people use pricing matters for for which of those that ends up being so how did you decide on the model that you use?


Dr. Mylene Yao  42:02

Right? So there are really two sides. So to be just very, the easiest way to explain our pricing is is a SaaS fee. So that's software as a service or AI as a service, which means we make it very feasible as a monthly flat fee. And it's also customized. So now we have an algorithm for you know, providing an algorithm. So to be very objective, very fair, we take into account, your, you know, your central specifics like your pricing, because the pricing can vary so much across the country and around the world, pricing, your IVR volume. And you know, even the percentage of patients that come from coverage or reimbursement, knowing that reimbursement is usually less, so we account for all of this to make it feasible. And so, you know, most centers don't find that pricing is really a barrier at all. And, and the other hand, on the other hand, getting the ROI is very important. The AI platform is yes, as utilization is really inexpensive, but also at the same time, we recognize that knowing the ROI is very important for business. So we really look at it as you know, if you, you are going to get a certain amount of increase in IVF conversion. And you know, if you get even one, not even one additional conversion a month, it will be more it will pay for the unifies fees, you know, and half excess. And so that's kind of like our principal. And the conversion going back to you know, what you started out discussing, it is important, because it's really another word for, you know, helping more patients be able to access care. And there, we find and we've done a lot of business analytics now with individual clinics to know that for each clinic, when patients are counseled with a unified report, they are more likely to proceed and go on to IVF. And for some clinics, that might be a two fold increase for some clinics that might be up to a five fold increase. So we're really excited. And it's also seems that we've been doing these business analytics for, you know, four to five years now consecutively. So what we're seeing is also that this kind of increase in IVF conversion is continues to increase over time. And, you know, the more reports that you are the more patients you give reports to the more you know, expanded access As you can get. So these are some trends that we've observed from working with individual clinics. But now what we've done is an also really grateful to clinics that are that want to give this information back to other providers and patients and everybody in the space is we're forming research collaboration, we now have eight centers that have joined the research, collaboration and more than a joining. And they're giving us permission. And it's all IRB approved and everything to to aggregate all of these analytics. So it is not like when we provide a service to each clinic, that's business analytics. But when is aggregated, and we report utilization of service back to the public, that's research. And so we're doing that right now. And we're really excited, we have a manuscript that we're preparing right now, in its final stages of drafting. And it's definitely, you know, we can't wait, you know, until we share the science behind it, and the analytics, you know, with, with everybody, so that we we can help, you know, more patients be able to access care.


Griffin Jones  46:25

And you have a third constituent, which is employer. So if we were having this conversation 20 years ago that, that third constituent probably wouldn't enter the conversation, wouldn't want your employer to know anything about your fertility treatment at that time. And now they are among the people that are the most interested constituent in clinical outcomes in individualized care, because this is the benefit that they're offering to their employees. And if they're not happy, if the employees aren't happy, then the employers aren't happy, it doesn't work as a benefit for the employer, if it doesn't work for the employees. So how does Univfy work with employers?


Dr. Mylene Yao  47:10

Right, so we're getting a lot of interest from employers, because what they want, and maybe just, not all employers have the same type of benefits, right? We have really amazing benefits companies now. Like, you know, progeny, carrot, Maven kind body is amazing. Because in order to expand access to care, we have to have many different formats, because they're really, you know, have there's diverse types of employers with different ways that they want to support their employees. So I think is really amazing that we're seeing that in the marketplace. And employers really want to know, what is the value we're bringing to our employees. So especially for employers, who are not supporting unlimited fertility care, if there's some kind of financial limit, which is still sadly the case for most employers at but we need to work with that. I mean, they're constantly expanding their, you know, budget, but still, we need to support, what is the best that they can get. But how about the traditional way of doing it is, hey, let's just reimburse the doctors less. That's not value. So I think there's more and more realization, that that is not the best model that does not give back the best support to the employees. So what employers want, and it doesn't have to be that there is a way to help support costs, and cut costs without kind of penalizing the providers. And so what employers really want to see is, how are our employees supported in that navigation? Do they understand, you know, the pros and cons of different treatments? And do they understand that there may be an out of pocket cost later, because when employers are not providing unlimited coverage, that means what we see so unifies the firsthand experience from that is usually when some patients, they initially have coverage. So let's say the employers gave them 20,000 or even 30,000, which, you know, is not ideal, but it's it's really good as a start. So employees go in with coverage, so they feel relaxed. Maybe they didn't ask a lot of questions. Maybe they didn't fully understand what that there might be multiple cycles. I'm sure the doctors explained it, but maybe they just didn't hear a certain way, it's because there's lot of overwhelming amount of information in that counseling session. And then they go through the first cycle, and it's covered, great. But if it doesn't work, and now they realize, Oh, I'm on my own. So what we're seeing a lot is that some employees that have initially have coverage, they become patients with no coverage after the first cycle. And because they hadn't planned on that, and they might say, to, you know, they might say, Oh, how did I know? I would have planned this way? Had I known I would, I wish, our employer could have supported a multi cycle program. Because now, we're suddenly like, the employees is out of pocket, and really cannot afford a second cycle. And then the employers might also feel like, oh, we funded our employees, how come they're still people coming back? Saying they didn't get their have a baby? Right. So So I think we're, you know, seeing more and more of those questions coming from employers. And I think there's a really good way to set expectations, and really, ultimately, you know, being able to expand access to care, by kind of like making that whole navigation seamless and support it by personalized prognosis, and tying that to a really good, you know, financial plan. So maybe initially is the employee and employer or maybe they chip in, you know, to support a program, or at least give the employee that option to chip in. So those are some of the concepts that are coming through right now


Griffin Jones  51:56

covered a lot of ground today, we talked about narrow AI and machine learning how it is used by Univfy to remove financial risks, how individualize predictive outcomes are necessary, because otherwise, you can err on one side of the spectrum of over selling or under selling or being unclear. And you don't have to rely on human temperament or opinion, you have hard data to use, we talked about how you actually implement that with integrating into EMRs, making sure that there isn't data duplication, that you're accounting for the different uses, that people use their EMRs for using provider reports that even that that can be repurposed for the provider and you know, five fertility concierge can help run those reports and insert them into different points of the workflow, we talked about how you come up with a pricing model for all of this in a way that works for the clinics. And we also talked about even how business analytics comes to be researched for the field once it becomes aggregated. And I wish that you were in an event that happened just yesterday, and people were asking about the tools for IVF conversion, because people really want these tools. And so I recommend to those of you even if you're still checking out unifier even to use it for yourself, this is free if you go to Univfy.com/ivf patient retention, but most of you aren't going to remember it, you're going to go to your phones and click on the link. And so it's going to work and bring you there anyway. And you can download this, it's free to be able to see what it looks like when you have a win. If you have 100 patients on general the different points of drop out. And so go ahead and take it go ahead download it and plug in your you can point to your own workflow. And numbers. I encourage everybody to do that for Dr. Yeah, I was part we you given the audience so much today, how would you like to conclude either about the challenges of IVF conversion and patient drop out in the field or what Univfy is doing to solve them or what unifies doing with artificial intelligence? How would you like to conclude,


Dr. Mylene Yao  54:17

I really appreciate this chance to, you know, chat about the different ways to use the Univfy AI platform. And I would say, you know, there's a lot that all of us meeting providers, companies, you know, all the stakeholders in the fraternity space, there's a lot that all of us need to do and can do, so that we can help more patients to have a family. And in fact, you know, I think we have a shared vision in this space, which is great. We all just want you know, everybody who wants to have a family should be able to have one and we should be able to provide very equitable, high quality care can do it in so many ways. Whether you are advancing therapeutics, advancing diagnostics, advancing other types of personalized care, or advancing, you know, a better way to, you know, make IVF care or fertility care in general more feasible, more affordable to patients and employers that want to support them. I think, you know, there is a way to use the technology that we can provide, it's going to take so many people in so many companies to come together to really accelerate this, you know, access to care, vision. So we would love to be able to support whatever it is that you're doing, whether you're on the business side on, you know, care, or research, Univfy has the technology to help you accelerate. You know, your vision.


Griffin Jones  56:04

Dr. Millennial, thank you so much for coming on the inside reproductive health podcast.


Dr. Mylene Yao  56:08

Thank you, Griffin.


56:11

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





172 PGT-A Overuse And Misinformation In Reproductive Medicine, According To Dr. Norbert Gleicher



Dr. Norbert Gleicher breaks down why he believes PGT- A is overused, over-funded, and over-aggrandized on the latest episode of Inside Reproductive Health with Griffin Jones. Is the genetics testing industry the new “big pharma”? Could PGT-A be harming pregnancy chances instead of improving them? And if so, why isn’t anyone talking about it? Tune in to see where you land on this week’s topic.


Listen to hear:

  • Grif and Dr. Gleicher talk about IVF “add-ons”.

  • Discussion on the huge differences in practice patterns.

  • The failures at the early attempts of rolling up IVF centers in the 1990s.

  • Talking points on the efficacy, or lack thereof, of PGT.

  • Gleicher’s stance on scientific literature’s inability to support the use of PGT to the level it is being used. 

  • Gleicher explain why he believes Big Pharma has been replaced by the genetic testing companies, who also happen to be the biggest benefactors of PGT. 

Dr. Gleicher’s info:

LinkedIn: https://www.linkedin.com/in/norbert-gleicher-88101916/

Transcript


Griffin Jones  00:57

Its the same old song, since I've been in the field, or at least working in the periphery of it from my perspective, but I admit that I can't judge the quality of the debates. I can't even assess the arguments properly because I'm not a clinician. What interests me about this topic is because of my vantage point, as a lay person, it seems like there hasn't been a shift. There hasn't been a consensus. Dr. Gleicher is from the very first generation of fertility specialists. He did his residency at Mount Sinai in New York. He went to rush Medical College in Chicago to work on immunology and microbiology, and then he founded his practice the Center for Human Reproduction in 1981. With Dr. Gleicher to talk about IVF add ons, we talked about the huge differences in practice patterns. We talked about the failures of the early attempts at rolling up IVF centers in the 1990s. And we zoom in on the issue of this efficacy or lack thereof of PGT. I need to be careful of how I summarize Dr. Gleicher’s arguments because I'm at risk of getting it wrong, but I think it's safe to say that he feels that the scientific literature does not support the use of PGT anywhere near the utilization that it is being used at in fact that it could be harmful, and that many of the reasons for PG T's wide implementation are from economic and social pressures. Dr. Glasser says the Big Pharma has been replaced by the genetics testing companies and the MSOs the fertility networks that are the biggest benefactors that PGT as the biggest exhibition spaces at annual meetings, there's a limit to how much I can press Dr. gletscher. In this interview business people with no scientific and no medical training should not be doing that. That's your job. What I am interested in is why isn't there a consensus? And is it the case? And how is this impacting the business of reproductive medicine? There may be people that want to argue the counter argument, they're welcome on the show, it's very likely that you're going to hear genetics companies sponsoring this show that I would even let a genetics company sponsor this episode. But I'm not going to be the guy to moderate that debate. Not on this show. I could have someone moderate the debate if I felt like it was going to be meaningfully different from what we've heard at the conferences. I'd be open to that if some of you want to be guests on either side of the argument. But first, you should hear Dr. Gleicher’s argument and I hope you enjoyed this conversation with him on inside reproductive health. Dr. Gleicher. Norbert, welcome to Inside reproductive health.


Dr. Norbert Gleicher  03:25

Thanks for having me. It's a pleasure being here.


Griffin Jones  03:29

The pleasure is mine. You and I have known each other for a while but we finally made each other's acquaintance. Someone mentioned to me that you had mentioned our newsletter in your newsletter, I became aware of your newsletter, and read one of your articles. And such is the compounding effect, the compounding network effect of content creation. And one of the things that caught my eye had to do with the perceived overuse of PGT. And you can correct me if I'm not characterizing it correctly, we'll set that up. But I noticed a concern for empiricism and transparency in medicine. And I want to go through that argument with you today. But first, am I characterizing it correctly?


Dr. Norbert Gleicher  04:17

You are characterizing it perfectly. And I would say that the concern about transmission of information has increasingly become a central issue at our center in our internal discussions in our research, in our evaluation of the literature, and has not the least been a big impetus for the creation or I should say the expansion of our newsletter because if you may have noticed, a very important section of our monthly newsletter is A review of the literature that relates to reproductive medicine. In general, it can be general medical articles, but there must be relationship to reproductive medicine and research in our field. And that section of our newsletter has really grown the most, because the response to it has been really phenomenal. And so we are really addressing this issue very aggressively.


Griffin Jones  05:32

What would you say the issue is specifically?


Dr. Norbert Gleicher  05:35

The principal issue is that I think that, especially since 2010, the the impact on our field from external, often financial sources, has been increasing. And that has been to the detriment of outcomes in IVF. Best characterized by the fact that like birth rates in IVF, which until 2010 have progressively improved since 2010 have been plateaued, and then in more recent years have actually been declining. And this is not only seen in the US, but around the world. And seems to correlate with the addition of add so called add ons. This is a term created by British colleagues several years ago, describing new things introduced into IVF practice without proper prior validation studies, and probably the most significant or one of the most significant is indeed PGT. Specifically PGA I'm not concerned that other PGA formats,


Griffin Jones  07:14

why 2010? In your view, is there a catalyst event, as far as you can tell it? Did it just happen to be around that time?


Dr. Norbert Gleicher  07:23

Well, it's it's really the acceleration of what I and some of our publications have called the industrialization of IVF practice. I don't know if you know that. But I was probably the first to try to roll up IVF clinics in the late 1990s, during the physician management practice, bubble as it is now known. And very quickly, learn how difficult it was and what the arising problems. Become when when when you develop chains of Fertility Centers and try to integrate them and try to establish best practice. All of those things that, really since 2010, have, again, become Vogue and have accelerated. I mean, I don't have to tell you, because I've gotten a lot of my recent information from your newsletter, about what has been happening over the last 12 years, 13 years worldwide in terms of roll ups, and creation of large fertility clinic networks. I think that has played a significant role.


Griffin Jones  08:57

I don't want to take us too far off, but I do think is germane to the conversation as far as discussing IVF centers, workflows and different providers workflows. What were the greatest difficulties at that time, you said you were among the first in the 1990s to attempt a roll up of IVF centers, you very quickly found out the difficulties, what were the greatest difficulties,


Dr. Norbert Gleicher  09:22

huge differences in practice patterns between individual centers for a variety of reasons, and certain conservatism amongst doctors. Meaning, resistance to change. And then, of course, economic considerations. The facts The more you intervene in a physician's established practice pattern, the more of a decline in productivity you will encounter. And so, it, it becomes kind of a vicious circle. It is very, very difficult at least that was our experience to to change a physician's practice pattern. And so if you acquire an infertility practice that had a very distinct or different practice pattern, you will be successful in changing that practice pattern, at least in our experience, then only at the cost of losing significant revenue.


Griffin Jones  10:52

And specifically, as you can please give us examples of these types of practice patterns.


Dr. Norbert Gleicher  10:59

They're almost unlimited if we go into into presentation genetic testing, for example, which in those days already existed, was called pre Implantation Genetic screening. You know, some people then already believed in it, others strongly opposed it. I think this discrepancy if anything has increased over the years, but also the utilization of PG TA has greatly increase. You just have IVF clinics out there, that till today swear that it's it's the best thing that ever happened to IVF. And then there are others like us, who feel that not only is PGT a, useless for most patients, in terms of outcomes, but for many patients, it actually does the opposite of what is claimed it does and actually reduces their pregnancy chances. So this is probably one of the most dominant subjects where this kind of discourse exists today in our field, but there are many other major subjects, routine culture of embryos to blastocyst stage, for example, that the even ESRM considers that today, the routine embryology practice in IVF. But when you look at what is really behind it, the you have to question the routine, embryo culture to blastocyst stage for everybody because the people who initially promoted this did their studies in a very highly selected good prognosis patient population. And subsequent studies who tried to show the same improvements in general populations have universally failed. Yet, we as a as a field, have accepted the claim that routine embryo culture to blastocyst stage improves, improves pregnancy outcomes in IVF. That is categorically false. Yet still, like with pgpa. This is the main treatment that is being pursued in this country for most IVF cycles.


Griffin Jones  13:55

Are you familiar with these very large consulting firms that they're retained by companies in lots of different sectors, health care, energy commodities, and they have rolodexes of experts in different verticals, and then they call you and they pay you for an hour at a time to talk to someone identified. group on the other end, they ask all these questions. Are you familiar with those groups at all?


Dr. Norbert Gleicher  14:20

I'm familiar with them because I get a lot of calls asking, asking me to set up meetings. I rarely do it. But yes, I'm familiar with that.


Griffin Jones  14:32

So I get these calls, too. And I take some of them sometimes, and I often get the question about PGT about its implementation and about its use and if if the doctors view it as an add on or if they view it as necessary, and I tell them I'm not qualified to answer the question. I say the only thing that I'm qualified to remark on is that I've been showing up since 2014 to 2015 And it doesn't look like there's any more consensus than there was eight years ago, it seems to me like it's the same debate. And from my vantage point, it doesn't look like there's any kind of consensus. So that's what I tell them. I can't speak. I'm not I'm not clinicians, I can't speak on the issue of PG. Tea itself. But you said that some people even back when it was still called PGS. They thought that it was it was the great they swore by it. And and some people say today, that is the best thing to happen to IVF and where others, like yourself believe that there's no evidence for that. Why Why isn't there consensus if it's the same darn debate at SRM and PCRs? Well, first off, maybe I'm making an assumption, is it the same debate that's been going on for years? And two, if it is, how has consensus not been able to emerge?


Dr. Norbert Gleicher  15:55

It is the same debate. I would argue that there has been a shift, I think there's increasing recognition that that the hypothesis of PEGDA, which is that by removing supposedly chromosomally abnormal embryos, from the embryo, embryo cohort, before embryos are being transferred into the uterus, will improve pregnancy chances for patients. I think that this increasing doubt about this hypothesis, so that from my vantage point, is a positive development. At the other end, as you correctly stated, they are those who are holding on and if anything else, they even have become more aggressive in in defending PGT A, and I cannot speak to their motives. Um, but several months ago, I spoke to one of those economists who called me and he made the startling comments to me in our discussion of the field, and his comment was, if PG ta were to disappear tomorrow, a third of IVF centers would have to close or at least to restructure. And I found that that interesting, because what what he meant to say was that the profitability of IVF in the US is obviously marginal. I mean, this is not a huge, not in an industry with huge profit margins. And he suggested that, in in many IVF centers, that profit margin comes from PG TA. But without PG TA, there would be no profit and maybe even loss. And, and this, this makes sense, when you think that PGA is not covered by insurance, and so as as a cash payment on top of what IVF centers are getting from insured patient coverage, this is a significant addition to the average cycle revenue. And if that were to disappear, because let's say for example, the FDA comes out with a statement that it considers egta inappropriate in certain circumstances, that would have an enormous economic impact on the field, so you cannot ignore that. But yet at the other side, there are people who, who see PGD as a religion, you know, there are people who are just believers, and they are not convinced by studies. They are not convinced by the opinions of people who are much smarter than I am. And they just stick to their opinions. So the motivations are open for a discussion.


Griffin Jones  19:49

You can't speak to their motivations, but at this point, you should be able to speak to their arguments because you've been on the other side of it for many years. What are their arguments in the best way that you can run? Present them.


Dr. Norbert Gleicher  20:01

Their arguments have been shifting over the 20 plus years that this procedure has been promoted. The the, the original argument of embryo testing was that it would improve pregnancy and life birth rates and would reduce miscarriage rates that has been dismissed over the years by various studies and has been acknowledged by ASRM in policies they statements by Essure, the European counterpart of ASRM are both in repeated statements have concluded that there has been no evidence to show that it really improves outcomes. And so as it became harder and harder to make the argument for improvements in outcomes, the rationale shifted shifted to Okay. It, it makes. It improves outcome, maybe in some subgroups. And first, it was in younger people, and now it is in older people. And again, I don't want to go into technical details. But those in my opinion, at least, those arguments are incorrect and are contradicted by by many studies, then the argument became ei increases, it still reduces miscarriage rates, that was also contradicted by studies. Then the argument became, yeah, but But it helps with single embryo transfer, which is, again another subject that deserves separate discussion, because this is also an add on. That, in our opinion, is is not logical to do single embryo transfer on every patient, in our opinion doesn't make any sense. But that is again, an opinion that has evolved. And so the pro PGD, a crowd argued that by testing the embryos and selecting a normal embryo, it helps with single embryo transfer, pregnancy and life birth rates. Again, studies have shown that that is not true in my opinion. But what is even more important than this proving their argument for potential benefits with which have shifted so much over the years, is that in parallel, there has been increasing evidence that PGT a harms patients and harms many patients in their pregnancy chance. And let me give you only one example for that, which is probably the strongest evidence for harm by PGT. pgpa allegedly classifies embryos as transferable or not transferable meaning, yes, you can put them back in the uterus or you should not use them and even throw them out. And that's that's the whole concept of pgti. Now, we started to doubt this concept in 2014. And we in 2014, started transferring so called abnormal inputs selectively, initially only so called mono soulmates because they are known not to implant and we transferred them under the theory. Okay, if they are really mono Assamese as pgpa claims, then they will nothing implant no big harm there. And lo and behold, we started seeing normal pregnancies. Now, we just published a paper in human reproduction a few months ago, about 50 consecutive such cycles from patients who shipped the embryos into our center because their own centers refused the transfer because they were by PGT. A declared this abnormal So, if they could not have shipped them to us for transfer, those embryos would have been thrown out to not use these patients had even though they were very unfavorable with a median age of 42, which is quite old. These patients had a pregnancy rate in the mid 20s. At that baby take home arrayed in the iteams. Now, what does that tell you? That tells you that there are 1000s and 1000s and 1000s of patients out there who went through PGT, who ended up with embryos that were declared as not transferable and who therefore don't have those embryos transferred. Yet, those embryos have a decent pregnancy and life and life birthrate. And these 50 Women who I just described, they didn't even use all of their embryos, yet they still have over half of the embryos frozen here, and therefore have even higher pregnancy chances sitting up there, they are not used. Is that a better evidence for the potential harm of egta than that? I don't think so.


Griffin Jones  26:21

Is that also not an argument, though, against the financial incentive argument of PGT, that if it is the result that we're not transferring embryos, Fertility Centers aren't in the business of forgoing IVF cycles for nil is, is there not a counter business argument to be made that there might be incentive to not use PGT, because it may result in people not transferring some embryos.


Dr. Norbert Gleicher  26:54

The issue of egta and not transferring embryos leads to another problem. And that other problem is that a lot of women who go to through two or three IVF cycles and are told in every one of their IVF cycles, that all of their embryos are chromosomal abnormal. The next message they're getting is okay, yeah, the only remaining choice is to do donor x. Now, donor eggs are a wonderful option, because they have the highest the pregnancy chances of any IVF cycle that the woman can have, because nothing can compete with 20 or 25 year old eggs. But I always tell patients, and I think this is another thing that differentiates ourselves from from many others, that I have seen very few if any women who came to us and said, Hey, I want to get pregnant with donor eggs, patients usually come to us because they want to get pregnant with their own eggs. And therefore we see egg donation as a wonderful treatment, but only as a last resort. And that is not the opinion of many of our colleagues. They are very, very quick, in in moving into egg donation with their patients. And when you look at national IVF data in the US use the FSC very few patients after age 42 Certainly for the three who still are going through IVF cycles with their own X. At our center, the median age of our patient population, well, the last four or five years has been 43 plus. So I think that's a reflection of of the different philosophy that is prevailing in the field. In most centers and and how we look at what is happening in in the fertility practice today.


Griffin Jones  29:12

If I dig any deeper there, I will leave my scope of competence and and won't be able to contribute. So I'll instead ask each of us to leave our scope of incompetence. Let's each step out of our pay grade for a moment and speculate that if it is the case, that there is a financial incentive to increase PGT add ons because of the increase of insurance or simply because PGT is usually cash pay. And then even if someone is covered via insurance, it allows for a cash pay option that's more profitable. If that is the case. Should we expect to see that bear out one way or the other as we start to see payer provider models so the He's groups that are doing are the payer and contracting with employers, as well as buying existing clinics starting clinics de novo? Shouldn't we see on one end of their model, a correction? Or am I missing something? In other words, if it is to gain more, if it is to just to add more money, would they be? Would they be losing something? Because they're not getting that on the employer benefit side? Or is it in fact better for them to add it on the employer benefit side? Because then they would be that they would be getting better outcomes on their provider side?


Dr. Norbert Gleicher  30:45

So that is a very complex question. With an equally complex as the complexity comes from the question, what is benefits. And I think that is the core issue of the whole discussion. Because in the old days, of IVF, and as you can see, from my hair or lack of hair, I am still a member of the first generation of, of IVF people. In those days in Chicago, when when I started an IVF center, we were the first IVF center in the Midwest, and one of the first in the country. In the early days of IVF. We all competed based on our outcomes. And that was healthy. Today, outcomes almost no longer matter. Yes, they are being listed national reporting sites, but very few patients, take them as a guide. And today, the competition is at a very different level. The competition today is much more than economical competition, it is a competition of academia versus private. It is a competition between networks versus individual practices. It's an economic competition, it is no longer a clinical competition. You know, the issue now is to grow. The issue is no longer to to get better pregnancy rates and better live birth rates. And I think that is at the core of our current problems.


Griffin Jones  33:00

Why do you suppose that is the case, though, because there's still an incentive on the patients and to pursue better outcomes at a lower cost.


Dr. Norbert Gleicher  33:09

There is a an incentive, the patient's on this on a portion of the patient side because insurance coverage has increased. And therefore patients who are insured, the only incentive is to go to somebody who is in their insurance. That financial incentive exists only among the non insurance, a paradoxically, the very poor. And the very wealthy. And, and the very poor, unfortunately, simply can't afford it. And therefore they are not visible. They don't have a voice. And the very wealthy frankly, most of them don't have to care. You know, they go by where they feel they will get the best care and what they perceive to be the best care not only in our field, I think that is true every throughout medicine, most information patients still get from their physicians. Yes, the Internet has become very powerful and and has much more influence than in the past. We had a good example. Because if it wasn't for the Internet, we wouldn't have patients and their so called normal embryos. from Europe and from Asia. God knows from where to us for transfer. But but the truth is still most infamous addition, patients do get from their physicians.


Griffin Jones  35:04

Let's talk a little bit about the information that physicians are getting in your newsletter. You reference a scientist named Carl Bergstrom, who I believe is an evolutionary biologist. But Brookstone wrote a piece where he gives aid rules for combating medical misinformation and for reviewing literature and other sources of info I suppose. And I'd like to go through each of those eight rules with you and see where might apply in this case. And so the first rule that Dr. Bergstrom offers is be aware of the environment into which we release information, how would you describe the environment in which information about PGT is being released,


Dr. Norbert Gleicher  35:50

I'd be happy to discuss his very interesting article, which was based on an even more interesting book. He wrote a while back, but I want to preempt that by making the point that the reason why he wrote that article recently, was his concern for misinformation, that the permits, medicine, medical publishing medical information, etc, etc. And partially driven, obviously, by our environment, and therefore, we have se se correctly, I think makes the point we have to be aware of the environment in into which we are releasing information. If we're sending out a news release, it's a different story than when we are talking to a patient or when we are giving a talk to colleagues. I think that is very important. And and we need to recognize that information needs to be delivered differently to different audiences.


Griffin Jones  37:03

The second rule is avoiding hype and tenuous claims of significance with regard to PGT. You talked about a few of those and summarize that what is you talked about that they have changed that the claims have changed? What are they now?


Dr. Norbert Gleicher  37:21

Oh, that's a very good question. And I think it is a question that that nobody, nobody can answer. Let me give you an example that I think demonstrates that the best. And then just taking PGT as an example again, but it applies to other issues, other subjects and other things. Equally. As I noted earlier SRM released 10 years apart to policy statements or opinions, which clearly declared that PGD has not demonstrated any outcome benefits to those points. The first one was in 2008. The second one was in 2000, at ASHRAE, kind of similar yet, yet. SRM just announced that they will update a release on the interpretation of PGT a results. Now, explain to me how a professional organization logically can provide a document explaining how the results of a test should be interpreted. That same organization claim has no benefit. Where is the logic? And I think that's, again, a good example of that, we need to be careful in what we are saying to the public. You know, we cannot say to the public on the one hand, test X is useless, it doesn't give you any outcome benefits, and then go out and say, okay, but if you do test X, interpret it in this in this way.


Griffin Jones  39:38

The next rule is to recognize the importance of visualization in making figures stand on their own. Is there a way that's being used by the opposition argument, in your view to represent the information that they're trying to get across?


Dr. Norbert Gleicher  39:59

Yeah, I Think this is a this is a more or less technical issue, I'm not sure if it has the same importance as, as the first two, it's more a technical issue in the how you present that, again, you can you can manipulate everything. And and that includes how you how you present that, and how you present that graphically. You know, you can you can present a graph in different ways, trying to, to, to support you with direct message without without really being objective in presenting the data. And I think that's what the author said in this, again, technical aspects. I'm not sure it's a major issue.


Griffin Jones  40:57

Here Berg strim talks about the vantage point of the writer of the literature with trying to envision and head off in advance abuse of one's findings. But let's put ourselves instead in the position of the reader as opposed to the writer, what what abuses Do you anticipate potentially coming? If the arguments have changed multiple times? What will they change to next?


