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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


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



160 The Three Goals For An REI’s First Job, Featuring Dr. Neil Chappell

This week on Inside Reproductive Health, Griffin hosts Dr. Neil Chappell of Fertility Answers. Tune in to hear what advice the brand new partner has to contribute to younger docs finding their footing in the field. What does he consider the three goals every REI should have for their first gig?

Listen to hear:

  • The ONLY three goals for an REI’s first job 

  • How important Dr. Chappell thinks micro-geography should be to younger REIs when selecting their position, and Griffin push back on his qualifying factors.

  • What role Dr. Chappell believes research should play in a new REIs hierarchy of job “must-haves”, and how to adjust their expectations accordingly.


Transcript



Neil Chappell  0:00  

I don't want to make anybody feel like I think that their dreams are silly or unrealistic. But I do think that there's a difference between compromise like just compromising on what you want to do and then having a little bit of a reality check per se on like, what's your, what's your real life is going to have to look like


Griffin Jones  0:23  

my guest today is a good geezer, as the Brits say are owned by Rocco is the Colombiano se or perhaps a class act? If that's more familiar to you, you know, as opposed to the vagabonds that I regularly have on the show, Dr. Neil Chappell. He is four years out of his fellowship, which he did at Baylor. And the reason I wanted to have Dr. Chappell on the show is because he's recently bought into his practice fertility answers with Dr. John storm and has been on the show, Dr. Chappell practices out of Baton Rouge, Louisiana. And so he's part of what I might call the sophomore class here, he is neither just out of fellowship. It's not the first year or two of his job. He's grinding his teeth a little bit and gotten familiar with this system and now has bought in so I've had senior partners on the show, many of them have had many CEOs on the show. I've had some fellows on the show, I haven't had too many of this very new partner on to share her his experience. And I'm glad Dr. Chappell came on because he gives good context to what younger doctors might consider. He lays out three goals for a first job says there's three not more than that. We also talk about geography. We talk about learning the general field of business, we talk about how to integrate new processes, the process for processes, and we talk about some important education that he's found along the way, like many of you Dr. Chappell is someone that is continued his education. He went on to do chief residency when he was at University of Alabama after his program there while he was doing his fellowship training at Baylor, he also received a Master of Science in Clinical Investigation. Now he's learning the business side. And he shares some of those lessons with you. So I hope you enjoy today's episode with Dr. Neil Chappell. Dr. Chappell, Neil, welcome to Inside reproductive health.


Neil Chappell  2:21  

Thanks, Griffin. It's great to see you again.


Griffin Jones  2:23  

Your fellow podcast hosts. So it's good to have you on the show. I will tell you, Neil that I have not every week, but a couple of times a month, someone reaches out and says, I didn't like what this person said on the podcast. I didn't like this idea. And recently, I had someone called me and said, were you doing a commercial for this group? I said no. And it sounded like a commercial. And I don't think so. But I'll go back and listen. And I went back and listened. And you know, the first soundbite I was talking to my podcast manager about she said, You are borderline accusatory for that. So and so some people have views one way or another. But very often, they just want me to do their dirty work. And every single episode, I say if you if something is said on the show, you have an opportunity to come on and express a different view. And very few people have taken me up on it. One of them has been your partner, Dr. Stormont, some of them been Chasey keen from mate Dr. Brower from Shady Grove in New York and Dr. Arredondo, and those have been pretty much the only people that have said no, I didn't like this part that someone said I think rebuttal is necessary. And so there's been very few and recently that we've had some content about partnership about what new Doc's want. And there was something he said, hiding another view needs to be expressed here. So what was that?


Neil Chappell  3:56  

Yeah, and I remember your podcast early on with John, my current partner here in Louisiana, about what dogs that have been out for, you know, 10 plus, or 15 plus years, what they're looking for, and, and new hires. And that was a very salient podcast for me because I was kind of in just starting his practice. And then, you know, fast forward, you interview these three fellows, and I have a little bit of a different perspective, because I've been out now for about four and a half years. So I see. I remember I'm young enough to remember what it was important as a fellow coming into the field. But I'm a little bit experienced and now certainly got a long way to go and a lot of a learning curve to climb, but old enough and experienced enough in the real world, so to speak, to have a little bit more salient view on on the reality, I guess. And so I was I was thinking a lot of the things that they said in that podcast, I remember thinking, and I remember hearing from some friends and mentors now it's not really Do what you want, or, yeah, that sounds great on paper. But that's not really how it is that those kinds of things, and then I got onto the world and I'm like, Oh, this is, this is quite a new education, the cliche of you're gonna learn a whole lot in your first month out in the real world is is a cliche for a reason. It's very true. And so I think that and I sent an email to you and something to the effect of A, we've interviewed folks that are years away from fellowship, and we've interviewed folks in fellowship, but a few folks that have been just a couple of years out to kind of see both sides of the coin and maybe shine a little light on where the middle space actually exists. You know, in this polarized day, there's this view, way over here, and this view way over here. And the truth is probably somewhere in the middle, that somewhere in the middle voice was, I think, just maybe a viewpoint that was missing from the conversation. So I thought that might be something to do.


Griffin Jones  5:49  

You're right, that we haven't had so many from the sophomore class. So this year, four and a half years out of fellowship, you're you're now a partner with Dr. sermonette, fertility answers in Louisiana. And so what was it? What were those points that were made in that interview that you remember thinking as a fellow or as an incoming Rei that you thought that you that you now think are off base or off base


Neil Chappell  6:19  

is harsh? There's just there's just more to it than than that. So well, what were that. So, you know, I think first of all, anybody can have the practice that they want to have. This field is nuanced enough and diverse enough. I mean, it's reproductive endocrinology and infertility and everybody else in the rest of the world thinks so they're just IVF dogs, but that's not true. We do so many things, we're trained in so many things, that we have the capacity to have very different lives. And, you know, I've just reached out to the other 40 folks that graduated with me, and all of our lives are very different. So I don't want to make anybody feel like I think that their dreams are silly or unrealistic. But I do think that there's a difference between compromise like just compromising on what you want to do, and then having a little bit of a, of a reality check per se on like, what your, what your real life is going to have to look like. And so for example, you know, I think everybody's big on geography. Everyone says, I need to live in these places, or live in the city or live in this thing. Or, you know, I want to be by mountains or beach or river or or, you know, by my favorite sports team or something like that. And, and my feelings on on geography are, there's probably only one reason why it's important. Well, two reasons why it may be important. If your spouse can only work in one city, you're your host, you got to go there unless you've got a very interesting relationship. And to if you're if you really need to be close to, to certain family, and I guess that's kind of like a one, B because it's Same difference. You you want to be close to your spouse or your family, and they're limited in their geography. Okay, fine. You need to be limited in your geography. But I think I think our generation might undervalue the importance of micro geography, that's kind of the concept that I think, because at the end of the day, what are you going to do, you're going to go to your house, you're going to go to where you work, and you're going to go to your kids school, if that's, if that's part of your family dynamic. And that's kind of it, that's what most of your days are going to look like. And the days off, you're going to, you know, you're gonna go out to eat at restaurants, or you're going to go see a show, but most cities in America have those things, you can build a really nice life and just about any town, go where the market needs you to go. And then from there, build a little microcosm of your world and then go explore the world when you're on vacation, that that, to me seems the most realistic way to think about geography. So I think geography is just, it's just over emphasizes that important thing, I don't think that in the day to day it is as important to me. So by


Griffin Jones  8:46  

micro geography Neela you are you talking about community, building your own community, wherever it is that you and your, your own routine? Your your home? Is that what you're referencing? By


Neil Chappell  8:58  

kind? I mean, you know, they were like, Why did you go to South Louisiana to start your practice to build your career? And my answer that is because this is where I was needed. This is where there was a large market demand. And I knew that, you know, my life was going to be my house, and my job and my immediate family here. And so that was, you know, I don't I don't care that I'm not in a big time city or on the coast or whatever, because I've got I've got a really nice patient, you know, market and I've also got my little microcosm of of a family life here.


Griffin Jones  9:30  

Are you also close to the family that you're originally from or that you're your spouse's?


Neil Chappell  9:37  

Yes. So family was one of the reasons why we were like, okay, it's okay to move here. But that honestly wasn't in my top five, because I spent the majority of my my training away their families not listening.


Griffin Jones  9:47  

In the top,


Neil Chappell  9:51  

because, you know, it's not hard to travel to family. And I spent, I spent the majority of my, you know, adult training, you know, 10 years or plus years. Whenever not close to family, so it's it's nice to have them nearby. But it wasn't necessarily a deal breaker if the same position was true in Omaha or buffalo or whatever, then that would be that would be the case.


Griffin Jones  10:12  

Well, I don't want to just, I don't want to go too far into this point. But I'm would disagree that it's hard that it's not hard to travel to family, I think once you have once you have your family established, once you have your spouse's family, and you have other obligations, it's not the same thing as being close to them. And the only reason I'm staying on this point is because I am a huge proponent of people moving to small markets. And I think that small cities are where the quality of life is, there's a difference between a small city and a small town. And there's a difference between a small city and a big city. And I think for most people, small cities have the quality of life that you're describing, which is when you're a busy professional, you're a busy professional in Lafayette, Louisiana, or in Manhattan, or in Los Angeles, or in Buffalo, New York. But do you want to have a 50 minute commute? Do you want to have all of the other considerations that come into play in most of those big city amenities you can't take advantage of anyway. But I think it's easier to travel to the big city amenities, those things that don't really happen in small city and maybe like big shows are specific restaurant scenes or social scenes that might be really important to you, these type of these type of niches, I don't think it's as easy to travel to family, depending on what level you want to have access to them. But I, when I see Rei is moving to markets, like Lafayette like buffalo, like all of this, the the markets that are not in the top 20 It's almost universally because either they or their spouse are from within three hours. Well, that's


Neil Chappell  12:06  

why I say that one reason why geography should be important to spouse and family. So on this I agree, I guess to your point, maybe a better return instead of micro geography is that the quality of life you can have in a mid range city as opposed to the top 20. Really should should. It's really under emphasized. I think. So I think from a geography standpoint, unless you have to be in a city. Think about those other mid range cities, because they offer quite a bit. And yeah, I wish that another person would would go with would grow up in Louisiana and become a fertility Doc, I would love to have another partner here because that seems to be the only way to get them. Get them down here. That's true


Griffin Jones  12:43  

in this and it's true for for small markets across the country, I think it's a big access to care issue. And I'll keep talking about it on the show. Because one, I want more people to consider it for access to care, too. I'm biased, I'm from small cities, and I love it. And if you're a top wage earner, and the places that we're from your royalty, I mean, life is really good in places like Karen is, is interest rates go up across the country that that that house that is now a third affordable of what it used to me because mortgage rates were around 3% last year, and they might be 10% next year, well, guess what, that's not gonna be a problem for you in a small city. Because if you're willing to live in, in the intermediate house for three or four years anyway, you're gonna be able to buy the next one, you're gonna be able to buy it in cash. And in those smaller markets, that dream house that that would cost you three or four times as much in one of the larger cities. But so Okay, so geography was one of


Neil Chappell  13:46  

the other things. You know, I think there's the the other double edged sword is research. And I think that the where, where a middle a median conversation could be had is, you know, I think a lot of folks that have been out for a lot of years, they're so used to the high demand for the workload, that research and not that it's not a priority for them, but they want to hire somebody to be able to produce they want to bring somebody on to to see the 1000 new patients that are on their six month waiting list. We need somebody to see patients and graduating fellows, we're trained so heavily in research, because I mean, our Fellowships are that much longer. We're with that it's just ingrained in us that research is critical. So it's rare to hear a fellow say I want nothing to do with research, I want to join a program that has the capability or the capacity to do good research and to contribute to the literature. And they'll help progress the field. And that may be in strict research and grant writing and papers or in in an industry. Any one of those capacities could be because again, there's a lot of ways to do that. But I think that the where where the truth is between those two is that that's just the way these our generation is as being trained, and that's the way the field was moving, there's so much in genetics or so much in AI, there's so much data out there, that we're just we're trained to think about that. It with this, this impetus, and this emphasis on on urgency, and we, you know, this is our duty, this is our responsibility, this is our privilege to be the stewards of these data to put out good stuff. And, and so we come out of fellowship, where like, we want to, we want to do research. And then the folks are trying to hire us are saying, We don't want you to do research we want you to, we want you to just kill we need people to see patients, let's go. And I think probably the truth is we do as a field have a have a responsibility to produce good research, but from our standpoint, we need to be thoughtful about it, I think it's it's not necessarily realistic for you to go into a negotiation saying, I want my Friday's completely off to not see patients so I can just work on my research. That's a difficult thing, it doesn't pay the bills, it doesn't pay your salary. But at the same time, we are responsible for making sure that all of this industry stuff and all these new technology and all this new AI is coming to the field, is it really beneficial benefiting patients, that's our job to say. So we have a very real responsibility that not to mention the responsibility to the next generation to provide them the research that they need to be able to apply for this very rigorous and competitive fellowship. So for the for the doc's that are looking at hiring somebody that tells them they want to do research, Don't roll your eyes. That's an important part of who we are, we had to find a way to build time without compromising the bottom line in the business. And for the graduating fellows, I would say, yes, research and in that capacity is important. But you have to understand that you need to be in the clinic. And so what you need to learn now is not how to do good research, but how to delegate good research. And I've had I've had fellows tell me, Oh, I can't wait to be back in the lab pipetting I'm like, if you're pipetting, you're making a mistake. Because your your job is not to pipette anymore, your job is to let someone else pipette on your behalf so that they can get the they can get the accolades that they need to earn, they can earn their stripes to so they can advance in their field and you're now their mentor. So you're you're making that transition from fellow to attending, you got to see patients you got to work. Research can be a part of your job, but you got to you got to learn how to delegate that research to the residents and the fellows. And the other lab folks, you know, behind you and let them get their names on papers, while you for the field and see patients. And to me, that's probably where the truth lies.


Griffin Jones  17:29  

Have you done something like that in private practice? Because I could see that perhaps being less easy to do in private practice, if you're not affiliated with an academic center that has a follow up? And yeah, you might have residents that rotate in but how have you done that?