Dr. Norbert Gleicher  41:26

That's a good question. moving the goalposts does not only happen in medicine, as we know, they happen in many other areas of our existence as well. What comes next is, is it's hard to predict. And again, I do not want to concentrate our conversation just on PG TA, because there are so many other issues in involved, as well. But what I think he wants to say with that point is that what you write and what you read, needs to be both done with caution. As a writer, you have responsibilities towards your readers, in how you present your data, and how you present the interpretation of your data. It is not uncommon in our in our medical literature, and again, I'm not referring only to reproductive medicine or only pgpa. I think it's an issue all over medicine and all specialties. It is not uncommon that authors performance study, produce reasonably reliable, good results. But then, in their own interpretation of their own results. lose it. And I think that's what he's referring to. And on this other side to answer your question about the reader. I think readers need to be cautious, I would say maybe even suspicious, not only in reviewing the study design, whether the design is appropriate, or whether you selected patients or you did anything else otherwise inappropriate. But the reader also needs to, to think through the conclusions of the author, it is not appropriate, though I don't think it is smart to automatically assume that the author is right in his interpret, or her interpretation of their own data. Okay, we need to be more critical. And that brings me back to what I said before that's a big part of our newsletter in reviewing literature and providing our subjective acknowledged subjective opinion about papers we think are of interest, both in the good and the bad.


Griffin Jones  44:19

When I see this happening when I see someone give a very different interpretation of the data that they just that they themselves compiled. It's very often not for economic reasons alone. It's very often for social reasons. And those two things overlap. They can compound each other of course, because you can have socially and economically aligned incentives. And if you're really trying to achieve an aim, you do want those two things too, to intertwine. But even though they overlap, it seems to me that the social is a lot more powerful. And even if it's driven by economics, it's Social, not wanting to be a pariah, that often leads someone to giving a very different interpretation from what they know to be fact. Do you see social pressure happening in the field? And what is it?


Dr. Norbert Gleicher  45:15

Absolutely, absolutely. There's social pressure. At every level, there, I can tell you that, in the early days of our criticism of what Ben was still called PGS, I hate to come back always to the same subject. But as an example, again, in the early days, and I'm talking about 2008, we reanalyzed, some early studies on PGS, from Belgium investigators. And we concluded from those studies, that PGS probably doesn't work. And not only doesn't work, but that it actually in older patients may be harmful. And we wrote a paper and send it to every journal, in our field and in the general medical literature and couldn't get it published. Until Swedish colleagues published in the prestigious New England Journal of Medicine, a study that showed exactly that point, much better than we would have shown in our paper, at which point I was called by one of by the editor in chief of one of the journals that had rejected our paper, and had us to resubmit. And they then published our paper subsequently, the point I'm making is that our review process in medicine and again, this is not only in our field, this is universal. Our review process is based on what is called peer review. And peer review is the review of your submission by your peers in that particular field in which you have submitted the paper, the editor of a journal, takes your paper and sends it out to peer reviewers who are quote unquote, experts in that field. But what does that mean that they are experts in that field, it means that they have an opinion in that field. And they usually have the predominant opinion in that field, because that's why they became experts in that field. And if you then come into this with, with a paper that contradicts the predominant opinion, you have a hard time and and it shouldn't surprise, and this is not only a problem in medicine there, this is a problem in physics, this is a problem. In in every field of science, experts are biased. And philosophers have known this for centuries. And our editors, unfortunately, very often still don't understand. But let me kind of make one additional point. In next month's newsletter, we are indeed discussing a paper that that was recently published about the big scandal that has kind of shaking up the medical publishing industry recently. Because I'm sure you're aware that one hot topic in science in general now are fake, fake papers, fake photographs, manipulations. It's it's a it's a major problem allowed this coming out of China, unfortunately, but it's also coming out of local from local sources. So a very prominent journal, not in our field, was notified by some scientists about alleged fake figures, fake photographs, in a whole series of papers by a particular group of investigators, resulting in an investigation. But what that investigation revealed, which is at this point unresolved, it's still open and ongoing. But what they discovered is that the people who complain about those papers which related to the introduction of a new Alzheimer's drug, had shortened the company which produce that Alzheimers truck. So the people who claim that the papers were fake, really had an interest in bringing down the stock price of the drug that was supported by those people. I am mentioning this here. Again, it did not happen in our specialty. I'm mentioning this here, just to demonstrate how closely intertwined today, medical opinion, medical messaging, medical publishing, is with economic interest. And that is a major issue that we are not openly and transparently addressing here.


Griffin Jones  51:05

That impacts what type of information the patients receive, what type of information lay people receive both extremes. fifth rule is if submitting in unreviewed preprint, consider its reception by the public. Let me paraphrase this rule for for the question of the example, which is, when you're seeing patients come with information, where are they? Where are the sources of incorrect information? Most common, as far as you can tell,


Dr. Norbert Gleicher  51:37

today, unquestionably the internet?


Griffin Jones  51:41

Sure, let's try to be a little bit let's try to be a little bit more specific than that. Is that anecdotes from friends? Is it? Are they reading papers that they that have summaries that they just they can't read the scientific literature themselves? And they're reading a couple lines from the summaries? Are they deliberately getting information marketed to them by companies? What do you see as the most common?


Dr. Norbert Gleicher  52:05

I think? To answer your question, we have two separate information to whom, if we're talking about the public, I don't have to tell you that the longstanding controversy in the US has been advertising to the public's about drugs, for example, we are one of the few countries in the world that permits direct advertising of medications to to to the public. And they are you have a direct influence of the public by drug manufacturers and whatever they want to present. That is not our primary concern. Our primary concern is, I think, maybe even more important, because our concern is the influence on those who prescribe those drugs, and physicians. And, and, and I think we underestimate here, what is really going on, I find it ridiculous that the laws were passed that prohibit pharmaceutical companies, from bringing pens to doctors offices, when reps, or coffee cups to doctors offices, when when the reps come by to push a drug. While at the same time we ignoring all the other influences that strap companies have on us, you know, just look at what happened during COVID. And look at what happened to the influence of drug companies on health policy during COVID. I mean, we we we are because of of the trees not seeing the whole forest. Yeah.


Griffin Jones  54:16

Is that because of the necessity of that influence that financial influence in order for the institutions to conduct their business. So the pens, the coffee cups, that's two individual providers, but I tried to picture in SRM where there was no pharmacy support to look at Gold Ruby diamond sponsors or or any conference that we had, I suspect they would look very, very different. And where would that money come from? Where would the money come for? For many of these? And I don't ask that cynically, I asked that truthfully, I appreciate that everything is a trade off, and that there could be benefit to those companies paying for events and studies. And but it seems to me though, that The reason why that may not have been regulated out in the same way that the coffee cups the gifts the individual correspondence was, is because could you even have an ASRM without that level of corporates spot and I'm not picking on SRM. It's true for any society, any conference.


Dr. Norbert Gleicher  55:19

Absolutely. But your observations, very astute. But can I ask you who you saw having the big exhibits at the SRM recently?


Griffin Jones  55:28

It's still still the pharma company. They're not gone. But it's the pharma companies and its genetic testing companies


Dr. Norbert Gleicher  55:34

and genetic testing companies that need


Griffin Jones  55:38

more storage and more AI. And


Dr. Norbert Gleicher  55:41

that's exactly it. That's exactly it. So this is exactly what has been driving our field in recent years ASRM. And, and God bless them. And I can't blame them because they need the money. ASRM does not have the support anymore from the drug company that drug companies because of all the stupid laws that were passed in the in in the last two decades. And what happened, new blood came into the same business and that blood a genetic testing companies and again, not only in the infertility field, go to the oncology conferences, go to other conferences. The genetic industry is now the new drug industry in their influence on what is happening and coming back to your earlier question about social pressures, they determine who the speakers are, who are invited. They determine to some degree what medical journals are publishing, just like the drug industry was very, very influential, you know, 2030 years ago. Now, over the last decade, it has been increasingly become the position of the genetic testing industry. And that is why there is so much genetic testing going on.


Griffin Jones  57:25

I want to conclude with one summary question. When we conclude I will let you conclude with your thoughts. I want to conclude our summary of Bertrams rules by summarizing the last three because they all have to do with media, traditional media press releases social media. And one of them says if you're submitting an unreviewed preprint considered reception by the public, this is the point where you start to see the social pressure come to bear, isn't it when you first release something, it's when people get jumped on that they very often either reverse their opinion or they say, Oh, well, maybe I didn't. And they issue some sort of caveat. They don't express their findings as strongly. Or if they don't do anything to revise their findings, they simply just stop talking about it. They don't submit the posters and and so this is the point where it where you start to see social pressures when you release that into the environment. And you can see people recoil. So what advice do you have I suppose for someone who's going to produce something that that may make them socially undesirable for some time.


Dr. Norbert Gleicher  58:41

It is the political correctness question. Political Correctness exists in medicine, as much as it exists in the political realm and the media environment. If you contradict political correctness, you have to be ready for the social consequences. You know, there are Nobel Prize winners who couldn't get the papers published and had to publish them and some third class journal. You have to be ready for the consequences. You know, it is always easier to be part of the echo chamber. There is no question. That's what what will make you popular that will give you all the invitations to speak. If you are not part of that, you have to live with it.


Griffin Jones  59:47

Dr. Gleicher, I'd like you to conclude with our audience who's largely your peers, but it's going to be some of the folks that are executives of the genetics companies as well. And so we have many practice owners and physicians but We also have a lot of folks that work on the, quote industry side, how would you like to conclude our discussion today?


Dr. Norbert Gleicher  1:00:07

We are in our respective medical fields all together. Like in in politics, I have a very hard time accepting the notion that, that we are enemies that that just because we do not share in opinions, we we have to be antagonistic to each other. I'm a capitalist, I strongly support the profit motive. But I also like to believe that I have a such a social conscience that mandates that I as a physician set the interests of my patients at the very top of all of my considerations. And that just because it's the nature of the bees will at times contradict other people's opinion. But that doesn't mean that we need to be enemies. That doesn't mean that we cannot together fine, find solutions that will benefit all of us and most of us our patients. Dr. Norbert


Griffin Jones  1:01:37

Gleicher, thank you very much for coming on inside reproductive health


Dr. Norbert Gleicher  1:01:41

was my pleasure.


1:01:44

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


170 1300 IVF Retrievals In One Year, By One Fertility Doctor, & The Operation Systems That Got Her There Featuring Dr. Roohi Jeelani

Dr. Roohi Jeelani is back to share her operational tips about how she has grown to massive retrieval numbers, without compromising care. What does Dr. Jeelani do, that you could employ in your own practice?


Listen to hear:

  • Which critical touchpoints absolutely require doctor-patient contact.

  • How Dr. Jeelani’s workflow operates  and how she maintains personal contact with ALL of her patients.

  • What Dr. Jeelani does differently that is paramount to patient conversion and retention.

  • How she manages to see, treat, and connect with so many new (and established) patients.

  • Griffin question whether or not the sheer volume of patients and procedures compromises care, and what Dr. Jeelani has to say about it.

  • The place for virtual meetings in IVF care.

To listen to the precursor podcast with Roohi, click here: https://www.fertilitybridge.com/inside-reproductive-health/164jeelani

Company: Kindbody

Social Media: LinkedIn, Instagram


Transcript


Dr. Roohi Jeelani  00:04

Where we're really short sighted is how we schedule our patients and I think navigating your schedule fitting these patients in but also touching on these points at your new patient appointment has been key for me I think patient education's truly the biggest thing that helps one routine, and then rapid follow up


Griffin Jones  00:28

1300 Egg retrievals in a single year while seeing 50 to 60 new patients a month. Oh, that's it. Dr. Roohi Jeelani is an operational mastermind in my view, and you're gonna see why as we walk through this together. She's been on the show three, maybe four times. Now you might be thinking she was just on the show. She was we talked about the changing dynamics in fertility Patient Relations. So Dr. Jeelani is at the forefront of that and how it's been a major new patient recruitment generator for her. And that episode is really important to listen to, in order to be able to fully understand this one. So we did that episode. And I had Miss titled that because I meant to say, the REI that did more retrievals than anyone else in 2022. When we titled it, I left off the year by accident. But even if I hadn't left it off by accident, I also made an assumption that I assume that 1300 is the most we know what happens when we assume there may be another doctor that has done more than that. I don't know if if one provider has done that without other providers under him or her. I don't know if if Dr. Rob kilts or anyone else is either way, it's orders of magnitude more than most folks are doing. And people were very curious as to how she does that. So today we go through the workflow. We go through the virtual consults. We go through the testing, we go through the pre steps that people do with the financial counselor before their first appointment. We go through the scheduling of the follow up appointment before the workup and the tests are done. We go through the role of her scribes. We go through rules for pivotal touchpoints. The doctor Jeelani fields are absolutely necessary for good patient care. And from my experience, what are also very useful in retaining patients and converting them to treatment. We go over rules for your scheduling team so that they can maximize the use in the way that Dr Jeelani has. And I asked Dr. Jeelani, what she views is the biggest bottleneck to stop her from seeing even more patients that if those bottlenecks were removed for you, would you be doing 1300 retrievals. If they were removed for her, would she be doing 3000 4000 5000? I challenge as much as I can about how do you know that the standard of care isn't sacrificed. I'm not a clinician, so I can't totally judge. But that's why I think the first episode with Dr. Jeelani by the first one. I mean, the one that came out in January of 2023, or December of 2022 is necessary to fully understand because this is someone that really wants to provide that attention to her patients. Some of you are going to listen to this episode and say I already knew that shut up. Well, you just listen to the episode and pick out one thing that you didn't know before you listen to it. Dr. Jeelani is very generous with the processes that she shares with you. This is not vague. This is not high level stuff. This is very detailed, and there's almost certainly something that you hadn't considered or hadn't seen applied in that way. So enjoy this episode with one of the rising stars of clinical operations in your field. Dr. Roohi Jeelani, Dr. Jeelani? Really Welcome back to Inside reproductive health again.


Dr. Roohi Jeelani  03:54

Thank you for having me. Glad to be here.


Griffin Jones  03:57

Thank you for coming back on after recording another episode probably a month or so ago, not. Not too long ago, it was a very popular one. I got a lot of text messages. So did you got a lot of emails, and I have to take some culpability for being kind of allows the interviewer because after it was only after we stopped recording, that I was like, Oh, we started talking about how many retrievals that you actually did in last year. And you said 1300. And I said Holy crow. I said, did you not say that in the interview because you didn't want to say it or because I didn't ask him you were like, because he didn't ask me. I thought yeah, like Krav like this. That's this. I did something similar with Amy today where I had to have her back on where I'm asking her a whole bunch of questions during the show. And then afterwards, I'm thinking, Oh, that was the that was the thing that I was circling around and couldn't figure out because I didn't ask bluntly enough for didn't even think to do that. So, you know, but at least got it into the title of the episode and, and people became really interested in and I had said that, I suspect that was the most I said this era who did the most I made an assumption. I don't have I don't have hard data I, I think it could be the most, it could be the case that Dr. kilts, who's been on the show or someone else has done more, but I think that for one person without other providers, it, it very likely could be if not you on an on a very short list. And it is orders of magnitude more than the average person. And so people are fascinated about how it actually gets done. So last time, we were talking about the patient acquisition and Patient Relations funnel that led to it. This time, I want to talk more about the operation side of how this even happened. So can like let's start with maybe just a summary of the growth if 1300 was 2022, what did the lead up to that look like? What were the previous years volumes?


Dr. Roohi Jeelani  06:11

Always a couple 100. So I think the year before it was closer to six to 800, I think around 600. Between six to eight, I'm not quite sure I actually didn't keep tabs on it. This is just more of a personal guards. It's not necessarily a number. It wasn't like, this is what I want to do this what I'm gonna grow to it just became what it became as my presence grew and my social media grew. And then it came to light when I was looking at how many cycles do I do a month, then I started adding it last year, and I was like, Oh, wow, that's gonna equate to over 1000. So it wasn't intentional. I could be, I think close to 1000, the year before closer to a grew every year, proportionately. So I'm hoping it continues to grow as I kind of learn how to manage like you were saying, my staff, my support staff, my patients and kind of figure out things that work for me,


Griffin Jones  07:13

you must be figuring it out to some degree if you nearly doubled from 2021 to 2022. Without it being explicit goal, it was just happening from the things we talked about in the last episode, the new patient acquisition presents that you have from having such a presence in social media and a work ethic that we also talked about in that episode of that you like to work and you like to do it a lot. So you must be figuring some of it out on the operation side. How many new patients is that coming from? Like, if you're, if you're doing that many retrievals? How many new patients are you seeing


Dr. Roohi Jeelani  07:54

I see between 50 to 60 a month.


Griffin Jones  07:58

That's also more than the average. That's also more than the average doctor. So you're, it's very common to see, when you do see somebody seeing a lot of new patients, they very often have a lower IVF conversion rate because they'll see a lot of new patients one month and then they'll have to block off more of their schedule in the next month to do IVF and vice versa. So how can you see that many new patients and do that many retrievals


Dr. Roohi Jeelani  08:27

I think when I was sitting on the patient side, it would be seeing your doctor doing a workup than waiting on the doctor schedule for your next step. I think educating your patients on your next steps understanding what they're once again going back to long term short term goals or and also making sure at their new patient appointment. They have their next steps appointment plugged in instead of do your workup then call for your appointment then you really prolong I think we're we're really short sighted is how we schedule our patients. And I think navigating your schedule fitting these patients in but also touching on these points at your new patient appointment has been key for me, I think patient education truly the biggest thing that helps one routine, and then rapid follow up.


Griffin Jones  09:21

Very often people have the patient go back, do the workup, do the test and then schedule the appointment because they don't want to fill a slot and then have the patient not having done those things. So is how do you have patients in for a follow up and make sure that they have what's necessary for the follow up


Dr. Roohi Jeelani  09:41

at your first appointment right most most patients cycles are very predictable. These patients have been tracking their cycle doing op case. So at that appointment, you say okay, what's your next period do okay, well, this is when you're going to come in. Okay, this is when we do the saline okay tandemly we're going to do a semen analysis. Okay, your neck anticipated periods. Thus, let's regroup before this date to then put a treatment plan in place. So your new patient appointment you're leaving with all of your next steps, as opposed to call with your period or your office and an answer wasn't I was out of town. Oh, that's right, it becomes all frustrations. And then what happens? delayed treatment or you leave the clinic?


Griffin Jones  10:23

Are you doing Hmh and FSH during that time as well? Or is that happening either before at a different time,


Dr. Roohi Jeelani  10:30

at that time at your new patient workup?


Griffin Jones  10:34

How often do you have to reschedule patients because they booked that follow up, but then they haven't done all of those things.


Dr. Roohi Jeelani  10:42

Very rarely, most of the patients are the ones that are mandated like in managed care, where you have to do XY and Z, your Pap smear was a new year, we're not going to approve your diagnostics, but majority of patients now there, you know, these patients want next steps they want to plan they don't that wishy washy approach a feel like leaves them very lost. And then that's when you get why didn't call something got in the way. Now you're concise. This is what you're going to do this is when we're gonna regroup and this is when you get your next steps.


Griffin Jones  11:15

You're saying the majority of cancellations come from those that are mandated because they have something else that they have to qualify for.


Dr. Roohi Jeelani  11:22

Correct? Correct. If if there's cancellations or reasons why the system may not work, are cases of managed care where insurance didn't give authorization for testing or they were missing something before they needed testing. But otherwise, most of these patients will follow through.


Griffin Jones  11:42

When you say very few cancellations ballpark, are we talking less than 5%? Less than 25%? What are we talking for less than less than five to 10%? Wow. So that? So that is that is a small number? At what point do they talk to the financial counselor,


Dr. Roohi Jeelani  12:00

even before they see us so they get a verification of benefits before their new patient appointment. That also helps set the stage for us and them as to what they're walking into. Because a piece of their big pie in decision making is what is this going to cost me? Can I come in for testing? Do I need to do additional testing with my OB GYN before it comes to you?


Griffin Jones  12:23

This is really interesting, because we've approached this in different ways by recommending how people answer the question, how much does IVF cost? And very often, if people ask when people are calling and asking, How much does IVF cost? The answer that they get is not one that they're going to be satisfied with no matter how you answer, even if you give them our base cycle price is $13,000. If they need donor gametes, if they need a gestational carrier, if they're going to have to do multi cycle, it's going to be way more than that. And then you've price anchored them at a place where they are totally unprepared for when they see the actual numbers. Or if they just need timed intercourse, then you've anchored them at a price of something that made them afraid to even come in for the first console. And so we often direct people to to come in for that first console and and then determine the financial course of action. So what's that, like? If they're meeting with a financial counselor before they come in for their first visit?


Dr. Roohi Jeelani  13:34

Most of that appointment is just a rundown of what's covered what's not covered, and I think it helps them, put them at ease, like okay, I'm going to talk to the doctor. And then I'll start with testing and most insurance companies will cover diagnostics. I think it's a treatment where what you're talking about really opens Pandora's box as to what what am I doing? Am I picking and choosing. And I think writing that narrative with your patient or helping them understand that narratives important. So I counsel my patients that fertility and IVF. And time intercourse is not like any other type of medicine. It's not like you have high blood pressure, you do X, Y and Z and no cure, right? Everyone's treatment plan is very different. And it's based on your unique situation and your unique treatment plan. So these calls at the financial navigators who are not medical at all, give you as to give you a ballpark estimate of what it would be if you did X, Y or Z. From that point on, we'll understand and see what add ons you may or may not need. I also counsel them your first cycle is your most basic cycle but it's also your most diagnostic cycle. We understand a lot about what's going on what's causing your infertility what's causing us not to get pregnant or not to stay pregnant. So from that point on, you will typically expect me to do my add ons and recommend further treatment. Most of my patients From the get go, if you look at actually did this post on age and how many cycles most couples need. And I refer and I referenced that post a lot. And I say, depending on you guys and your long term and short term goals, you will see in this that no one is one and done. Could you be one and done, maybe, but that probability is very low. So if you are in a self paced day, if you are looking for a baby now and a baby in the future, most couples will end up doing a multi cycle plan.


Griffin Jones  15:30

The financial counselors are talking about those ballpark options before the first visit,


Dr. Roohi Jeelani  15:36

the financial counselors are giving them a gist of their insurance benefits of what's covered what's not covered. And then when we put a treatment plan in place, then they'll reach out with the specifics.


Griffin Jones  15:47

And then they're reconnected with the financial counselor at that point. When practices are really busy, that can determine where they put different requirements for the patients. In other words, if we have a practice with a 10 week waitlist for the docs, like many people had in early 2022, late 2021, then we can put all we can put everything in the front of the patient journey, meaning that even before someone's able to schedule, we can have them fill out their new patient forms, set up an account in the portal, even do their testing. And if patients, if practices have only a week or two weighed less than there's less that they are usually able to ask the patient to do before that first visit with you doing so much. And you finding that doing the doing the workups before the follow up and scheduled but scheduling the follow up before the workups are actually done. Even though it takes place after why not do the testing even before that first visit. A couple


Dr. Roohi Jeelani  17:01

of reasons. I think insurance won't cover it. But if you have testing done prior to an official consult with a physician, to it's scary to see these results, right. Ultimately, if you practice good medicine, good patient care, the NG bottle says everything else follows. So it's never for me kind of taking it back to why we're here. It was never do 1200 cycles to be the most right it was practice good medicine and everything else kind of rolls in. So as a patient, when you're drawing, you're a mage, and you're getting your partner's semen analysis and you're checking your tubes and you see all these things rolling at you. It's very scary to interpret. It's very scary to understand. So I think not knowing what you're doing or testing. And then getting these results without having a provider following it is intimidating for me as a patient. So getting in that console, understanding what you're testing, why you're testing what they mean briefly, help set the stage for saying okay, this is what I'm going to do. And then I'm going to see my doctor for follow up. We do I mean like most clinics, we do offer our pulse testing to get the pulse of your fertility without seeing Dr. Jelani or anybody where you can come in and check your a major sperm and ultrasound and that's followed up with a 15 minute quick consult to go over your results. But oftentimes, those patients do convert to actual patients saying, okay touched on this, but I want to learn more. I want to know more. So I guess whatever comes first a little bit of mandated by insurance, a little bit of it's mandated by you know, based off of what patient comfort is.


Griffin Jones  18:43

Are you at both you personally are you at both the new visit and the follow up? Yes. Some people use a Advanced Practice provider at one or the other. You are doing so many new patient visits and so many retrievals How are you able to be at both and and why have you not decided to have an EPP do one of those or at least up to this point.


Dr. Roohi Jeelani  19:11

We do have a PPS that help with the overflow and if need be when I go on vacation when I'm out. My patients have my number and I connect with them even before they get to that follow up most of the time. I would say 70 to 80% of the time I connect with the patient even before they get to that follow up appointment. It's I think it's important to have that personal touch. It builds trust and it also no one wants to wait for treatment, right you want it to be yesterday. So as soon as the workups done, I try to touch base with my patients as soon as their retrievals done. I try to touch base with my patients to understand and help them understand what their next steps are from that point.


Griffin Jones  19:57

Do you work with one HPP or are two that are part of your team or do you do you all cycle through the different APs in the group?


Dr. Roohi Jeelani  20:07

It is by region. So all the Chicago APS will see my patients and GS Levin's as they overflow.


Griffin Jones  20:16

How much support do you have there in Chicago from ABB? How many APs are in the Chicago region?


Dr. Roohi Jeelani  20:22

We have Stacey. For for?


Griffin Jones  20:25

How many IVF coordinators do you use?


Dr. Roohi Jeelani  20:29

A lot? Yeah. I think 10 it between eight to 10.


Griffin Jones  20:35

For the group or for yourself. For the group. I once met someone from a group on the West Coast large group did many of the providers did many cycles 678 100. And the person there told me that the providers doing the most at this practice had 15 IVF coordinators each, how many do you have for just you,


Dr. Roohi Jeelani  21:05

we practice as one big entity, so they are familiar with all of our patients? So they're all our IVF. So it's split in IVF coordinators, and then clinical nurses. So the IVF just manages IVF. And then the clinical nurses manage the clinic aspect of it.


Griffin Jones  21:21

What are the pros and cons to doing it each way? What's the Pro to having it for everyone, and everyone's using all of the same IVF coordinators versus a provider having their own specific IVF coordinator or team?


Dr. Roohi Jeelani  21:36

I think it helps break down silos because right, you're in a very busy big center, we're a very busy practice with high volume. And it's harder for your ancillary staff to learn my way and then Angie's way and then loud in this way. So I think when you're unified as a big practice, it really helps them understand one that you're one, one that there's one way and it really breaks down silos, they can cross cover each other, they understand all of us, they're comfortable with all of us. I like it.


Griffin Jones  22:09

Does it unify the practice more like is it more causative of unifying the practice as opposed to being a product of it, because I think of some groups that we worked with not as large as yours. But you wouldn't even know that the partners were in business together. In some cases, it is not the practices nurse it is that doctors, nurse and everybody knows it, and they let you know it and their processes for each provider are very different. Does having every all of the providers use the same staff and use the same advanced practice providers? Does that make you get on the same page with Dr. Loudon and Dr. Bell? So it's more?


Dr. Roohi Jeelani  22:55

Yeah, I think so. Right? Because you want to be one standing friends, like having two parents, you don't want to say opposite things. So it unifies us and helps us have a great relationship, but also then creates less confusion, and then loyalty and commitment they have to all of us equally.


Griffin Jones  23:13

How many of these folks, are you giving your invite folks? I mean, patients, how many patients? Are you giving your cell phone number? Every single one, how often do you get a phone call? Or a text message?


Dr. Roohi Jeelani  23:25

Not that often? And why not? Because I think people really respect it. And I think it's not reactive, right? It's more proactive. When you get insane like Portal messages or upset patients as when you can't get in touch with them. They have a simple question that's not answered, and they're frustrated. But it from the get go. They know this is where you reach me. This is where you reach a nurse. This is what I help with your you're setting expectations. And they don't usually bother you for stuff that they know you don't you can't control.


Griffin Jones  23:56

So you're seeing over the course of the year five by 600 or so. Somewhere between six and 700 new people you're giving every single one of them your cell phone number, how many a month Do you think you get a text message or a phone call from?


Dr. Roohi Jeelani  24:14

Most people don't call text text here and there a lot.


Griffin Jones  24:19

Is it here or there? Is it a lie?


Dr. Roohi Jeelani  24:22

Maybe very different than other people's opinions? Your


Griffin Jones  24:24

addition of a lot is probably way more than my definition a lot. How many? How much texting? Or how many? How many patients text you in a given month? Do you think


Dr. Roohi Jeelani  24:35

I talked to all my patients and


Griffin Jones  24:38

how do you keep that streamlined with with with with what the care team needs to know.


Dr. Roohi Jeelani  24:45

I have a scribe that I think that is my secret tool if anyone wants to know I ascribe all of my text messages into my notes and send them as orders to the nurses. That is like my right hand. How I send her sauce. I'll talk to a patient. So I'll text saying, Hey, are you available, your retrieval was yesterday. This is what the results are. And we want to let's talk about next steps. So I'll we'll hop on a call or FaceTime or zoom zoom, usually, we do a quick call, that is a console converts into a treatment plan in order which my scribe helps me translate to, and sends it to the nurse.


Griffin Jones  25:27

I don't want to put your scribe out of a job, but I'm going to have Dr. Ravi gata on the show later in the season, and we're going to talk about chat GPT. And talking about the different applications for this new open platform artificial intelligence, and how different people are using it now and how they may be able to use it. And one of those is going to have to do with I don't think we're gonna see medical scribes in the future, I don't think we're gonna see medical translators. In the future. I don't know how far off and I'm gonna leave that topic to speculate with Dr. gada. But it makes me think of what we're really talking about is access to care. And you are doing so many more retrievals and cycles than the average person partly because of the operational systems that you have in place. And then it will become well, how much can we really scale that when we take these already efficient operational systems and are able to automate it or reduce steps because of some of the new AI technology that


Dr. Roohi Jeelani  26:39

you're speaking my language? I want to hear that episode, I literally was like, that would be the next step. Because all of this, you can automate it right? That's truly, you want to know, I think that the biggest part about how you get busy and stay busy like this, is patient intervention at the most appropriate time when when does the patient want to hear from their doctor? Right? It's crucial after their new appointment for next steps, post retrieval, post field cycles, miscarriages, so soon as you identify these key pivotal points and automated AI them, I think everyone can do these cycles.