Neil Chappell  17:46  

I don't even really have residents rotate. And there's a residency here, but they don't really rotate with us much I do I teach lectures for them. And then if I can, and basically if I have a clinical question about what we're doing and making sure we're doing it well, or if I'm reading a paper that says, hey, this is out and I want to validate those data inside our own practice, and I talk to the residency, I've got a good relationship with them. I find a resident that's interested in doing that research with me, I build out the database, I've got a statistician that I've befriended. And I've got a PhD researcher through LSU system that I've made good friends with. And together, we kind of collaborate on ideas. And yeah, we we publish a paper to a year. And it's not I'm not shaking the earth with with with amazing science down here. But I'm validating my data with what we know, and making sure that we're providing good quality care down in Baton Rouge, Louisiana. And I'm also helping residents get a few papers, and doing good things for our patients in our practice. So, you know, John published a editorial this month, and we published a couple of papers earlier this year. So we're doing a little bit, but you know, I'm still seeing patients Monday to Friday and some weekends, you know, depending on how people ovulate, that's still my primary thing. But I do feel a responsibility to do the research. I just build those meetings, you know, either during that, you know, half an hour in between patients between the morning in the afternoon, or in the afternoons after I'm done seeing patients.


Griffin Jones  19:08  

It's not a full day off for doing research every week.


Neil Chappell  19:11  

I yeah, that's I mean, you have a responsibility to your patients, just like you have a responsibility to the field. And I think having an having a healthy appreciation for the fact that you have to pay the bills, and you are the person who pays the bills, you make you current you crank the factory to make the widgets that pay the bills, but at the same time, I mean, we're called to a higher calling out, you know, fertility is a reproductive endocrinology and infertility or just physician in general, by definition, higher calling, you've got to give some of yourself to do in those other things too. But if you're thoughtful and mindful about it, and you use the training that we've had, you can build a system that sustains itself. We all know how to do a good retrospective cohort study, build a database, teach them how to go through one chart, and then send them kind of loose, you know, and then have monthly check ins via email where you see how they're doing it. doesn't require a whole lot of work. It just requires some thoughtful work. And I think there's there's a space to have both. It just takes some effort to build.


I'm, I'm dubious that a lot of the places that may have said, Oh, sure, you can come here and do one day a week of research actually ended up allowing for that, because I've been on both sides of these discussions with where I've been with just the younger Doc's and just letting them sound off on what it is that they want. And I've been with the partners and CEOs with a lot of the biggest practices and groups in, in North America. And I hear the differences in conversation. And on the younger doc sides very often, like, Yeah, you told me that I can, that I'll just be able to have research. And this is what this is what I'm hoping for, and I want to have this kind of time off. And on the other side, it is very clear, like, there's an expectation for them to produce, there's an expectation for them to do volume, and, and they're on them if they're not.


Neil Chappell  21:08  

But of course, that's what a fella would think, of course, that's what a fella would think we're given 20 months to sit in a room and think, mean that 20 months of our fellowship, or 18 to 20 months of our fellowship, we're supposed to sit in a room in the dark and think. And so that's all we've done for a year and a half, of course, we're going to come out and want to do that more. That's why how we were trained, that's our comfort zone. This is our happy place. We sit and we think we read, And we pontificate on what could be the next big thing because we want to help patients and there's nothing that gets us lit up like reading about, you know, ovulation. So of course, we think that, but again, coming out into the real world for a few years, not that I'm the sage, I mean, your your your recent podcasts with Eduardo, of course, was was flawless, that guy's very, very good. He thinks very, very well rounded in a good 360 degree space. So I don't know if I have anything to contribute, after what he said if he has a hard act to follow. But, you know, we we, we think that that's our comfort zone, we need to kind of move to the real world and say, Oh, but we also have to pay the bills. And research really doesn't pay the bills, not not in this space, like like that. So that's just kind of that thing. And then the other thing, you know, the other thing, I think, by nature of fellowship, we all love surgery, and we all love onco fertility. And I remember telling somebody that I was coming out of fellowship, and I was interested in kind of helping to, you know, build out a good onco fertility program and build out a good reproductive surgery program. And this particular person was like, Don't tell anybody that that's not what people that are hiring you want to hear, because it doesn't really give you much in terms of revenue. And it takes a lot of time. And I thought to myself, That's kind of a jaded thought, like, why would you say that these are really important things. And then I got into the real world. And I was like, oh, yeah, surgery takes a lot of time, it does not pay the bills, it's, it is still a major part of my practice, I still do surgery every week, several days a week. But it's not because I think it brings revenue to the practice, but it does bring some value to the practice. And I think that you have to understand the difference. So like I'm in a small town, you know, market or whatever, or small city market and small towns and small city market, there's really nobody else that does the surgeries here. So it's incumbent upon me, it's my responsibility to provide that care, because the market demands it. So that's really kind of why I'm here doing surgery as well. But it does keep me from being here seeing the IVF patients, right. So if you say I want to go to a program and tell them, I'm going to build out the reproductive surgery program, they're gonna say, Great, then I don't have to do surgery, I can go see more IVF patients, but don't think that you're coming. They're saying, that's not the same thing as saying, I'm gonna come here, I'm gonna do 400 IVF cycles, those are two very different values to the practice that you're joining. And you have to just understand that what you're saying, I'm going to build out your Onko fertility program. Well, what that says to what that says to some of the staff is now we got to be on call 24/7. For whenever you get a Onko for a call, and we're gonna have to come in, we're gonna have to do things and figure stuff out. That's a lot of paperwork. And that's not how we feel as physicians because it's a blessing to be able to help people in a time of need, but the staff and the the framework of how the business runs, that's what they see. And for better or for worse, you just kind of have to know that when you bring when you bring uncomfort and repress surgery or things like that to the table. It's not the same thing as saying you're going to do 400 cycles.


Griffin Jones  24:31  

So we're talking about expectations and the reality of what's on the other side of them. But let's also maybe take a little sidebar to talk about when is it time to say no, this is really important as part of my vocation and I did an episode probably two years ago now with Dr. Matt Retzlaff. About surgery and about how much surgery is still in the purview of the RAF I and and always should be and, and in your view, we don't have to go too far down this rabbit hole, but I just, I can picture some people listening and then thinking, but that's what I want to do. And so when is it time to say no, this is my vocation, this is what I'm going to do versus it's perhaps not realistic for the REI to do some of this anymore.


Neil Chappell  25:23  

Well, again, I don't want to sound, I don't want anybody to think that I'm jaded. By any means. I mean, the people that know me know that I'm the happiest, like eternal optimist incapable of feeling sad, love my job and feel privileged to do it every day. But I think to answer your question, is it I think it just requires a mutual understanding of what your passions are, what the market in your area demands, and how that affects how the business runs, those are the three things you have to think about all at once. And that's, that was kind of the point of that of maybe having this conversation be a part of your series is that you need to talk about all three at the same time. So I do surgery, and I have helped build out a few different ACO fertility programs and a few of the cancer centers here in this area. And we're working on helping to bring good legislature to the to the Louisiana government to help to provide better access to care for folks with onco fertility diagnosis. So we're, we're actively working in all those spaces, because this market needs access to care. And this market needs good reproductive surgery. So here we are doing it, but we just have we're we're doing that cognizant of the fact that there we are, we are compromising our ability to just do straight up drive revenue and do IVF cycles, because it's important to us, that our practice be that access to care for those people. And I think anybody can do anything that they want, just to understand that if you're joining a big, you know, fertility machine, and you tell them, I want to just do surgery, they may or may not be the most thrilled to hear that. And I think that that's, that's, that's part of the genuine conversation that needs to be on the on the table, but you have unique training, and you have a unique, you know, skill set for in this subspecialty that should be leveraged. And so if that's something that is your passion, you just have to understand that your your seat at the table will look different than the person that's doing 700 IVF cycles.


Griffin Jones  27:20  

If not the REI, then who, who would be doing the oncofertility cases?


Neil Chappell  27:27  

Oh, no, I mean, well, I don't know that I'm gonna go down that rabbit hole with you. That's that's a different, that's a different podcast is a different question. As far as as far as fixing access to care. I don't. I don't know how to I don't know how to fix access to care. And I do. And I do think it's our responsibility. I'm very, I'm very big on doing what what your patients and your area need you to do you do. So I just I just think that you just need to understand that there is a compromise in and and how you are reimbursed based on the models in your area. And this is different for an academic setting where they're paid on our views. And this is different, and mandated states versus not mandated states.


Griffin Jones  28:14  

And thinking about it back in the frame of expectations, could it be the case that okay, if this is your vocation, and and this area for Access to care is extremely important, then perhaps that more traditional academic model of working in a university or a hospital Rei division is still relevant. It's and that that role is how it was 15 years ago, maybe still is relevant today. Perhaps just don't expect these big signing bonuses, this big type of partnership, and maybe salary or bonus opportunities that these new big companies are offering, if that's what you want to do, is that a fair way of looking? Yeah,


Neil Chappell  28:59  

generally speaking, but it may be that you find somebody that just hates surgery, but knows that they need somebody to come down and do surgery with them, and then they're going to see major value in you. So maybe we could go down the hypothetical, you know, we there's hypothetical A, B, C, all the way down to, you know, 123. There's a whole there's a scenario out there, there's a job out there. I mean, there's so many jobs out there you can you're in the bargaining seat just just being a board eligible. Ari. I'm just saying that I think that it's a reasonable thing to say, Hang on. You really need to think about this from both perspectives. If you're going to every interview saying I only want to do surgery, or I want a day and a half to sit and think about research those those particular values to you can happen but they have different implications that no one's really talking about.


Griffin Jones  29:48  

I know a retiring doc of a private practice that does a lot of surgery. And the one of the partners does almost not really doesn't like doing it. And so that could be an opportunity for someone. Yeah, like surgery because that the now senior partner isn't doing it and there's still the need there. So that's a possibility. Okay, so we've talked about geography. We've talked about research, we've talked about surgery and ankle fertility. Were there other expectations that you've heard from incoming ducks on the show that you also had when you were an incoming doc that you now see, perhaps need more context?

 

Neil Chappell  30:30

No, not really. But I would say that the things that I always tell the fellows that call me now that I'm now that I'm in my fifth year out less and less fellas, I knew more back when I was a little closer, but five years out, I know less. But in the times that I've had conversation of graduating fellows, I tell him, You got three goals in your in your in your job number one, and many folks don't stay in job number one, I've been really happy in my first job, I don't see myself leaving ever. But that's not common man, you know, half of us leave. And within two to three years, I think is a statistic. I don't know if it's still true. But that was that was the case back when I graduated. But But I tell him, You got three goals in your first job, pass your boards, learn the business, and pay off some debt. Those are those are the three things you have to do. And so people take this job hunt so seriously, because interviewing for medical school and interviewing for residency and interviewing for fellowship was so serious, there was so much stress, and there was so much heaviness in it. But this is a very different interview process. You're interviewing for a marriage, but these are not dates. This is this is you coming together with someone on business to business, just talking business, do our goals, alignments, values match, you know, be honest and open with them. Because, you know, I interviewed with some practices, and I was so scared of telling them that it wasn't gonna work out. And I just waited and waited and waited to tell them, then that hurts them, that makes them more angry with me. And I could have just said, Hey, this is not gonna work out, you know, you don't even need to give them a reason to say this is not gonna work out. And they would have been like, great, thanks for letting us know, we're gonna move on. And that would have been probably the right thing to do. But I was so scared to tell them that that it was, you know, it became not great. So, yes, taking a job as a marriage. But interviewing for jobs is just business, just be honest with folks about your values and what you're looking for. And keep in mind that really, those first few years, I'll pass your boards, learn about it, learn a bit about the reality of business and pay off some debt, both both financial debt and family debt, take some time to to, you know, thank your thank your family for supporting you through those that decade plus of of work and take them someplace nice for a few days, and then get back to work. Right? So. But that's kind of what I what I tell folks.

 

Griffin Jones  32:49

Let's talk about the learning the business presentation and goals in your first job as pastor boards, learn business and pay off debt. Let's talk about the learning the business part, what were some of the things that you learned.