Griffin Jones  27:18

So your scribe is taking these conversations, putting it in the EMR, putting with the patient's records is that but then I imagine that I, when we do interviews, for example, I don't do the screening interviews for candidates, my HR folks do that. But I look at their notes. And even when they leave good notes, I often have questions. How are what gaps are happening when you there's conversations that you're having with patients, and then the care team is reading through the notes afterward,


Dr. Roohi Jeelani  27:54

my scribes on my calls with me. So it's very easy for her to translate it now if I'm training and use crave if they're newer, and they're not as familiar with my terminology and my protocols and my next steps. And you see that little discrepancy. But also then knowing that the nurses can reach out to you if they're confused, I think really helps, right? That fear factor of like, oh, gosh, I don't want to ask a doctor because then they're gonna think I'm stupid, like, just eliminate that. And they know like, it's open door. Text me Call me whenever if you're confused, come up, come ask me, then I'll explain it to you, as opposed to just second guessing or not doing it. And I think that really helps.


Griffin Jones  28:32

How often are the nurses contacting you for things like that?


Dr. Roohi Jeelani  28:37

My nurses talk to me all the time that I talked to them constantly.


Griffin Jones  28:42

So anybody that's listening to this episode, they have to listen to the other episode too, because they go hand in hand, you won't fully understand the context of this conversation. If you don't if you haven't heard the other conversation, your your work ethic, you're constantly communicating. And in order to support an operational system, like the one we're talking about today, has to be based in something like that, at least for for this kind of volume. So when you when you went from maybe six to 800, retrievals in 2021, to about 13 120 22. You weren't sitting on your hands and 2021 You were busy as heck, what got eliminated or automated or delegated that allows you to scale.


Dr. Roohi Jeelani  29:36

I think figuring out what when's crucial. When do you touch base with your patients? What are these pivotal points of decision making? Intervening sooner than later? Right? It's moving up patients like you said, I bet you anyone listening or any fertility clinic has a waitlist of at least a month. So one of the things that I do and I'm really good about is saying okay, well done. bulking out until March. That means these patients also wanted to be pregnant yesterday don't want to wait till March, but they're waiting for March because of me because of my schedule my limitations, right. But if I have an opportunity, like Tuesday finished cases early, hey, I have four hours where I'm not doing anything. Hey, new patient call center, can you pull up these people who are ready to be seen or who want to be seen earlier? Just kind of owning your schedule and really, really thinking about what is that patient feeling? I think I really understood that when our hands were tied, right? Like what happened in 20, from 2019 to 2021, was the world changed. Most of the most of the reason I started understanding this is because a lot of the noise was cut out. You couldn't really go anywhere, do anything. So then I started saying, Okay, well, let's start moving patients up. Let's start understanding what they want. We don't know what the future holds. Let's understand what your future where you want, right? Egg freezing patients who now can't go out on dates, because everyone's masked and distancing. What does that look like for you? So just, I think those three years were really pivotal and understanding how to practice. Practice martyr,


Griffin Jones  31:16

I want to talk to you about touching your schedule like that. But I also want to ask about the pivotal touch points, every patient is different. There's so many different considerations of what might be pivotal to a particular patient. But if I'm putting you on the spot, and having you think of patterns of these, these are the characteristics of a touchpoint that I need to have. And when what are the common patterns,


Dr. Roohi Jeelani  31:41

post retrieval, no one knows their next steps. 100 times as you may have told them, You don't understand them, you forget, you change your mind. I think that's key. positive pregnancy negative pregnancy miscarriage rate, you want to celebrate their wins their losses, their tough times, I wanted someone to celebrate all of those with me. So always reach out to my patients, no matter what that test results shows, they will get a text or a call for me that day. Key PGT I don't understand half of the numbers and letters that come out. I highly doubt any of my patients, they're super confused as what those mean, always reach out to have to wait for your doctor post retrieval, then post PGT 10 For FET is like three to four months of time that no one has. So I'm very intrigued by this system that you're talking about with Ravi but I really think AI eventually for right now I use my notes, my scribe my ancillary support staff to help me as reminders to when to call, who to call and where to call. But I would love to see how AI can interface with this and help us recognize these. Okay, this is where you need to intervene in one.


Griffin Jones  32:57

Do you have a workflow system for yourself other than the EMR? Do you use like a project management system like Asana or or do you use any kind of CRM like Salesforce or HubSpot? What are you using?


Dr. Roohi Jeelani  33:11

I do? Jared Robbins will tell you I'm the most organized disorganized person ever. I make lists every day I have a list. I'm old fashioned, or I'm too old. I write down all my day ones, my day sevens to calls, I have ridiculous amounts of paper and pens right next to me with checkboxes. I call these patients on a daily basis. I've been meaning to try and no, I heard it's fantastic and it's searchable. just haven't gotten around to it.


Griffin Jones  33:41

So you're using old fashioned pen and paper to remember when to I mean, of course you have your scribes that remind you but you're not you don't have like, ping in the EMR for contact this patient at this time after their retrieval of these 1300. Folks, how many of them are you contacting after retrieval? Every single one,


Dr. Roohi Jeelani  34:09

every single one. So one, that's


Griffin Jones  34:11

probably that's partly why you are that you convert so well. Again, you have to listen, the first conversation or else a lot of you'll you won't get all of this one. Because you have to build the lead up in the base and set the expectations to have something this efficient long before you can actually have people go through something so efficient. You've got to be prepared for it. That's what the first conversation is about. But also touch points are the number one thing that get people to make a decision that when they want to make the decision, but they're just afraid they're just they don't know what to do or they don't feel like well, why would I go back there if nobody cared after I talked to them that last time and so we often try To help people automate that, that conversion by giving them a workflow, and it's a ton of work, if it's not, it's a ton of work when you're trying to replicate it with medical assistants when you're trying to replicate it with nurses, when you're trying to make it a workflow in the EMR or the project management system or the CRM, and you're just doing it for every single one of them. Trying to in the most organized, disorganized person, how many virtual consults? Are you still? Are you doing? Some people are doing 100%, almost for new visits? Some people are they're they're straight up back to 2019, no virtual consults. And a lot of people are somewhere in between. What is it for you?


Dr. Roohi Jeelani  35:50

Oh, virtual. So if


Griffin Jones  35:54

that was and then are the in person are they all excuse me is the for the follow up. So they all in person. All virtual, the follow ups are all virtual too. So you're meeting patients for the first time when they come in for the retrieval? Yes, cases? What do you lose with that? If anything?


Dr. Roohi Jeelani  36:17

I don't think anything. I think patients love it. I think everyone's really busy. I think they love the ability to talk when they want at their convenience in the comfort of their home. I think it gives them a lot of flexibility. I don't I've never had a patient say I wanted to see you in person before this retrieval. I always get I'm so glad to meet you. So happy to meet you. But I never had anyone say wish I would have met you sooner.


Griffin Jones  36:46

I think about this a lot that over the course of my career, I have both paid and been paid millions of dollars by from people that I've never met in person before. And I don't think it would be possible if they didn't already know me in some way, if it wasn't from the content that I've created, or maybe they've seen me speak or, and for the folks that I'm hiring that I'm paying, if I didn't know something about them, and at the very least if I wasn't able to see them on video, I don't think it would be the same. If it were if I were interviewing people on the phone. I would say that in person is the best, but video is the second best. So I think a lot of people are going to hear this and they're going to think No way I have to see my patients for that first visit in person or second person or I won't have that rapport with them. And I think they could be right, because they don't have what you have in terms of how many times you've connected with patients on social media, by how many videos they've watched of you how many reels they've watched of you how many pictures they've seen how many long posts they've they've seen from you, could you do this, in your view? All virtual if you didn't have that rapport built up front?


Dr. Roohi Jeelani  38:08

I don't think so I don't think my volume would be my volume without having that


Griffin Jones  38:13

report. Not even not even the volume. But could you could you have the same level of engagement from your patients from just a virtual new visit? And just a virtual follow up if they weren't already really familiar with you?


Dr. Roohi Jeelani  38:29

I think so I think there's practices, let's use CCRM, for example, or another big practice where people would fly in, and they don't know the doctor, they've never met them. That's the Zoom console and they fly and start treatment. I think it's very, or New York has another center that does that. I think I think when it comes to fertility, people just want to go to a place where you're cared for network. So I don't think that, you know, I've had patients say I didn't like the doctor, but I love what they did. So I will stay. I'm gonna go there. So I, I do think it's a piece of the pie, but I don't think you absolutely need an in person when it comes to fertility. Right? It's it goes so fast. It's like tearing off a band aid is 10 days of your life that you don't like I didn't even know when I started or stopped most of my cycles.


Griffin Jones  39:19

Let's talk about testing your schedule a little bit that you figured out during the pandemic, well, how do I move things around to make this more effective? Now, if you're going in every time and say, Well, I just had a Friday afternoon, open up now, call center, go ahead and find people that are on the waitlist that can come in earlier. If you're doing that every time that'll be inefficient. So I assume that you've given some rules to your schedulers to that if this then book vessel, what are those rules? Yeah.


Dr. Roohi Jeelani  39:52

So I started using identified a person that really knows me well and knows my schedule and what I do instead. putting a lot of my personal stuff on there as well. So if there's an open area, there's nothing personal, as well as patients and they know, okay, that's a green light to add stuff on.


Griffin Jones  40:13

Many doctors whenever there is suggested process improvement, or a new technology or an increase in volume, many doctors worry about the sacrifice of the quality of care. And, and so it, I imagine that a doctor that is doing 250 retrievals a year and maybe seeing 500 new patients a year is thing 600 new patients and 1300 retrievals. There's no way that something doesn't get lost in translation, there's no way that someone can give that level of attention to the patient, something's being lost, something's gonna go wrong, some quality is being sacrificed. What quality do you expect they that they expect might be sacrificed? And how do you know it isn't.


Dr. Roohi Jeelani  41:12

So if you, if you expect to, if you try to take a square and fit it in a circle, it's not gonna work, right? If you say, This is my boxed approach, this is how I practice nurses aren't allowed to contact me, patients aren't allowed to contact me, you have to wait for your next appointment to follow up, then you're going to fit that box. But if you want to think outside of the box, and you want to do something revolutionary, then you practice outside of the box medicine. So nurses know it's an open door policy, they their interests align with your interests, which is optimal patient care, your patients know that you understand their goals, their family goals, their short term goals, their long term goals and their timelines. And then they know you're rooting for them. There's not one single patient that delivered pregnant that I still don't touch, but it's not, I'm going to do a retrieval and be done. It's your forever part of my life. Like you're very intimately connected to me. My patients whose babies are five, six year olds, still follow me on Instagram and send me pictures. So it is a relationship. So what I vest in, I think, I don't think quality is being compromised. I think quite the opposite. I think this was way better care than I've received up until I saw Angie. But you know that that's one of the main reasons I switched so many clinics with my son, it was I wasn't getting the answers or the treatment or the follow up that I really felt like I needed. And that's something I promised myself that I would never do to a patient. And I'm this only started because I wanted to hold true to my promise that I don't want someone to feel like me.


Griffin Jones  42:54

And I will let the folks know we've worked with groups of all sizes, we work with 40 dot groups before we work with single practitioner groups. And I have to tell you from doing people's reputation management, it don't matter what size, the practice is, on average, or what kind of volumes they're doing. I've seen small practices get reviews, like it's a baby factory in there, all they care about is money, they just pack the waiting room, it's like man, they're not doing that much volume compared to another place. And I recall seeing a presentation, I wish that I could remember the date, if anyone was at the SRA AI meeting, it was probably 27 tene that I spoke at the Esrei retreat, whoever was there. I remember sitting next to Dr. Liu Exene. So Lou, if you still listen to the show, and you remember where this data came from, please let me know. But it showed the number of complaints or the level of patient satisfaction per volume in there was kind of a J curve. So there was a higher level of satisfaction among smaller boutique practices. And then it bottomed out for a bit for those that were in the middle size, like let's say five to 10 providers, and then it went up as the group got larger. And it's partly because well, if you're if you're real small, there, you can get away with not having a lot of efficient processes, because it's very intimate, just you people often understand. And if you're larger, you should have really established systems like the ones that you're talking about. And it's the people in the middle at the bottom of that J curve that often have lower patient satisfaction because they're not boutique and they don't have the systems. So while we're on the topic of growing pains for those that are growing into that larger group or more efficient or having systems, you're a person that I bet all of the AI can Bernie's and everyone else wants to talk to. Because if you could, if you could see even more patients with the level of care that you're giving them, I know that you would What do you view as the biggest bottlenecks, like, what do you think when you're going through your week is like if I could just automate this or eliminate this or delegate this? What are the biggest bottlenecks that you see?


Dr. Roohi Jeelani  45:24

I'm right now I wish I could, I there was a way to notify when the patient next period is and to make sure that follow up consult was sooner I feel like right now I'm hitting it right where their cycle is, and then getting the meds and starting their cycle is delayed by a week or so. But if I could find out how after because I can do it up until workup. But then from workup to treatment is when they're out of my control and they go to the nurses. So either I work on teaching my nurses and make sure that they see me before their next period. So I can talk treatment to them well in advance. So then they have time to refill their meds, sit on it, think about it do consents, or AI to say, okay, you know, like, based on when they're putting in their LMP, and how often they're getting their cycle. And this is when their treatment, anticipated treatment date should be and they need to follow up well before then. That would be awesome. But that's my bottleneck currently.


Griffin Jones  46:29

I'm gonna let you conclude. And I will preface it with saying this because people usually like that I asked tough questions on the show, I feel like I've been tough enough with you making you prove that nothing's being sacrificed, at least to the extent that I can ask some a clinician, of course, could probably grill you harder. I'm not a clinician guy. Sorry, I can't I can't grill harder. I've asked how do you know nothing's being sacrificed? How do you know that you're actually giving the quality of care? I'm satisfied with the answers. And if anybody watches the British Bake Off Great British baking show, I think it's has to be called in the US now. The judge Paul, Hollywood occasionally gives a handshake to one of the contestants. And it's like, the biggest status because he doesn't usually do it. And he's normally pretty hard. I would rather be if I had to be perceived as one, I would rather be perceived as being more skeptical than somebody that likes to woo. I will say this, though, really, you impress the crap out of me, I have known for a long time that you're really smart. I've known for a long time that you have a new and better dynamic for Patient Relations. I've known for a long time, that you have a crazy work ethic. And it's probably because of those three things that I am satisfied with the explanation that I've gotten today on the fourth, but now I know that you are also an operational mastermind. And and I think it's really useful for those that even if it's like, Man, I don't even want to see 600 new patients or AI or AI will decide how many new patients that you're going to be able to see within a certain timeframe to some degree and all of the technologies that come but people will say, Well, I Yeah, but I don't want to work 80 hours a week or whatever. It's like, okay, that's fine. But think about how much more you can do effectively, even with the volumes that you do want to do and the time that you want to do and be able to give this quality of care, some people are going to say, I knew that stuff already. I doubt it. I doubt you knew every little piece of that you've been so generous today with the level of information out but hope your employers don't get pissed off about it because you were you really gave valuable information they should thank you because of the marketing that it's giving you all and and you've been so generous with it. So I'm gonna let you decide how do you want to conclude about being able to see as many new patients and provide treatment for as many patients as possible without sacrificing patient attention or quality of care?


Dr. Roohi Jeelani  49:25

First, I want to say thank you, that was a lot. I'm very flattered. So honestly, thank you. I think just a practice with my heart and try to do what's best and everything else kind of follows suits. So that's why I can confidently say I'm not compromising any patient care. I have my my nurses teas that you have your patients memorized. I do have my patients memorized because I'm just as vested in them and their family as you know, they trust me with that it's a very intimate process to be true. I started with so I think just genuinely caring really optimizes everything that's, I know it's hard. I know everyone out here cares, right? Everyone did this for a reason no one went to school for 15 years for fun. And I think just remembering why you did this really helps me keep going every day.


Griffin Jones  50:19

Doctor Roohi Jeelani, thank you very much for coming back on the show. Thank you.


Sponsor 50:25

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


169 When Embryologists Own Equity. With CARE Fertility’s Chief Scientific Officer, Dr. Alison Campbell

It’s uncommon for an embryologist to own equity in a clinic-lab company, at least here in the US. This week, Griffin hosts Alison Campbell to discuss where her career started, and how she earned her current role as  equity stakeholder and business influencer as the Chief Scientifc Officer of the UK’s largest fertility care provider, CARE Fertility.

Listen to hear:

  • What it is like when an embryologist becomes an equity partner of their group or practice.

  • The unique advantages a lab director can bring to the practice.

  • The potential for fertility clinic networks to become early stage investors in fertility startups 

  • The differences in opportunities for embryologist education opportunities between the US and UK

  • Dr. Campbell’s viability test for companies that want to sell to CARE Fertility. What the 3-4 who advance to demo do to get there.


Dr. Campbell’s info:

LinkedIn: https://www.linkedin.com/in/alison-campbell-85669831/

Website: https://www.carefertility.com/


Transcript


Griffin Jones  00:03

What perspective are lab directors able to bring to a partnership that might not be there otherwise?


Dr. Alison Campbell  00:19

Well, the lab director role is critical in terms of the quality of the embryology practice. The services offered the standards in the laboratory and also the efficiencies of for laboratory. And I think as a an international profession, embryologists are quite collaborative. So I think we're important in that we can set up collaborations and there are examples of us doing that. And on an international scale. So I think that brings a lot of synergies across the world. And it brings better standards and treatments for our patients.


Griffin Jones  00:57

That folks, you too can own a piece of a company we almost never talk about that on this show. We talk about partnership for physicians, what they have to do in order to be able to own equity in their practice groups. We talk about entrepreneurs and the importance of owning equity. We almost ever talk about that in the lab context. I have had Bill van Juran from Fertility Center of San Diego, who owns part of that group. But we have almost never explored this option that changes today with my guest, Allison Campbell. She's the Chief Scientific Officer for CARE Fertility. It's the largest fertility group in the UK, Dr. Campbell got her master's in medical science in art back in the 90s from the University of Nottingham, and a few years back, she got her PhD in developmental biology and embryology from the University of Kent. She started off from the inception of care fertility in 1997. And now is their chief scientific officer, as they are a much larger group financed by private equity through Nordic capital making their first acquisition into the US. We talk a little bit about that we talk about the what it's like for an embryologist to become an equity owner in their company. Whether it's the practice group or the lab or the umbrella company that joins the two, we talk about the advantages and ideas that a lab equity owner might be able to bring to the practice. In the case of Dr. Campbell, it was time lapse imaging all the way to the artificial intelligence program that Kara fertility is using now to automate their workflow reduce time, and ostensively improve outcomes. For you folks that are on the startup side, we talked about what it's like for companies like care to actually be investors in the early stages of these IVF lab startups. And I suggest a possible infrastructure for that, like how US fertility has and I ask Alison, her perspective, as someone who is called on by many of you companies trying to sell to her to her peers, both at her company and other places, she suspects she gets about 20 requests for demoing their product or service over the course of a year. And then she might actually demo three or four of them. We're not even talking implementation. We're just talking demoing, maybe three or four out of 20. I asked her what those other 16 or 17 don't have, and hope you're interested in her answer and that you're interested overall, in this interview with Dr. Allison Campbell, Dr. Campbell. Allison, welcome to Inside reproductive health.


Dr. Alison Campbell  03:26

Thank you. Thanks, Griffin. Nice to be here.


Griffin Jones  03:30

I explained just before we started that you're one of only a handful of guests that I've had on from the UK, and I hope to have more. You are the chief scientific officer at Care Fertility, which, if I understand correctly, is the largest fertility provider group in the UK. And can we maybe start with just how did you get to that position, give us a little bit of background on how you came to where you currently are. And then I want to ask you some questions about the future of the lab and the marketplace on the other side of the Atlantic.


Dr. Alison Campbell  04:06

Great. So yeah, well, I was a very ambitious young scientist, passionate about embryology and fertility. And back in the early 90s. When this when I was in my early 20s. There weren't really many opportunities. There certainly weren't many degree courses that specialized in embryology or clinical embryology and IVF. So I managed to muscle my way in to a small IVF clinic in Nottingham, with Professor Simon Fishel and then I did the master's degree in assisted reproduction technology. So that was the first the worldspace master's degree. So from there, a few of us broke away and set up CARE Fertility. So that was 1997. And we've just grown since then. So I was a regular embryologist became a lab director and then group lead as we got more clinics, and then I was appointed Chief Scientific Officer last year.


Griffin Jones  05:07

It was the world's first master's degree in embryology at that time, was it specific to assisted reproductive technology? Was it in more general embryology what type of master's degree was it at the time?


Dr. Alison Campbell  05:22

Yeah, it was a master of Medical Sciences in assisted reproductive reproduction technology. So very specific, very human focused, of course, we stood animal models and, and the practicals often included animal models, but it was focused on human embryology and assisted reproduction. So it was perfect for me.


Griffin Jones  05:44

So you were part of the group that formed CARE in 1997, you were named Chief Scientific Officer last year, it sounds like a lot of growth in the last two and a half decades. Tell us a little bit about that.


Dr. Alison Campbell  05:58

Yeah, and lots of growth. So we had a bit of a growth spurt early on and say in the first five years, we, we had four or five clinics across the UK. And then we sat tight for a while, and then private equity got involved, and that was silver fleet. And we started to expand get more clinics in the UK and into Dublin, Ireland, then we sold on to Epson, it's for silver fleet, when and Bo Mark capital. That's right. And then last year, Nordic capital took over. So now with Nordic behind us, we have plans for internationalization. And we have recently merged with IDF life in Spain, so three clinics in Spain, and also in North Carolina, USA.


Griffin Jones  06:55

Part of the reason that you and I became connected was because my company covered a story on care fertility is acquisition of rich fertility in North Carolina. And so the biggest group in the UK coming to the US, I didn't write the article, but I read it. And that's part of how you and I became connected. But even before that, someone told me to speak to you. And it was someone from the UK. And they mentioned to me that lab personnel lab directors tend to be more involved in the business of the fertility groups in the UK than is the case in the US. And there are a few exceptions. In the US, there are a few lab directors that are part owners are partners in the clinic in the entire or the parent company that owns both the clinic and the lab. But I can only think of a handful. And so is it the case that there are more lab directors that are partners in their firms in the UK? And was that the case for you?


Dr. Alison Campbell  08:07

Yeah, it was certainly the case for me right from the beginning. And I negotiated my way in, I felt I had a lot of value to add. And and I'd say it's not especially common, but there are a few examples. In Europe. We've got Laura, for example, at Janiero life. So she is a stakeholder shareholder. And so there are a few examples. And I think it's really important I think we have we can earn you and that's we've demonstrated, and also in the UK, which doesn't seem to be the case, in the US at least. embryologist can have a significant professional status we we can qualify to be comparable with our medical colleagues. So I'm a consultant embryologist. So it's a membership of the Royal College of pathologists, which gives us parity with our medical colleagues, which is not possible in in many places. And I don't think that's possible in the US. So I think that helps


Griffin Jones  09:07

parody, in what sense


Dr. Alison Campbell  09:10

in terms of qualifications and consultant status. So it's, the Royal Colleges were traditionally established in the UK for medics, but we got into the Royal College of pathologists as a profession some years ago. So it's quite rigorous assessments and portfolios and then to be used. But if you get to that, then we are of equivalent standing in the eyes of the utility in the UK at least.


Griffin Jones  09:41

You talked about it being valuable to have lab directors as partners in the business. What perspective are lab directors able to bring? To what perspective are they have directors able to bring to a partnership that might not be there otherwise?


Dr. Alison Campbell  10:04

Well, the lab director role is critical in terms of the quality of the embryology practice, the services offered the standards in the laboratory and also the efficiencies of for laboratory. And I think as a, as an international profession, embryologist are quite collaborative. So I think we're important in that we can set up collaborations and there are examples of of us doing that. And on an international scale, so I think that brings a lot of synergies across the world, and it brings better standards and treatments for our patients.


Griffin Jones  10:43

It's funny to think of embryologist, lab directors not being a part of the business ownership, because it's half of the process. It as you when you ventured into this partnership, how did you undertake that. So the common I don't want to say, I'm thinking of a particular word that I'm gonna have the editor edit out my, my fumbling here, Alison. But there's a common axiom among physicians that we weren't taught business in medical school, and that we had to figure this out, all on our own after. And as I might make the assumption that that was the case, in a master's degree in human reproduction, that you weren't learning about income statements and bit and Mark sales and marketing and human resources and every other thing that is required in owning and managing a business. How did you decide to take you said that you negotiated in early on? What made you feel that you could do that? And what did you do to start to go through the learning curve?


Dr. Alison Campbell  12:07

Yeah, that well, it's a great question. And and I think we've got to say that successful businesses and management teams need all different skills coming to the table. So not every clinical embryologist has the same skills that I have. And I don't have all that business acumen necessarily that has been taught. So some of it comes naturally. And I, I had, I felt I could bring innovation and ideas. And I had a track record of doing that. So that clearly answer value. So I think that it's, it doesn't have to be to have to be an equity and stakeholder to, to bring that to the table. But I felt that I could and I should be rewarded for that. And I think it's really important for our profession to have people at that level to champion that what we're doing as a as a discipline, because the work is really demanding, we know that there's a lot of stress in healthcare generally, and particularly in the IDF lab. The work that we do is very intensive and it's very valuable. We've got to be focused all the time to give our patients the best outcomes and and we need to be rewarded for that.


Griffin Jones  13:27

I want to plant some ideas in younger embryologist said right now that this is a possible career track for them. It is clearly possible in the UK and even though it's not common in the US it does happen there know about every country for every audience member listening, but I want to plant a little seed in young embryologist mind that this is a potential career path for them. What did you find to be the steepest part of the learning curve of being a partner?


Dr. Alison Campbell  14:00

What it is, is talking the language of business I find didn't come especially naturally. So just being put in front of a board or when we were going through the sales to be in those management review those meetings were you talking to potential buyers and, and private equity to get involved with that was challenging, I would say for me personally, and because of my background, but I was there for a purpose, which was to be able to explain some of the great work that we're doing and some of the ideas we've got and the value that we can add to the business. So as long as I've got the right content beside me together, that that's not a problem.


Griffin Jones  14:40

Did you seek out any particular mentors? Did you take any courses? What did you find most helpful in getting up to speed?


Dr. Alison Campbell  14:51

I have quite honestly I'm quite an independent person. And I've read a few books blackbox thinking and so what's your view Few TV shows. So it's more of seeking out information that would I felt would benefit me personally in that arena and and talking to colleagues. But there aren't that many that I could liaise with that sort of directly relate to my position. So, in terms of clinical embryology, so I was talking to my business colleagues, the finance team, and and just learning from each other as I've gone along, I don't forget much. So I, I collect information and experience as I go along. And I have done all my career, which is more than 25 years now.


Griffin Jones  15:33

Well, now lab directors that are looking to take an equity in their company young embryologist are considering partnership in their practice lab companies as an option now they have you to consult with they have someone that has, has gone through this before. So they do have a colleague to liaise with Now you talked about some of the ideas that you had in the beginning that as a, as a senior embryologist to lab director that you had some ideas to bring to this new venture? What were some of those earlier ideas?


Dr. Alison Campbell  16:11

Well, probably one of the best examples would be 2011, when I started to see time lapse imaging, arriving on the scene, and it's not, it makes it easier. If you're in my position and you have a big group of clinics, then you don't have to be as active to seek out possibilities and collaborations because people will come to us, which which makes things a little bit easier. So in terms of horizon scanning, a lot of that words done because people are seeking us out before we sometimes have seen what's what's coming. So time lapse was one of those examples. So I have knock on the door. And straightaway, I could see the potential. And there were lots of cynics, even my seniors at the time, well, is this is this really just pretty pictures? Or can we do something useful with it. So I had to fight really hard in the early days to get that established. But we did and we introduced it across our clinics. With military operation, I would say it was so an rigorous the way we implemented it, because I could see the benefit of analyzing these time lapse videos, which are taken of every embryo every 10 minutes or so throughout the whole culture period. So the distinction between that practice and standard embryology which is still in place in many labs across the world, it's the normal waited to do IVF. The difference was dramatic. So you can either have a couple of snapshot images or records of your embryos developing, or you can have a continuous live feed of the embryo development, which at that time in 20 lavena, we didn't really understand. But if we approached it like we did, and we annotated very particularly what we were seeing, and we would collate an extensive database, and be able to use that data to develop algorithms to predict outcomes. So where we are now fast forward to 2023 is a live birth prediction algorithm based on all of that data. And that was about half a billion single images of embryos. So 10s of 1000s of embryos and half a billion images, we have put into this machine learning system and developed an algorithm to automatically annotate those embryos now, so that's a massive time savings for us, and to predict live births, so we can select embryos more reliably. So it's it's been a huge success story.


Griffin Jones  18:53

I want to talk more about that predictive algorithm. You don't have to do all of the horizon seeking because being a large group, people are coming to you. And I'm assuming that that means the folks that are in the booth set the entries and the ASRM that the folks that are selling their services, they're of course, calling on you and they're calling on you pretty aggressively. And so you have lots of solutions being pitched to you at different times. And you saw the value in time lapse imaging early on. You mentioned that some of the seniors were skeptical at the time. And I think this is germane to the conversation for embryologist that might become partners that might become equity owners in their parent companies. Because especially if they're the first they are going to be seeing things that perhaps the clinicians aren't seeing and they're going to have to be persuasive. So what were they cynical or skeptical about? And talk us through how you persuaded them


Dr. Alison Campbell  20:00

Yeah, that well, the cynicism came around, it's a new device, it's really expensive. And we know how much she loves embryos, Allison, you just want to watch them all day and all night. So that was the challenge. And, and they weren't the only people saying that. And a lot of people were saying, well irregular incubator costs five to 10,000 pounds. And this device costs 5060 70,000 pounds. So really, it's how can we justify that. So we had to have the foresight to say, Well, if we have these devices, and we develop algorithms, we'll be able to sell the spaces in this time up device to our patients, and improve their outcomes and give them videos of their developing embryos. So they can start their baby album much earlier. So all these different benefits. And there's the theoretical benefit that even without the algorithms and the data, this device will be a better incubation environment, because we don't need to disturb the dishes with the embryos. So they really say and that the environment is discontinuous and maintained. So I had to be really tenacious, when I'd never really done a business plan before. So I had to rely on the company who wanted to sell a device to support me with that, and negotiate getting some free devices in for a period whilst we evaluate to make sure it does what we expect it will do. So and then we did that relatively quickly. The the chief financial officer actually said, over my dead body Campbell, will you have one of these in your lab? So that made me grit my teeth and say, Alright, I'll show you. So yeah, we did. And now we've got more than 20 of the devices that come solo on laboratories and every day of the week, we're using them to select embryos more confidently, and you didn't you


Griffin Jones  22:01

didn't have to kill the chief financial officer to prove the point.