 

Neil Chappell  32:59

So the there's kind of three aspects of learning business, right, so learn the general field of business. And if you treat it like learning a new language, it's really quite straightforward. I what I've learned, the more I've learned about business, the more I realize that it's actually not that terribly complicated, it's kind of just algebra, you just have to learn what they call each of the variables. So a p&l statement looks very intimidating and very confusing. But it's just simple algebra, you just have to learn what P stands for and what L stands for. And if you just sit down with the CPA, or the or the, you know, the manager or the administrator of the of the practice, and is taken our with them early on, and say what is this? What's this line item? How do we how do we calculate and just have them tell you, then you'll catch on pretty quick. So learning the language of business, read a few books and ask, you know, ask a lot of questions early and often on the admin side, that'll help learn your practice. That So learn, learn the language of business, learn your practice, how do they do things? How did they treat their Oli cycles? How do they treat their IVF cycles? How did the nurses work? How do you communicate with them? How do you write in the EMR system? How do you how do you do check out with your fellow physicians when someone else is on call? Is there a doc of the day thing? Or is it eat what you kill and you do all your retrievals and like most of this stuff, you'll know in the interview process, but when you actually show up and you're like, Okay, I want to do surgery on this person. How do I post that case? Learning how to go about communicating with nurses so that you integrate into their workflow. That's key, showing up on day one and saying this how I want to do everything can be quite disruptive. So for me when I came in, I was like, okay, copy, paste, whatever John does, and and I'll, I'll start there. And then as we grow, and learn and find, you know, new ways to do things or this is what I learned in fellowship, I go to storm and said, Hey, this is something we've been trying to do. It's been really effective was trying to integrate that we solely integrated cuz you you rock the boat with the nurses and that's a surefire way to get get thrown off the boat. So learn how the practice works, and then sort of integrate what your training brings to the table. Because you do know things that can help that practice be better. Just don't try and change everything on day one, and then learn your area. And in the first, you know, when I say learn business, learning the area means you've got to go knock on doors, you've got to shake hands, you got to be friends with all all of the the referral people there, you need an alert, you need to know the oncologist, the OBGYN the pediatricians, the general medical market. How does how does how does it work there? Is it owned by you know, big entities? Are there a bunch of small, small locally owned private clinics? And you know, where were all the babies being born? Where the OBC things were in a surgery done? You know, what's their? What's their taste for fertility some some areas, they want nothing to do with fertility patients, they immediately refer them out. Some places like to do a whole bunch of ovulation induction cycles themselves, and then refer them out. Who's your competition? And and, you know, what are the what are the market needs there? Do they have a bunch of people that do minimally invasive gyn surgery, you're not gonna need to do much surgery, you need to probably refer all your surgeries to them? Or you're gonna make some folks very upset? Or is there nobody there doing surgery? And that's going to need to be a major part of your of your market? And what are your competitors doing there? And how do you need to think about offering a new option or new solution, because they've already got the market cornered on X, Y, or Z,

 

Griffin Jones  36:29

we can talk about that know your area, a bit more about it make a whole episode about that. But I think it bears exploring a little bit here, because that's a huge opportunity when you're in your first second year of practice, because you've got a little bit more time. And as you become more established, and when you really get busy, and you have the partnership responsibilities, and you have a long wait list of patients and, and different obligations, then you often need a physician liaison system. And so the whole infrastructure is a lot more robust you need like a CRM or at least system in your EMR, that you're making sure that you're you're following up with the people that you're calling on they need, they need good educational materials, they need access to that Doc, because they're the liaison between the REI and then the referring providers, where when you're young, you're new, it's you, and you don't need as much of that system it very often, it's just going in, you can go back into the office now in in late 2022. And you will often be seen a lot more quickly than a than a physician liaison. Well, if you come in and say I'm the doctor, and I just want to come in, I just want to introduce myself, I just want to drop off my cell phone number, you can do that as a younger guy, you can do that with every single OBGYN office in your area. And you don't need to build out all of the materials don't need to build the CRM of this is when I followed up with them last and this is this is our last point of contact there. You can just go and give people your cell phone number and, and you will build relationships by doing that. Yep,

 

Neil Chappell  38:29

we just, I mean, it's very low tech over here, I just had the Excel spreadsheet, I had the names of the local OBGYN, and when I would visit them, and then when as I got their cell phones kind of had him down. And you just when when you when you send them a baby, you text them, you know, and and they will now they've got your number, whether or not you gave it to them or not. And now it's in their phone, and they'll text you questions. And that's how you develop that relationship. But does it does, it does take time.

 

Griffin Jones  38:56

Here's another little tip for people that are listening, we know that 60% of REI patients are referred by a provider. That means that 40% are not referred by a provider, but guess what, they're all going to an OB afterwards. So that that might also be that might also practice gynecology, or at the very least they're in an OB GYN office. And so you reach out to that person after whether they referred you or not doesn't matter. There's 40% That did not refer to you. And so you, but you still share a patient, and that's a great reason to be able to, to connect with those folks.

 

Neil Chappell  39:39

We definitely we definitely do that.

 

Griffin Jones  39:40

Go ahead. Sorry. Well, you talked about some of integrating things after you establish and I think that copy and paste model is the way to go when you're starting out was a guy that started a firm completely from scratch. It's like wow, I could definitely see that. value, you know, having have worked for somebody for two years first and then in and then modified that, you know, not having done that I can see the value of copy and paste, there's just a lot of shortcuts. And it isn't to say that everything that you're copying is valid for the future, or maybe even Val, even the best way of doing things now, but it gives you a framework, because then you're optimizing as opposed to inventing, and you can decide what you want to go on to invent. And you talked about the things that you help to integrate are that that you started to integrate things after that, what were some of those things,

 

Neil Chappell  40:42

just very small variations on stimulation. Standardizing how we did post operative pain meds, and just just different optimizing ways that we were drawing labs on certain diagnoses, things like that. I mean, nothing, nothing major. I mean, one of the reasons that I decided that joining Rajon was the right thing to do is because he'd been out for over 15 years, but in our interview, we were talking about papers and research that had come out the month before. So I knew that he was very mindful of the literature and evidence based medicine, and that's somebody that I could work with. So, you know, I knew that we would continue to challenge each other. And, you know, we don't, we don't have journal clubs every other week, where we sit down and you know, tear apart FNS but but we do continue to send each other a paper about this, or a paper about that, and, and continue to push ourselves to deliver quality evidence based medicine in a thoughtful manner. And, and so, you know, it wasn't anything revolutionary, but I would come to him and say, hey, you know, we're, we're drawing these two labs here, I don't find them as instrumental listing by doing it this way, or, Hey, let's change our Stimulation Protocol to shorten this window to this and then we can try try this. And and, you know, what he taught me was how to implement a change in a clinic without really making everybody upset. And and that was

 

Griffin Jones  42:03

that's worth exploring, how do you implement a change in a clinic without getting everybody upset?

 

Neil Chappell  42:08

Two patients at a time, so So what you do is you have a meeting with your nurses about it, you have your make sure your head nurse is there, and everybody and all the other staff that implements good clinical workflow is there. And this can be done, you know, after IVF plans in one afternoon, and you say, hey, this, this research, this literature, these findings are starting to show real promise. And I think that it can benefit our patients in our area this way. This is what it would look like if I did it. What do you guys see as barriers to us being able to do this, because inevitably, your IVF nurse will think of something that you're not thinking of? And that's very valuable. And then you say, Okay, how do we build this protocol to be maximally efficient, but also be maximally beneficial to the patient, and you kind of you mock up a play patient, and then you say, Okay, who's the perfect patient for us to try this on? Get in, I'm not saying that you just like, hey, I just want to start doing this, like, I wait for good literature to come out and verify that this is a good thing. And then we say, how do we get to how we bring this into clinic, and then we pick a patient or two in one particular month, and one particular cycle, not that we batch but like in one month, and we do it. And if it works, then maybe we do three or four. And then the next month, we do half of our half the patients or whatever. And then before you know it, you've got a good number of folks going. And then the last critical thing you do, of course, and any Rei is going to know this is you keep track of those patients and you do the analysis. As you go through you keep a running list of those patients in a HIPAA protected database that you're that allows you to thoughtfully keep track of those metrics and compare them to traditional metrics. Not only is that the responsible, right way to make sure that what you're doing is the best thing for your patients. But that's also a perfect research opportunity for for your residents. When I perfect example, when I came in, John was doing there was a paper published in the early 2000s, that you could just give 2020 milligrams of letrozole on cycle day three. And that was all you needed to do for ovulation induction instead of, you know, five minutes for five days. And so I saw that product I've never seen before. And the gentleman was this. He's like, Oh, yeah, so it's something that we saw were doing and helps with compliance and patients love it. And I said, What are the outcomes any different, he's like, I've really not ever had the time to check. I got a resident, she went through, you know, 2000 cycles of IUI by chipping through the data and show that actually, the pregnancy rates are exactly the same. And so the one paper that was published is now two, you know, so that's just an example of how you can thoughtfully implement change. Keep your clinic running efficient, not upset your nurses. And then on the back end, you've got a research project for a resident to get a poster or an abstract or even a paper on,

 

Griffin Jones  44:50

you're clearing your line of sight by involving your nurses early to because

 

Neil Chappell  44:55

yes, you have to do that before so if you come in and say hey, we're gonna do drop the Integrity doing progesterone, it's, you're gonna, you're gonna get the laser eyes to your soul. So you kind of have to be thoughtful about that, because they, they see these patients day in and day out, they do what they do very thoughtfully, and they're gonna see they're gonna see the speed bumps you don't see because they implement those small details in the patient's day to day workflow that you don't necessarily have to think about because you're your high level. So you absolutely lean on them. I don't see how people don't, you can also

 

Griffin Jones  45:29

you can apply that to other areas of operational change other areas of business change with the relevant departments, teams there. Here's the benefit that I'm seeing by doing this change that I've seen other places. What barriers do you see here? And then what are the one or two use cases that you see as being able to apply it here?

 

Neil Chappell  45:53

And then you slowly build it? Yeah. You talked

 

Griffin Jones  45:55

about some, you said, read a few good books. As you were learning the general field of business. Do you remember some of the books that were most helpful to you?

 

Neil Chappell  46:07

The first one that John gave me was good to great. Jim Collins, and so I wrote Good to Great, I read Good to Great and built to last, and then, you know, this day and age, it's, you have there's so much, there's so many ways to take in information. You know, I do Harvard Business Review, and, and basically all the books that were all my dad's bookshelf, and there, there's there's sometimes helpful, there's sometimes not, he was a big fan attraction. And so I read that and that, that was that was okay for, for what we do. A lot of the stuff that I that I gather from specific books are, are a lot of just really just sitting and thinking about things that I hear on, on your podcast or on other things that are unrelated. So talking to other people about their how they do business. And what they do is more of a helpful thought exercise than necessarily anything about business, the reading the business books is most helpful and learning the language. It's kind of like reading a book in Spanish to learn Spanish, I'm not necessarily absorbing the content of the book, but I'm learning new words in Spanish, if that makes sense.

 

Griffin Jones  47:17

Learning a new language is a good way of thinking about it too. Because don't beat yourself up when you sound like a baby at first, you know?

 

Neil Chappell  47:27

What that means? What are you talking about? Wait, does it just mean this? Why don't you just say this? Well, that's not what we call it. Yeah.

 

Griffin Jones  47:34

Okay. Yeah. Yeah. And it can be one of those things where it's like, you know, an adolescent or sometimes even in adulthood, there'll be a word and say, I've been using that word. How many years?

 

Neil Chappell  47:46

That's been which language for you. It's okay. There's a lot, there's a lot of it's forgiven.

 

Griffin Jones  47:50

And, and that's, that's true for for business, too. I, I would be interested in getting your opinion on traction a little bit, what you said is okay, for what you for what you all do, and you're talking about traction by Gino Wickman. That

 

Neil Chappell  48:05

I don't remember the name of the author, embarrassingly. And it's been probably five years since I since I read that because I read it coming out of fellowship. But the biggest takeaway for me was just understand what seats you need as far as drivers and then make sure that the right person has the right values that are filling that seat to make sure that they're, that they're doing what they need to be doing. And that that was the takeaway for me. And so I do think about that a lot. But the rest of the book was just kind of washed over me, if you will. But I remember because I think about that now is as I'm zooming into the year evals. With my staff, I'm thinking, Okay, here's all the things that you embody as value and these are what's important to you, and this is how this benefits who you are in this seat. And so yeah, man, I feel like we've got a good team in that capacity.

 

Griffin Jones  48:53

So I've wondered about this a lot. So the book that we're referencing is called Traction by Gino Wickman. It's about Eos, which is the Entrepreneurial Operating System. It is an operating system for businesses typically of 10 to 200 people. And I, I have used it a lot for giving some counsel to REI practice, but I know that there's a limitation and it has been extremely fundamental for my firm. So the book posits and the operating system posits really, two or three cardinal arguments one of which is that it takes two people to run a business it takes the visionary the person that is responsible for the future value of the organization. And an integrator, the person that is responsible for actually executing the day to day operation. So as those translate to contemporary business titles, you might think ce o, ce o but that structure It isn't totally possible in the same way, in a medical practice, because you have, very often when you have a CEO as a business person, they're not the physician. So they they can't be the sole owner, at least have a have a practice group around. And if they are of a network, then then the organization structure is different. So I see that as a as a potential seat limitation. And but I do think it is, I think it's really useful for looking at the accountability chart of Eos, which you can email me for it's on the fertility bridge website, in a lot of places, and I and I've said that I want to make one for REIpractices. And I still haven't yet maybe

 

Neil Chappell  50:46

you're not far I've seen I've seen you try.

 

Griffin Jones  50:49

So I but but I think it's useful to look at because you can see yourself as an REI in multiple seats, you can see in one of the seats that you're going to be in is you're going to be under the visionary and integrator seats are going to be even under the three main seats of Operation sales and marketing, finance and compliance, you're going to be under one of the operations seats as a as a producer. And so you can be in multiple seats, you can be in that operation seat when you're thinking of yourself as the medical director as the practice director. And if you're the senior partner in a different one is the visionary and possibly also the integrator. So I think it's just it's useful, even if it doesn't translate 100% to be able to see, okay, I'm in a lot of different seats here, which ones can I get out of?

 

Neil Chappell  51:44

Or it's just the wrong, it's the wrong model. So don't think of it in that simplistic of a term, it's just having seats, maybe, maybe the RV is a giant circle around the whole model. And the practice itself is each of the people that you employ in each of those seats, and then draw a big circle around the whole thing. And just write Rei, because we're just, we're over and around and integrated through each of the seats.

 

Griffin Jones  52:10

Which makes trying to map it a nightmare.

 

Neil Chappell  52:14

No, it's just one more circle, just just draw a circle around the whole thing. There you go, you're done.

 

Griffin Jones  52:18

But the point, the point of disease is to be able to delineate the whole point of a seat is to be able to say this person is accountable for this. And the reason why our them is so successful is because you can have one person in more than one seat because a lot of organizations are small, but no seat is occupied by more than one person. That's what allows you to say this is who's finally accountable for this domain. And because the RSI is in instrumental, irreplaceable throughout the circle, it is harder to solely assign accountability to different folks in different seats,

 

Neil Chappell  53:04

unless unless the Ari delineates what tasks you are responsible for in each of the C's very, very, very, very precisely. And very, very clearly. Yeah, I agree.

 

Griffin Jones  53:14

Another book, when you were talking about the profit and loss thing, I think of a recommendation that was given to me by Dr. Sabel, just called how to read a financial report. It's as interesting as it sounds. But it is, is it's fundamental. And if you have an MBA, you don't need to read this book, probably but there. But again, sometimes it doesn't hurt to go back to fundamentals. And you may have missed something. But if if you are really getting into the financial reports and profit and loss, which is the income statement being one of them Cash Flow Report being another balance sheet being another, then it's a good book to read. Do you remember any lessons that really stood out to you as you were learning the income statement?

 

Neil Chappell  54:05

No. To be honest, it's not so much a specific lesson. It's just making sure that you understand how your items are lined out, and how each of the buckets are filled, and how you are responsible for each of the different revenue drivers. And that's going to be individual to each practice, which I mean, it bears repeating that this conversation is really is not. These are overarching things to general generally think about, it's going to be different for an academic model. It's going to be different for an employee model. It's going to be different for a private practice and a hybrid model. All these things are very different. So a shady grove and an RMA and end up in a University of Alabama, and fertility answers in Baton Rouge are all are all for very different conversations. And for even me it's even more complicated than a private practice in Baton Rouge because we're you know, fill We ended with ovation. So that's, you know that that further complicates my model. But that was a, that was an active decision that we made together about about that. And there's certainly, you know, pros and cons to that relationship to I, in my opinion, more pros than cons.

 

Griffin Jones  55:15

We could talk about those Pros and Cons. I did an episode with that a couple years ago with Dr. Storm and, and we can link to that episode for people to, to go back to today, we talked about the expectations of incoming docs around geography, research, surgery, and onco fertility, the three goals that they have in their first job, which is pass the boards, learn the business, pay off debt. And I think that's a useful way of thinking about that. And you know, that maybe I need to adopt a little bit more, because I am very diligent in telling people how they should remove the mutual mystification in their negotiations, try to button down what's going to work out for them. But what you're describing is, it might be okay, if it doesn't work out, because in that first job, because you have three goals, you have you, and one of them is to learn the business. And if you if you pass your boards, if you learn the business, and you pay off some debt significantly, two years and three years into working for a group, and then you end up going on to somebody else, it's probably a pretty okay, thank you don't

 

Neil Chappell  56:35

go to jail, you know, you don't go to jail. I mean, it's just your life, we'll have another move. But good lord, you've been moving every three to four years anyway. So don't go into a job thinking that you that you want to move in two to three years, but go into a job, that that you have a reasonable chance at loving in a place that you probably won't hate. And I feel like with micro geography, you probably won't hate where you live, no matter where you live. Because there's there you can find happiness just about anywhere here in America, which is a wonderful place. And and then if it doesn't work out, then Lord knows there's another job available somewhere and somewhere down the road. And that that is that is okay. Now, granted that there's the noncompetes and the people that have to be in this area, that's a different conversation that's different for them if that I have to live in Atlanta, and I have to sign a non compete. They have a very different sort of stressors on them. But but that situation, I think is not as common as the folks that can be a little bit more flexible with with their geography.

 

Griffin Jones  57:37

We talked about learning the general field of business, the financial reports, the the operational workflow, learning how you've been right in the EMR. Easy step wise process for implementing some changes that you learned and then even a bit about the operational structure, we probably also could have explored your criteria for partnership because you're now a partner with Dr. Stormont in at fertility answers. We can save that for another episode. You can include that in your concluding thoughts if you'd like but how would you like to conclude?

 

Neil Chappell  58:18

Yeah, no, I think I think you you did a great job. And you've done a great job in talking about different practice models and how people buy in, I don't know that I can contribute anything to that. I'm happy with my practice partnership. Took some lessons from some stuff that you talked about. It took some lessons from some stuff that, you know, my dad taught me and that I just learned on the fly and, and to your point, talking to John neutral demystification. We said, well, we didn't didn't one that worked out well. And I've been happy been being an affiliate with Ovation I've been able to buy into the parent company. And that, to me is like a great way to leverage risk. If you know, my, if my numbers are lower in one quarter, because and less people are doing IVF in that month, I'm still doing well, by being invested in the other IVF centers around the country. I get to do research with the Ovation network, and we get to get really access to top quality embryology staff and some beautiful embryos. So I've been happy with my partnership on both fronts there. But like you said, you've done podcasts on all of that. So I don't want to belabor those points. I would say that the one other thing that I would say to the graduating Fellows is it does take a few years to build, what you want does not happen on day one. Even if even if you do want that day and a half to sit and do research, that shouldn't happen on day one. The day and a half for research, when you come out needs to be shaking hands meeting people learning the clinic workflow, learning the business, becoming becoming a contributing member of the to the partnership, you know, so a lot of folks say, oh, I want you know, look at their lifestyle, look at what they're doing, you know, look at look at how your partners live and see if that's how you want to do things. That's only kind of true because the the folks that work there been working there for years, I'm in my fifth year now. And so now I'm able to bring my kids to school come to work, see patients do surgery do IVF and then, you know, leave at a reasonable hour because I've spent the last four years developing a good clinical workflow with my nurses and having a good understanding with my administrative staff, and in grading on a really good mid level to help me integrate patients when I'm not here. And so like now I have a really balanced life. My first four years were not balanced, I worked harder in those four years than I did in you know, in a lot of a lot of residency, because it takes time to build so so you you can have the life you want visualize the life that you want, think about what's important to you and what you want to contribute to the to the place but understand your contribution is going to be equal to your say at the table. And understand those those differences in values are real and they have to be respected and just compromised on and then you got to put in the work to build the infrastructure to have what you want. And that's okay that but just understand that that's, that's gonna come it takes it takes a few extra years of hard work, but it's totally worth it because this is the best job on Earth.

 

Griffin Jones  1:01:10

I think your advice about paying off debt parallels that it takes time meaning so many physician after going through 15 years of higher education and training where you either totally racked up debt in undergrad and medical school or then made not much more money than a junior marketing person in for residency and fellowship. And now it's okay you're finally starting to realize some income potential and maybe you want that car you want that big house but there is something to be said for taking that time to pay off the debt and then the cars and the House and the the big vacations and the the other nice to haves can come a little bit later.

 

Neil Chappell  1:02:01

Yeah, and and Tom you built, be thoughtful about how you're building things. And if you will, in a short amount of time, it'll pay off and it flies by but it does it doesn't happen. It doesn't happen right when you start your clinic you have to put in the work to build the patient load to build the build the rapport with the referring Doc's and to understand your market and then and then from there, be intentional understand what you're bringing to the table and and then and then have a great life.

 

Griffin Jones  1:02:31

You've mentioned earlier in the show that now that you're four or five years out of fellowship that you hear less from people because you're your peers aren't in fellowship anymore. I hope that this episode plugs you back in and you representing the sophomore class the the those that have bought into partnership within the last year or two that had been out of fellowship about five years that have been underrepresented on inside reproductive health you're a really good person for those folks to reach out to and I can speak to your character and I hope that they do so if people want to reach out to Dr. Chappell please feel if you want an email me I'll happily make the connection and and I hope they do know they would be there would be wise to talk to you.

 

Neil Chappell  1:03:20

My cell phone is out there with most people so anybody can feel free to text or call me to I don't care. We could

 

Griffin Jones  1:03:26

Chappell thank you so much for coming on inside reproductive health.

 

Neil Chappell  1:03:30

Thanks for all you do, Griffin.

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health

Revisiting Maintaining Clinic Culture Amidst Continental Growth: Is It Possible? An Interview With Dr. Michael Levy

Deciding to expand your practice, either by acquisition or starting new, is an exciting time. But, adding new staff, physicians, and equity partners can come with a handful of problems. On this episode of Inside Reproductive Health, originally aired in 2019, Griffin Jones, CEO of Fertility Bridge, talks to Dr. Michael Levy, IVF Director and President of Shady Grove Fertility. Shady Grove Fertility is the largest independent fertility group in America. Griffin and Dr. Levy discuss the implication of having such a large staff base and just how they manage it, all while keeping the patient at the forefront of their culture.


Transcript



Dr. Michael Levy  00:00

They transform lives, but it works. And we have to help them through difficult journeys, but it doesn't work. And we need every one of those people to feel the support that we give them. And you know, we do really well about patient satisfaction surveys, but not unbelievably well. And I'm much more anxious about it now, given our size and our geographic diversity than I was with our staff meeting was 15 people in the entire practice.


Griffin Jones  00:32

My podcast manager, and my audio producers suggested something that the audience has been asking for, for some time, which is on to bring back episodes that were popular so that we can listen those again, maybe offer some new context and go back in the annals of it and find things that you can listen to now to see how they hold up the test of time. And so one that I went back to was episode 36. That's with Dr. Michael Levy. Most of you know him as one of the founding physicians of Shady Grove fertility. And put that episode two, your attention now, because a lot of change was shaved off fertility. When we recorded this episode, they were the largest practice group in the country of courses three years ago. But they did not have any private equity partner. They were not part of the network. They were almost a network in themselves, because they were so big. But since then, US fertility has come to be they're backed by amulet capital. So now there is private equity, behind shale boom, they're part of a network that includes other practice groups. And in this episode, Dr. Levy talks a lot about partnerships with younger physicians and attracting younger Doc's. Well, what's that like now, where the fellows were not being offered 500k signing bonuses three years ago, when we recorded this episode, and I've seen that now. And so how does that all stand the test of time at the time of this episode, the Shady Grove didn't have to necessarily, itself? And I'm not saying it does that. But I this is a question that I keep forgetting to ask. Yes. But when you belong, when you're so big of a group, and you're part of a network, what happens like she drove bought a practice in Houston, and one of us fertility or one of the other groups suggest fertility wanted to open a group in Houston. So I want you to listen to this interview and see what still holds up to you and see what you think is completely off from three years ago. And then if you want to share that with maybe an email that feel free to and I will, I'll get follow up with you, as I ask these types of questions. Look into them. But enjoy this episode about building a large fertility group with Dr. Michael Levy. I'm interested in this conversation, mainly because I want to go into the brain of someone who helped found the largest fertility group in America. And maybe I'll back up and give a little bit of context. Because I think while we assume that everybody knows about Shady Grove, there are a lot of people in this country and other parts of the world that are listening, that are just practicing medicine in their little practice that listen to this show. And they actually probably don't know a lot about it, because they don't often check out necessarily the other things that are happening with other people in the field. They're doing their thing. You're a group that started in Maryland, in the DC area, you now have close to 1000 employees. Is that right? Correct. Yep. And how many Rei is now


Dr. Michael Levy  04:16

stopped losing count, but I think 5858


Griffin Jones  04:19

Which is just an extraordinary number, considering that a group that had nine or 10 would be most folks would consider a big group and I'm very interested in how that starts. So you're one of you, you have to found this practice. A lot of people will start their own practice and have 10 people work with them and that's a good life and a good career for them. You've got a 58 physician group with almost 1000 employees now 950 When we spoke to Marian credit earlier in the show, did you set out to do that?


Dr. Michael Levy  05:00

Absolutely not. So my goal, career wise was to? Well, first of all, I had a mandate from my wife that I was staying in DC. So I wasn't able to look further afield. There were no jobs available in DC wanted to join Frank Chang who ultimately became one of the partners in our practice. But my goal, when I set up this practice was we had three or four physicians and that three or 400 cycles, I would have signed on the dotted line right there. So there was no grand roadmap or ambition created at all?


Griffin Jones  05:34

Well, it wasn't an accident, either. Because if it were an accident, everybody would have done it. How did it happen?


Dr. Michael Levy  05:41

So every quarter, I speak to our new hire orientation. And these days, that's about 25 or 30 people, which was bigger than type of stuff in 1991, when we started the IVF program, and I'll say the same thing to you that I say to them, we never had Grand Designs to be as large as we are, we focused on one core issue. And that led to a virtuous cycle, which I think allowed the practice to expand before, you'll know what that is. But before I articulated properly, Paddy style, who you probably know, who was, you know, Director of Marketing, or is our Director of Marketing, not the not the correct title, by the way, it's a bit, she has a better title than that. But she started at the very beginning with me, and about seven or eight years into the practice when we were about 10 physicians and growing rapidly. She was cornered at ASRM by a couple of physicians who said, Okay, Patti, you've been at Shady Grove for eight years, what's the secret sauce, and she said, you know, the, the absolute central tenant of the practice is always do the best thing for the patient. And immediately their eyes glazed over, they say, Stop bsabs, we want to know the secret sauce. She says they really she says always do the best thing for the patient. And I think we we've absolutely adhered to that. And that's allowed us to have patients feel very good and comfortable and refer their friends or physicians to know that that's the way in which patients are gonna get treated. And what I mean by that is, not only do we have to have very good success rates, we have to be incredibly transparent with patients, we have to have financial programs that are affordable. And that in turn attracts physicians who want to work in that environment, patients and staff who want to work in that environment, we have very low staff turnover. In 28 years, we've had one physician leave the group. And that was because she got divorced and wanted to work part time and live in California. No other physician has ever left the practice. And that I think speaks volumes to the environment. And we have a true partnership. We are 100% physician owned and we have 28 equity partners. And the model is everyone becomes a true equity partner. So everyone has skin in the game and feels engaged from day one.