Dr. Alison Campbell  22:05

Exactly. Then we stayed friends.


Griffin Jones  22:09

At You talked a bit about a trial period for evaluation. And that might be part of the question that I have of, you're seeing the value of time lapse imaging on the horizon, you and then at some point, we get to a military operation in terms of how rigorous the implementation was. Talk to us a little bit about the the trial period in that it very often doesn't go from salesmen come to us, they've got the device, they've got the solution, and boom, it's in the network, just like that. What was it tell us a little bit about how you prove the concept that it could be implemented at scale? Yeah,


Dr. Alison Campbell  22:55

so we got the device probably on the scene or return arrangement and the three months and then I pushed, pushed it to six months. And I thought, well, the quickest way to get some data would probably be through the PG, PG PG ta cycles, because we've got outcome euploid, or our new quota, that binary outcome, if we wait for clinical practice or live births, that's going to take us too long, and the clock's ticking and a need to show the benefit soon. So with only 100 embryos, we'd started to build a an aneuploidy risk classification model, which we then validated on some different data, and it seemed to be effective. So I published that quite quickly. And so already, we could show that we could distinguish embryos that were euploid or aneuploid. Based on them. Morpho kinetics are based on the time they reach different cell stages. So that that was the strategy and and it worked, because we could demonstrate that quite quickly. And so based on that, we invested in more devices and built the datasets. And recently, we're Nordic capital. I've been amazing last year and invested a lot of money in machine learning technology so that we can automatically annotate these embryos rather than sitting like we have done for almost 10 years, annotating the videos.


Griffin Jones  24:22

And all the while the company care fertility is growing in the United States, and probably everywhere else. There's great variance to how much certain partners are involved. I've worked with practice groups where all of the partners are involved in every decision. I've worked with large practice groups where they break up their partners into different committees to be responsible for I've worked with practices where really the managing partner is calling all of the shots and the other partners don't care. And I shouldn't say they don't care, but they're not involved in a lot of the different verticals of decision making in the business, be it HR marketing or purchases or anything else. And I suspect that variance would be the case as we start to see if and when we start to see more embryologist becoming equity owners. For you. How involved were you in the growth of the company geographically in terms of we should go into this market? This we should consider taking on this group? Was that something that you were focused on? Or were you focused almost solely on building out the lab capacity?


Dr. Alison Campbell  25:45

I was I was involved in terms of being aware of the conversations being aware of the work that was going on by external parties to to understand the markets across the world and where our best opportunities might be. And I could contribute in a way that okay, I know that lab, I know those people and in that clinic, and I've heard is quite anecdotal, and just just general industry in Tao was quite useful in in some occasions, so about the rules and regulations in different countries will make a difference if we've got these products, and we're big on donation. Well, in this country, donation isn't legal. So if those sorts of bits of information that I could contribute.


Griffin Jones  26:31

So at the time, were you under, at the time, in 2011, perhaps was there different rules in Ireland, with perhaps EU guidance than there was in the UK? Or at the time was the UK under the same EU guidance? What was the variance going from country to country in the beginning?


Dr. Alison Campbell  26:56

Well, with Ireland and the UK, we were both were under the EU tissues and cells directive. But that was quite differently interpreted by the UK regular regulator, the hfpa. And the Irish regulate to the Irish medicines board as it was then. So the focus, at least in the UK was more about patient consent and, and quality of treatment and information provision. It's much broader than that. But basically, whereas in Ireland, it's all about the safety of the tissues and cells. So there was quite a different emphasis, even though the overarching rules and regs were similar. But we managed to navigate our way through that, and it's worked out really well.


Griffin Jones  27:41

Do you now have to do the same thing with Spain and the United States?


Dr. Alison Campbell  27:47

Yeah, we have to understand that. Yeah. The backdrop the regulatory backdrop, and the treatments that are permitted to be offered. And we need to understand how how they do business in Spain and how they do business in the US and and try and find synergies and yeah, so it's an exciting time.


Griffin Jones  28:07

What differences are noteworthy, in your view


Dr. Alison Campbell  28:10

noteworthy differences? Well, one, one is with Spain and the UK, in Spain, surrogacy is illegal. So that's a big difference. And donation of gannets is anonymous, in the UK and not in Spain. So they are quite different. So there may be synergies there. There are UK patients, many UK patients go overseas for treatments for various reasons. One being that they don't want to donor anonymity. So there's a possibility of synergies there. So it's all of those sorts of things that we need to get our heads around. And we do that as part of the due diligence. But now we're really early days into the integration. So we're, we're looking at all of those things now.


Griffin Jones  28:58

So that could be one difference. The word Anonymous is all but void from the nomenclature in the United States. In fact, I think if you say anonymous donor at SRM Summit, someone from the legal professional group will jump you. It has been ingrained in us the last two years that we no longer use the word anonymous to describe donors that the realities of genetic testing of consumer genetic testing of ancestry.com and 23andme and the combination of that with the prevalence of social media has all but completely wiped out the concept of anonymity. So is that still part? Is it still in the legal and common nomenclature in reproductive health in the UK to talk about anonymous donors?


Dr. Alison Campbell  29:58

It is yeah, on We probably use non identifiable as more commonly in our, in our patient communications and our documentation. But it's a it's an interesting year this year is now the first year that children from donation 18 years ago, they're becoming 18 years of age and they can now go and find out some information about their, their donor that was used to create them. So it's not entirely non identical, but at least at the time of treatment, it currently it has how it is it's not identifiable. But once the child gets to 18 years old, they can find out identifying information on the top 10.


Griffin Jones  30:44

So that's a difference been in the United States and one that you'll share. see plenty of now that care fertility is in North Carolina in the United States. And I read in the article that one of the reasons talked about the generals shortage of embryologists and I saw that you all have an academy for embryologist and I thought that might be part of the solution. But I wondered, does the UK not have the same shortage of embryologist that that everywhere else does, it seems to me like they had. And so do you have the same shortage of embryologist as other parts of the world have seen? And tell us a bit about what you're trying to do to solve it?


Dr. Alison Campbell  31:32

Well, yeah, there is considered to be a shortage of clinical embryologist. But there are several training routes that in the UK that embryologist can follow. So in terms of the government, the national training scheme that the scientist training program, the places are quite limited. And so and that's a three year master's degree part time with a clinic with an accredited laboratory and all on the arteries of our accredited for this STP training. But there are limited places so we can also train embryologist slowly through a six year route to get state registered. It's so there are structured training schemes. So I am not personally concerned about a shortage of the workforce going forward. And we've also established a master's degree ourselves. Last year it was launched. And in the year actually, by coincidence that the world's first master's that we talked about that I did start. So when that was good timing ready, so we can continue to offer a master's degree training. So I don't think we've got a big problem in the UK, it just seemed that in the US, there is a big shortage, probably because that first generation of embryologist that stayed with the in the field. And there hasn't been a great transfer of information and responsibility. And there hasn't been any false structured training programs that have brought the next generation on at the pace they need it to be brought on.


Griffin Jones  33:05

So are you bringing some of the folks from the US over to your program in the UK?


Dr. Alison Campbell  33:11

Well, that's that's a distinct possibility. Yes, that's what I would like to do bring them over to our masters and chair training facility, and they can neither have just personalized training. It depends what they need. So I'm looking into different opportunities to bring people over from the US to answer and also to send our guys over to them. Because as long as I can demonstrate their qualifications and competency, which I can, then they could work under a lab director, we know IUs lab.


Griffin Jones  33:44

Are you looking at the possibility of doing that with embryologists that come from groups that are not care owned?


Dr. Alison Campbell  33:53

Well, yeah, our training courses are open to anybody really around the world. So that's absolutely a possibility. It's more difficult for us to send our trained embryologist into other US branches to work unless they're part of our company. So we're exploring the visa situation, which is a bit of a minefield at the moment. So we're exploring what what that might mean, but I don't envisage we will be able to send trained scientists all over the place. It's just into our sister clinics.


Griffin Jones  34:27

Yeah, but that's a barrel of monkeys. So I want to talk about how you decide to implement some of the solutions that you see on the horizon. I'm hoping that I can get an answer out of you that is a lot more specific than what we look at the solutions that are out there and we choose what is ultimately going to be best for outcomes. I would like to get an idea of your vetting process because there's gonna be a lot of people listening to this episode from genetics companies from lab equipment company is from people that want to sell to us specifically, and that want to sell to your peers. And I would love to give them a little bit of insight into how your vetting process works. Because I walk the booth section, the exhibit, section it all of the conferences that we go to, and I see a lot of great solutions or seemingly great solutions. And I see a lot of them struggle with getting adoption and with being able to sell into groups. And so part of the reason is because you have a system in place, you're you have plans, and perhaps not everybody can add the value needed to be added at scale. Talk to us a bit in the level of detail that you can about how you that new solutions that are coming on the marketplace.


Dr. Alison Campbell  35:57

Yeah, and there are so many, so many new solutions, so many startups, so many AI products, lots of different automation products, the cloud. And so how would you bet them? Well, ideally, I want to get my hands on it. So I want to demonstrate that it works in our own hands in our own laboratories. So it depends how far developed it is. If it's sort of still a prototype, then I have to use my gut most often and think, right? W this has potential, would we get a return on investment if we invest time, and potentially money and resource into this, this new device or whatever it might be? So lots of questions, depending on the stage the product might be at, but certainly want to demonstrate in our own hands wants some evidence that it's reassuring that that is going to work. And then we'll have a play with it. So we can either do that in terms of just an evaluation quite rough and ready, just yet some user feedback, is it saving your time? Is the protocol easier to follow them? Do we like the suppliers? Are they supportive? Or else we could get involved in a clinical trial? Which is also interesting, but what's in it for us short term, medium term long term, if we get involved? Is there an equity stake possible it's a startup? Do they really want us to put effort into it and and support them beyond their scientific training board. There are lots of different ways that we think about it. But at the end of the day, we need to make sure that these potential new products or services that we're buying, are going to add value. And we're going to get the return on our investment, it's going to save time, it's going to make life sweeter or simpler in the laboratories. And most importantly, it's going to improve outcomes. Even if we're talking about marginal gains, any improvement, we want it. So that's been in a nutshell, what I would be thinking


Griffin Jones  38:05

do you can you possibly quantify even in the ballpark? How many requests you get in a given year for you or your team to demo a product?


Dr. Alison Campbell  38:19

Probably 20.


Griffin Jones  38:23

So that's plenty of those 20 How many? Do you think that you actually go on to demo not even implemented scale, but just demo?


Dr. Alison Campbell  38:32

Probably three or four?


Griffin Jones  38:36

What did those three or four have that the other 17 or 16? Don't.


Dr. Alison Campbell  38:44

They? They have either phenomenal testimonials from people that I would trust. And they potential to save a lot of time, their potential to improve outcomes, or the potential to reduce costs.


Griffin Jones  39:10

They all say that they have all of those things settle down. I'll say we will save you so much time it will save you so much I've got and we're going to improve outcomes. What is it about those that are and we're not even at the implementation phase yet? What is it about those 16 or 17 that they they might fail to convince you that they have the ability to save time and cost and improve outcomes?


Dr. Alison Campbell  39:42

Yet well there's absolutely lots of smoke and mirrors and you see when you walk around ashtray often these big banners Oh, this is the best new thing. It's great. And when you dig deep, there is nothing to see it's just somebody's idea. And it's it's very premature. So a lot of them I find all Perimetry law. And so I decide whether to stay in touch. Tell me where you are in 12 months time or go away? I'm sorry, we don't have time to spend on this at the moment. So very polite, but some. Yeah, it is difficult. There's a lot of, there's not a lot of substance behind many of the products that are offered to us to evaluate, they may not even be physically ready. So it's is we have to do it as efficiently as possible, because it does take time. We need information. We need quick meeting facts, figures, and, and timelines and take it from there.


Griffin Jones  40:39

It sounds like how far advanced the concept is, is a predictor of how likely they are to to be taken seriously and be demoed. For those that are still very premature. What is it that they're trying to get you to do? Or they're trying to get you to be their guinea pig in some way? What is it that they're trying to get a group your size involved in? If they're not ready to? To provide the solution? What is it that they want you to do?


Dr. Alison Campbell  41:14

Well, often they want guidance. I think they want markets in towel they want they just want to test the water. Are we heading in the right direction? Is this a good idea? There's sort of free market research, I think is often what they're trying to get


Griffin Jones  41:31

it Yeah, that makes sense. A little bit of free consulting and some of your intelligence. Tell us a bit about when it makes sense to to take equity, because I think that could be a useful solution for some of the groups and of course, any entrepreneur has to decide, is this something that we actually want? Are we going to do a fundraise anyway, and it could make sense to have one of our potential customers be our one of our investors? They have to make that calculation on their end, on your end are that not not speaking and you personally don't even care fertility, but more broadly on the fertility companies that fertility clinic network with fertility lab network? side? When does it makes sense to take equity in a potential lab startup?


Dr. Alison Campbell  42:30

Yeah, well, it's a good question. And I've spoken about it like it's something we do every day of the week. And we really do not, there are not many examples of us doing this. But I think it I imagine it isn't now hooked. But I think there's, I think there's something really, that this has potential. And I think, as we get bigger, there will be more opportunities to work like that. And, and more synergies. So I think cam in the one example that I can talk about, without naming too many names, is, yeah, it's a new technology. And we're involved, it was a small local company that I thought had a great idea wasn't gonna cost us very much. The equity wasn't free, which I think in some cases had been negotiated because of how much we could bring to the table, the know how, and the expertise and the trials and all of those things. So I think that's something where we could explore it with you potential partners. But in this case, and we made a small investment, got a small bit of equity, just to show our commitment, and to support this, this small startup in getting what they needed to get, and keep going. So yeah, I think there are many different ways that we could approach this. And it's about what you bring to the table and what you're prepared to dedicate to a new potential product. We have. There are owned products, a few of them, and it could in this automated annotation. And we have been talking about potential commercialization and potential partnerships. Because we've got the product we've invested in it, we've we've used a lot of scientific knowledge and data. And that's our contribution. And it, it's our IP, that if we were to commercialize it, then I could see advantages in finding a partner with the know how to, to do that to not just to sell it and to distribute it worldwide foot to certify to regulate it to get it accredited as a medical device, which is effectively what it is.


Griffin Jones  44:39

In that particular case. Did you find it interesting that they were pitching you their product? And you all found it interesting enough that you wanted to invest a little in it or did they approach you to invest in take some equity in the company?


Dr. Alison Campbell  44:57

Well, the the first approach was not we didn't discuss equity, it was just getting to know each other looking at the product thinking of the potential. And then it was probably my idea to say, right, well, why don't we talk about us being a shareholder in your company, because we were prepared to put a bit of time and effort into this and, and show that we should be your exclusive partner had the time being so it was that it was a bit opportunistic, I'm honest.


Griffin Jones  45:26

I wonder if that opportunism is going to be something that we see a lot more of from fertility networks, from management service organizations, and maybe even something that you end up leading for care fertility in, in the United States, you're now contemporary us fertility has an innovation fund. My friend, Dr. Eduardo Harrington, is the director of that fund. And I don't know if it's just Angel seed money, rounds, but they they have a fun for this type of thing. And I could see that being adopted from a lot of different networks. So we are an early stage company, and you're looking for us to bring your market to scale. Oh, you're trying to get some free market research for us? Well, maybe in exchange for this, and they have an ecosystem for this care fertility have that E N any of that ecosystem? Now? Is there any plans to to build it? Or is this a seed being planted that maybe we have a very different conversation here from now?


Dr. Alison Campbell  46:36

Well, we have a Research and Innovation Board, which discusses all potential opportunities. So it's quite a senior, he's very senior board and with the director of clinical governance, and


Griffin Jones  46:49

but do they have a fund of here's how many millions of dollars we have to be able to take equity in different companies that and a term structure for here's the rounds that we buy in, under what terms? Does that ecosystem exist yet?


Dr. Alison Campbell  47:04

Not yet. No, that's not not that sophisticated, yet.


Griffin Jones  47:09

You're welcome care of fertility, even though you've probably there's probably been lots of discussion of it at some level or not. I'm gonna pretend to take credit for it here from from a single podcast episode, whether anyone believes that or not is is up to them. I want to talk a bit about the solutions that you're now implementing, which have to do with the predictive algorithms for live live birth. Tell us more about that. And how did it come to be and what's coming next.


Dr. Alison Campbell  47:46

So we've we're on version six of our predicted algorithms, we call it care maps are they the maps stands for morphic genetic algorithms to predict success. And it's built on 1000s of embryo transfers, where we know the live birth outcome positive or negative. So it's very predictive of life birth, so it ranks embryos, it gives them a score of one to 10. If you get a score of 10, your chance of live birth is approaching 60%. And then the scale goes down to a score of one you like birth chances less than 5%. And remembering that lots of embryos generally look very similar. So we've got these scores that absolutely helpless, choose the best one first time. So it's an amazing tool is sophisticated, and it's automatically generated now, so takes seconds to get this information on each embryo. So going forward, we've automated the annotation element, we're still using a statistical prospected me validated algorithm to generate the score go forward, we are likely to make this more accurate and sophisticated, maybe implementing more artificial intelligence to give us this accuracy and speed, because we've got the data. So it is an exciting time, everybody's talking about AI. And then I'm really proud that we've got our own tool that is AI based. And we now need to try and see whether it's effective outside of our group, or our UK group that trained this model. So we can get take it to reach we can take it to Spain, and we can start to understand whether it's transferable or if we need to calibrate it, which is it's possible, calibrate it for different clinics. So loads of work still to do on that. But yeah, we're ahead of the curve, I would say.


Griffin Jones  49:43

Whether it's this tool or whether it's other technology in the lab, I often ask people, What do you see as the biggest changes happening in the next five to 10 years in the lab? I don't want to ask you that. I want to ask you shorter term. What do you see as the biggest change? judges in the next 18 to 24 months in the lab,


Dr. Alison Campbell  50:07

that I will, it will be artificial intelligence, directing what we do directing our choices, directing which gametes should be used, are going to give us the best chance how we should time, everything. So, all of that data, it's all about the big data we've been collecting over the last 20 years, and some more rigorously than others, but that data will inform exactly how we do what we do and when we do it. So the time intervals between each of the procedures could be optimized, based on this data based on the evidence we've collected with this data. So I think there's gonna be a lot of that coming out in the next year or two. And, and it's all good because it's going to make things much more automated, and efficient and effective. Everything checks a lot of boxes.


Griffin Jones  51:02

As it does as it makes the workflow more automated, as it makes decision making more efficient as it improves the time intervals required to devote to the embryology process, as and after it does those things. What does the role of the embryologist evolve into?


Dr. Alison Campbell  51:27

Well, lots of embryologist saw getting a little bit nervous about robots taking over. But I don't I'm not concerned about that. I think we're always going to need embryologist we need the scientific inputs, we need the personal communication to some extent with the patients. And that's not going to go away. I think the embryologist lines should get simpler and easier with these new tools and algorithms and automation systems. So I'm not worried about that, like some people aren't. And I think we just got to embrace it. Because we want this continuous improvement. We need the efficiencies. And we need the results.


Griffin Jones  52:08

Dr. Campbell, you've given us so much in this episode, I wanted to even unpack more. But there's so much that we could happily invite you back for a second episode for you talk to us about partnership track or embryologist and lab directors, which is something after 170 Odd episodes, whatever it is that never talked about. We've talked to us about technologies emerging in the lab from time lapsing more than a decade ago to artificial intelligence. Now you've given great coaching for those folks that are trying to sell into the lab. And you've given us something to think about in terms of different geographies and regulations as groups expand, and how we steal and use embryologist in different places. I'm going to let you decide which of those threads or anyone that you want to use as an umbrella for all of them of how you'd like to conclude today.


Dr. Alison Campbell  53:18

Well, I think I'd like to compared by by just saying that the future of assisted reproduction technology is bright. I think the internationalization that we're seeing is a really positive thing, that we can all come together with our expertise and experience and drive things forward at a faster rate. So I think businesses will benefit employees will benefit and patients will benefit from this. This forward. Dr.


Griffin Jones  53:52

Dr. Allison Campbell, thank you very much for coming on inside reproductive health.


Dr. Alison Campbell  53:57

Thank you. Thanks for having me.


54:00

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






168 The Checklist For Truth In Fertility News



This week, Griffin shares five points on how to report- and listen to-  the news. What should you be looking for in reliable journalism? Do you understand the message being delivered, and is it verifiable? What to look for, what to look past, and what to think twice about, on this week’s episode of Inside Reproductive Health with Griffin Jones.


Transcript

Griffin Jones  00:00

If you have a friend who is he or she that you argue with a lot, and they present to you information from new sources, media sources that they follow that you're thinking, How the heck can you not see the bias that they're leading to you. And here is how you are going to get that person to at least see a little more clearly, you're going to be able to do this a lot more effectively than winning any kind of argument against them. And hopefully, you apply it to yourself to. So instead of telling someone the bias in whatever information that they're absorbing, give them this checklist. I'm going to give you this checklist, I apply it to myself as a news viewer, I hope you apply it to yourself before you check anyone else's bias.


 This is an ode to a journalism professor that I had 20 years ago, this is long before I ever thought about doing any kind of journalistic endeavor. I only took one broadcasting course in college, I think, and the this course taught me how to report the news, it was teaching students how to report even though I knew that wasn't going to be my career, I used it on how to view the news. And I contacted my professor Ron grave after 15 plus years of having taken one class within one semester, sure that he didn't remember me in retirement, and contacted him. I think two years ago, even before we started positioning inside reproductive health as a media company, before we started doing anything with news coverage for inside reproductive health, I just wanted to use it to have as the viewer and to be able to immortalize his lessons in some way. So the checklist that I came up with is inspired by the teaching lessons that Professor graves taught us on how to report the news, I think is very valuable for how to watch the news. He called his teaching lessons on the one hand, and he would also say, on the other hand, and I think the other hand, is actually the reason for the one hand the other hand, is that perhaps there's no such thing as pure objectivity. But the one hand gives us some rules that we can get a lot closer than we otherwise would. This is part of inside reproductive health editorial style guide, but you should use it for watching any kind of news that you normally watch local news, political news, maybe not sports and entertainment, because I don't think that's real news. 


There are five items on our checklist. The first two are fairly self explanatory. The first is that it answers six basic questions who, what, where, why, when how? The second is that it has a clear point, what's the main message that the story is getting across the other three, I think can use a bit more explanation. The third is that it's clearly attributed exactly what source a piece of information came from. Example, according to a February 16 study in the New England Journal of Medicine, or the governor said on Tuesday, I remember in Professor graves class when we would report on something the city would say the city budget is going to be passed on Thursday, and he would say who says the budget is going to be passed on Thursday. How do you know that it's going to be passed on Thursday. Councilman Smith said it'd be passed on Thursday. Then say Councilman Smith says the city budget will be passed on Thursday. Fourth is that it fits into context of a bigger picture. It reports on trends, not anecdotes. We see a ton of anecdote reporting and contemporary media reports on trends and then it compares trends. It uses facts and figures, not man on the street interviews. Fifth is that it's free of flowery language and editorial judgments. There's no adverbs. Like chillingly alarmingly, tragically, there's no superlatives. It was the best it was the worst. There's no promotional items. It uses exact numbers or best estimates, we would say if there was a lot of people at the event, and Professor grave would say a lot. Like 40,000 was a no like 60. And he would say, then, say 60. And it's free of comments on how good or how bad something is. It lets the viewer the reader decide. I don't watch cable news, I don't consume most popular news sources. But at the gym, there's two different cable news channels on each one that reports how the other one only reports Bs and the tickers below them talk about one group of people's lies or this dastardly plan or this horrible event. The best of news reporting lets the viewer Have the reader designed for him or herself. So those are the five main points answer six basic questions has a clear point, it's clearly attributed fits into the context of the bigger picture. And it's free of flowery language and editorial judgments. 


And while it's not in this checklist, Professor Greg would often talk about the other hand, what's left out from the basic answers to our six basic questions. Why was this the main point? What's the limiting principle for what's a given for a certain citation? We could say Abraham Lincoln was the 16th, President of the United States. According to the Smithsonian, there are some things that I read, as we're putting out, say, I don't think that that needs a citation. I I think that that is well established. But I don't know exactly what that limiting principle is. And I suspect that it varies. I don't know that there is one limiting principle for the context of how it fits into the bigger picture. Did we give Opposing Viewpoints? Sometimes there's not an opposing viewpoint of a postal worker shoots up is co workers. There's not an opposing viewpoint, for it's good to shoot up your co workers. But there is context that might be unanswered, if we're reporting on postal workers shooting up offices. How common is that? Actually, among postal workers? How common is that, among other professions? Is there a reason we're focusing on postal workers as opposed to others? There's a lot of questions about the context into which certain stories can fit with regard to being free of flowery language, we can eliminate adverbs or adjectives, we can do that pretty empirically. There's no adjectives here. There's no adverbs here, we try to all but eliminate them. So that makes that part easy. But you still have to have nouns and verbs. 


What are that if I say this investment bank is a giant investment bank, they're a banking giant, that's still a little bit of a value judgment. They're one of the biggest in the world that's probably not too far of a reach or if someone's under investigation, do use the word probe do use the word targeted, when you're not sure if they're guilty or innocent. Scientists, many of you are scientists are meant to prioritize the unknown over the known you're meant to prioritize what you don't know over what you do know, journalists should do the same thing. They should prioritize what they don't know over what they do know. And some verbs might exonerate someone will be bending more in the direction of exonerating someone while some verbs might be bending more in the direction of condemning someone. And journalists aren't meant to do that.


 And whatever the limiting principles are, for those types of noun and those types of verbs, I suspect isn't a categorical law, either that there's that there's some subjectivity that can't be avoided. Now that you have your checklist now that you know the limitations to the checklist, there's different rules for different types of media, not all forums or news media, the podcast isn't news reporting, our podcast isn't news reporting, I'm in a position right now that I think is ultimately a good one. I'm in both the editor seat and the sales seat right now. And it can be awkward when you're in the sales seat, having conversation about how you're going to help the advertiser reach our audience, increase their leads, and you're talking about sales and marketing. 


And then in another seat in the editor, see, you might have to launch something that isn't the most flattering about them. Most of the time, it's neutral ish. A lot of times people don't like it when it's not in their marketing or PR control. But most of the time, it's just pretty neutral. At some point, it could be something that's pretty bad. And for that reason, I think it's good that I'm in the sales seat and the editor seat right now, because if I can build the media company to the standards of these editorial standards, while I'm still physically in both seats, having both of these different interactions with sometimes the same relationships, and that's a really good foundation for when they are different people in different departments that these folks are responsible for editing and programming.


 These folks are responsible for sales and the media company is built on the values that the editorial standards cannot be compromised. I'm guardedly optimistic about that. It's a pious hope the only difference between a sinner and a saint is a pious hope but let me remark with regard to the same rules for certain forum like my podcast are different from news media. I said most things are neutral but if you and I both live long enough, something bad will happen in our field something real bad if you and I are both blessed enough to live long enough and inside reproductive health we'll have to report on it even if it's a very dear friend of mine, a dear friendship can't escape the obligation of the news but a dear friendship might benefit from the other media that we have example Dr. Trixie Bambino gets in huge trouble for a whole bunch of sexual allegations does Oh, A bunch of bad stuff. CEO Rocco McGillicutty embezzled from the company frauds, insurance, to frauds, shareholders steals patient money. Instead, reproductive health will have to report stories like that. But I will also have Dr. Bambino or Mr. McGillicuddy. On my show afterwards to give their perspective, I'd be hard on them if the facts are there, and they're on my show, but I will let people come on my show. So I'm letting you know that right now, there are standards for the news. And there's different standards for other types of news media, I'm letting you know where I'm at so that you can see my transparency. 


I don't hold my own commentary. I don't hold the podcast. I don't hold articles that I write myself that aren't news articles to the same standard that I hold our journalists to our news reporting editorial standards, too. And when something like this happens not if you and I are both blessed to live long enough, and people say how could you do this? I'm going to point to this episode right here and say I give people platforms to speak. I'm Griffin Jones. Good night, and good luck.


11:04

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


167 IVF In India: The Walking Giant of The Fertility Field

What’s happening in the business side of the fertility field in what’s soon to be the most populous country on the planet? Dr. Biswanath Ghosh Dastidar shares the origin of IVF and the fertility business model in India, as well as the challenges and coming trends for reproductive medicine in the country. 

Who was India’s contemporary to Patrick Steptoe? Did you ever hear of his tragic end?

Listen to hear:

  • The tragedy behind the Patrick Steptoe and Howard Jones of India.

  • About Dr. Dastidar’s connections to the pioneers of the fertility field in India.

  • What models look like in India, how they differ from the US and Europe.

  • About the new trend of large companies consolidating and forming new companies.

  • About the future potential of the IVF industry growth in India




Dr. Dastidar’s info:

LinkedIn: https://www.linkedin.com/in/biswanath-ghosh-dastidar-51428b178/

Website: www.gdifr.in


Transcript


Dr. Baswanath Ghosh Dastidar  00:04

You just cannot ignore India in the global context because such a huge population, if you leave everything else apart is to such a huge population a burgeoning population of reproductive, of you know reproductive age group couples. India is what is known as in the demographic sweet spot in global terms right now. So we are going to have a young growing population over the next 30 years, say up to 2000 2000 42,050. And the needs of this population, the requirements for reproductive healthcare the requirements for fertility for IVF. It just makes it a very exciting space to work in, in this field.