Griffin Jones  08:06

I don't even know how to break this out from here with 20 equity partners. Maybe I'll come back to that, because I'm really interested on how you manage direction with 28 equity partners. So let's let's talk a little bit about doing the right thing for the patient. And I can see the physicians eyes glazing over when Patty gives them that answer. They are it tell us tell us what they're looking for one or two tactics, right, they're looking for something that's a specific process that they used are some very specific thing as opposed to seeing it as an attitude. And I wonder if that just speaks to? Well, there are hundreds of tactics right there, there can be 1000s, there are hundreds of different or dozens of processes. There's hundreds of key players. There's however many techniques, but they're all grounded in that one, in that that virtue of doing the right thing by the patient. I think we need to explore it a little bit more because to me, it just seems so subjective. And we were talking about this with I think I was talking about this on another podcast interview where I said it's very often like the local restaurant owner that says yeah, we've got the best service in town, but sometimes they just don't sometimes there's just a local a local restaurant that perceives that they've got the best service in the place across the street does. So as you're growing, that means you've got to measure things and now you have people in place like Marianne and Patti and some of whom started from the beginning. But when when you're measuring in the beginning, as Michael levy someone that's starting off with a handful of Doc's and now you're at nine doctors and you go invest, how are you measuring how you're How are you keeping the pulse of how you're serving the patient have a


Dr. Michael Levy  09:58

formal basis we serve it have the patience on a regular basis, and we get constant feedback. And we're never satisfied, which is good and your work life not good in your personal life. So, you know, we constantly pushing each other and ourselves. And, you know, any negative feedback freaks us out. And we look carefully at, you know what the root cause was, and welcome that. I think most importantly, we've attracted staff and retain staff who get that. And we, we were never good at letting anyone go, which was an early problem with Maryann and a more professional HR team. Occasionally, occasionally, someone doesn't fit in, and we will let them go. But I think that everyone is a role model for everyone else. So from the front desk to the new patient call center, which was a modification we made about seven or eight years ago, in typical doctor's offices, you got someone at the front desk, checking you in checking you out, answering the phone and make a new patient appointment. So when a patient calls our practice, we now have a call center. You know, in our office, very well trained individuals who know a lot about infertility, we give them a completely different experience with that first phone call. And we look at the whole patient journey, and make sure that it's going well, you know, there's some large practices, you don't give monitoring appointments at SEC first, come first. So you can wait an hour or two for your appointment, you know, we're upset if a patient's not in and out of the office in 20 minutes for their monitoring visit, we'll bend over backwards, because everyone knows I had a patient last week, who with the floods in in the Washington area, came in two hours late for appointments, I mean, really shut monitoring that at a relatively new front desk person was telling her well, you know, there's no one there, we can't do your monitoring. And she came to me expecting I was gonna say, yeah, she's out of lack, it's two hours late. And she's, you know, very frustrated, you know, understood that she was two hours late, but she showed me a video of a basement flooding. And we turned the machines back on, and we got staff there within a monitoring visit. And there was no question that that's what we would do. And I'm sure many, many practices would do that. But we also modeling that for the staff. So that person on the front desk knows that, you know, next time, this should be no question, you know, we're going to accommodate, you know, a difficult situation for a patient. So, I think you create a norm, and when people come and visit our practice, almost across the board, what I hear is, what do you put in the water? You know, everyone seems happy, everyone seems into it. You know, we remind our staff that we we started lackey to work in this field, you know, unbelievably motivated patients, we transform lives, whether it works, or we have to help them through difficult journey, but it doesn't work. And we need every one of those people to feel the support that we give them. And you know, we do really well about patient satisfaction surveys, but but not unbelievably well. And I'm much more anxious about it now, given our size and our geographic diversity than I was with our staff meeting was 15 people in the entire practice.


Griffin Jones  13:12

And love that you just said that every year you're coming from a practice group that is doing very well just in terms of what the practice is doing. And when it comes to, when you're talking about patient satisfaction survey like that we're doing well, we're not doing that great in terms of what I would want us to be doing. I think that is pretty telling, I often hear people think, Oh, we've got the best patient satisfaction, whether they're looking at any surveys or not. And I just I often think about a lot of different groups, I just think you're not hungry enough for me, you're not you're not paranoid enough for me that somebody else could be serving the patient better. And I tried to run my businesses the same way every single thing was like yeah, we could be doing that better. This is pretty good. We we've had a lot of success with this but I'd still like to be doing this much or have the client this happy instead of this happy and I think that's a really important attitude. I also think the example that you gave about a woman comes in she's two hours late she shows you the video on her phone or her basement flooding you make the call to turn the machines back on and get her in that particular example I think is some version of that is one that I hear small practices tell a lot about the advantages of a small practice that that large groups don't or can't do. So and here you are bringing up that particular example for you. How do you though I mean is it you Michael levy that can make that call? I mean, are there cuz an associate doc make a call like that? How do you you know, when it's when it's your practice, and it's So eight people on your staff, it's pretty easy to say, Okay, this is my bottom line, my top line, I can make a call if I'm going to help somebody out. Once you got 58 doctors, and 950 employees, it's a lot harder to make these sort of judgment calls. So you can make it in your practice, but can other folks in how do you maintain that if you can.


Dr. Michael Levy  15:21

So that's an important point. And one of the things I say to all the new physicians and all the new stuff, is, we want fresh eyes to see situations and make it better, and empower people to I'd be really disappointed if a soul should have been with us for one week didn't make that same call. And I would, you know, I'm pretty easygoing, and I never want to make anyone feel bad about anything. But I would sit someone down, and I'd expect any physician in the practice to sit someone down and say, you know, accommodate the patient, you know, that's the culture, we had a physician join us as a senior partner that in his first couple, and he'd been in practice elsewhere. And in his first couple of weeks, he then embryo transfer. And there was some communication issue between him and the embryologist. And he was frustrated with it. And he walked into the lab, and he started yelling at the embryologist and everyone like looked around and cracked up. Like, where the hell do you think you are? You know, that is not what happens at SGF. You know, if there's an issue, you're come and discuss it, and we'll explore it, we'll make sure it doesn't happen again, that type of hierarchy, that type of, you know, bad behavior just doesn't exist. And what was great for me was, it's organic to the practice of this point. So it's not that, you know, we're not of a very hierarchical organization at all. And everyone who's been here a while, gets the culture and buys into it and reinforces it. So you know, it's, it's not just, I could make that call, or half a dozen physicians who've been here for 20 years could make that call, we would we empower people, the physicians know more about the business realities of this practice. Within a week of joining us, then many physicians that have worked so well for 10 years, and they've got a, you know, senior partner who's keeping everything close to the chest. So transparency and empowerment are at the core of our model.


Griffin Jones  17:19

That's part of the culture and you say it's organic. But as you start to grow partly by acquisition, and you talked about that 50 positions, we had one lead and that whole time one for personal reasons. I imagine that doesn't mean doctors have practices that you've acquired, but as you as you start to acquire practices in other areas, how do you make sure that it fits with that organic culture, because you've grown it from the beginning, you're in the offices in the DC area, you and the founding members now, in once you start to get to other states, you're further away from that base, and you might be hired, you might be buying practices of people that have no problem, dog cussing their embryologist in front of the rest of the staff? How do you part ways with them? If that's the case? Or get them on board? How do you decide what's the root there?


Dr. Michael Levy  18:18

So I think it first goes along with who you partner with so many of the physicians who have joined us or we've hired, we just know they're a good fit. And they get the right combination of clinical skills, personal commitment, entrepreneurial instincts, and we want them on the best. And when we looking at a practice to acquire, that is probably the most important issue. Well, these doctors fit in with the culture, it could be a great business opportunity on paper. But if on a personal level, you've got a very egotistical physician who is never going to let go. That's a non starter for them and for us, because, you know, but at the same time, we don't straightjacket and the personality of our Tampa office and Richmond office in Philadelphia will be different to rock for that there's enough commonality. And we so one of the other critical issues we have is we meet on a regular basis. So three out of four Monday nights, we have physician meetings, we have a clinical meeting, we have a journal club, we have a business meeting, everything is discussed. And as I said, it's important that transparency, so that helps build the culture. And one of the things we had a very difficult situation. A week ago we had to deal with and a senior partner in Richmond and a senior partner in Atlanta, both spoke up in such a moving way to say we get the culture we get how this needs to be handled, and were fully on board. And that may not have been the case and I think it's a combination of we had the right people who we merged with and acquired and they got the culture in wreck. implies that the greater good is served by all of us reinforcing it. So so we're not competing with each other. You know, our compensation formula is a very well balanced and fair, largely rewarding productivity, you know, not seniority, not equity. In fact, the opposite is the case, you have to sell your equity and 65, we did not want to have top heavy situation where you've got, you know, a 70 year old physician working part time and trying to take the lion's share of the income, you know, you're phasing out at 65.


Griffin Jones  20:32

All the 20 equity holding physicians all come to those meetings. So they all go to the business meeting, via video conference or whatever means.


20:42

So not only that, but all 58 physicians come to the business meetings,


Dr. Michael Levy  20:47

every Monday are average to me every business Monday, which is what I said now, we probably them to two out of four Mondays a month we have a meeting, because that's become unwieldly with 58. So now we have an elected board, and no one has tenure on that board. So anyone can get voted off every two years. So we have seven physicians on a board that that meets every Monday afternoon with our executive team. We have a shareholder group of with everyone with equity, which is 28 physicians. And that's a quarterly meeting. And then a business meeting. I think we have one or two a quarter all physicians associated physicians know our revenue. Now our profit, though I expenses in detail from day one. And, you know, we've always held that transparency as a key to the culture.


Griffin Jones  21:37

There's a reason why Dr. Lee talked about EngagedMD In this episode. This was long before EngagedMD was a sponsor, Dr. Levy helped found EngagedMD and they because he saw the need for news willing to help in enrollments in the biggest program in the country. And since then, their market share has only exploded the Devon almost half the centers in North America using EngagedMD, why did Dr. Levy? And it why did he end up becoming a sponsor? Why have they expanded their market share so much? It's because it's a technological solution, where we have long been aching for one to have our nurses not have to do the type of pre education of pretreatment education that can be done in a module that is much better suited for the patient so that nursing time provider time is personalized to the patient so that the patient can do it on their own time, enjoy their experience more, go back and learn again come in with a much better foundation so that informed consents aren't being lost or taking time to make sure that they're each in the right file and then moved from one location to another. They're all in one place with a much greater informed consent to because it's tied to a module that you can show people watch all of these things, and they engaged in the what it is. And that progress has been amazing in the last few years. And if you're one of the few people that hasn't taken advantage of that, in that time, you can get going new engaged.com/grif. And you have to do the slash grif. And you have to tell them you saw them on inside reproductive health you don't, but it will get you a free assessment of your workflow, which is really good to do right now. And also just create more content for the show. So we're gonna engage them the slash Griffin, and enjoy the rest of this conversation with Dr. Levy. Dr. Levy seen from RSC and back on the show as well. And he talked about how those his partners and the physicians that his group meet, and they meet each Mondays and one one day a month they talk about business with his shape position, that's a lot harder. So I see the importance of having a group but I can't stress the importance of reserving time for all of the partner Doc's to talk about business, not just oh, let's let's pick a time here, and we'll get to it, but then so and so's on vacation, something happens with so and so and then someone else is covering their patients. And those meetings that are supposed to happen every two weeks happen every six weeks, or every two and a half months, and so on. And that time of reserving the attention and focus for everybody to meet and talk about the practices of business, I don't think can be understated. And to me it often seems that the smaller the group, sometimes very often, the less likely that is to happen. One of the things that we do as a company when we start working with someone is we need to make sure that they have Time, focus and attention to be a part of whatever engagement that we go through with them, which is why we start off at a very small little level. And when people sort of can't get into that little level, they want to, they want to jump forward and say, Well, can you just put together some service package for us? I say, I am not going to put together anything that is destined for failure. And if there isn't the ability of the leadership to say, Okay, this is important, then there isn't the ability of the subordinates underneath them to say, this is what we need to be working on. Because we know it's important because the leadership is, is meeting on it frequently. How do you decide who gets on that? Board? You said, it's not tenured? So people can sometimes people leave you said it's 65 people start to phase out is the board sort of a volunteer, we work with some bigger practices that they have like a marketing committee and some of the partners and they might have a finance committee and other types of, of committees, but how do you decide who sits on the board?


Dr. Michael Levy  26:08

So it's a mix about all the shareholders. So we have an election every two years,


Griffin Jones  26:15

we tried to 28 physicians. So it right now, it's different, because your group that is entirely physician known, one of the concerns that a lot of people have is about the consolidation that's happening in our field from for from groups that are backed by private equity firms. And it would certainly be easier to become the largest fertility group in the country, if one had private equity, that things can move really fast or venture capital, for that matter. You haven't yet. So I'm assuming that means that there's some concern, but that's an assumption, do you share the concerns about what's happening with consolidation? And if so, what are


Dr. Michael Levy  27:07

so many facets to that I was going to disagree with you that it would happen, you could become the largest group more quickly, if you have private equity, I'd say the opposite is true. Because I think you get distracted by your quarterly performance. And you have pressures that don't allow you to be as strategic, especially if they've got a short term exit plan. And they're trying to micromanage without the clinical insight and experience needed, you know, they may be very well trained business people, but it's, you know, we're not widgets. And I think that to a certain degree, private equity is discounted, you know, the importance of individual physicians, and how much of an impact that has on the practice that they are appropriately motivated, you know, we've probably get two calls a week for private equity groups wanting to get into the space. And we've resisted that, at a certain point, we're going to have capital needs that we're going to have to address, but we've managed to finance it internally and with, you know, into, you know, and with bank funding, and it is tempting, to be honest, but I think that our structure is such that it precludes all the physicians wanting to exit and get a nice multiple for private equity. Because if you're 35 years old, and a new partner, you know, you're not as excited about private equity as if you're 60 years old. I happen to be 60 years old, but like, my primary responsibility is to the practice and to the 35 year old doctors in our group, and I'd be averted, which is good. So I think looking long term is is important for future growth, and private equity doesn't look as long term. And, you know, we recognize that there probably four or five networks in the country, most of which are private equity backed at this point, and they are good competitors. But when I started in practice, 28 years ago, a really lovely colleague in the area said to me, you know, I'm sorry, you weren't able to join us because there was no space, but it's a big space. And there are lots of patients, and we'll all do well. And that was true, then, and it's true. Now. I think the market is underserved. I think we're too expensive. I think there are patients who don't have access to care who should be accessing care, and if we find ways to accommodate them, the whole pie grows, and we will do well.


Griffin Jones  29:24

Not. This could be an entirely different topic, but maybe it's worth it's worth bringing up because I completely agree that the market is underserved. We yet that I talk a lot on the show about the interior of the country, especially because I think we're seeing in even more disparity, a lot of the younger areas are moving to the DC, Boston, New York, Los Angeles, San Francisco, and very often the only doctors moving to the smaller markets are those that are from there. They grew up there and they just want to be by their family. Those practices are having a much harder time. and recruiting folks. And I think that ultimately limits the number of people that they can serve in those areas as well. And this might be a little bit of a side topic, but you did talk about were too expensive. I had Rob kilts on the show to talk about that particular topic. And I could probably have more guests just to talk about that. Why are we so expensive when so much of what we do is a cash pay the criticism of, of health care and why health care is cost increase, while most consumer technology cost goes down, is that it's because you have the government or an insurance who's not really insurance, because so much of their liability is mitigated by the government or someone else inflating the costs in our field, the majority of it is self pay, at least for IVF. And so why are we still so expensive,


Dr. Michael Levy  31:00

you touching on a topic that I'm very passionate about, and have always looked at ways to ensure better access to care. And if you look at our field, the the rate of inflation in IVF, is much, much lower than in other fields of medicine. One of the facts I'm most proud of is when we started the shade rose program in 1992. Our package was $19,000, led up to six cycles, full refund of it on every baby, we just modified our shaders program into three tiers. And for patients under the age of 35, we reduced the price from $21,000 to 90,000. To 28 years later, it's the same cost. That's that's the opposite of what's happened in medicine. And by the way, as you obviously figure out immediately, we do much better because our success rate is double. So you know that's so as technology improved as it does in other areas, you should become more cost effective. I think the fact that there's such huge barriers to entry allows practices to charge more, which is problematic, you know, costs do go up in general. So our margins are lower now than they were 10 years ago, our pricing has not kept pace. I'm also very frustrated at the cost of medication. I think this is a problem across the board in medicine, at the cost of gonadotropin to have more than doubled in the last 20 years. And certainly the cost of an IVF cycle has not come close to that. So whereas early on, it was about 20% of the cost of an IVF cycle now can be 50% of the cost of an IVF cycle, especially when the prices are going to bash pharma a little bit here with this opportunity. But especially when you look in Europe, where the cost of gonadotropin is a fraction of what our patients pay here, that's very problematic. So I think our whole health care system is messed up. I do believe and I'm not. I guess it's ironic, given my career, but I'm not that much of a capitalist at heart. But I do do believe in transparency and price compensation. And I think the fact that it's a self pay market has kept prices down. If you look at the cost of a knee replacement 28 years ago, versus IVF. And you're looking at now, it's exponentially higher with the rate of inflation with the knee replacement. patients aren't looking closely, you know, I could go on and on about this topic, I'd love to talk to you about it again, I became very interested in it. In our practice, our health insurance is our biggest expense after occupancy. And we're now exploring becoming self insured, because we want to control costs better. And I think medicine has failed dismally at controlling costs. And I do think if you look at the rate of inflation, in fertility, it's much much lower than medicine as a whole.


Griffin Jones  33:55

I think that we definitely could have you back on about that. But it does explain why you got into some of these other ventures and I want to talk about how one gets into those because I think a lot of especially principles of fertility groups have the opportunity to maybe be a co founder of a of a new software a new EMR a new maybe a new workflow, where or or have the opportunity to get involved in physician owned pharmacies or a number of different side ventures sit on an advisory board for some large tech startup or existing farm company. One of the things you started with this passion that you talked about you started the share price financial program, then you also helped co found donor egg bank and I think you're involved with my friends at EngagedMD How do you make those decisions to you've got your your your main focus, which is presumably the practice group, and then there are different than Churches and there could be 1000. As the field needs technology and meets all of these new opportunities, how do you decide which ones are a good fit? What advice would you give for principals that are thinking about maybe getting involved in some sort of venture that is ancillary to their practice, I think we


Dr. Michael Levy  35:18

always do better in an area that we know well. So you know, for me to say I think I'm going to invent some kind of, you know, it opportunity unrelated to infertility would be completely crazy. And that is almost certain to fail. But I think if we have an entrepreneurial instincts, and we see areas within our field that open up new opportunities, I think the egg bank exemplifies that, and we pursue it with a vigorous focus will be successful. So when the new technology for egg freezing was developed about 10 years ago, I think that it opened up a big opportunity with egg donation, where typically one egg donor was matched with one recipient, and it was extremely expensive. So egg banking allowed one to decrease the cost by less than half of what it used to be. And there was, was we were early adopters of it and started the egg bank in partnership with a number of other groups.


Griffin Jones  36:19

And maybe a good place to conclude is with the model that you talked about, because you made a really great point, which is when you're 35, the private equity offer isn't so excited when you're 60. The private equity offers a lot more exciting because the buyout is essentially one's golden parachute retirement. And I have made this argument on the show very often that I think no small part of the reason why a lot of retiring physicians or doctors that are within five years of retirement are taking this exit because they don't have another exit because they don't have a doctor that wants to take over their practice. Or if they do, there's trapped equity that the incoming doctor can't afford what the practices were. And even if they can they're the expectations aren't set. Well. We've talked about that with Holly I just said on the show of why associated Doc's would leave after two or three years before ever becoming a partner and why that happens fairly frequently. So if her the I think maybe the five to seven Doctor groups, because there's still a decent number of those, and they haven't sold equity yet, but they're probably around that age where they're really thinking about it. Does the Shady Grove model work for someone that sized where you're getting people in, they're meant to be on a partnership track. And then the older Doc's are meant to phase out, or is it too late if the doctors are at certain age or a certain career?


Dr. Michael Levy  37:53

So so we refer to our Constitution as a critical components of our practice. And that's all embedded in our Constitution. And I don't think it's too late. For any practice. I think that you absolutely correct that if the only avenue for excellence in significant ways private equity, and you don't have younger physicians who are going to purchase your equity in the practice, you're in trouble. So we have a very clearly defined internal, multiple and excellent we've had three physicians, or more probably at this point. So when I started the IVF program, I joined us a Gascon and Bob Stallman have been our fellowship director, GW, he joined us five years later, both Alice and Bob have now sold the equity in the practice. And that was very orderly, the younger physicians bought the equity. If they can, and it's a win win, they got a good, you know, valuation, and the younger physicians, you know, got a good deal being able to acquire that equity. So, I think ensuring that that is in place at the earliest stage is a good idea.


Griffin Jones  39:03

Can doctors do that, like in owner financed home, I buy the home from the older couple who's going into the nursing home, we don't get the banks involved, we we draft a contract that maybe I put down a down payment, and I owed them directly as though I'm paying them the mortgage and not the bank. Can it happen that way? Or does it have does do younger position typically have to get a loan in order to be able to buy that equity.


Dr. Michael Levy  39:29

So the way we structure that when physicians buy into the practice is we do the practice guarantees a bank club for the CIO, and it's a significant amount but the return on that and they own that equity day one and the return of the profit pool that is returned according to equity pays more than pays for them right away. So we will ensure that they will do better from day one as a as an equity partner. They'll also purchase them there'll be It's a you know, everyone can get about the same amount of equity in the practice. But someone who's got less productivity would not be able to afford to buy the maximum amount of equity that they could, because it would be too expensive. But I think it could be financed internally, by the practice, I don't think that you have to involve a bank to do it effectively. But I really do think that it's when we interviewing, it's interesting, you know, that I think the incorrect stereotype apply to millennial physicians or graduating physician fellowship is they want to check in and out, they want to get a nice salary, they're not interested in the business side. And they're not that focused on the long term partnership track. Now, I think many of those probably exist. And those are the ones will attract most of the physicians who come to us from word of mouth, know that they are going to have the opportunity to be true partners, it is important to them, they have to be productive and fit in with the culture in order to achieve that opportunity. But I think we have in a in an era in which there are fewer fillers graduating than there are positions. So So most veterans get multiple offers. We have almost our pick of the finish of graduates who not going into research who want to be in clinical practice, because of that model that I


Griffin Jones  41:21

think that that point of there are still so many entrepreneurial RBIs coming out of fellowship. So many of the some of the millennial areas that I know, some of whom are still in fellowship are among the most entrepreneurial that I know with their involvement in Silicon Valley with their following funds and Wall Street, they are really dialed in. I think from a recruitment standpoint, why it sometimes appears that way is because these minor positions are going to show you go there some often times not going other places because you have a structure for them. A lot of times there isn't a structure in place. And the ambiguity that was that suffice 25 years ago doesn't suffice anymore, they need to go to a place that has a human resources department that that's active on social media that isn't using paper charts that is forward thinking because I think very I make the analogy. Very often that it's like buying the the old house, but the work needed on the house is so much more than just the the Biden and especially if there's going to be someone in place that's fighting you on the changes that you need to make before they retire if they ever retire. And I think that that you all have that structure in place, it seems so definitely I'll give you the final thought what would you want to conclude on? I like that you counter my point that it would be easier to use private equity to build the largest practice group in the country, you counter it because you've actually done it so clear, because evidence that it's true, you said that you didn't set out to do that. But for someone who wants to grow or sustain their practice, for your general view of the field, how


Dr. Michael Levy  43:08

would you want to, you know, one area that you had a question or which we didn't touch on, which I'll finish with is like one of the other really key decisions we made early on is that physicians need to be fully engaged, but they should not be the business leader of the practice. So we have a really superb executive team, led by Mark Segal is our CEO. And I think Mark had the vision and ambition to grow as big as we did. And we went along with him and supported that. So we have the right balance between not trying to micromanage. I do see physicians fall into the trap of we know a lot about a little so we assume we can know a lot about everything. And, you know, that's risky. So we have, you know, as you said, great HR, great marketing, you know, administration accounting, you know, and we don't micromanage that group at all the board meets every week with that team, do we know what's going on, and we involve the important decisions, but finding the right balance is critical for the right foundation for the practice. I spent 80% of my time practicing typical medicine, I still enjoy it the most, which is why I keep doing what I'm doing, and certainly want to be involved, as do all our physicians. And lastly, I love the fact that you said that you familiar with a lot of entrepreneurial young fellows and reproductive endocrinologist and send them our way, but I wouldn't want that to be the primary driver. The right physician in our practice is going to do what's right for the patient every time. My favorite patients are those with sexual dysfunction. We send them home with a 10 cent five cc syringe and tell them to inseminate themselves at home, and they don't need us for anything. And we make because we're doing right by them. It's the most cost effective treatment. And, you know, if everyone knows that That's what we get to do. The practice is strong before because they're going to send their friends or staffs gonna know that's what's required. And they're going to act like that in every situation. And of course, I love the patient way too complicated situation. And we need to use all the bells and whistles of technique, bells and whistles of the top technology to get a good result. But we've got to tailor to the patient. So do right by the patient but be entrepreneurial and successful follow


Griffin Jones  45:27

Dr. Michael Levy, thank you very much for coming on inside reproductive health.