Griffin Jones:

1.4 billion people, and almost 100% self pay patients. Those two figures alone are probably why you're going to hear a lot more about the fertility field in India, particularly the IVF business market in India, a lot in the coming decade. Almost 5% of my audience comes from India, and I've never created any content for the Indian market, you've noticed that we're creating a lot more content recently. And as we create more, we'll give you options to segment I want this kind of content. You don't have to deliver as much of this. While we get to that you might listen to this episode, whether you live in the United States or Canada or elsewhere in the world. Because the Indian market, as far as I can tell, is going to get a larger and larger share of attention both from your side the clinical lab, scientific, peer reviewed side but especially from the business side, the genetics companies, the pharmaceutical companies are going to be spending a lot of their attention on India in the coming decade. They already are so I bring on a guest Dr. Biswanath Ghosh Dastidar, he is part of the center that is one of the pioneer centers in India, they are in Kolkata, India. So he talks about his connection to that practice group to the Pioneer history in India. He talks to us about the Patrick Steptoe and Howard Jones of India and what happened to that person, then we move on to what models are like in India, what we're used to seeing in the United States and Canada in the UK with large health systems, large research, hospital University IVF is not really the case in India, it's almost entirely private practice. Private Partnerships, partnerships between physicians sharing ownership is relatively new, according to Dr. Dastidar. And now really large companies are both consolidating in India as well as forming new companies in the subcontinent. Dr. Dastidar was trained at Cambridge University and Oxford University in embryology and I hope you really enjoy his perspective on what may become the world's largest IVF market. Dr. Dastidar, Dr. Bish, welcome to Inside reproductive health. 



Dr. Biswanath Ghosh Dastidar:

Hi, Griffin. It's great to be here. And I'm sure it's morning in America. So good morning to all your viewers. And yeah, it's nice to be here. It's just after my practice here in Indian local time. It's evening and nice to be here.


Griffin Jones:  I look forward to asking you questions about the partner associate model in India. But before I do that, you and I met at ASRM and we met at the business of mines talk at SRM. And we got to have a little small talk after the panel discussion. And I was telling you about how 5% of my audience comes from India, even though I've created exactly 0.0% of our content about the Indian market. And you told me if you start to cover the Indian market, the


Griffin Jones  04:10

folks that work in reproductive health and India are going to be really engaged and really interested in and you said you you will develop a following or you said something like that. What did you mean by that?


Dr. Biswanath Ghosh Dastidar:  You see Griffin firstly, I completely remember our meeting at the SRM and it was a great session, I thought it was very different session to what I've been used to it past as RMS. And then we had our follow up conversation and what I meant was that both in terms of reproductive medicine and fertility or infertility or IVF as well as in terms of general reproductive health and women's health. You just cannot ignore India in the global context because it's such a huge population. If you leave everything else apart


Dr. Baswanath Ghosh Dastidar  05:00

Is this such a huge population a burgeoning population of reproductive, of you know, reproductive age group couples, India is what is known as in the demographic sweet spot in global terms right now. So we are going to have a young growing population over the next 30 years, say up to 2000 2000 42,050. And the needs of this population, the requirements for a reproductive health care the requirements for fertility for IVF. It just makes it a very exciting space to work in, in this field in India. And there's a lot of there's a lot of scope for engagement for discussion for brainstorming. And for podcasts like yours. I think there's a lot of scope for engaging with issues in India right now, requirements for IVF Tell me about that, do you mean unique considerations for in India around IVF. So, you know, India in terms of the IVF industry, though India was a pioneer country, as long as as as far as starting IVF is concerned or early development and research in IBM is concerned, India started really early. I mean, India was contemporary to the UK to the US, in terms of, you know, getting off the board with IBM Research. And I'm fortunate enough to be associated with one of those pioneer centers. So, the center that I am associated with in Calcutta, this center has been associated with the birth of India's third IVF, baby in 1986. And with the birth of India's second xe baby, which is intracytoplasmic, sperm injection, or xe, which is specifically indicated for severe male factor infertility where you know, the sperm count is really low or the sperm are not more tied and other reasons. So this center was associated within this third IVF, baby and secondary qcbs, back as far back as the 1980s and 1990s. So, so in the did get off the blocks early, but the problem is the field of infertility IVF is still underserved. There's still a lot of patients who don't have access to treatment. There's still a large nascent, vacant space available for IVF centers and IVF services. So yeah, it's it's a big market and a lot of it is still untapped. In the United States, the name is Howard Jones in the UK, it's Patrick step toe. So India's contemporary to the US and UK at that time, who was the big name in India at that who's the Patrick Steptoe or Howard Jones, of Indian IVF? So, that's a very, very interesting question, Griffin. And you have to hear me out for around, you know, a couple of minutes or five minutes here because it's an interesting and it's a slightly complex story, because the first IVF pregnancy in India and the first delivery of an IVF baby in India happened can temporary Believe me or not, happened contemporary to the first IVF baby born in the world in the UK, in Cambridge, in 1978. And the doctor Professor Robert Edwards and Dr. Patrick Steptoe as early as that contemporary in the same year, which is not what India can say about a lot of different, you know, arenas of scientific endeavor. In IVF. The first Indian IVF baby was born in the same year as the first IVF baby in the world. It was done by Professor Subash Mukherjee, by Professor Subash Mukherjee, who was based in the very city in which I'm sitting right now speaking to Calcutta. The name of the baby is is Durga. And the problem was that his contemporary Medical Society, the Society of gynaecologists, and other people with vested interests, just did not believe his work and just is not they raise doubts and questions over over his work. He was ostracized, he was hounded by politicians, by bureaucrats, and he was led to such a state of mental disarray that he committed suicide. Okay. So this is how India's IVF story begins. After this, one of his students, one of his early students, got together collaborated with a very eminent senior gynecologist in Calcutta. And they started what is possibly India's second IVF program, again here in the city that I'm working in in Calcutta. Those two names are Professor bn Chakravarthy, who was the gynecologist and Dr. Sudarshan ghost, dusty Dar, who was the IVF embryologist and the guy in the lab, they got together and started the program in Calcutta. And the second program started in Mumbai or as you might probably know it as Bombay, were a collaboration between Dr. Indira Hinduja and Professor Anand Kumar took place so there were these two Two centers and these two programs, which started simultaneously after the death of Dr. Sue Bosch Mukherjee. And these two centers both delivered IVF babies in 1986. So I belong to one of these two programs. So the program in which I am a part of right now and where I'm sitting right now speaking to you. This is Dr. Sudarshan. Ghost, the Steelers program IVF center. So this is a pioneer center and that's how early it was, you know, so the names are really Professor Subash Mukherjee to start with. And then Professor bn Chakravarthy. Dr. Sudarshan goes dusted our Dr. Indira Kumar and Dr. Hahn and Dr. Indira Hinduja and Dr. Anand Kumar. These will be the early pioneers. So, what did these two new pioneers after Dr. Mukherjee his death if part of the reason that brought him to that demise was either ridicule or lack of acceptance, then how did these two programs form in that aftermath? So you know, that story is also very interesting and it's not very, it's not very similar to each other, these are two different stories. So the the program, which developed in Mumbai or Bombay under Dr. Anand Kumar and train the Rahim Bucha was a nationally funded nationally supported program. So, it was you know, it had the support of the Indian Council of Medical Research and a big hospital. So, was very structured, very organized program. And the program which simultaneously started in Calcutta, under Professor Bian Chakravarthy and dot Sudharshan course, this data, this was a private initiative. This was a private initiative just between these two very enterprising, very courageous individuals. And they collaborated, they pulled in their own resources, their own earnings, and they started in IVF lab, and they started program in Calcutta. And those guys in Mumbai who were funded and supported by a very, very prominent Indian research agency, they started their program in Bombay. And yeah, they both lead to pregnancies again, you know, as strange as it may sound, they both lead to deliveries of IVF babies in the same year again, in 1986. Were they affiliated with research universities with academic hospital systems? Were they completely independent? These were both both were independent programs. But the Bombay program was supported by one of the prominent Indian research agencies research but not but not part of a teaching hospital, not part of a large hospital system. It was funded by a reason. The Bombay program had close links to a large hospital, but not the calculator program. It was completely privately started and privately funded program. And this is in the mid 1980s, in Kolkata. So this started off in the early 1980s. This started off in 1979 1980. And it I mean, you know, you'll you'll be interested to know that they had their first IVF pregnancies which delivered which led to a successful delivery of a baby in 1986. But the Calcutta program, interestingly, reported the first IVF pregnancy in India to be reported in an international scientific Congress in the World Congress on IVF in Helsinki, in Finland in 1984. Unfortunately, that pregnancy did not go up to term so that pregnancy resulted in a miscarriage a few months later. But yeah, the work started in 1979 1980 81. And both the center's had delivery, successful deliveries in 86. I'm wondering if this is setting us up for a different model in India than what we saw in the United States generally, what we saw in the United States after Dr. Jones throughout the 1980s, most IVF, virtually all of it was happening within research hospitals, systems, and then started to leave a little bit in the 1980s to have independent IVF centers like I think Boston IVF was among the first a lot more in the mid 1990s And then through the early 2000s. But if if there were two programs, essentially starting simultaneously in India, it sounds like Kolkata was completely independent, then what routes are there to the then then how did the model for Indian IVF develop after that? So you know, you know, Griffin, I must congratulate you because this point you just raised it's such a prescient observation on your part because you've hit the proverbial nail right on the head because that is exactly what happened. Owing to the fact of you know how these two early initial pioneer program started off. From there if we trace the history of IVF in India from then onwards, right up to today, you will find that the print dominant players in the IVF market has always been private centers. So that's the way it started off. And that's the way it continued. And that's the way it still is today. Majority of the IVF market in India is dominated by private players. It started off that way from the 1980s 1990s. It's persisted today. Yes, there are different models as well. So there are big hospitals, big free standing individual private hospitals, which have developed IVF units. There are large, freestanding government funded teaching institutions teaching hospitals, which also have IVF units do have very few ID number, let me tell you very few in number. And the very recent development, which is as recent as the last decade or so is the emergence of the IVF chain, you know, like a corporate group, which is putting in its money to set up IVF centers all over the country. So you have all these models, but it really started off with individual enterprising private individuals and doctors who set up private IVF centers. And it's the root of that could be traced back, in fact, to the way that the pioneering IVF work started in India, as you so correctly pointed out, I must tell you, I never thought of it this way.


Griffin Jones  16:16

So did the private IVF practice in India take did replicate the general practice model at first, you have other independently own general practices or maybe other specialties and subspecialties did the first RBIs in the first fertility specialist in India just say, Okay, we're just going to do that. But with an IVF. Lab, how did it differ? I'm not very sure that's the case, you know, reference. So what what really happened was, if you go back to the 1980s, and


Dr. Baswanath Ghosh Dastidar  16:50

early 1990s, health care, generally in India, has always been sought. I don't have the exact numbers of the exact data with me, but it's always been reasonably fairly divided between the private sector and the government sector, you know, between individually run private hospitals and private clinics, as well as large hospitals, chains, government hospitals, teaching hospitals. So that balance has always been there in medical practice in India, right from the beginning. It's interesting, why? And you raise a very interesting question, to be honest, you know, this is something I haven't bonded on much in the past. But I guess the reason why IVF really took off in the private sector is because of the inherent nature of the subject. IVF is such a multifactorial subject, it needs so much of quality control, it needs so much of oversight. There are so many different aspects which are going on, you know, there's the laboratory, there's the operating room, there's ultrasounds happening, there's reproductive endocrinology. So it's really different fields of expertise, which have to collaborate in a very close and well synced manner. You have the RSI, you have somebody who's doing the ultrasounds, you have a surgeon, you have a gynecologist, you have an embryologist in the laboratory, and and ologists apart from just the science part of it IVF right from the beginning, was also, you know, it's an institution, it's not just one man sitting in a clinic, seeing patients and writing prescriptions. It's a business, it's a, it's a company as well, or every IVF centers is essentially a small company as well. Right? So I think because it needed so much of collaboration and looking at so many different aspects. And we had to be perfectly attuned to each other perfectly working together, which with each other. I think that was very, very difficult to achieve in a large setup in a large government hospital where, you know, it was very watertight compartments, you know, people didn't really collaborate so much didn't really it was very difficult to get different people have different specialities to, to always work together in a coordinated manner. So it was easier to just break away from that model and start off a small center. So we have two different origins in Kolkata and Mumbai. And then do we almost instantly start to see private IVF centers opening in Bangalore and New Delhi and other parts of the country? Or did it continue to be fairly unknown in those two cities before it spread to the rest of the subcontinent? A bit of both. So you know, initially in the 1980s, particularly, there was a lot of monopoly in the IVF business, if you will, because so these these two centers were there, in Calcutta and in Mumbai, and of course, there were other centers, which were coming up other leading doctors who took charge and who, you know, set up institutes in different states in different cities of the country. But I think it is, the population largely remained underserved in terms of fertility meds, Sit in terms of Reproductive Medicine IVF services. I think it's really the last, you know, it's really the last 15 years, it's the last 15 years, which has seen burgeoning booming interest in the field all over the country and setting up of many, many new centers. And so how did the first fertility specialists in India sub specialized did they train abroad? Did they develop a fellowship program or some kind of training licensures cert to certification in India? Tell us about how they subspecialized again, you know, that's another very interesting question. So, right, in the beginning, the early pioneers I spoke to you about, they were pretty much self trained, you know. So they were self trained individuals who traveled the world, they went to conferences, they went to the European meetings in the American Society meetings at that time, you didn't have an SRM at that time, you had something which was known as the American fertility society or the AFS. Right? And the ASHRAE in Europe wasn't even formed at that time. What is now the ASHRAE, those same group of leaders, were just organizing conferences in Europe, which we're going by the name of World Congress on in vitro fertilization, stuff like that. So these early pioneers traveled to those, those early centers in Europe and the USA, they observed, they found mentors and they learned and then they really spread this education and they spread the training to the rest of the country to the rest of the doctors, these early pioneers, which we spoke about. And then gradually you find that in the organized sector, some courses and some training programs on Rei on embryology started in different hospitals, in some nodal centers, for example, the All India Institute of Medical Sciences or the Ames in Delhi, that started a very robust IVF program. But training in clinical embryology and I would like to stress on this because this is a this is a very unique phenomenon, the training, structured formal university training in clinical embryology, both theoretical as well as hands on, didn't happen until much later. So that's really an issue of the last 1015 years before that. All clinical embryologists were people who had learned by working under one of these early pioneers, or by working with somebody who had learned from these early pioneers. So the training in clinical embryology became structured only much later, training in Rei started to get structured before that. But to be honest, to this day, even now, we have very limited training available in a structured University setup format, both whether for clinical embryology or for Rei. It's available, yes, but not widely available. It's very few places which offer SAS training. And so then how did the first independent practices develop in terms of businesses was it like in the United States where you have one or two or three Doc's coming together, and then they form a partnership together? In those days, it was usually equal partnerships. But if it was, if it was a single founder, they would often retain a controlling majority partnership, if not majority plurality controlling partnership as they brought on additional partners, what was it like in India? So you know, now now, we're really getting into the meat of the matter into the core of what I'm assuming your podcast is about and what we also discussed it SRF the models, so you have to understand that the early models was exceedingly exceedingly dominated by single expert led centers, right. So the early IVF centers in the 1980s in the 1990s, even up to the early 2000s. Every leading IVF center was by and large, headed by one specialist by one specialist who was trained, either self trained or had trained themselves by visiting these other programs I spoke about in Rei, Obstetricians and Gynaecologists who wanted to sub specialize in Rei. And they established these centers, almost almost like a private limited enterprise, like a private limited company. When they hired other doctors to work with them. They hired clinical embryologist, but it was really individual single Rei specialists who were setting up these early centers, partnerships and collaborations between groups of doctors is a much more recent phenomenon. It's it's been happening maybe for the last 15 years, and, of course, the corporate entry into it.


Griffin Jones  25:00

is even more recent. So these private limited companies were often founded by fertility doctors, but they were not bringing on other fertility doctors as partners to own in their company. They were hiring them as employees and expanding their companies. And already are fertility specialists working together to form they're to partner together to own their practices. That's more recent to the last 15 years. Absolutely, absolutely. That's right. Yes. Where did you come in, in this model?


Dr. Baswanath Ghosh Dastidar  25:35

So after I, after I finished my studies and my you know, I finished my medical degree, I finished my training in OB GYN. I traveled to the UK. So I was based in the UK for a few years, my entire training in IVF, clinical embryology, in the laboratory aspects of it, so I'm a trained, I should have introduced myself, perhaps earlier. So I'm a trained Rei as well as I'm a trained clinical embryologist. So, my training in Rei and an OBGYN is mostly based in India, but my core training in the laboratory aspects of it and clinical embryology was in the UK. So I joined the University of Oxford, in the UK in 2012. I owe all my training in IVF, embryology to Oxford, then I came back to India, I super specialized in for the sub specialize in area and OBGYN. I also trained in OB GYN, again in the UK, where I headed in 2019. So I was in the University of Cambridge at Addenbrooke's Hospital, which is Cambridge University Hospital. So I finished all of that I returned to India, and then I started getting in touch with, with the leading practitioners with whom I'd had some experience working in my junior days, you know, as a research associate as a associate, clinician, and that's how I picked my field. And that's how I joined and I started working, and it's been, it's been okay so far. And are you yourself? Are you what we would call on associates and employee? Have you mentioned one of these private limited companies? Or are you a partner with with other physicians in the ownership of your practice group? So it's very interesting. So you know, when I mentioned, I should have perhaps mentioned this earlier, but I thought, let's keep this strictly professional and strictly accurate to the, to the history. But when I mentioned about these early groups of pioneers who set up these two first IVF programs in in Calcutta and in Mumbai, what I should have also told you is that one of the two pioneers who set up the first IVF program in Calcutta, Dr. Sudarshan, goes str, he's my dad. So, you know, I have grown up with IVF, from when I was really young, from when I was in high school from when I was in medical school. I've been growing up in IVF. So, so I just came back from the UK, and I joined him. And I've been working with him. I'm also associated with other hospitals now. I'm involved in this practice right now as as a consultant as a research consultant. And I consulted in the in the program, but it's just, it's a, it's a mostly academic and a research role, because I have other primary medical jobs, which I do. But yeah, that's how I'm involved right now. I thought about asking you if you were connected to that doctor, Coach Tassadar. Because, well, I had no idea how common or uncommon of a name that could be. So So you've you've you've grown up in this field, and then so I suppose that you've been able to see


Griffin Jones  28:51

things change. You talked a little bit you said, Okay, partnerships is relatively new in the last 10 to 15 years.


Dr. Baswanath Ghosh Dastidar  28:59

But But when did you start to see consolidation happen in the Indian fertility field? I would say that's, that's as recent as you know, the last the last couple of decades. It has recently in the last couple of decades, it's really been a fragmented field. Till then, it's really been the domain of small private players and small, private, privately established institutions. But in the last couple of decades, we've seen both the models you know, we've we've seen, specialists come together to join hands to form partnerships and work together. And we've also seen the entry of large chains which have funded and backed the setting up of multiple different IVF centers that's relatively recent last couple of decades. So is it the entry of large chains like you know, Evie coming in and forming new companies or is is that happening? More than the cars I'm buying this part? act like these six practices in New Delhi and merging them together and consolidating. Are we seeing one more than the other? It's a bit of both. It's a bit of both. So you mentioned Evie. So yes, Evie made its entry into India, you know, fairly recently the last couple of decades. And the model that we followed was a we approached, already established and prominent IVF centers with a leading area with the leading man who was already working in the field. And they joined hands with these private centers in these private practitioners. So they remodeled and rebranded the center as an Eevee. Center. And that's how he started to grow. But following Eevee, there have been others who have just, you know, it's just been a corporate group, which has been a business House, who don't necessarily have any experience in the medical field or don't necessarily have any experience in the IVF field, who have just financially backed the setting up of, of IVF chains. They have hired people with experience, they've hired doctors and embryologists and they form those teams, and they've set up those chains. So so both these models have had been apparent. Is there more opportunity in India, because of the way the training structure is set up for these large companies to come in to consolidate? And then to expand? I mean, it could be you could say there's less because there's no fellowship program that are funneling new fertility specialists in but is the lack of a fellowship structure, the lack of a training structure, the opportunity for these companies to come and say, Hey, we got a country 1.5 billion people, they don't have a training


Griffin Jones  31:50

a universal training system for fertility specialists, we'll set it up and we'll we'll do all the training and and then we don't have the same bottleneck problem of fertility specialists that other countries do, can that be the case? Or am I missing something? I think it's a little different reference. So I think


Dr. Baswanath Ghosh Dastidar  32:10

the issue here is that there's still a lot of scope for you know, for for setting an IVF footprint in India, for sure. There is scope to to establish a new IVF footprint in India. The problem is the training, you mentioned the REI training, you mentioned that is rather a hurdle, because you know, because there is no robust structured supply chain of adequately trained Rei is or clinical embryologist. Whenever a new entity is going to try and set up a new chain or new centers in India, there's always going to be the problem of adequately and appropriately trained manpower. Unless and until you use the model of Eevee, you know, where you already engage and incorporate RBIs and embryologist who are already working in the centers which are available. What's to stop them, though, from large companies like that we're talking to companies with hundreds of millions of dollars to say, we're going to set up either our own internal Academy, maybe we'll also will, it won't just be our academy, maybe we'll train other fertility specialists that end up working for different practices, or it will be internal. And we'll just say, Hey, if you're coming out of medical school, and you're starting to train an OB GYN come work for us what's to stop that? Oh, that would be great. I think that will be great for all of us. Because if if a big group with deep cash reserves and deep pockets and you know, requisite knowledge and requisite technical expertise, was interested in the field in India in order to set up a big, big Training Institute, that would be great for patients, it would be great for the field in general. And of course, they would have enough business. I think the only issue is that because training certification and accreditation is a very complex issue in India. You know, it's it's partly regulated, it's partly controlled by central nodal agencies, which are government agencies. So you have those loops to go through. But if, if those hurdles can be crossed, if you can start off this conversation with the national regulatory bodies, which which regulate medical education, which regulate scientific education, get the necessary clearances permits, then yeah, it would be great for the free I would be very open to actually partner with with anybody who's interested to do such a thing, because you know, so, of course, you must be aware that the IVF unit in Oxford is one of the leading and one of the most cutting edge units in the world and we've actually been in conversation with them to start off something like you just mentioned, like A really robust training program here in India. But it's just so complicated with the different legal and administrative hurdles, that, you know, it's still not happened. But that's a very exciting prospect. And yeah, there's a lot of scope for that I personally would be very, very interested with something like so there's so different government agencies regulates


Griffin Jones  35:23

ostensibly broader fields of medicine, but but reproductive medicine, but they don't, they don't have a training body for it is that is my understanding. Correct? Right. Right. I mean, there are there are specific training programs available in very small handful of hospitals and centers all over the country. But it's not very widespread. You're absolutely correct. But yes, the field is regulated, very closely. Do private IVF practices, private fertility practices run the gamut in size in India, like they do in the United States? Do you? Is it common to see single fertility specialist practices? Or is it more common to see larger groups that have maybe 10? Or 20, fertility specialists? Or Or there's there's groups where there's three or four? Does it run the whole gamut? Or is one size more common? No, I think, you know, with, with the increasing with increasing awareness about IVF, and how it is a very viable and a very exciting option to have a child.


Dr. Baswanath Ghosh Dastidar  36:24

The demand for IVF has been rising steadily over the last few decades. So it's been very difficult for a private center just to be running with one leading Rei or one leading man. So every center now will have multiple doctors will have multiple specialists areas who are part of that center. But However, having said that, the most common model is still going to be where each center is really run by one leading Rei man. And then there are others who are there associated with the center, but not in terms of equal partnerships between you know, equally shared between different areas, that is also there, that model is also there, but not as common. Talk to us then about how these models differ from


Griffin Jones  37:14

how they do in in other countries, what what you saw at Oxford, and what you saw at Cambridge? How is that different from what you see across India? Yeah, you know, so there are, there are two primary differences. I think the first one is, like I said,


Dr. Baswanath Ghosh Dastidar  37:32

in the UK, and I've, I've been closely associated with the Oxford fertility unit to the wefew. I've had some experience visiting the Cambridge IVF setup. And apart from that, I've also, you know, been part of the leading IVF unit in Glasgow, in Scotland and the gcrf on the Glasgow Center for Reproductive Medicine. And from these experiences, the differences are actually quite clear that the platelet site, all these centers, really have going, what they've got going is the concept of group practice, which you mentioned, like a partnership between two three or more different RBIs. In the UK, this particular person is, is designated as a PR or a person responsible by the hfpa, which is the human fertilization and embryology authority in the UK. So every every IVF unit needs to have one Rei designated as the person responsible. So that's just one person. But apart from that, doctor, there will always be 234 or more others who are working together as partners, you know. So what that does is that link that opens up a lot of collaborations, brainstorming, you know, academic exchanges, that says the academic side of it, if you look at the practical aspects of running the center, it eases your workload, it's easier to schedule your work, it's easier to schedule your time away from work. You have someone to share in the different aspects of both administrative administration as well as clinical work in India, because you just have really one main guy who's in charge of an IVF unit, although he might have multiple doctors working with him, it becomes more of a hassle because the smallness of the structure of a lot of these IVF units means that the same guy has to be focusing on the clinical aspects of it, the business promotion, aspect, Marketing Administration, everything really comes down to the main guy who's leading the IVF center. So you know, it's not as it's not as efficient. Of course, it has its advantages as well. There's more autonomy, there's more freedom to choose which direction you want to take and what you want to do, but it really hinders. It hinders growth. because, you know, you're just dividing your time into so many different disparate avenues. The other difference in the model, I think, is that the UK, and I think if you remember the discussion at SRM, Griffin, we were speaking about four different models of IVF. Here, it's in the UK, in the EU in the US. And one of those was the collaboration between an academic teaching based institution and a private IVF center how you know, these two entities work in very close ties with each other. And that is also the model which I experienced in the UK, both at Oxford and Cambridge. So, both the RFU as well as the Cambridge unit, they are essentially private, Li run IVF units led by, you know, a few small handful of doctors, but with very close academic research ties with the University of Oxford with the University of Cambridge. So, you know, you get the best of both worlds you have, you have the stringent quality control and the professionalism, and the SOPs, which are associated with a small, tightly run unit, but you also have the supply chain of medical students and residents and trainees and the research collaborations, the collaborations with research labs of non clinicians. So you get best of both worlds both in terms of supply chain in terms of academics research, as well as the business part of it and the day to day management part of it. So I think that is what we need more of in India, we definitely need closer ties, we need to actually establish the model where a privately run IVF center is associated with a teaching, research academic institution close ties, so that both patient care, academics, research, development, training of junior doctors can all run together.


Griffin Jones  41:54

The four models for those in the audience that were not at that S or M talk are academic someone that's purely academic, like a UC San Diego, right, an independently owned practice someone that isn't a part of any type of network such as Dallas, Fort Worth fertility associates, Dr. Ravi gota. Was their representative there, or someone that is part of a network that is it's a corporately owned, it's a corporate network, or sometimes called the corporate partnership. And that takes typically a controlling equity stake in what had been an independent practice. And they're part of a larger corporate network that's at least partly owned by private equity. And what the model that Dr. Ducharme is referring to private and make an example of that would be Boston IVF with Harvard and Brigham Women's or RMA of New York with Mount Sinai, though this what model does your center follow? So yeah, it's it's, you know, the model, which you mentioned, the private partnership that Dr. Garda clinic was following in the US, and


Dr. Baswanath Ghosh Dastidar  43:04

that's what we really are a private unit. But it's interesting that you came to this question, Griffin, because there has been a, there's been a bit of change in the last couple of years. And this needs to be addressed because although we have been a private partnership, a private IVF unit, from the time that this this institute was set up. Very recently, as recent as in the last two years, we have entered into an academic partnership with one of the leading Apex multi speciality tertiary teaching hospitals in the state of West Bengal in Calcutta. In fact, if you look it up, you'll find it is the leading and the apex referral hospital. With a glorious history of hundreds of years, it was one of the first multi speciality teaching hospitals set up in the British era before India got its independence. And this is as recent as the last one year. So we've entered into a private public partnership and it's called a PPP model, where our EU Institute has been tasked with the very exciting but also very challenging job of setting up Eastern India's first government owned government housed free funded IVF center for the poor population within the IPG MBR SSK hospital. So I PGM ER or Institute of postgraduate medical education and research is one of India's premier and oldest government sector, multi speciality tertiary referral hospitals. And they have tasked us based on you know, our history of innovation and research over the last four decades. We are setting up an IVF unit within that hospital so it's an a partnership model where we will be running this center, we will be providing the technical know how or when the trainings with the knowledge partner, and ibtm Er is going to act as you know, the the infrastructure, they are going to be helping with the infrastructure, the utilities, setting the costs of setting up the lab and the unit, and so on and so forth. It's very interesting development, very exciting development, I hope that this actually paves the way for new initiatives and ventures like this throughout the country. So that's to serve the poor population that you said, that's to serve the folks that currently don't have access to IVF. Is that my No, it's very interesting, let's yes and no, Griffin, you know, because in terms of who are the patients who are eligible to get treated at that new and upcoming IVF unit, in terms of who are eligible, there are no strict cutoff criteria as yet. I mean, the government might decide that it is going to enforce criteria for selection into that program. But it hasn't till now, unlike in the UK, so in the, in the UK, you have very strict criteria in terms of how many cycles of IVF can be NHS funded in which part of the UK depending on your address, depending on various different factors. So those things haven't yet been decided. So anybody is eligible to avail of this free treatment. But it just so happens, you know, that we don't foresee a lot of patients who are able to bear the costs of an IVF cycle are flocking to that center immediately, because you know, it's going to be rushed, we already have a we already have a waiting list of patients, which is running in 2000. And over 1000, not even in the hundreds, you know, so. So I still foresee that most patients who can afford IVF will still go to privately owned IVF units, but it's really going to be the poor population who need the subsidized treatment, who need the government funding for their treatment in the welfare country, you must be knowing that healthcare is free of cost for all who can't afford it. It's only IVF, which was not under the purview of that free government funded health care so far. So that's the attempt on the part of the government of West Bengal now to get IVF under the purview of free health care as well. So it's a bit under, it's a bit similar to the Canadian model, where you have Health Canada, you have universal health care across Canada, but in in most provinces, IVF is not funded, and even the ones that it is, to varying degrees. And I remember when the province of Ontario, this probably six or seven years ago, released their, their funding program, it was an awkward start, because you had such a need, because you had a population that was used to receiving free health care. They're not used to paying for it outside of a few few specialized things. And, and so they they you know, they did a lottery system. And I don't know if they still do that lottery system, but it was like, Oh, should I pay for my IVF cycle now and go through treatment? Or should I wait to see if I qualify in this lottery, it was I, I would love an update for those of our listeners from Ontario to give me an update, and maybe I'll even bring you on the show. And we can talk about it. But it was a that a lot to figure out in the beginning. How do you think they're going to try to do this? If you have a country of almost one and a half billion people, you have huge rates of poverty. And you we think that the number of people that can't afford IVF in the United States is high and it is it's dwarfed in India. And so how are they going? How are they going to roll this out? Well, for sure, it's going to be challenging, you know, it's going to be challenging and before you know before I come to your question, answer your question directly, if I can just touch upon the the four different models that we discussed today, SRM Griffin. So you know, the first model that we discussed was the large teaching hospital IVF unit right, which is a rarity, which is an absolute rarity in India, it is few and far in between, I think the most prominent one would be the one at the All India Institute of Medical Science raves in Delhi. There are a few here and there, but its rarity. Another model which we spoke about at ASRM was the corporate owned IVF chain where a big corporate houses a big company with deep pockets is funding setting up different IVF centers or or acquiring different currently functional IVF centers. So that is something which has been happening in India like I told you before, as well for the last couple of decades or so. By By and large, the vast majority of IVF centers in India still follow the privately owned privately run IVF unit model, which was the Dr. Goddess model, who was there at SRM. And I think it's very, very, very few private Demick IVF units, like we mentioned, the SRN are the fourth model where you have a private IVF unit with close ties linked to an established large academic research Medical Teaching Center. So I think that's really rare as well. And that's what we are trying to achieve here in Calcutta, with our partnership with IBM, er, the government investment goal. So hopefully this will lead to more such initiatives. And to answer your question, I'm not really sure you know, I don't have a clear answer for you. It's, it's just something that we have to wait, we have to wait and see how this, how this really rolls out.


Griffin Jones  51:00

We talked a little bit about models and how they're paid for mostly its teams, private payer, is it almost up? And this is the question I was fighting to remember to ask you earlier in the show. Is it almost 100% self pay in India right now? Is there any other any insurance companies that cover IVF? Are there any companies like progeny, carrot and kind body that work with employers to broker it as a benefit? Are we talking virtually all self pay for IVF patients?


Dr. Baswanath Ghosh Dastidar  51:39

Listen, if you were able to act as a facilitator, to get these guys into India, then I cannot tell you what a massive market they would come in to India to encounter because, you know, we are in dire need of that. We don't really have that. In any large scale throughout the country. There are a few schemes, there are a few healthcare schemes and insurance schemes which do have IVF under their purview. For example, some of the central government health schemes are CGH s, as we call them in India, they offer insurance and funding for a certain number of IVF cycles for their employees. There might be few schemes here and there. But by and large healthcare for IVF. In India, the vast majority of it is paid out of pocket by the patients. And apart from those few the small handful of government funded centers, where it's of course free of cost, which is also what we are trying to achieve in this new year, and that's coming up at IBM er,


Griffin Jones  52:44

how many IVF cycles does the typical fertility doctor do in India?


Dr. Baswanath Ghosh Dastidar  52:50

Oh, it varies. You know, it varies widely. So I think, are you talking about a particular Fertility Center, like one particular IVF unit?


Griffin Jones  53:00

I would say one day, I'd say so I would say in the United States, if you're doing less than 150, retrievals a year, there's either it's either it's not your full time job, or maybe you maybe you're at a private center that it's in trouble, I would usually don't see fertility specialists doing less than 150. Probably 180 is probably the average and then it's quite common to see in the two hundreds, but then you have a couple there's a couple Doc's in, in California that are doing 800 retrievals a year. And there's one fertility specialist in Chicago, Dr. Reed Jelani, who's podcast episode will have aired before yours, told me she did 1300 in 2022. Wow. And so are so what kind of range is typical for?


Dr. Baswanath Ghosh Dastidar  53:49

I think it's pretty similar here in India, Griffin. So if you find an IVF unit that's doing less than 100. And it's exactly the same numbers I was quoted to you as well, who's doing less than 150 cycles a year or maybe less than 100 cycles a year, that's really low. That's that's not possibly a very prominent IVF center. Whereas the really, really busy IVF centers would be doing around maybe 505 600 cycles a year. We in our center in our unit here, we are typically doing around in the in the four hundreds, around 404 30 cycles a year. But yeah, it would be around at least 150 cycles for most centers, which are doing well. At the very least,


Griffin Jones  54:35

you've given us such an interesting intro into the Indian IVF market into the history of Reproductive Medicine in India into how the model works. Our audience is almost entirely practice owners Doc's execs in lots of different companies in the fertility field. They are starting to pay attention to India. How would you You like to, and some of them, of course have been paying I don't I mean, as a as an aggregate they're starting to some of them, of course, have been paying much deeper attention than I for a long time. But how would you like to conclude with them?


Dr. Baswanath Ghosh Dastidar  55:14

You know, I would just like to say that there is a lot of scope in India, in the IDF field, the problem is that there are also a lot of hurdles to get across a lot of hoops that you have to get through. But there is no doubt about the fact that I think, really to two points to conclude is that, on the one hand, we need a more structured and robust supply chain in terms of training and education. That's a, b, we need more private Demick models of IVF units in India, where you have a private center, you have academics research going on and see yes, if if we could actually arrange insurance, wide coverage, and bring IVF under the purview of insurance, that would really be a game changer.


Griffin Jones  56:14

We will put your social media profiles, and that of the organizations that you work with as well in the shownotes will tag it. And I won't put your email address in any of those. But if people email me, and they say they want to talk to you, Do I have your permission to connect them with you? Oh,


Dr. Baswanath Ghosh Dastidar  56:33

yeah, absolutely. Absolutely. For starters, yeah. You can put up my social media information. And then yeah, I'll be happy to, to respond to emails, if they are channeled through you. Why not for sure. I'd love to help.


Griffin Jones  56:46

Dr. Business Coach does it are you are the first guest to talk about the Indian IVF market, I do not believe that you will be the last and you will not be the last. So I hope to have many more. Thank you so much for bringing this topic into our arsenal. Thank you for coming on the show.


Dr. Baswanath Ghosh Dastidar  57:04

Thank you so much, Griffin. It's been a pleasure. It's been interesting. And I really wish that and I really hope that your show and your podcast gets more viewers and more people engage on these very important issues which are not very frequently discussed. And it's been great to be here. Thank you so much for inviting me.


57:25

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




165 Millennial Money and IVF

Thematic investing. Venture capital. Private equity. Democratization. Lorin Gu, the founding partner of Recharge Capital- which has financially backed fertility companies across the globe (including KindBody), joins the show this week to explain his fresh-eyes approach to capitalizing on the empirical growth rate of the fertility industry. Tune in to Inside Reproductive Health with Griffin Jones for the latest episode. 

Listen to hear:

  • Private equity and venture capital being used together--to align incentives in the provider and vendor chains.

  • Griffin ask Lorin how he can be sure to handle the speed of investing in reproductive medicine. How does he know he’s closer to world-class competence than to a Sam Bankman-Fried?

  • Globalization: How Recharge is deploying its capital across borders in North America, Europe and Asia

  • What makes up the capital stack and value chain across the fertility field.

  • Which countries are attracting the most international patients, and who will be the ‘winner’, and why, in Lorin Gu’s opinion.

  • Is this the end of globalization? Why supply chain issues are happening now across the fertility industry.


Lorin Gu’s info:

LinkedIn: https://www.linkedin.com/company/recharge-capital

Twitter: https://twitter.com/rechargecapital

Website: https://www.rechargecapital.com/


Transcript

Lorin Gu  00:04

At the end of the day, when you have that kind of healthy margin, whether last venture capital or private equity, the business should run on a similar scale off the pursuit of profitability, cost control, quality standard. And that, to us is not so different. I have not so much of a distinction between the two asset classes of investments.

Griffin Jones  03:00

Your team contacted me at an interesting time because I've done 160 170 episodes. At this point, I've talked to a lot of CEOs of either venture backed companies or private equity backed companies, but very few of the capitalists themselves very few of either the venture capitalists or the capitalists behind private equity. And someone suggested to me recently that I interview a couple of these folks. And so your team serendipitously contacted me and I looked you up and thought this is pretty interesting for a young guy. So I'd love for you to first give us your the principle of recharge capital, and the founding partner there. And I'd love for you to just give us a little bit of background on how your company came to be how you've built your portfolio thus far. And and then we can start talking about what's drawing your eye to reproductive medicine.


Lorin Gu  04:02

Sure. Very happy to talk a little bit about recharged capital. So here we're a little bit differently structure compared to the typical venture capital or private equity funds. We are very thematically based, which means that we pick out three to four macro themes that we believe to be you know, having the longest macro tailwinds behind it. And we play a very deep value chain driven model for each of those themes and have a global approach in terms of portfolio construction as well as integration analysis. So was in healthcare, which is obviously a very big sector. We've looked at a bunch of different sector verticals within healthcare and have determined that fertility and reproductive health is going to be the biggest growth and most profitable sector in the years to come. So there we are, we are spending a ton of time in the fertility sector.


Griffin Jones  04:58

So how did you yourself get into venture capital. If I if if I'm reading correctly, I believe that there was one magazine dated a couple years ago that said you were 26. So I'm putting you at 28 or 29. That was an article from Channel NewsAsia, that two and a half years ago, so I'm putting you at 28 or 29. Today, so am I correct? And understanding you're under 30?


05:24

Yes.


Griffin Jones  05:26

How do you get to be the founder of a venture capital firm at such a young age?


Lorin Gu  05:34

so I started my career after college in a hedge fund focused on distressed assets. So that was a really good training for both credit and equity, both public and private. While I was doing that, I think I really had a very interesting discovery about like investment, which was, there's so many people who are very confined by the so called asset classes, right? People think about a public market, primary market credit and equity being very different. But actually, to really understand a company or to really understand even a sector, you have to be able to look across the entire capital structure and be able to play along the entire value chain. So with that in mind, I wanted to set up a practice that is different from most of the other firms out there. And I couldn't find another firm to join to have this kind of investment approach. So I just decided to start it myself.


Griffin Jones  06:27

couldn't find a firm that was interested in having a strategy across the value chain,


06:34

across the value chain across the capital stack.


Griffin Jones  06:38

Talk to us a little bit more about what that means, because some of my audience will understand that without further explanation, and then others, myself included, don't talk to us about what that means the the value chain and across the capital stack.


Lorin Gu  06:56

Sure. So if you, let's say just take fertility as an example, right? How do we see the advancement of this sector going forward? I think, you know, there's two components of new technologies being developed. There's a component of consolidation of independent practices, there's a component of providing both equity and debt for some of those row of strategies. So essentially, what you're playing is you're doing some portion of venture capital, you're doing some portion of private equity or doing some portion of credit. And by combining all those different things together, you have a portfolio along the entire value chain, and you can actually integrate them and create synergies for this particular value chain was all the different players of us basically playing a different role in the ecosystem. So if you are just a typical venture capital firm, you're probably only investing in more frontier technology, we're very new business models for clinics. And that has scalability issue, it will take time for you to scale, you might not have access to the best doctors might not have access to the biggest networks. So for us, if you think about sort of how new technology can be adopted, we think, you know, why don't we invest, you know, venture dollars into new technologies, invest private equity type of dollars into clinic, roll ups, and then just have those clinics adopt those technologies, given that there's a synergy of being in the same portfolio. So the interests are a lot more aligned for us, and also for the different management teams.


Griffin Jones  08:36

So are you talking about deploying both venture capital and private equity? Yes. So I think this is kind of a follow up from a conversation recently that I had with venture capitalists Abigal, Abigail Sirus and her colleague, Dr. David Sable, who manage a fund. And they were talking about different solutions for scaling, access to reproductive medicine, and I posed the question about, well, I see a lot of new solutions coming into the field. They're an AI solution for something that med techs do that they they can do 10x What a current med tech can do, or 100x, or, or whatever. And I see this happening in the lab and in the clinic. Augmenting what embryologist can do, what our eyes can do, nurses can do, et cetera, et cetera. I see a terrible bottleneck in those technologies being adopted, because even though these technologies do, like I can see the value in them, I could see what they do. But they're it's just like, the clinic can't adopt them. And so I asked David and Abigail like, why is this the case? How do you replace that and they're like, Well, you may need to build the system around that and then build the providers to align with that. And so is that what you're Is that what you're talking about when you're talking about being across the value chain? And, and using venture capital on the scalability side and private equity on the consolidation side? Am I understanding that correctly? Or would you phrase it differently?


Lorin Gu  10:23

Yes, I think you're understanding it correctly. But let me just sort of give a little bit more clarification on that. Right. So you mentioned this new technology adoption issue, which is very prevalent, not just in the US, but also like everywhere in the world, right. I think a lot of times, people tend to not appreciate to certain intrinsic conflict of interest between the new technologies and the clinic owners or practitioners, right. So we have this capability of increasing, say, the single cycle IVF success rate, the clinics are paying for this. What is really interesting is, the clinic has a difficult time of charging those kind of software solutions to the patients, because the patients don't feel that this is a real test or real diagnosis that they're getting. And you are technically reducing the number of cycles that each patient will be doing, which cuts into the top line of some of those clinics. So there's the moral hazard, where the clinic owner feels like sure this is a great technology, it's benefiting the patients. But is it hurting my own clinic financially, both top line and bottom line? Sometimes that is the case. And therefore, you start to see a lot of push backs where you know, the clinics are more than happy to pilot some of those programs. But when they actually becomes like widely used, adopted or getting paid, it is not the case. So for us, the way that we really think about it is how do you make sure the clinic or the chains are incentive aligned. And that requires number one capital for consolidation. And number two, to your points and to your previous guests points, built that incentive aligned with new technology providers. So you can have a different pricing model for the patients, you can have a different service model for the patients, and basically reinvent what the typical IVF packages are to the patients.


Griffin Jones  12:19

I want to talk a little bit more about the bottleneck. I don't want to lionize doctors here, because there probably are some doctors that would push people into IVF and want to do more IVF cycles, I know that some ducks that might want to throw some rivals under the bus might think that about a couple of their contemporaries. The vast majority of them, they are patient centric people, and I do see them being kind of led astray here and there. But but these are people with ethics they are they want to do right by their patients. But also, you can have that and then you can have external forces that put pressure external pressures on them that cause them to betray their ethics. I just also don't see the external factors causing them to betray their ethics in this case, meaning like they're they can do 1500 IVF cycles, 2000 IVF cycles, if they have that many Doc's or a doc generally doesn't have a problem doing 200 IVF cycles, if they just have halfway decent marketing relationships in their community. And with referring providers, they could, they could probably do more, they have long waitlist in many cases. And so I see it being more of just like, they just don't know how to implement these solutions a lot of the time, or it's, it's so much more work for them to implement it. And until they fully integrate it, it's still an additional cost.


Lorin Gu  13:53

Yes, that is absolutely the case. Actually, if you think about a lot of the process for the clinics, it's already a mature established process, people run it like a well oiled machine. So when you introduce new technologies, whether that's for the doctors, for the embryologist, they are pushing back because to your point, there's a ramp up period. They don't know if this actually flows well, seamlessly it was the rest of the operations and lack cost is harder to measure. They don't know if they'll actually be able to serve more patients were actually served less patients. And that's why I think the best way of thinking about technology adoption is you need to have clinics or chain of clinics who have a baseline of revenue that is able to support groups financials and gradually introduced them from like one clinics to five clinics like 30 clinics where you start to have a protocol and embryologist and doctors can really learn from my protocols of seeing this actually works. This is actually switch law It has proven to be efficient. And a lot of times that certainty really provides comfort for the doctors and practitioners. And I think that is why having an external force from a capital provider perspective, really there’s the concerns for a lot of those doctors and doctor, owners of the clinics. Talk to us a bit


Griffin Jones  15:19

about how a venture capital structure and private equity structure can work in concert. And you've talked about how it works in terms of being able to align the incentives to talk to us about how the actual structure can work, because this is unfamiliar territory. To me. When I think of venture capital, I think of something like Dr. Sables Life Sciences Fund, like that's pure VC, as far as I understand, I think of like Lee Equity, who I think is the current private equity owner behind inception, I think they're, I think they're trying to sell their stake, if I'm not mistaken, I don't know if they have already. But I think of that is pure private equity. And so talk to us about how do you have both in the in the same structure?


Lorin Gu  16:07

Sure. So I mean, even if you think about, you know, building out a new consumer friendly, technology, standardized chain of modern clinics, there are different ways of building it right, you can take an approach of KindBody, which is basically building new locations, from the ground up, you can also have the model where you're rolling up existing clinics was accessing patients, you are adding on a light layer of tech enablement, in terms of streamlining the customer experience, storage of data for patients interactions, and a new consumer brand equity. So the in that case, you are creating a new company, and technically it is venture capital, but the way that new company is being built is through the typical private equity roll up structure. So if you look at international scale, us probably has both of those things that you've seen played out. In that end, it is more like a, you know, venture capital model with new builds, because a lot of existing clinics simply don't have the standard that the current patients would demand. Europe, it's more of a private equity rollout model, because a lot of clinics already set up art, so as Southeast Asia, and then you look at Saudi Arabia, which is just starting to push for the private clinic practices, that is going to be more like a KindBody model of building from the ground up. So each geography has its own unique market flavors to it. And if you're really thinking about in the long term, you have, you know, all different geographies, having this kind of consumer friendly technology standardize chain operation with scalability and cost efficiency. The paths to get to that can be different depending on the geographies, depending on the market dynamics, depending on this condition of the existing clinics,


Griffin Jones  18:04

or the limited partners different behind each type of funding. So for


Lorin Gu  18:09

us, it's the same pool of LPs. And obviously, for a typical fund, the LPS for venture capital and private equity will be different. And alas, why, as mentioned, we're structured a little bit differently where we're purely value chain, we're sector focused, and we have the flexibility of moving across a capital stack.


Griffin Jones  18:29

And you're based in Singapore. Am I correct? In that


Lorin Gu  18:32

we are based between New York and Singapore. When


Griffin Jones  18:35

I had the folks from Ouma fertility on we talked about their raise in Silicon Valley, and I said, Well, why Silicon Valley and they lived in the bay area for years. So that was part of it. But they're originally from New Delhi and I thought, Well, New Delhi has to have a burgeoning VC scene Singapore surely does there is in New York and London wise, why still Silicon Valley? And they said, because of the institutional structure of Silicon Valley, the the way deals are done, there's such a proven template to follow and that they felt it it's still the, you know, it's still the place for for venture capital. So what does a place like either Singapore or other emerging venture capital hubs have to offer Do you


Lorin Gu  19:25

suppose so, it's very interesting, if you look at the opportunity sets, a lot of US investors will tell you that a very major growth area for fertility is actually the international market. But if you look at sort of venture capital or even private equity funding, most of the emerging market hubs for funding, do not touch fertility is still a very foreign subject to him. And this is where we like to come in and play because we have the US experience we have to underwriting standards in the US and we have added capability of accessing those emerging markets. So part of the arbitrage that we play is really being able to, you know, have this kind of understanding from the US markets and us the investments we made, and then apply it to the emerging markets where there's literally almost no competition from a capital providing perspective.


Griffin Jones  20:19

This is probably a one on one question, but I'm going to ask you, because I have you in front of me do limited partners typically come from the areas where the fund is based,


Lorin Gu  20:30

not necessarily. In our case, our LP base is pretty global and diverse from the US, from Europe, from Asia, a little bit everywhere.


Griffin Jones  20:41

Let's talk a bit about a hot issue, I think, and just in terms of being a young entrepreneur, so being a young entrepreneur, there is and I mean, you're under 30. And you're you're you're the founder of this capital firm, and you've got big plans for businesses that you're investing in and and are currently investing in. And the tale of the young entrepreneur, and has all of the ups and downs, right as a prototype, like on one end of the spectrum, you have Mark Zuckerberg, and I think a lot of people don't like Mark Zuckerberg, but even if you don't, it would be remiss to not acknowledge Him for the highly competent entrepreneur that he has. And he took fate, not only did he create the social media platform in a way that nobody was able to do before that he also did it again, by making it mobile. He's made some really smart acquisitions. And so I put him on one end of the spectrum of the young entrepreneur. And on the other end, I put somebody like Sam Backman freed who is a complete fraud. And so how do you navigate the necessary naivete of youth versus the seasoned experience that that comes from learning some hard lessons when you're moving at such a fast speed?


Lorin Gu  22:19

So I think the biggest thing for that is knowing what you know, and knowing what you don't know. In my particular case, I know what I'm good at, which is the financial part to financial engineering, analysis, etc. What I'm lacking, of course, compared to most of the doctor practitioners out there are the expertise in the fertility space, the knowledge in terms of assessing what kind of new technology, even just within AI, there's so many of them, are actually, you know, adaptable and scalable. And that's why we have a team of scientists, MDS, senior people, as well as advisors to really help our team was that decision and assessments. And that I think, is a very important call safety net for preventing hubris getting into the way. And for us, I think we have, you know, very exciting visions as a young person for the fertility space, we see a lot of interesting ways where consolidation can play for better technology, better standardization, better access for people if we believe the fertility needs are really going up. And you have to be able to cater to all different socio economic classes for equity reasons. And we have creative ideas of how to, you know, bridge fragmented international markets to provide better access to patients from any places, but that is what we call the investment or financial engineering aspect of it. When it comes to the actual operations, we rely on the seasoned experienced doctors and management team. So we try not to get too much into the way of how they operate their own businesses, because that is not our place to be.


Griffin Jones  24:14

you've narrowed down what you don't know you're a pretty smart guy, you have competent advisors that are subject matter experts really so extensively come I don't know them, but but extensively competent people that you've surrounded. There are still unknown unknowns in business and one of the reasons why I for my business, I started a client services firm and it was completely bootstrapped. I never took out any type of investor money. I never took any money from family and friends. I never took out a bank loan. And part of the reason why I did that is because there are so many unknown unknowns, the speed at which I was capable of navigating Getting those unknown unknowns was better mitigated by not having floods of money behind it, when I screw up, and when I fail clients, and yes, that that does happen, it's in a way where I can, I can either fix it, or it's one screw up amid successes, like even if it's like, okay, we didn't hit this goal, we really helped them hit this goal and we return the overall investment, I still feel bad about not hitting one goal. But the speed at which we're going that which we're delivering, I'm able to correct for mistakes. If I if I don't do fully right by a client, I can make it up over time, either in the engagement or after. And it's because I don't have investor obligations. I'm not, I'm not buying things all over the place and not buying inventory. I'm not acquiring companies, I'm going at a at a little speed. Now, I think that that's probably more because of where I am on the entrepreneurial scale. If if somebody like Sara Blakely and Elon Musk is a 100, on the entrepreneurial scale, and someone like a school teacher that won't even invest in the stock market is zero. You know, I'm probably like, somewhere in the 60s, I'm more of a small business owner getting into entrepreneurship. So I need that, that level of speed right now until I get smarter, and I'm starting to get smarter. But to have it coming at you that fast, like how do you mitigate the like, I see how you've narrowed down the unknown unknowns and you have competent people. But how do you navigate like, you're gonna have unknown unknowns come up all the darn time? How do you? How do you navigate them coming at you that fast?


Lorin Gu  26:45

Well, I think, again, there are like three things about it, right? Like, number one is, before you get into something, you think about what are the worst case scenarios? What are the downsides? What are the legal risks, what are the operational risks, and if those happens, what's the worst thing that could happen to his entire investments or having to, you know, the roll up, and you have to have that planned out. So even if the unknown happens, you know, it could come in any different form, you have a little bit of a plan for it. The second part is the composition of the investments, right. So if you think about the way out, we like to run, say, like a roll up strategy for a new modern clinic chain, the underlying assets are still, you know, independently operated by the doctors and a management team. The reason that a lot of those people are interested in becoming part of this is because no lay are independent, smaller business owners, they like what they do, but they also wish to have a little bit more upside, the upside could come from the form of by joining a larger group. So there's economies of scale, so the equity gets valued higher, or that upside could come from the form of, you know, they can get partial equity about out and have the remaining equity appreciate was the rest of the investment practices in the roll up. So when you have those kinds of like very grounded, people still involved in the actual day to day operations, you are less concerned about, you know, the operating mistakes from a investment side, because the investors are not operators, we can never get into the weeds of serving, saying individual clients or managing like the order book of a single clinic. What we can do on the other side is really try to control the overall trajectory of the larger ship, and make sure that the different participants of the smaller entrepreneurs are feeling confident, comfortable and feeling like they're getting the upside. So again, it's kind of about narrowing down to the responsibilities within the value chain of this operating ecosystem.


Griffin Jones  29:01

Let's talk a bit more about the fertility field and what you see there. So your team had sent me a note that you believe that the decision to overturn Roe will lead to a global increase in medical tourism and internet international partnerships. Why a global increase? Do you mean from the United States to various countries throughout the globe?


Lorin Gu  29:26

Not just that, I think what's been really interesting is if you look at the effect that US has on the rest of the world, when the woman empowerment movement started in the US is sort of blue to you know, Europe and then blue to Asia has a ratification effect across the globe. And when you have this overturn. What is triggering is a lot of other countries with polarizing current political or religious beliefs are also thinking about what they should be doing in turn. himself to regulations in terms of the policies. And it is not unthinkable to start to wait for us to start to see some of those governments will enact on something that is not so different from what the US is enacting on. So that is what we consider single country political risks or regulatory risk for women. So us now, even for countries that do not have very strict restrictions on fertility, you still have certain things are allowed, and certain things are not allowed for a customized IVF journey, right, for instance, in China, like single woman cannot freeze your eggs. And, you know, they have to resort to international tourism in order to get your egg frozen, so they can have an insurance policy, right, a lot of places doesn't allow you to do genetic testing a lot of places doesn't allow you to do gender selection, a lot of places doesn't allow you to do anything. Any diagnosis that is considered, quote unquote, invasive. So for people to satisfy their medical needs, you'll start to see a lot more of international tourism. So a lot is from the political side, and policy side. On the other side, where you will also start to see is this affordability issue, right. So us obviously, has always been considered having the best medical standard for fertility in the world. But the US is perhaps also the most expensive one. If you go from, you know, just egg freezing to IVF process. And if you want to have like a surrogate, that cause could run, most of the families broke, and it's really catering to probably just have 0.1% Elise, but there are a lot more demand than that, right? So people need to seek for more alternative solutions, sometimes, like alternative solutions, international solutions, where the medical standard is high. But the labor costs and material costs are lower. And it makes the entire process much more affordable for families to have children. So for instance, like in that me in Southeast Asia, a similar experience to the tub standard US clinical experience will run about 25% of the cost compared to the US. And that just puts a lot more families into the affordable bucket, and therefore increasing the access for


Griffin Jones  32:30

I don't have the data. But I'm my gut tells me my anecdotal experience tells me that the US is still far and away a net importer of quote unquote, this will I'm not going to use the word tourists but I will say visiting patient and for IVF, as opposed to a net exporter. There is some there are US patients, they go see Dr. Joe Davis in the Caribbean, they go they go see Dr. Mario Vega, and Panama other clinics in Mexico and elsewhere. But but but there's more people coming from China and Japan and Australia and New Zealand and the UK and Canada for third party IVF for PGT for sex, election, et cetera. Do you have any kind of data on what the Import Export ratio is of, of patients that leave the United States for IVF versus people that come in from elsewhere.


Lorin Gu  33:25

So people are coming in from elsewhere, that totals to about 20,000 cycles a year, which is, you know, a sizable number, but small compared to the domestic demand. But remember that 20,000 cycles are basically from the wealthiest of all of all US international markets. And when it comes to export, the US is probably just starting off. So you start to see Mexico being a hot destination for both egg freezing as well as IVF. Starting from about 2022, you start to see in some of the newer clinics, you know, between 15 to 20% of their cycles being from American tourists, and you start to start have some of them going to Portugal, Spain, some of them going to Malaysia, Thailand, especially when there are needs for surrogacy, because surrogacy is one of the most expensive process in this entire IVF journey. And most of the times people find it very challenging to afford a surrogate in the US. And that's where a lot of the export is triggered.


Griffin Jones  34:42

You talked about a few of the different countries that are winners I want to ask you about or about who could be winners in in terms of the number of patients they're seeing from elsewhere. Even in the US it it is far from an equal distribution of those 20,000 Right there. Click unex all over the country that see virtually zero international patients. And then there are clinics in Southern California where 60% of their IVF cycles are from Chinese patients. And so so it's it's probably the highest end of parados distribution where a square root of the of all the clinics are doing half of the cycles for international patients in the US, I suspect. You talked about Mexico, you talked about Portugal, Spain, Thailand, who among them or among others, do you who would you bet on as being among the winners in terms of seeing farm far more than their distributive share of international patients in the next half decade.