45:32

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





Griffin Jones  00:04

You don't have to make less money. In a recession, you do not have to, you don't have to provide less care, you don't have to lay people off, don't have to have everything blown to smithereens, it doesn't have to happen in a recession very often it does. I for one did very well, in the last recession, who worked really hard, I was younger, that helped. But in a sense, that helped me to rise, because I saw other people phrase like deer in headlights, and I focused on trying to create value and just doing whatever I possibly could, there's a couple of pieces of value that you can shore up, that will help you to do better. And it's knowing where your patients are coming from investing in those sources, and not investing in other sources has to do with attribution, I have a very strong opinion. On attribution, I've had people come work for my firm that have had opinions on attribution. And they're not nearly as thought out as this point of view, because there isn't a perfect way to do it. And I've tested lots of different ways of doing attribution, I'm gonna give you some ways that work. But the first rule of attribution knowing where your patients come from, is stop looking for the perfect source of attribution, it doesn't exist. So sick of hearing that these these while this type of patient that comes from paid search, they're better or, or they don't convert, or they do convert, it doesn't work like that it can work that more patients that are more qualified for treatment sooner come from certain channels, but it isn't that there's one channel, that means other qualified patients, one channel that brings in pages that are qualified to go into treatment, one channel, that doesn't work at all, that's not how it works. This is 2022, God to be 2023. Maybe when you hear this episode, I don't know, there isn't three channels on the television is not one newspaper, and a handful of radio stations are market, there's infinite number of ways that people can come to hear about you. And they can even just be siloed to media, because if I see something on Instagram, or Facebook, is it because I was in that Facebook or Instagrams, that ad reach for was it because a friend of mine communicated to me through Instagram or Facebook and was word of mouth, these channels are not perfectly siloed. So don't expect them to be perfectly siloed. And also don't expect them to just be perfect, because until we have 1984 style, whatever he does, or whatever dystopian show, you're watching on Netflix right now where you can put in your wig in somebody's brain, and map all of the ways they came to make a decision. Perfect attribution doesn't exist. And in our field, even now, it's hard to make excellent because there is no CRM, that's a customer relationship management, software, HubSpot, a Salesforce that most of you don't have, and those of you that do have it using a very cursory level, because none of them perfectly communicate with your EMR, most of them don't at all, and most your EMRs are not set up to be able to track this kind of flow. So we're getting rid of the fact that, that we can't have perfect attribution, that it doesn't exist. That doesn't mean that we shouldn't get the best information that we can have, and use it to make decisions make decisions. We're looking for directional attribution, not perfect attribution. So how do we get directional attribution after you train the same triangle and the three, but you can subdivide a couple of these into four, the first thing that we have to be doing is tracking volume to marketers should be tracking volumes did an article I updated a year or two ago called shut fire my practices marketing director, that's still a good article, because it's about all of the different roles within marketing teams. And so you might say you have a marketing person, that doesn't mean anything, look up what role that is, and what outcomes they're actually responsible for, but at the tippy top, that somebody has to be responsible for volunteers. When marketers don't achieve an outcome. It's because there are lots of variables for that outcome one, and they either don't have the capacity with the autonomy to achieve to be able to work on all of the variables that improve that outcome. So you can't call the paid search person to new patients in the door. or, because all they all paid search person can do is get you more leads from paid search can't pull the brand new person to more new patients because all branding person can do in and of themselves is make good messaging and nice design. And so it all has to come together if you're going to be achieving the outcomes, that's whoever is in charge of that you're holding that accountable to, they got to have that number front and center number of new patients in the door number of IVF, cycles, retrievals, then whatever other procedures that you're trying to increase, but especially as we start to go into a recession, depending on how bad this thing is, the more you have to be able to do that. So the first thing is having the persons responsible for monitoring those outcomes. And the second point of the triangulation is the digital attribution. This can come from multiple sources and very often dies. But one of the one of the main ones, this is what I mean by you can even sub split the triangulation, but where you sub split, the digital attribution is Google Analytics. Everything that's important has to be accounted for in Google Analytics, in your form fills your request appointment submissions, if those things are different. For example, if you have a request an egg freezing appointment, that's that counts as a lead. That's a goal that has to be measured in Google Analytics that comes from a thank you page on your website, it's got to be in Google Analytics, if you have a different request appointment for anything that is about becoming a patient needs to have a page. So that can be a goal that's in Google Analytics. And last I checked, you can have like 15 goals and Google Analytics. One of them has to be phone calls, to need dynamic number insertion, and your website and the ads that you run, because you have to have, you have to know how many calls you're driving that and your marketers have to be able to know that because they have to be able to make decisions based on us, especially if we're heading for a recession, you gotta be driving towards these things, not just eyeballs not just clicks. And then from there, you can quit, especially when you're using dynamic number insertion, you can use that to actually measure the calls and the number of calls that that fall off and what you can do to do that, but I'm starting to veer off on sticking with attribution right now. But that takes you to the point of attribution, where you can see, okay, this is this is where leads are coming from. And then you can assess quality of leads after that and quality of process. Also, within your visual attribution is any place that you're running ads in, in that native in that native ads platform. And that ads platform that Google ads are running ads on Facebook and Instagram, Facebook ads, in those platforms, you're going to have some different points of attribution that need to be reconciled with Moulinex. They don't, they don't always go perfectly. Yeah, that you think is frustrating for you try doing it for a living. But Google, for example, will sometimes optimize for goals that you don't want or that you want less of sometimes you want to use the artificial intelligence and go bid right below what they're recommending. So it makes the AI work harder, sometimes Google will be lazy, and they'll just try to automatically get you into more clicks or their geographic targeting is broader than you would then what you're actually intending to do, because they want to just get the spend up. So those need to be accounted for in those digital platforms. And the third sub point of the the second Digital Point of attribution is your CRM. So upset does not perfectly talk with Google ads, or Google Analytics for that matter. But you can get a lot more information from BRM by using CRM, and at least don't have didn't did these people and then import the leads from your ads platforms into CRM, you won't get all of them. But did of the people that we have how many of them convert to treatments that you can use or how many of them at least made an appointment so that you can use some of that as part of your digital marketing as you start to build campaigns and and optimize more you can see how well this works. So we have volumes IVF volumes by month. New patients by month and then any sunbird eight Using patients, any third party patients, if that's what you're in marketing for, then digital, Google Analytics, the ads platforms themselves, your CRM. Finally one of the third point, triangulation, which is self reporting, it's still important, it still makes sense. Their self reporting in and of itself is not reliable. People will say sources that you don't even advertise on or they will totally, maybe they'll just do the last thing that they can think of. But it wasn't the most effective, it's incomplete. But triangulated with the other two points of attribution, it's very useful, and you can make it more reliable in and of itself is that we do? Every question needs to be binary, yes or no? If you're advertising the ton, the traditional radio or TV or whatever, need to ask people, did you see us? On TV? Yes or no? Did you? Did you hear a radio commercial? Yesterday? You least need to know? Are they perceiving it in someone? Did you see us on social media? Yes or No? Were you referred to a friend? Were you referred to us by a friend? Yes or No? Were you referred to us by a doctor? Yes or no? So these are binary questions has to be yes or no, you have to calculate the acids, you have to calculate the numbers, you do at least be able to see, is this particular channel, registering with them? In some way? And if it's not, then you get rid of it. The final question is not binary. It's a drop down of all of these ways. What was the most influential in your choice to selecting our practice? And then it's just all the the what had been questions are now your options. So social media, referred by that groups, or by friends, etc. Those two pieces of information help to balance each other out. So you can see, okay, are these things even registering with people is, is this making an impact and have all of these things what seems to be making the most impact because when you balance those two stories together, you'll see different stories 60% of patients, fertility patients, our patients are referred to their AI by a doctor. But only 21% of total patients say that being referred to their Rei by a doctor was the most influential factor in choosing their their doctor location is number three areas number two, at 20%, referred by a friend is 90%. So I will often see this with digital marketers is that pesos is a marker sit at all time paid social work, paid social doesn't work. It's all about paid search. Gotta do higher intent, keyword search. That's what that's what's driving traffic. See, you look at the Google Analytics, you can see it, yes. Who you can't see is all of the things that people are saying to each other because they saw it on their social media, we didn't have that 20 years ago, we didn't have people telling their friends that they went through fertility quest more than they saw specialists at their throat. And when I first got into the field, do nothing but organic social media, because I didn't have any of the background do this other stuff or any money to hire other people that did this other stuff. I got results for people using organic social media, because it was just the word of mouth friend referral. And that's the number three influential reason why somebody chooses to practice it's 90% of fertility patients that have the most influential factor. A lot of that's coming from social media. So you got to put all of these things together. To make the story clear, and you're not doing this in the EMR. EMR is not the place to report attribution doesn't belong in some of these charts. It's not one question such as one question that happens at the at the phone call, because it's got to be done in this way. Prior to COVID. Now, a lot of you are still doing just telemedicine for for new visits or for many of you are doing a hybrid choice. We used to just have clients buy a tablet, put Survey Monkey on the tablet, and we just make the client do it for every single patient that work the best. Since COVID, it gets trickier you have to be you just have to be more on top of that. If you're doing this type of new patient attribution for for new patients, but you can require that when they when the rest of their forms are due. But it is more operationally intensive. So doing these three things, properly tracking volumes against digital attribution coming from Google Analytics, the ads platforms themselves and CRM if you had one against self reporting, that is multi question binary and then final question, non binary, that is not done in an app, not multiple choice, I should say for that last one. It is not done in your EMR. Doing all of these things is going to give you the best information that you need to see where your patients are coming from. So you can invest more indoors those sources so that you spend less money during our session, and that the money that you are investing, you keep investing in because it's the one bring people in, it's not an expense, it's an investment. You need that information all the time, but you can't get away without in a really bad recession. Hope this is really useful to you, and I hope you are able to implement soon if you need some help with it. Just email me Griffin that fertility bridge.com

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


159 Attribution: Discovering Where Your Patients Are Actually Coming From

This week, Griffin unleashes the secrets of client attribution in a Marketing Secrets Short episode. Tune in to understand how you can avoid making less money in a recession with proper attribution tracking on the latest episode of Inside Reproductive Health with Griffin Jones.

Tune In To Hear:

  • What you need to STOP looking for when it comes to attribution tracking.

  • How to get directional attribution through Grif’s secret method of triangulation.

  • Which metrics you can forget about, and which you should be looking at closer.


Transcript




Griffin Jones  00:04

You don't have to make less money. In a recession, you do not have to, you don't have to provide less care, you don't have to lay people off, don't have to have everything blown to smithereens, it doesn't have to happen in a recession very often it does. I for one did very well, in the last recession, who worked really hard, I was younger, that helped. But in a sense, that helped me to rise, because I saw other people phrase like deer in headlights, and I focused on trying to create value and just doing whatever I possibly could, there's a couple of pieces of value that you can shore up, that will help you to do better. And it's knowing where your patients are coming from investing in those sources, and not investing in other sources has to do with attribution, I have a very strong opinion. On attribution, I've had people come work for my firm that have had opinions on attribution. And they're not nearly as thought out as this point of view, because there isn't a perfect way to do it. And I've tested lots of different ways of doing attribution, I'm gonna give you some ways that work. But the first rule of attribution knowing where your patients come from, is stop looking for the perfect source of attribution, it doesn't exist. So sick of hearing that these these while this type of patient that comes from paid search, they're better or, or they don't convert, or they do convert, it doesn't work like that it can work that more patients that are more qualified for treatment sooner come from certain channels, but it isn't that there's one channel, that means other qualified patients, one channel that brings in pages that are qualified to go into treatment, one channel, that doesn't work at all, that's not how it works. This is 2022, God to be 2023. Maybe when you hear this episode, I don't know, there isn't three channels on the television is not one newspaper, and a handful of radio stations are market, there's infinite number of ways that people can come to hear about you. And they can even just be siloed to media, because if I see something on Instagram, or Facebook, is it because I was in that Facebook or Instagrams, that ad reach for was it because a friend of mine communicated to me through Instagram or Facebook and was word of mouth, these channels are not perfectly siloed. So don't expect them to be perfectly siloed. And also don't expect them to just be perfect, because until we have 1984 style, whatever he does, or whatever dystopian show, you're watching on Netflix right now where you can put in your wig in somebody's brain, and map all of the ways they came to make a decision. Perfect attribution doesn't exist. And in our field, even now, it's hard to make excellent because there is no CRM, that's a customer relationship management, software, HubSpot, a Salesforce that most of you don't have, and those of you that do have it using a very cursory level, because none of them perfectly communicate with your EMR, most of them don't at all, and most your EMRs are not set up to be able to track this kind of flow. So we're getting rid of the fact that, that we can't have perfect attribution, that it doesn't exist. That doesn't mean that we shouldn't get the best information that we can have, and use it to make decisions make decisions. We're looking for directional attribution, not perfect attribution. So how do we get directional attribution after you train the same triangle and the three, but you can subdivide a couple of these into four, the first thing that we have to be doing is tracking volume to marketers should be tracking volumes did an article I updated a year or two ago called shut fire my practices marketing director, that's still a good article, because it's about all of the different roles within marketing teams. And so you might say you have a marketing person, that doesn't mean anything, look up what role that is, and what outcomes they're actually responsible for, but at the tippy top, that somebody has to be responsible for volunteers. When marketers don't achieve an outcome. It's because there are lots of variables for that outcome one, and they either don't have the capacity with the autonomy to achieve to be able to work on all of the variables that improve that outcome. So you can't call the paid search person to new patients in the door. or, because all they all paid search person can do is get you more leads from paid search can't pull the brand new person to more new patients because all branding person can do in and of themselves is make good messaging and nice design. And so it all has to come together if you're going to be achieving the outcomes, that's whoever is in charge of that you're holding that accountable to, they got to have that number front and center number of new patients in the door number of IVF, cycles, retrievals, then whatever other procedures that you're trying to increase, but especially as we start to go into a recession, depending on how bad this thing is, the more you have to be able to do that. So the first thing is having the persons responsible for monitoring those outcomes. And the second point of the triangulation is the digital attribution. This can come from multiple sources and very often dies. But one of the one of the main ones, this is what I mean by you can even sub split the triangulation, but where you sub split, the digital attribution is Google Analytics. Everything that's important has to be accounted for in Google Analytics, in your form fills your request appointment submissions, if those things are different. For example, if you have a request an egg freezing appointment, that's that counts as a lead. That's a goal that has to be measured in Google Analytics that comes from a thank you page on your website, it's got to be in Google Analytics, if you have a different request appointment for anything that is about becoming a patient needs to have a page. So that can be a goal that's in Google Analytics. And last I checked, you can have like 15 goals and Google Analytics. One of them has to be phone calls, to need dynamic number insertion, and your website and the ads that you run, because you have to have, you have to know how many calls you're driving that and your marketers have to be able to know that because they have to be able to make decisions based on us, especially if we're heading for a recession, you gotta be driving towards these things, not just eyeballs not just clicks. And then from there, you can quit, especially when you're using dynamic number insertion, you can use that to actually measure the calls and the number of calls that that fall off and what you can do to do that, but I'm starting to veer off on sticking with attribution right now. But that takes you to the point of attribution, where you can see, okay, this is this is where leads are coming from. And then you can assess quality of leads after that and quality of process. Also, within your visual attribution is any place that you're running ads in, in that native in that native ads platform. And that ads platform that Google ads are running ads on Facebook and Instagram, Facebook ads, in those platforms, you're going to have some different points of attribution that need to be reconciled with Moulinex. They don't, they don't always go perfectly. Yeah, that you think is frustrating for you try doing it for a living. But Google, for example, will sometimes optimize for goals that you don't want or that you want less of sometimes you want to use the artificial intelligence and go bid right below what they're recommending. So it makes the AI work harder, sometimes Google will be lazy, and they'll just try to automatically get you into more clicks or their geographic targeting is broader than you would then what you're actually intending to do, because they want to just get the spend up. So those need to be accounted for in those digital platforms. And the third sub point of the the second Digital Point of attribution is your CRM. So upset does not perfectly talk with Google ads, or Google Analytics for that matter. But you can get a lot more information from BRM by using CRM, and at least don't have didn't did these people and then import the leads from your ads platforms into CRM, you won't get all of them. But did of the people that we have how many of them convert to treatments that you can use or how many of them at least made an appointment so that you can use some of that as part of your digital marketing as you start to build campaigns and and optimize more you can see how well this works. So we have volumes IVF volumes by month. New patients by month and then any sunbird eight Using patients, any third party patients, if that's what you're in marketing for, then digital, Google Analytics, the ads platforms themselves, your CRM. Finally one of the third point, triangulation, which is self reporting, it's still important, it still makes sense. Their self reporting in and of itself is not reliable. People will say sources that you don't even advertise on or they will totally, maybe they'll just do the last thing that they can think of. But it wasn't the most effective, it's incomplete. But triangulated with the other two points of attribution, it's very useful, and you can make it more reliable in and of itself is that we do? Every question needs to be binary, yes or no? If you're advertising the ton, the traditional radio or TV or whatever, need to ask people, did you see us? On TV? Yes or no? Did you? Did you hear a radio commercial? Yesterday? You least need to know? Are they perceiving it in someone? Did you see us on social media? Yes or No? Were you referred to a friend? Were you referred to us by a friend? Yes or No? Were you referred to us by a doctor? Yes or no? So these are binary questions has to be yes or no, you have to calculate the acids, you have to calculate the numbers, you do at least be able to see, is this particular channel, registering with them? In some way? And if it's not, then you get rid of it. The final question is not binary. It's a drop down of all of these ways. What was the most influential in your choice to selecting our practice? And then it's just all the the what had been questions are now your options. So social media, referred by that groups, or by friends, etc. Those two pieces of information help to balance each other out. So you can see, okay, are these things even registering with people is, is this making an impact and have all of these things what seems to be making the most impact because when you balance those two stories together, you'll see different stories 60% of patients, fertility patients, our patients are referred to their AI by a doctor. But only 21% of total patients say that being referred to their Rei by a doctor was the most influential factor in choosing their their doctor location is number three areas number two, at 20%, referred by a friend is 90%. So I will often see this with digital marketers is that pesos is a marker sit at all time paid social work, paid social doesn't work. It's all about paid search. Gotta do higher intent, keyword search. That's what that's what's driving traffic. See, you look at the Google Analytics, you can see it, yes. Who you can't see is all of the things that people are saying to each other because they saw it on their social media, we didn't have that 20 years ago, we didn't have people telling their friends that they went through fertility quest more than they saw specialists at their throat. And when I first got into the field, do nothing but organic social media, because I didn't have any of the background do this other stuff or any money to hire other people that did this other stuff. I got results for people using organic social media, because it was just the word of mouth friend referral. And that's the number three influential reason why somebody chooses to practice it's 90% of fertility patients that have the most influential factor. A lot of that's coming from social media. So you got to put all of these things together. To make the story clear, and you're not doing this in the EMR. EMR is not the place to report attribution doesn't belong in some of these charts. It's not one question such as one question that happens at the at the phone call, because it's got to be done in this way. Prior to COVID. Now, a lot of you are still doing just telemedicine for for new visits or for many of you are doing a hybrid choice. We used to just have clients buy a tablet, put Survey Monkey on the tablet, and we just make the client do it for every single patient that work the best. Since COVID, it gets trickier you have to be you just have to be more on top of that. If you're doing this type of new patient attribution for for new patients, but you can require that when they when the rest of their forms are due. But it is more operationally intensive. So doing these three things, properly tracking volumes against digital attribution coming from Google Analytics, the ads platforms themselves and CRM if you had one against self reporting, that is multi question binary and then final question, non binary, that is not done in an app, not multiple choice, I should say for that last one. It is not done in your EMR. Doing all of these things is going to give you the best information that you need to see where your patients are coming from. So you can invest more indoors those sources so that you spend less money during our session, and that the money that you are investing, you keep investing in because it's the one bring people in, it's not an expense, it's an investment. You need that information all the time, but you can't get away without in a really bad recession. Hope this is really useful to you, and I hope you are able to implement soon if you need some help with it. Just email me Griffin that fertility bridge.com