Lorin Gu  35:50

So if I were to bet, I would say to Southeast Asia region will be the biggest winner. The Southeast Asia region is very interesting, because it's a rather fragmented market, in terms of regulation. So a lot of people will tend to start their journey in Singapore, and then go to Malaysia for genetic testing and gender selection, and then go to Thailand for surrogacy. The reason that Southeast Asia is very interesting is because it is the number one choice for the export of Chinese medical tourism. So China every year exports between 300 to 500,000 cycles of IVF, for international medical tourism, most of which actually flows into Southeast Asia. And that number is only going to grow now that Singapore, in 2023, is allowing single woman to freezer x. So a lot more women are signing up to traveling out of China, post this COVID lockdown situation to get that life insurance for themselves. The very, very wealthy ones, obviously, you will still choose to us, but a lot is still a small number compared to the overall size. So from a volume perspective, Southeast Asia will definitely be a definitive winner. And then that's seconded by lat am most likely Mexico, as you start to see a lot of American couples seeking more affordable solutions. Last a natural destination for them. It is familiar, it is close. They have a lot of American educated doctors practicing in Mexico, like gives them a sense of comfort and level of quality assurances. So Mexico will be the near second in terms of the global winning market.


Griffin Jones  37:38

So am I correct in understanding that the Southeast Asia region will be can be both an exporter and importer still in that if people are leaving Singapore, they're going to they're going to Thailand, for example, where you're saying people are going to Singapore,


Lorin Gu  37:53

people are going to Singapore. So Singapore itself has about domestically 6000 to 7000 cycles of IVF on an annual basis. But there's a huge flow of IVF demand that's coming in from China and some of the neighboring countries. So they will be the net importer of cycles, for sure. And so it's Malaysia and Thailand.


Griffin Jones  38:20

Do you suspect that the number of Chinese and Japanese patients going to the US will decrease? Or do you suppose that the number of patients leaving China in Japan for either third party IVF or four types of PGT that they can't do in their countries? Do you think that will grow so much that the 20,000 might not decrease, but it will just simply be a much smaller share of the total number of patients leaving those countries.


Lorin Gu  38:55

So I would say the US import number from the international demand will continue to rise. Because overall demand for IVF is increasing. It is hard to say whether you know from a percentage perspective, it will be an increase or decrease because they really depends on the total base. But from an absolute number perspective, it will for sure be on an upward trajectory.


Griffin Jones  39:22

Then Mexico and Latin America also increasing and that makes me think of some content that I've been following recently. Are you familiar with the futurist Peter Zai? Han? He's a natural resources global supply chain energy futurist, are you familiar with him at all? I've heard of him. Well, analyzing him is above my pay grade. So I'm going to try to summarize his thesis but he posits an end to globalization as we know it that having the United's States Navy provide absolute, free commerce between all countries of the world is coming to an end. And really having said that one purveyor of security being the US and the one really disproportionate manufacturer of inexpensive goods being China. He views that as is coming to an end. If people want to know more about why he says that I suggest checking out him as opposed to hearing it from me, but but he posits that we're coming to an end of globalization that we're going to see far more regionalization Do you Do you see that?


Lorin Gu  40:41

I absolutely see that. Actually, we've been talking about this trend of D globalization since about 2017. But what we define it more granularity is you're seeing both globalization and the globalization happening at the same time. So again, if we go back to this whole value chain of any sector, I just take no fertility this example, right, you have fundamental technology, innovation, technology, application and business application, right? fundamental technology, innovation will continue to be global winners, because once we invented a technology that works, there's no need for other countries to really invent their own thing unless it has so much sensitivities, around patient data or demographic data. But a lot of those can be offshored. In terms of data storage to comply with the government regulations. When it comes to technology applications, which in cases are produced manufacture products, or business applications, in this case are the service providers, you will start to see a lot more regionalization. Each government is now very aware that technology has the potential of winners take Hall. And in order to protect their own economic, selling potential as well as the consumer spending power, they want to champion local champions, they want to foster local business to become the de facto dominant player in the market. So we definitely start to see a lot more push in terms of supporting local operated chains or clinics, rather than really allowing an international chain to come in and just brand and operate and consolidate in that sense. So the way that we think about investment from that perspective is also that we believe that regional investments make sense we do not force Regional Clinic operations or service provider to go across continents, because we think it's just not not necessary obstacle to jump through. We prefer to have them really deep growing their own domestic market and provide the best service quality standard they could.


Griffin Jones  42:49

So talk more about what that does to your global investment thesis. Because could if this is the case, if if there is less trade between countries, because there isn't a US Navy, ensuring that every part for every piece can go to every place and then be bought and sold in each place if there is more regionalization. What What about the the risks of supply chain risks that could make some business models less viable or not viable? All together?


Lorin Gu  43:25

Yeah, so there's definitely a supply chain risk. And that supply chain risk is not just specific to this sector, right? It is specific to almost every sector. So for us, the way that we think about it is you have this risk in mind, but at the same time, just because you have a risk, you cannot not make investments and not have those companies advanced in terms of their service qualities and in terms of their business growth. So the way that we really think about this is do we have backup plans for each of those operating businesses? If we can't have backup plans, then we let the business run grow the way they would? If we don't have backup plans, then we will reevaluate the geopolitical risks of a certain market and see if we want to exit or continue to double down on a market. I don't know if that answers your question, but I'm happy to delve in more.


Griffin Jones  44:21

Well, I've done about Jack zero research on supply chain conflict in the fertility field. Maybe I should I don't, I don't know if there's PE that's in shortage or if there's materials for lab equipment or for a culture that is low or in serious jeopardy. Are there supply chain issues happening right now that the audience should be aware of and if so, what are they?


Lorin Gu  44:55

Yeah, so I think there are a couple of things that are quite interesting when it comes to the medical equipment perspective, I think China over the last 10 years or so has really emerged as a very economic and powerful producer of a lot of the medical supplies. But in terms of clearing, compliances, and regulatory approvals, especially in us, in the US and Europe, there are a lot of push backs. So a lot of times the clinic will have to go for the more expensive, domestically produced products that as to the cause of the overall process as well. So now, what's been really interesting is you start to see, some Chinese companies really export their manufacturing capability out to Southeast Asia, a more neutral ground of geography, and relocate some of the manufacturing plants outside so that the products are produced with the same kind of supply chain cosmic optimization, but much more acceptable to the western countries and Western practices. And that is actually helping with the supply chain in the sector.


Griffin Jones  46:03

So let's talk about some of the new technologies that are emerging to optimize sperm and egg quality, particularly with evaluation. Sounds like you have a particularly focus on the sperm side, he talked to us a little bit about what's happening there.


Lorin Gu  46:21

Yeah, sure. So I think what's been really interesting is that, you know, 50% of the infertility issues actually come from men by men rarely get tested, or have the willingness to get tested. And a lot of times, it's really up to the decision of the woman to really force them and to get tested. And therefore the market has historically been very small or almost no incentive for scientists to go into developing analysis tools for sperm. And what has been really interesting over the last two years or so, is given the overall heat for the fertility market, both from a capital perspective, as well as from an entrepreneurship perspective, you start to have people entering those places for sperm analysis. So we've seen companies that are using AI technologies, of course, we've seen companies that are using non invasive methods to really assess the sperm quality through chemo, physic come off physics structure, we've also seen technologies that basically allow the freezing and thawing of the sperms to be done more efficiently and more productively. So that is one area where we think there's actually very unsaturated market demand for it. And we place a lot of emphasis in terms of investments in this particular sector vertical.


Griffin Jones  47:54

Talked about half of being in fertility being male factor, I've never seen half have seen a third. Just essentially mostly what I see is a third male factor, third, female, and then either a third combined or unexplained, are you taking AI? Are you seeing other research that points to half? Or are you taking some of that? combined? Yeah. And so I do know that there is a problem with referring providers very often not referring the male partner to either an end geologist or a urologist to, to do a semen analysis that before they get to the REI, there definitely is a problem with OBGYN doing IUI or doing just doing maybe timed intercourse or any kind of protocol that isn't IVF without ever testing, the male partner. I know that happens, I don't know how often it happens, happens often enough. As far as I understand, semen analysis is standard operating procedure before IVF at REI practice, Am I incorrect?


Lorin Gu  49:09

No, it is a standard practice.


Griffin Jones  49:11

So but you So then where? Then where's the opportunity that like so if it is happening, then is it this opportunity big enough of an opportunity. 


Lorin Gu  49:28

this opportunity refers more specifically for the sperm freezing and then later on being used for the IVF process? So after you thought the frozen sperm how to quickly identify the most vital ones without necessarily hurting or impacting the sperms. So that part is where this big opportunity is. So that part is directly related to the rise of the overall IVF cycles as well.


Griffin Jones  49:56

Talk to us about the egg side where Do you see the opportunity for evaluation technologies there.


Lorin Gu  50:03

So it's kind of similar. When it comes to the air quality testing, you start to have a combination of software as well as diagnosis test. What's been really interesting, as we see in one of our portfolio companies is that for some unexplainable reason, they figure that if the egg is just gently poked, actually has more vitality compared to the X when they were evaluated and not poked. So in a way, people are still trying to figure out what will be the best way of evaluating the quality. But there are some interesting discoveries along the way. And it is a more saturated market compared to a sperm analysis. But we do think that there are still interesting innovations that are happening, they might be marginally improvement, it might not make, you know, milestone improvement. But it's always interesting to just observe


Griffin Jones  51:02

risk of reaching the border of clinical discussion where I have no business participating, it's very interesting that you're saying that, it could be the case that eggs that are biopsied have more vitality than those that don't?


Lorin Gu  51:23

Well, it depends on how the biopsy was done. So in this particular company's case, they've developed a very, very gentle needle, for just a gentle poke, to test out the tension of the surface. And they've found out through their trial experience that it's got more vitality. So it's an interesting discovery, the company is still working on, you know, getting to the conclusion. But you know, we were pleasantly surprised and amazed by this thing, and we continue to observe,


Griffin Jones  51:58

that would be interesting. I've heard of artificial intelligence applications that look to grade in egg based on imagery so that they don't have to biopsy the, the egg. And so if this finding is correct, it could be the case that that may be that isn't the most desirable outcome.


Lorin Gu  52:25

Yeah. So you know, people have always pursued for us non invasive as possible. But there's still a lot of things that people don't exactly know about the process. So, you know, I think it's always interesting to be plugged into the scientific community and just hear what they're saying and see, you know, what will be the eventual best practice outcome?


Griffin Jones  52:47

What companies have you invested in thus far?


Lorin Gu  52:52

So we've invested mostly in service providers, aka clinic roll up chains. So you know, in China back in 2017, it was changing fertility, and the US KindBody in Southeast Asia, generation prime, and in Portugal, Spain, seed, and then the invested in some technology companies that are basically trying to push for new, non invasive methods for either sperm analysis, egg quality analysis, a company for imaging analysis, window of ideal implementations, etc, etc. Most of those technology companies actually come from either Europe or Israel. So the way that we're thinking about our entire investment ecosystem is really being able to have the service providers to be the first line of assessment. Are those technologies really needed by the patients by the market? Can this really help? And then we go back to evaluate, do the companies have the right to the technology companies have the right approach to address the market needs rather than the other way around?


Griffin Jones  54:06

This could be an interesting distinction between private equity and venture capital that I don't know that I've touched on the show before so typically, with private equity, there isn't more than one private equity firm behind a networker company. That's typically the case until they flip is that correct? Normally, they're buying a controlling stake and so they might own 60% 80% Whatever, but typically, it's one private equity firm behind fertility network. And that typically is not the case in venture capital. Am I right? Because you do you do multiple rounds, you you sell your you do a meet, you have an angel round, perhaps you do a seed round, then a series a series B, etc. And so there are often multiple venture capital firms behind one company so you're one of The venture capital firms that owns equity in KindBody, is that a correct interpretation? Yes.


Lorin Gu  55:06

So there are certain clinics chains that we are the majority owners of, and there are certain investments that were the minority owners have. And this is where the flexible investment structure for us comes in. We believe that by first deploying minority investment in certain businesses allows us to really study and learn to market and see what are the things that worked and what are things that didn't work. And then we will have more operational confidence and insight in terms of how to buy up majority ownerships of different clinic chains in other emerging markets.


Griffin Jones  55:41

How do you turn determine what's too big or too small for? You know, it's like, okay, maybe we want to be, we value the company at this. But if we can't get X percentage of it is now us worth it being a part of or they already have too many VC partners, they've already sold too much of the company that we're not going to be able to get what we need out. How do you? How do you make that calculation?


Lorin Gu  56:08

So I mean, I didn't have a day for an investment firm, it is a return expectation, right? So for the venture type, we tend to be more passive, because there are multiple investors involved before the private equity ones, where you have to spend a lot more time in terms of rolling them up, operate, streamlining the operations, making sure that cost structure makes sense, etc, etc, that we have a very dedicated analysis team that allows us to figure out what is the right size of each individual row of investments? What is the right multiple for those? Do we add a creatively to the overall chain that we're building out and investing into. So that is a much more granular process of the investment than, you know, taking a venture capital investments into, you know, a typical, a more typical startup company experience. So as I said before, I think you know, the eventual outcome for those businesses are all consumerize, technology, standardize, chain, operating businesses, but the way to build towards that can be very different.


Griffin Jones  57:24

I want to let you conclude with our audience on the thoughts that you want to conclude on first, I want to touch on this as we start to see more venture capital coming into the field, there's a word that venture capitalists tend to use all the time and private equity really almost never uses which is democratize that's a word that that VCs use all the time. And I think like, Okay, if you're looking at it as the through the most positive lens, that's what it would be democratizing care, democratizing access, if you're looking at it. On the other end of the spectrum, perhaps on the most cynical side, I think up Did you ever watch The Simpsons? Did you ever get into the Simpsons, you know, Monty Burns is for the two people that never watched The Simpsons, Mr. Burns is the evil billionaire that owns the nuclear power plant in town. And that in one of the earlier seasons, he gets into recycling and it looks like he's doing such a good job and really, it's just using this recycling operation to create a really unethical well fishery or something and, and Lisa Simpson, our protagonist confronts him and says, You're evil. And when you're trying not to be evil, you're even more evil. And so I look at that as like okay, that's the opposite end of the spectrum is like it democratized really just a buzzword for squashed the crap out of mom and pop shops, in every vertical we can and be a monopoly. I'd see it more though I, I tend not to look at things either hyper positively or hyper cynically, I do look at it, as I see a ton of companies that have a social pressure to do social good that I don't actually think is a net social positive. In other words, that the, the role of a company is to make profit period, if it does not make profit, it is not a company. Therefore, if you are asking a company, to if you're asking a company, to be the leader in social change in cultural values, then you are asking them to tie that in a way that makes money and that inevitably becomes a perversion of the values. I see that and I see that being different from what business ethics is, which is having a baseline of Have of ethics that okay, we our job is to make a profit, we have to do it within the standards. That's what business ethics is. That's different from being the Oh, seen as the purveyor of global positive social good, and how do you see it?


Lorin Gu  1:00:24

So I wouldn't use the word democratizing, but I do think that if you believe that this demand for IVF is really increasing significantly, then as I mentioned before, this should be made more accessible to different socio economic classes, which means that more affordable options should happen. But being more affordable, whether that is through, you know, International Medical Tourism options, or through, you know, technology enhancement, does not mean that it should be free, or it should be, you know, net non profitable for businesses, right. What is really concerning, especially over the last cycle of bull market is a lot of venture capital firms, or subsidizing a lot of businesses basically trying to do good for the people. And those businesses tend not to be sustainable. And those businesses in the long run tend to run into a lot of ethical issues as they were just scrambling to survive. So we think that a healthy margin for a business is very important. And at the end of the day, when you have that kind of healthy margin, whether that's venture capital or private equity, the business should run on a similar scale off the pursuit of profitability, cost control, quality standard, and that, to us is not so different have not so much of a distinction between the two asset classes of investments.


Griffin Jones  1:01:57

We've talked about globalization and regionalization. We've talked about venture capital and private equity and how they are different structures and also how they can be used to align in centers. We talked about financing, we talked about business ethics. The final thoughts are yours, Lorin Gu, how would you like to conclude?


Lorin Gu  1:02:20

Well, thanks for if and law was very comprehensive discussion around almost all aspects of the fertility investments. For me,


Griffin Jones  1:02:31

why it's not a 10 minute podcast, so I can't, I can't I can't do 10 minute episodes.


Lorin Gu  1:02:37

For me, I think I would really encourage people to look more internationally as we believe that the future of IVF or fertility practices will not be so Doctor centric will be much more technology standardize, and we believe that having the right protocol with the right technology adoption should really allow for more access to different socio economic classes of people demanding IVF not just for the Americans, but also for the global people.


Griffin Jones  1:03:07

Lorin Gu founding partner of Recharge Capital, thank you very much for coming on inside reproductive health.


Lorin Gu  1:03:13

Thank you, Griffin.


1:03:16

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




164 Meet The REI Who Does More Retrievals Than Anyone In The US

1,300 egg retrievals in 2022. That’s not one practice. That’s Dr. Roohi Jeelani.

Dr. Jeelani joins the discussion this week to share how her unending work ethic and incredible social media presence has changed her practice, improved patient relations, and why she believes this paradigm shift is here to stay. 

How did this REI end up doing more retrievals than any other doctor in the country? Tune in to this week’s episode to find out.

Listen to hear:

  • How changes surrounding patient contact evolved during the COVID lockdown era, and why they may be here to stay.

  • How social media has opened the door to a new world of direct contact from patient to provider, and what that paradigm shift means for both patients and their providers. 

  • Griffin question whether this change is a good AND a bad thing at the same time, whether or not it has the potential to thwart the chain of command throughout the treatment process.

  • How Dr. Jeelani uses her social media presence to increase productivity through patient education, and how she believes that empowering patients with information is the key to success. 


Dr. Jeelani’s info:

Instagram: @roohijeelanimd

LinkedIn: https://www.linkedin.com/in/roohijeelanimd/

Website: https://kindbody.com/team/dr-roohi-jeelani/


Transcript




Dr. Roohi Jeelani  00:04

I recently did a series of reels where it spoke about like age and how many embryos it takes for one baby based off of your age group. So not necessarily 38 to 37, but 30 to 35. What should you expect? How many IVF cycles leads to one baby 35 to 40? What should you expect? And I think knowing that it's not, it's not saying okay, we're we're gonna do our workup and then we're going to do IUI is for three months, and then we're gonna get you pregnant with one Oh, crap, you're gonna come back for number two. Now, you're 40? What am I gonna do? It's more of what is your family look like? And how do I complete your family, not just treat your infertility.  


Griffin Jones  00:43

My guest today did her fellowship at Wayne State. And that's as far back into her bio as I'm gonna go because it just don't care about that in the same way that nobody cares that Tom Brady went in the sixth round, or that this professional athlete was a D3 prospect. And now they're a Hall of Famer. I'm blown away by what Dr. Jeelani has done. And you could tell that I'm not winning this Walter Cronkite Award yet, as an interviewer. I ended up having to bring her back on because the whole time I'm poking around the show and figuring out okay, why are you scaling this if you're not scaling? The operational system is much like why do you have this super powerhouse? audience to be able to reach that many people as Oh, it's because you have this system for self pay patients. And it's almost like I did the same thing in this episode, where I'm talking to Dr. Jeelani, and I'm, you know, you're like, like Jeff Bezos say, You are so intrinsically motivated to do this. You're using it to generate more new patients and you the idea of getting you busy vanished really quickly, because you got so busy, but I never like actually hit the nail on the head of asking how busy Dr. Jeelani is going to do more IVF retrievals than anyone else in the country. By the time this episode airs, as far as I know, unless somebody else can prove otherwise, I don't think most people are in the neighborhood of 1300 IVF retrievals. And it's because she really fits into this paradigm of changing Patient Relations in a way that's about as native as you can get. And I say in the episode, I don't think that most of you can replicate it. But there are some things that you can do. And we break that out. We talk about the changing paradigm shift, we talk about different business opportunities for physicians, we talk about beyond patient acquisition, using the change in communication to set expectations with patients so that they're more loyal, more adherent to your expertise as to last to make persuasive arguments in cases in education for patients so that they follow the treatment process more easily. And don't have that undermine just because the paradigm is changing, taking advantage of it. So enjoy this episode with Dr. Roohi Jeelani, Dr. Jeelani Roohi. Welcome back to Inside reproductive health. 


Thank you. Thank you for having me. 


Again, I want to talk to you today about Patient Relations. Last time, we talked about access to care more specifically, more specifically advocacy from Doc's. And we touched on Patient Relations a bit, but I think you are qualified to speak on the changing landscape of Patient Relations as a phenomena as much or better as anybody, because I've seen how crazy you have grown in a short amount of time, when did you leave fellowship? Was it 16, 17? Okay, so we're five and a half years out now. And I remember that, you know, the first sign with your group, and you know, for the first slide, it's like, Okay, how are we going to get Dr. Jeelani busy. And then after a couple months, it's like, we on to the next thing, don't have to worry about that anymore. And so I want to talk to you about what you see as the biggest changes, but let's just start for from how long you've been in the field, we could go back further and talk about generational changes, and maybe we will end up zooming back a little bit more. But in the five and a half years, since you have been a practicing Rei outside of fellowship, what changes are you seeing, I think, access to your patients and then for patients access to your physician has really changed specially. Now don't even take it back from 2017 Take it back from pre cold


Dr. Roohi Jeelani  05:00

The to COVID to now. And I think that's that transition has has is something that stayed. And I think it excuse my analogy, but it's like almost like an Amazon, right? Like what happened when COVID hit, everything shut down, everything became behind the screen and everything like that six feet distance, but everything's at your fingertips. I almost feel like patient care has followed that trend. And it's very much like that, like having the ability to talk to your provider, having the ability to do that rapid turnaround is something that transpired during COVID, but has stood and it's an expectation as a patient of patients. How much of it do you think was COVID? versus how much of it was happening before that? And has some of it gone back to pre COVID? Are you think this is fully permanent? In my clinical practice, I think this is here to stay. I think a great example of it is social media, right? Like even pre COVID. A lot of people were skeptical about why should they be on there, this is ridiculous, I don't want to go on social media. But then you see COVID Everything is technology, that's the interface, that's where our patients lives. And then we would have patients doing second opinions and stopping at that, because a lot of people follow you. And then it that principle of going to your doctor, no matter where they are, because you resonate, or you, you know, have a relationship built with that doctor was almost foreign, it was just, I'm gonna touch base with you to talk to you to see what your thoughts are, and I'm gonna go back to my doctor. But now with post COVID, all those boundaries have kind of gone down, it's almost become a, you're gonna take care of me from there. And then at come retrieval come transfer Come what may have you I'm gonna come see you. And that's, I think it's become like, Oh, this is feasible, this is easy. And that mindset has really shifted, and they don't think it's gonna go back. So you talk about access to patient and access to provide our I want to ask you more about the access to provider that patients now have, but what access to patients? Do you feel like, providers now have more of, I think expectation that, like I call my patients all the time I communicate via text with them. And I think that they respond to me, right? It's not like, Oh, this is so foreign, it's so different. And yes, of course, they get a little bit of that. But it's almost like, Oh, this is expected, I'm going to touch base with you because I want to know, my next steps, even before I get my period, I want to set that expectation. And know instead of do treatment, wait for an outcome, wait for a consult, and then start again. So that delay in treatment and patient care, that gap is closing, but also expectations that it's okay that your doctor will reach out to you and it doesn't necessarily have to be this scheduled official follow up X number of weeks or months out. I was thinking this as I was emailing you because you know, figuring out this damn technology of texting each other it's like I'm in I'm in we were words, for some reason, we're not in the same link. And so when I go to email you, you know, I'm just doing it from this platform. So I'm not looking at my contacts. But I think in many practices for a long time, the doctor didn't even give out their email in many cases, or they'll have like a different naming structure for their email, I'm in sales, I figure out people's emails for a living. And you know, they'll have the, they'll have something like different but yours it's like, you know, because you're in this structure. It's like, you know, if you know, the first name, last name and email structures, uh, you know who you're getting. That's the expectation now, like, it isn't like Dr. J 147. And so that only a few people can have that doctor's email, or the doctor doesn't even have an email to the practice URL when the rest of the staff does. That type of structures is changing. Yeah, I really, Dan, I think it's present better, right? Like, ultimately, we want good outcomes, my patient retention from a doctor from a practice standpoint. And I think what patients really want is to know that they're cared for and someone's watching them that as a patient, that delaying treatment, or that wait for your next steps appointment was truly the point where I would leave the practice because I didn't want to wait even though like common senses. Well, by the time you take your record, you set up another console, you do that, right, you're delaying your treatment even further than you would have by just waiting. But at least as a patient. I knew I'm taking proactive measures to get to my end goal as opposed to waiting for someone on their time, which yes, it doesn't make sense as a as a practice provider as a doctor saying, what's going to take you longer to see someone else as opposed to waiting for me but also, I think it's unfair, it's unfair to sit around and wait, I didn't want to wait


Griffin Jones  10:05

is a lot of patient volume to be able to respond to that many people, and nobody wants to wait, everybody wants answers now. And we're used to to your points, having the conveniences that technology has brought us the last decade, especially expedited by COVID, Instacart. And my groceries are here in two hours, Airbnb, and I have all of the world's potential vacation, lodging, booked in a second with the easiest user experience that there is, et cetera, et cetera, et cetera. And to have that in healthcare, where we have a bottleneck of limited clinicians, workflow that is often cumbersome and demanding. How realistic is it to actually be able to meet these experts, you seem to be able to do it. But how


Dr. Roohi Jeelani  11:02

I really believe in counseling and setting expectations on the front end, right? A lot of these calls lollies upset emails, is because you haven't put a plan in place for the next step. All patients want is telling me what to do. And I will do it right. You want a baby, I wanted a baby yesterday. And I don't want to wait around for you to tell me after I failed because now I'm angry. Now I'm thinking of the what ifs. So what I really believe is educating your patient, right? That's the whole premise behind my social media. And then setting expectations from the front end, knowing Hey, this is your age, what are your long term goals? What are your short term goals? What is having a family look like for you. And then my follow up appointment after we do our testing is okay, these are your long term goals. These were your short term goals. This is what you want for your family size. These are what your numbers look like. This means doing X, Y and Z, right? Like taking our textbook, our papers, everything that we study day in and day out, and laying it out for them in a treatment plan. So that way, when they have the No boss Development at 40, it's not a 42. It's not a shocker, or when they don't get to euploid. And they're 39. It's not a shocker. They knew it was coming. And they prepared for it because they're already in another treatment cycle. That really helps transform my practice. So them having access to me, no longer becomes an emergency. I don't know what I'm doing. But it becomes like, hey, you know, like, Thank you for warning me. We're glad we're in another cycle. Because it's all these expectations are set. So that access, then I'm not overburdened? Because no one's really texted me because I've already said, this is what we're doing from the get go. Right? And of course, there's outliers. There's people who don't want to follow that plan. And then hopefully, things work out. And if not, they've already touched base with me that this is what I recommend. And this is why I recommend it.


Griffin Jones  12:58

Is that really the case, though? You use the analogy of textbook and papers, most people suck at instructions. I think of just going to the grocery store, my wife tells me as I'm out the door what to get, and I get them calling. What did you want me to pick up? And so Aren't you getting some of that from Eve in perhaps even more of it? If you when you're giving people a plan? And they're like, Yes, I got it. I'm here, they get home? What was I supposed to do? Does it really alleviate communication? How does it not just make more of it?


Dr. Roohi Jeelani  13:30

I'm in the logistics part, right? I don't do that the nursing team does. They? Yeah, they may forget what they they be assigned. They may forget what medications I said they may forget that but they will never forget how many embryos it takes for a baby. They will never forget how many babies they wanted. Because I'm not teaching them anything new. I'm just giving them a path forward. So if you and your wife said, Look, we want to kids were X number of years old, she's busy, I'm busy. What does that landscape look like? For me? It would be okay. She's 30 something she's this it may require each cycle yields us X number of embryos, somebody in their mid 30s needs three to four cycles for one life birth, this may mean four to five cycles for you, you're going to bank and you're going to transfer my take home message. It's not the first time they've heard it. It's me kind of stating it again. And then the good thing is my Instagram states it over and over and over again. So a lot of this doesn't come as a shock to them. It comes as that sucks. He really didn't want to but this is what we're gonna do to get to our family.


Griffin Jones  14:35

I wanted to ask you about that chain of command when you said in the nurses are the ones that are providing that logistical guidance at that point. But when they have that level of access to you, they being the patience and they're used to that and they have some familiarity with you prior to social media and then you're a responsive communicator. Do they tend to break Because the chain of command from in the beginning for us, I would have clients texting me, I mean email and texting me, what? What's this thing on our website? Or when are we doing this video? She'll be like, I don't know, you have a project manager, email her. And eventually once they build the relationship with the project manager, yeah, they, they know that it's way quicker to go to them. And they're going to get a much more complete answer. But I would still get those texts. And every once in a while I still do. And I'm like, I don't? I don't know. And so I like, but when you have that level of rapport with the patient, are they more tempted to break the chain of command? Or go outside of scope to you because they view you as being at the top?


Dr. Roohi Jeelani  15:48

Sometimes? Not all? Not a lot, I think. I think people really respect and appreciate that they have that direct line of communication to me. And most of them try not to abuse it. Of course, there's outliers and yes, randomly they'll have can you help me make an appointment? And if it's like, a Saturday, and if it's something I instructed them to do, because I want to see them immediately? Yes. Most of the times, they know I don't really know how to do that. And I truly don't say like, you know, I don't really know, I can try. But no, I don't think anyone really abuses I think I get really like the you know, have a negative pregnancy, I'm sad or get new embryos, I'm sad, but I expected it, it's more of those points that I really want to be informed of. And when you're doing high volume, it's harder to hone in on those. So I think they really know when to reach out to me and when I will reach out to them. You talk


Griffin Jones  16:41

about sometimes when they're going through something really hard, they reach out to you. And you mentioned earlier, that there aren't as many boundaries as there used to be at least there's not the technological boundaries that there used to be. And so what does that do for boundaries for providers right now? And is that healthy?


Dr. Roohi Jeelani  17:04

You're asking the wrong person?


Griffin Jones  17:07

What does what does that mean? You don't have you don't have any, any? You answer any text anytime?


Dr. Roohi Jeelani  17:12

I do, I actually do. But I think that's what social media does, right? Like, I have patients in different countries, their time zones are different, their days are different. I'm up all the time, I I also have a baby that is four months old. So I am up and I do check my phone a lot. That doesn't necessarily mean that everyone should be like me, this is just how I function, right? Everyone can make their boundaries, what's right or wrong for them. I have partners that say, this is where you contact me, this is my email, but I communicate from 95. The biggest thing is setting expectations. Because when you set expectations, then you prevent disappointments. I think that's the main thing that I always try to tell people that how, how can I keep going like this? How do you keep this patient retention and patient satisfaction? It's because you set that expectation from the beginning.


Griffin Jones  18:08

I think there's also something to be said for somebody's natural ability to be able to be that responsive, that frequently that I think many people simply cannot do I think of a lot of the areas that I know. And they couldn't do that even if they wanted to just to be able to, like respond to that many people that frequency. I always say a joke that if there if somebody had a gun to my head and said you have to text someone right now and get a response back from them. In 30 seconds or less, I'm gonna blow your brains out that person for me is Serena Chen. If I had to text one person, it's like boom, and but she's not just doing that for me. She's doing that with her patients. She's doing that with her staff. She's doing that. Like she's like that that's a capacity that she seems to have that you seem to have. And do you do you think like, do you attribute most of it to your personality? Did you develop some of it over time? No, I've


Dr. Roohi Jeelani  19:08

always been like this. I am very much like Serena that's where we are like this. We get along really well. Because we share similar interests. We like to be our hands on multiple parts and doing multiple things all at once. I joke and I say it's like playing chess for me, right like making very strategic fast moves and not stopping so and that includes texting my staff talking to my partners talking to my patients charting doing stuff like this my social media, it's a game of chess, meet moving pieces when they need to be moved at the right time.


Griffin Jones  19:43

You don't get burnt out. You if


Dr. Roohi Jeelani  19:45

you love what you're doing. I mean, I feel like it's such an honor to be doing this like the types of messages right like the gratitude is like a drug it keeps you going. I mean, I literally and I will never forget this. And I always tell this patient that she had gone to multiple people had really bad outcomes, and finally came to me was monitoring somewhere else was told that she's going to have a really crappy outcome not to trust what I'm doing, has now three beautiful babies. And she sent me a card and said, Every time I talk to my kids, and I tell them about superheroes, it's not you know, I'm not talking about anyone else. But you You are our superhero, but like to get that honor is, I mean, I don't know how anyone can get sick of it. At least I can't.


Griffin Jones  20:35

What you're describing is the highest honor that you could possibly hear from someone and it's validation of your values. It's validation of the connection that you've had with people. It's validation of the expertise that you've built. As a physician, I would still get burnt out. I'm somebody that loves validation. I love I love Yeah, I just had a great consulting call today. And it's like, man, it feels so good when I can just add that value and, and the clients so grateful, and you feel so even I couldn't do it all that it amazes me that you can and on an episode about work life balance that I did probably two years ago, it may have been before COVID that I did with Dr. Stephanie Gustin, we talked about work life balance boundaries, and I said, I think there's a class of people like Jeff Bezos, Elon Musk, Sara Blakely, those type of people that are just there all the time. They're intrinsically motivated to be doing what they're doing for the rest of us. I think it's like there's there's almost no time in our lives where we can just be present in the moment have the phone out of the way only think about the people in front of us and what we're doing at that time being totally unplugged. And so if if you don't get burnt out from it, because you are of that Blakely Bezos type of DNA, do you still does just being unplugged then make you feel like Oh, I'm not not doing what I'm meant to be doing?


Dr. Roohi Jeelani  22:13

I go crazy. I literally go crazy. I just had a baby in July. And Angie was like, you cannot come back to work in a week as like, if I don't come back to work in a week, I will go crazy at home. My husband and I will be divorced. Please let me come back. I love doing this. It's truly I can't describe it. Like I love growth. I love change. I love being able to make a difference. And yes, I don't know if you follow Grant Cardone. But he says something like how whitespace on your calendar is the devil. And I truly do not want any whitespace on my calendar, I want to breathe, eat, fertility and change. And I love it.


Griffin Jones  22:56

Because he's also like that he lives breathes, eats business development sales. And what I try not to be prescriptive, because I've come to realize that some people really are fulfilled by that. I don't think that that's the majority of people. So when I see Grant Cardone, Gary Vaynerchuk, it's hustle, hustle is I get it. Like I think for the vast majority of us, there has to be more balanced, more preservation from unplug. But I've, I've, I've come to appreciate that there are some people that that's not the way that they're going to be fulfilled that they are machines that are go go go and you appear to be one of them. Yeah, I do. So I am very I want the people listening to this episode to email, if they if they're on the newsletter, just reply to the newsletter, or just text me or email, whatever I'm really interested to know how people feel like they break out, I'm dubious that most people can do what you do, I think it's a natural, if not a natural talent, then just a natural personality disposition. I'm dubious that most of us can do that most of the time, but our guys are pretty type A in general, they're not a they're not a normal cross section of the population. And so I'm very curious as to how many of your colleagues are in that type of mode where it really is more fulfilling to just be doing this all the time. And versus those that are like, eff that I want to I want to totally go off the grid sometimes I'm curious about who that might be. But so Alright, so you you're using this as a strength because your patients adore you. You have I'm just looking at Instagram right now. 324,000 followers, so I want to talk about that a bit because you referenced that as as part of how you set xspec Patients early and often in in this changing landscape of Patient Relations, but just walk us through the timeline.


Dr. Roohi Jeelani  25:07

Yeah, it started actually, thanks to Hannah Johnson. I have a huge family in Chicago, I actually converted my fellowship in 2016 2015. To ofour. Her it's a woman's yeah falls 2015. It's a woman's reproductive health research grant of K 12. That focused on Uncle fertility chemotherapy impacts on all of this, and I was on track to get an MD PhD. And then like three years, then it hit me that this is not the path I want to live, I want to do research to make an impact. I don't want to do research just for the sake of doing research. I want to be able to then implement that in patient care. And I didn't have access to a robust patient volume. So then I met very Angie, very coincidentally, Shin started bioscan. And we went out for coffee. And I decided this with it. So I was going to finish off a year of my or her and then move to Chicago, moved to Chicago, where I have a huge family, and then realized, while I still don't have a robust patient volume, I'm very new here at a very new practice. How do we build it? And then in 2017, Instagram was the new and it thing. And when I was like, Well, you have a big following you have big family, just change it into a public platform and talk about fertility. Talk about your journey. I sucked at it. Let me tell you, I was horrendous because a typical doctor goes to PubMed and then takes that information and puts it on Instagram. And patients don't relate at all to what you're saying. And they don't know how to translate that into lay language, or what does that mean clinically, or how that's relevant to them. So eventually, over time, I found my kind of like, what made me unique is an area and it built over time. And I think it really grew during COVID. And then I kind of highlighted my fertility journey over the past two years on it as well. And it kept growing and amplifying.


Griffin Jones  27:11

So it started off as a new patient generator. A lot of people say that social media doesn't bring in new patients. And I think for a lot of people it doesn't, is a What does hockey puck do for somebody that isn't Wayne Gretzky, while certainly not as much as it did for Wayne Gretzky, and some people get more return on investment from social media than others. But when you have a following is massive and as loyal as yours, I think you would have to, you would have to try not to get patients from it at that point, was it? Was it? Did it start pretty early on the patients that you started getting? Or did you find like, Well, only some of them are in Chicago, there's a lot of people in Boston in Florida, and and it wasn't that effective in the beginning.


Dr. Roohi Jeelani  28:04

They come from everywhere. No, because when I first started, it was the same year as Natalie started, you started a couple months before me. So it's just Natalie and I both started in 2017. And I think she would say the same that she got patients from all over, I think, I don't know how she practices but my patients would do their monitoring there and fly in to do treatment. I remember my very first out of state patient said that she was looking at shoes, and my picture came up. I love shoes. And she said that it was a sign from God that I love shoes, and I popped up that she had to come see me. So she flew across state lines to do her IVF care with me. That was my very first out of state page because I was so curious as to why she picked me and across the country.


Griffin Jones  28:52

It's funny that you say that because as you mentioned that I know someone from my life that went to see you as a patient from a different state because of following you on social media. And this is a paradigm shift, isn't it not just on the Patient Relations side, but on who has the biggest share of voice to patients. And it's a paradigm shift in a lot of ways. When you say Natalie, you're referring to Dr. Natalie Crawford in Austin, Texas. When I first came into the field, I didn't know anything about fertility. I didn't I barely knew what IVF was, I thought Rei was a camping store. I didn't know any RBIs. And my first clients were the ones that said, this person is big. He's big. He's big. He's big. And you'll notice that I'm saying he they were all they were all men at that time. And some of it has to do with we're just we have a transition in generations. There's way more female physicians than there was 20 years ago. And so some of it is that but some of it is also now the people that have the biggest platforms are mostly younger female El RAS. You have a couple 100,000 followers. Dr. Crawford, I don't I don't even know how many. She's up to now. And then there's a few others like Dr. Shaheen and some others that have really big followers. And then I'm thinking like, who's the? Who's the male Rei with the most followers? Do you even know?


Dr. Roohi Jeelani  30:24

They don't, they don't actually.


Griffin Jones  30:26

Like maybe it's Eduardo. Maybe it's my good friend, Dr. Harrison. He doesn't even have he doesn't even have 5000. And he might be in the lead, you know? Like Dr. Eric foreman, he has, he has a really loyal following really great physician that offers a lot of value on social media. He's like, you know, they're all fractions of yours. The the physicians that have the largest followings on social media, are the female physician, the younger female physicians are orders of magnitude more than the fellas. So is it even worth it? For people that don't feel like? Well, I'm not I'm not a younger woman. I didn't grow up with this. I don't maybe I don't fit the that. Maybe it's because I don't match the demographic. And that's why they're successful on social media. Is it? Is it worth it for your peers? To do that, if they're a 60 year old physician, or if they're, especially if they're a 60 year old? Male physician?


Dr. Roohi Jeelani  31:30

I think so. So if you look, I think you, I think Eric foreman, we don't know how many he has, but he has super loyal following, right? It's all about quality, not necessarily quantity. I think the ones that you named Laura Natalie reduction. And Dr. Crawford, me, we were one of the few of the first to join social media, and it was easier to grow. There was no other competing network or channel, it was just Instagram, everyone was Instagram. That's where you grew. But now there's tick tock, and some people are really big on tick tock, and some people are really big on Instagram. I think there's more variations of platforms, there's variations of how we present data. So I don't think there's no value, your patients will follow you. So even if it doesn't bring in new people in the door, that's an opportunity for you did touch base with your patient to tell them, teach them, right? Because if you're not out there teaching them someone else's, and it does may not necessarily be an RA. So why not get that information out there? And it doesn't matter how old you are, I just think that it was easier for younger female physicians, because initially, it started off as pictures, right? Who likes pictures? For younger females, males always shy away from taking pictures or posting a picture of themselves. Now it's a whole different, it's transformed into videos and all sorts of stuff. It's not just a still picture with a whole bunch of captions


Griffin Jones  33:01

will probably be weird if the things that normally work on Instagram for males were used by male Rei is like if we had a male Rei with Jack mussels and a Lamborghini. And like, probably probably wouldn't be the one they would want to tap into anyway. But you mentioned what you were talking about is arbitrage like the land grab of social media, because you got in at a time. And I think it's been it's, it really is amazing that if we asked people who are the household names of fertility specialists, in most cases, we're still a small field. I don't know, we could say that there's household names, but in the but in the infertility community, there absolutely is. And it when we ask people that, I don't think we're we're hearing necessarily the same people that are giving poster talks or maybe leading this debate and, and, and sometimes they are, but we are having a different class of RBIs that people see as the authority. Is that a good thing or a bad thing?


Dr. Roohi Jeelani  34:17

I think it's a good thing. It's giving us a platform, not to say like I mean, I'm equally vested in research and equally invested in giving talks, but I think they're different audiences right, I don't think it goes hand in hand and I don't think they're mutually I think they can coexist. I think you can be this amazing Instagram influencer doctor, and you can get up there and give a serious talk on or debate on like to resect a fibroid not to receptor fibroid PGT not to PGT I think you can mutually have those interests. But while we were talking, Bob Celts actually has a really big social media Yeah, following, not for fertility for other stuff, but he does have a big social. I was trying to think of like an older male. But yeah, I've killed


Griffin Jones  35:08

there you go I so I'll shout out to rob because he does and, and and that that's a good point. But you deserve credit and you and the other doctors that we talked about and others that I'm forgetting and shouldn't be forgetting deserve credit for taking advantage of that arbitrage and deciding, you know, this isn't something that just has to be in an NPRM. ASRM talk. It's not just a plenary topic. It's not just a poster, there's a way for me to reach the masses. Now, with this. I wrote, there's an article that I wrote in 2015. People can look it up that was Instagram, you guys have to get on Instagram. This is this is this is life changing. The infertility community is there, there's so few doctors or there's a huge land grab possible for you. And everybody just kept asking me like, what's the next thing like, what's the next thing come and say, this is the thing right now you're not doing it, go do it. And the people that did it like yourself and the other Doc's we talked about, you all didn't do it, because of May you were doing it because you were doing it. I don't think I don't think I moved anybody on the other side that much like maybe I got him to start an account. But I think there was a lot of people that took the past on that massive chance to get to the eyeballs while the eyeballs are flooding in before the advertisers saturate the place before the fake influencers saturate the place. I think Dr. Shaheen did that with Tiktok better than anybody. And now we have now we have a bit of a paradigm shift. But I've done enough episodes on on that topic. I don't want to go too far down the social media rabbit hole other than how you've used it to really move Patient Relations forward. And you said something earlier in our discussion, where you talked about how patients have seen a certain expectation from you on social media. So can you talk about how you're using it to set expectations, either about the process or what they can expect on your approach? Yeah,


Dr. Roohi Jeelani  37:19

I usually talk a lot about me in Chicago, most of my patients are older. So what it means to be an older parent that not all embryos make a baby. And I think a lot of times what I'm trying to really do is shift the mindset, which was episode was all about that IVF is no longer the last resort. Right? If you're older, I use it as a first resort, like you're meeting your partner at 38. You're getting married at 40. And you want to have three kids like how am I going to make this happen for you? Right? How do I counsel you so you understand that? So I recently did a series of reels where it spoke about like age and how many embryos it takes for one baby based off of your age group. So not necessarily 38 to 37, but 30 to 35. What should you expect? How many IVF cycles leads to one baby 35 to 40, what should you expect? And I think knowing that, it's not it's not saying okay, we're we're going to do our workup and then we're gonna do IUs for three months, and then we're gonna get you pregnant with one. Oh, crap, you're gonna come back for number two. Now, you're 40? What am I gonna do? It's more of what is your family look like? And how do I complete your family, not just treat your infertility?


Griffin Jones  38:32

Does it ever backfire at all? So you're establishing a ton of credibility, you're establishing a ton of authority as an expert. But does it ever undermine authority in the sense of, Well, now, I feel so familiar with this doctor that I, you know, I just treat them like a charm. Like, do people come in and in your office and be a Roohi instead of instead of Dr. Jeelani? Like, does it ever backfire?


Dr. Roohi Jeelani  39:05

Very rarely, I mean, there's of course there's, you know, Stan, there's outliers from the standard, but it doesn't really. I guess I earned my doctor title. I'm Yes. I'm Dr. Jeelani, but people don't define me. You can call me whatever you want. Like because you call me rude. He doesn't change the fact that I'm your doctor. Right? I don't. That would piss


Griffin Jones  39:24

me off. Yeah,


Dr. Roohi Jeelani  39:26

I mean, I define me like, you can. I guess it also I have said no one ever knew, like no one you had to say my name before I got married. My last name was like 15 letters. One. Everyone called me a variation of everything. And I responded to everything. So I don't I don't know. I don't. I guess people not defining is a good and bad thing. Also. It truly just doesn't bother me.


Griffin Jones  39:51

But for the most part, you are establishing your authority, not authority of like, This is who I am, but rather just like I I'm the expert. And you can tell that I'm the expert because I've shared all of this content with you. I've shared my school of thought with you and, and so people are coming in, can you tell the difference between somebody who has, who has really almost no experience with you on social media versus someone who is geeked out on every last post, you've done 100%,


Dr. Roohi Jeelani  40:21

you can 100% You can tell because they will come with notes and information. And with a plan. It's so crazy, they have a plan that we like, when you said this, this is what I want to do. Because you said this, this is what I want to do. I know this will take X, Y and Z. I mean, it's insane. It cuts my consult time what talking business from like an hour long new pet patient thing, take a 30 minute, like, okay, like you know what you're gonna do, I'm glad you listened.


Griffin Jones  40:48

I never really got this across to people when, especially when clinics and Doc's got so busy the last two or two and a half years and that we don't need we don't need more new patients. We got 10 week waitlist is like Yeah, but it's not just about new patient acquisition. It's about getting people in the door for I don't, I don't need new clients. But this podcast format, the other media that we do, just helps me get into business deals more when when I am it's not about necessarily getting more deals. But when people come to me, it's like they want to get my thoughts and process. They don't just want to pick out a marketing guy and it makes helping them easier. It makes the relationship so much better. And is that something that's replicable in other places, then then social media, like you said, you feel like this trend will go on for a long time? Do you see us doing a lot more of this where almost everybody knows so much about their physician before they end up coming to see one?


Dr. Roohi Jeelani  41:57

I would hope so because they think you're trusting like you're, I appreciate that. Like my patients are trusting me with such an intimate part of them right? They're essentially letting me into a really a spot that they don't they're not comfortable with. Most people don't want to see a fertility doctor, shoot, I don't want to see a fertility doctor and I do this for a living. So I think it builds this trust and relationship that's just everlasting. I have patients who have graduated now, that's still follow me that send me pictures of their babies that always say like, I sent my friends to you, I redirected your post to teachers. I mean, what have you everyone, I have parents who follow me on social media of their kids going through their fertility journey and texting me thanking me like, I have a grandkid because of you. And it is just that touch that you can have that impact that you can have. And once again, it's not a social media talk, but it really does. It translates to patient retention, new acquisitions, and a lifelong like impression. I don't think it's going anywhere.


Griffin Jones  43:02

It's not just about it's not just about patient acquisition, I think about this in so many ways where I'm making purchase decisions. Now. People are doing it with my firm. We're we're doing it as we look for financial planners and stuff like that. It's like, I want to know so much about how they think and how they work, before I decide that, that's who I'm going to go with. And then when we do have those initial sales conversations often like the decisions already been made, this is like that, that sales conversation is just or in this case, initial console, there's just kind of like, confirmation of that or, or even the beginning of the process. But yeah, there's so much that used to be set up after the, the the initial information. If the public facing information, there was so much that was set up after that that just happened in the one on one consults that happened in the office, there was a huge information asymmetry. And now that information asymmetry doesn't exist anymore, because the patient can learn a lot about you about other fertility doctors and the process as a whole. And they can and you instead of letting that hurt, you are taking full advantage of it and you have a massive following. And I went on that rant is decide what where do I want to pull this thread next? Do I continue on to talk about Patient Relations? I do. But I also want to talk about how this can be a career opportunity in many other ways for our eyes because when you have 300 something 1000 followers, you're getting put in front of all kinds of people, venture capitalists, tech people, scientists, peers, colleagues, what other opportunities is it open for you?


Dr. Roohi Jeelani  45:00

So many right? Because everyone who's interested in Rei is from every aspect, Farmar. Alarm techniques. Gosh, everything everything industry that you see at ASRM is now interested in you, right, for whatever reason. And it helps build new relationships, it helps you get in front of new technology, you start developing ideas, because you see how can I take this and apply it to fertility, I just think it just opens up the landscape for you to do so much more than just be a doctor. I love being a doctor. But I think I can do a better job of learning these different technologies and having access to the stuff and serve my patients better. But at the end of the day, all of this makes me a better doctor.


Griffin Jones  45:51

So how do you vet those opportunities, then? Because you're getting them because you have a huge following of people who really hang on to what you have to say. And because of that, that's, that's a big responsibility. And so how do you vet the opportunities that come your way?


Dr. Roohi Jeelani  46:11

I try to step away from social media and really think like, Would I utilize this? Do I think it's resourceful for my patients, and then present it? I? This is not like social media is a amazing platform. But that pre pre meme pre my life, I used to model right? And it's very similar to that. So when you're modeling, you start thinking is this campaign is this brand in alignment with my morals, my ideals, because now you're going to be plastered as this brand's face? So social media is very similar to that. When you get vetted to do something for a company, do you think well? Do my morals and ideals aligned with this brand? And if they aligned do they do? Do they help my patients as much as they helped me? And if the answer is yes, then I say yes. If like, doesn't really sit well with me demand answer's no.


Griffin Jones  47:04

Talk to us a little bit about how you figure that out. Because I'm thinking in a parallel industry. And in the financial field. We talked about Grant Cardone one of the people that I follow, though, is Graham Stefan, because I think he's just a trustworthy, empirical kind of guy doesn't really Hawk his financial prescriptions. He presents what he sees his the evidence and talks about what he's doing and, and he's, he's just a guy that has a natural credibility to him. He was one of these folks that got into this trouble with the the crypto Ponzi scheme, that guy and his company's name is escaping me right now. But the BT X or whatever it is, and they had a ton of sponsors, really credible people, because they came in says, Hey, we're changing the world in this positive way. And we have a ton of money and all these other people are on board. Don't you want to be a part of it? And a lot of people got caught with egg on their face, because it's like, oh, maybe I shouldn't have locked up with them so soon. And i i peddled this Ponzi scheme to my people. I don't I don't see anybody doing Ponzi schemes right now where we are but but the principle is there nonetheless. So talk about how you dig into it.


Dr. Roohi Jeelani  48:22

Usually the type of people that approach you when you are on or when you have a larger platform is that that's been around great. As young as our field is it still as big in young as it is, we pretty much know everybody so everyone who approaches me, I already know what they're about what they're doing. I very rarely get stuff outside of fertility. My other love is for fashion. So I do get a lot of fashion stuff. And I don't necessarily the thing that I use with my social media. And if you look at everyone's social media that's on there, they they have a thing that they hold on very near and dear to them, right like for Dr. Crawford, it's about like the pride and joy of being a woman being a mom, that's very important to her. So throughout her fertility, it's intermixed. Her pride and joy. Dr. Shaheen, she's an author, right. She's amazing at being an author. So intermixed with her fertility is her book and recurrent pregnancy loss and what it means to her Dr. Chen, intermixed with fertility, advocacy, she has really really good about access to care advocacy, you know, being paired up with resolve. For me, it's, you know, my history like what makes me me, it's my family, my fertility journey, my fashion, like, I love it. So it's every, whoever approaches me is kind of aligned or parallel with that and a lot of that stuff is not new. It's people that I already know. I don't think I've ever been approached for something outside of my interest or outside of my page. So


Griffin Jones  49:50

I think to be us that we know everybody or that you know, so many people have been in the field for a long time. So I agree with you, we all kind of know each other, I always say that fertility is like one big high school, and, but you also know who you are. So you know who the new kid is when there is a new kid. But there's lots of new kids, I was one short time ago, there's plenty of others. And if you look at a lot of the VC backed companies, a lot of the PE backed companies, look at those board of directors or the, rather than the Board of Directors really like people that are VP level, often in the C suite to, there's a lot of people at those levels that have never worked in fertility before. And many of them are coming with good ideas and things that do need to be brought in and shake this thing up a bit. But some people have no idea what they're doing or complete charlatans are in it for the money, all of those things will and do happen when entrepreneurial change is at hand. So is it just enough to know your stuff? Or do you also have to get to know the people?


Dr. Roohi Jeelani  51:09

I would say know your stuff more? Because people you don't think you truly ever know anybody? Right? Like I've been with my husband for 19 years, they learn new stuff about him all the time. Yeah, now you're going deep, deep, right? You people evolve, they don't really think you have to really know that people, I think you really have to know, the idea. I still consider myself I feel like I'm very new to this, I learn new people, new things, new ideas daily. And people will always, always approach you with something that they think is brilliant. And I really think that we're at a really pivotal point in our field where, like you mentioned, there's a lot of people who want and they're all very new, and you have to vet the idea. And if you really believe in the mission, then you align yourself with them. And if you don't, then that's okay. I, I think with the limited fertility doctors that we have, you will get approached whether or not you're on social media, you're gonna get approached, and I think the one tip that I've learned is, does that idea line with you? And if it does, then do it.


Griffin Jones  52:19

Right. I suspect that it's harder for you, because there are a lot more opportunities. And people do want to see change in the field, and you want to help bring that in. In my case, I'm not qualified to give an endorsement for the vast majority of people that want to reach my audience. So we build an advertising structure where it's not an endorsement for me simply them advertising in inside reproductive health, the same way an advertiser would advertise on any media company, the endorsements, when you become the face of something is different. The only one I ever did was with engaged MD. And I did that only because it is close enough to what we do that I could see how much it helps people. So many people that I talked to over the years, vetted it, including people that I've worked for, for years. I knew Jeff and Taylor really well for years before we did that, that if there ever was a complete 180 Like you're talking about, like you've known your husband for years and years, it's like how well do you still know some that if ever was a 180, we found out Jeff VISTA is a straight up axe murderer that I could say, hey, it may be an Axe Murderer. But I did my homework. And I talked to the guy and I'm as surprised as anybody I loved him and knew how great he was. And I'm totally floored. And I don't think that happened in the case of the Bitcoin, not the Bitcoin, the other crypto scandal, and you'd seem to have a system for for doing that I do. I do probably issue the word of caution to other Doc's that may be don't let FOMO dictate what you end up doing. That. There's a lot of things where it's like, Oh, I gotta get in on this now. It's like, if it's not right, you might just wait a while and it's not meant to be it's not meant to be Yeah,


Dr. Roohi Jeelani  54:16

I think really just aligning yourself with if you if you hold true and stand with what why you do this why you do what you do, then I don't think you'll ever stray wrong. Right? I think Michael goal is to get as much information out there and my goal is for everyone to have a family and my mission or whoever I aligned myself with kind of believes in the same thing like how do we how do we get there? How do we make this happen?


Griffin Jones  54:46

I want to let you conclude how you want to conclude, but I do want to go back to Patient Relations for something because I wonder if the position that we used to be in has toe totally changed. Or if it's just morphed into something else where the doctor was the authority. I'm the doctor, you're the patient, I talk you listen, I prescribe you do. And it seemed that that was going away for a long time. And then during COVID, not I'm not talking about the fertility field, I'm just kind of talking about general, that kind of came back in a different way where it's like you, you take the damn vaccine, you do this, because I'm the doctor. And I was like, I don't think that's the right message. It's even if when you're giving the right advice, if you're giving the right advice about something, it's not because I'm the financial planner, therefore, this plan makes sense. I'm the mechanic. Therefore, what I'm doing to your car makes sense. I think we reverted back to that a bit of instead of making the persuasive argument, in many cases, it was, listen, dummy, this is what it is. And I'm the person to tell you what it is to have, have we overcome that? And if it is something that we should even overcome?


Dr. Roohi Jeelani  56:08

That's so interesting that you look at it like that, I look at it, as we use the persuasive argument, like all those stickers that we put up, I'm vaccinated, are you looking at what I'm doing? Look at what my kids are doing. But I'm also looking at it from the lens of social media. Those are my colleagues, right? Not just fertility colleagues, those are just my colleagues. And I don't, I don't think I can't remember a single person saying you have to do it, because I said, so it was more. So this is the data behind it. This is why I'm doing it. This is why my kids are doing it. And this is why you should do it. And that's how I present my fertility. That's how I present my data to my patients, right. And I always tell them, like, ultimately the choice is yours. But this is your age, this is the age of the sperm, this is your end goal. If we do this, your chance of success is XYZ. If we do this, your chance of success is XYZ. Here are the pros. Here are the cons for both, which one would you like to pick? And I think that autonomy is really important. And I feel like the vaccine was presented like that. I don't think it ever I think we even tried right like not to bring completely Goten John Doe but bring like surrogacy and third party. It never went away never became. If you're not vaccinated, you can't be a GC if you're not vaccinated, you can't be a donor I always became, we prefer this but ultimately the call is yours. I really think that mode or that treatment modality is here to stay. I think patients really want autonomy. They're seeking that autonomy.


Griffin Jones  57:46

I think that is the proper course to take. And I'm glad you took it. I think there was a ton of the One Way finger wagging on social media and some of the most persuasive doctors that I think out there I want to give a shout out to Dr. Zubin de Manya Z Dawg MD for any of you physicians that are familiar with Him, follow Him Dr. Vinay Prasad, Dr. Monica Gandhi, Dr. Marty mCherry, who were extremely persuasive. And when I looked at their YouTube comments, versus a lot of the comments of people that were doing finger wagging, I could see them changing hearts and minds, because they were doing it in a way where they approached it with the same healthy skepticism and made persuasive arguments that you just described. So we you've you've laid the groundwork for us and the change in Patient Relations, as you just described, to where it's educational, and inviting for patients. You talked about. We talked about the paradigm shift that this means for new opportunities for doctor, we talked about those opportunities in the form of business, we talked about the change not just in patient acquisition, but also how patients move through the treatment process by having a two way access to information and multi channel. How do you want to conclude right?


Dr. Roohi Jeelani  59:10

It's I think it's key that you are very proactive and educate in whatever format. They're thirsty for education, you educate them and they'll make well informed decisions with your guidance.


Griffin Jones  59:25

You are leading the charge in my view, as far as I can tell, and people are wise to follow you. We will include your handles in the show notes and of course, we will tag you and they should follow you because they should see the changes happening in Patient Relations through your eyes and through your patient's eyes. Dr. Jeelani, thank you very much for coming back on inside reproductive health. 


Thank you for having me.


59:54

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take out mission 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