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


158 Demystifying REI Partnership With “Forever Fellow”, Dr. Eduardo Hariton

Griffin Jones hosts guest Dr. Eduardo Hariton to break down everything you should know before accepting a position as an REI. Having recently undergone his own selection process, Dr. Hariton discusses what you truly “bring home” when you sign on the dotted line. What is your risk tolerance? Do you know what questions to ask?  Tune in to the latest episode of Inside Reproductive Health today, before you sign that contract tomorrow.


Tune in to hear:

  • Dr. Hariton and Griffin hash out the importance of understanding profit-sharing vs. equity and what questions to ask to get honest answers when interviewing for your potential partnership.

  • A shares vs. B shares.

  • What “partnership” truly means- and how to determine if it is the right fit for you.

  • What questions you need to ask to understand your compensation, incentive structure, and to gain clarity on your career track.

  • The importance of sharing ethos and fitting into work culture for long-term success.



Dr. Hariton’s Info:

Company: US Fertility/RSC Bay Area

Instagram: https://www.instagram.com/haritonmd/

LinkedIn: https://www.linkedin.com/in/eduardo-hariton/

Website: https://dreduardohariton.com/


Transcript


Dr. Eduardo Hariton  00:00

But not all practices are the same; other practices are going to be around in the way that they are in the future. So you have to really, and this is a hard thing to do evaluate whether you think your practice is going to do well in the market, right? Whether it's part of like a large multinational network, US based network, you know, geographic behemoth, as solo practitioner and academic center, like you're coming in to spend a lot of time and effort to come into a market and in a lot of markets, you're tied because you have a noncompete. Is your practice going to succeed in that market? Are they good points for long term success? And what does that mean that you join in the rocket ship at this point where they're already here? Those are hard questions to ask but important because you don't want to join a failing practice as their lifeboat. You do not want to be the lifeboat of the sinking Titanic, like you want to jump onto a rocket ship, or at least something that has a good trajectory.


Griffin Jones  01:03

How are young doctors getting screwed? Who cares how young doctors are getting screwed, practices are getting screwed, too. We don't talk too much about either party getting screwed. We do talk about pitfalls that employers face, practices face networks face, we talk about the pitfalls that younger Doc's face because Dr. Eduardo Hariton is the Forever Fellow. Hope he likes that nickname. Let's start it now. Everybody just call him that now. Because he went through this himself very recently. He's also written about it a lot and interviewed a number of experts himself. He and I have talked about it quite a bit. And there's a reason why he's been on the show three times. He gives a really good roadmap for younger Doc's. And I talked to him a bit in more detail than just the types of career paths that you could choose. We've talked about that a lot on the show, we talk more, we get more into the nitty gritty of the type of control that you're gonna need. If you're on the hook for certain KPIs. In order to be able to qualify for partnership, we talk about things that should be considered in contracts that both of us are loud about the disclaimer that we're not lawyers, you need to get proper legal counsel, we talk about what buying into a practice means or what partnership means, because that word is used to mean different things. We talked about different kinds of equity, like equity in the parent company versus equity in the local practice that while Class A shares, Class B shares, and the things that are important to you, that might not be in the KPIs, but that have to come out in the self discovery process as much as it has to come across in the discovery process with the people that you're interviewing. So I like to have both sides on the show. I like to have younger docs talking about what they're looking for. I like to have practices talk about what they need from docs. So if you have a different perspective, you're welcome on. Eduardo has been on the show three times. This is the sharpest conversation he has. He and I have had on this show. And my apologies to Matthew McConaughey. I didn't mean to say he was creepy. It was his character. I'm sorry, Matthew. Enjoy this episode with Dr. Eduardo Hariton. Dr. Hariton, my good friend Eduardo, Welcome back to Inside reproductive health for a welcome back for the second time, because this is your third time on the show. Welcome back.


Dr. Eduardo Hariton  03:41

Thank you. Thanks for having me. It's always a pleasure to be here and catch up and excited to chat more today.


Griffin Jones  03:47

You and I just talked about what we want to talk about, which is career trajectory for doctors in different phases, maybe mid level down to fellow and what they should look at. But we have something to solve first, Eduardo, which is the wager that you and I have, which we never actually specified a wager it was an I'm thinking it was more than a year it goes by a year and a half ago. Yeah. And we're talking about is fertility treatment going to be more or less expensive for the patient. In five years. I said more. You said less. I think that I'm we're a year and a half in three and a half years left. I think I'm right. What do you think?


Dr. Eduardo Hariton  04:27

Well, I think that you're a visionary. I knew that before. But I did not see the rate of inflation rising coming like you did. So well done there. I still got three years, we'll see what happens. And I think our wager was a donation to do believe your foundation. So


Griffin Jones  04:46

we never we never we never picked one for you. We also never pick this specific metric of the exact specific metric of what we're going to measure. So we hedged a little bit, but I'm I'm always happy to make a donation. But I do want to rub it in when I'm right. And I still think that I'm going to be right now maybe, maybe I lack imagination, as you did with the inflation, maybe I lack imagination of the economy takes a major dive. And that changes things. But I think that's what would be necessary. I don't I just don't see supply and demand consolidation. I don't see the prices coming down.


Dr. Eduardo Hariton  05:25

Well, yeah, I love to be right. But I acknowledge if I'm wrong, we'll see in three and a half years, don't don't take your victory lap too early.


Griffin Jones  05:32

Say, right. It is the first quarter. So let's talk about let's talk about something that you're far more right about, which is how doctors should be considering their careers. And let's maybe just give a little bit of a background for what you've done. I think it was summer of 2020. You that was one of the first things that you did where you did a digital event. For fellows. I was one of the speakers there. But tell us about fertility explained and then and then how that ends up being part of what you're doing for younger Doc's.


Dr. Eduardo Hariton  06:10

Yeah, absolutely. So we were stuck in COVID, take it back two years, we were at home, no one could go out on the weekends, everything was closed. And I had always had this idea that, you know, we're great at training, medical people who will train great training, and how do we physicians, we don't really share what else they need to know. So you get most of our area's go to private practice. And then they get this crash course and all these other things that they never learned about. So I wanted to use that opportunity where I had focused attention to teach the fellows about the business of fertility, you know, what is consolidation? What is a p&l? How do you market to physicians? How do they benefit manager industry works? And so I sent a bunch of emails expecting to get nothing back or maybe a few. And then everybody got back to me, you know, the CEO of the largest networks, you, David say, Well, David Adam, so like a bunch of people that really knew their industry, Natalie craft on social media, and I'm missing a ton. But they said, Yeah, I would love to teach the fellows. So we put together to four or five hour days, over two weeks of people coming and giving talks where they were open to questions. And it was an awesome event. People really liked that the feedback was solid. I found that it wasn't just fellows, I get emails from a bunch of people mid career and late career that said, this should be part of our education curriculum. It doesn't exist, because it's not our focus. But how do we keep this going? So over the last two years, I've kept that going, I haven't organized a conference. But I've done you know, usually monthly webinars with people that come and talk about how to get a job, how to, you know, get a job that you love, and it's people that been in the same job for a decade, I've had people who have switched jobs within two years, and they come and they say, this is what happened. This is how I got screwed. This is how they move my goalposts. I have people that talk about negotiation. I've had employment lawyers from my thermal come speak. And it's turned into this kind of more topical session where, you know, part of it is still teaching fellows about the business of fertility. We have one on the pharmaceutical industry, one on benefit managers, quite recently, we have one on high volume providers, and what do they do differently to be able to do 567 100 cycles coming up? But it's also turned into how do we help fellows equip themselves with the right information to get the job that they want? And that means understanding the right questions to ask understanding the timeline, understanding the process, and being empowered to say, you know, I have trained for 11 years medically, and probably a decade before that, I should be in a position to negotiate for the things that really mattered to me. And the reality is, we don't know what really matters to us as we're coming out of this process, because we haven't been prepared. But I hope to just give fellows a flavor of how to do that, and help them through that journey. And that's something that I went through two years ago, I interviewed at a bunch of places, and learned by doing with the support of some helpful mentors. But I hope to give the fellows those tools as well.


Griffin Jones  09:07

Let's talk about the job that they want. Because I suspect there's something operative about the front part of the phrase, the one that they want. I might regret saying this, it seems to me if you can't get a job. Right now, as a ra, you suck. That in fact, if I might even say if you can't get the one that you want, or at least go to the place that you want to go to that there's something that you're not doing right, given the demand. If you can't do it now, would love to see you tried doing it in the 90s when people like Dr. Serena Chen, Dr. Nedley told me that our eyes were delivering babies because there wasn't Rei jobs in in the 90s. And so let's talk about that. Do you think that I'm failing burning too much the demand side of the market right now. And if I'm not, then tell me more about what, how we define the job they want.


Dr. Eduardo Hariton  10:10

Right? So I'll say your second question first, I'd say yes, there is a huge supply side constraint, the very eyes, there are not enough of us being trained to meet the demand that exists, and certainly not that demand that is coming. So it's definitely the market that has shifted, as my partners like to remind me as well, 1015 years ago, how difficult it was to get a job. I would say, you know, if you can find any job, there might be something going on. Because I'd say the number of open positions and people looking far outstrips the number of people coming out of fellowship. But I would say if you can, even


Griffin Jones  10:46

ones that aren't open, Eduardo, people will say, yeah, we'd hire, we would hire somebody we might not like be actively recruiting right now. But almost everyone will say that they would hire someone, virtually all of


Dr. Eduardo Hariton  10:59

them. But I think the the other side of that is we are recruiting pretty early. And it's you could want a job. And if you decide that you want to start looking in your third year, that job for your year might be already filled. And some practices have an easier time than others recruiting. So some practices do feel some of those positions early. And there's only it's not that you don't have a need or that patients are incoming is that it takes a lot to open and find either the physical space or the support team. Because they're, you know, if you hire an REI, you don't just hire an REI, you need to hire two to three nurses, you need to hire case managers, you need to hire embryologist to support the volume that's going to come with them. So it's not just oh, I'll hire in Rei and everything else just happens on the line. It is a big process and clinics that do it, well do it really thoughtfully. So you could find yourself in a position where like, this is my dream job. But someone from that fellowship just took it. So I can either wait a year or go to their competitor. And that I think can happen if you don't time it correctly.


Griffin Jones  12:01

So let's talk a little bit about that. If there are universal must haves to for getting the job you want the audience might remember I had Dr. Dwayne o Welch on she's from outside of our field. She's a PhD psychologist and studies mating and dating behavior. I had her on the show, because I just wanted to show people part of the reason why their patients are delaying, why they're delaying family building. There's multiple reasons. But I think mate selection is a big one of them. So that's why I had Dr. Welch on. And it's my show. So I get to say, who comes on, she talks about having must haves for selecting a partner, and it's up to you, the whoever the selector is, to decide what their must have, I have to have someone who's politically liberal, I have to have someone who is religious, I have to have someone that loves the outdoors or loves animals, but she talks about there's two or three must haves that are absolutely universal kindness and respect. That they're not any of the three A's an alcoholic, an abuser or an adulterer, those those must haves are built in. So I suspect that many of the must haves will be people's preferences. And I want to talk about what they can be. What are the universal must haves, in your view, if there are some?


Dr. Eduardo Hariton  13:23

I mean, I would say, because the fellow that's coming out has usually trained for seven years in an academic center, that's usually all they know. So their view of what it is to be an area is very much clouded by the experiences that they've having training, which are for the most part academic, I think, if I think there is one must have, and this is not the most important, but you need to get paid, right? Most of us come out with that burden. In the six figures from training, most of us, by the mid 30s, are thinking about a family or already have one. And we have been pressed a paid what I think it's a suppressed salary for seven years of training based on the number of hours that we work and our expertise. So we're ready to make some money. Money is not the main driver. For most people. This is not the most you know, it's your it's a very lucrative career, you're going to do quite well. But there's a big opportunity costs, you're ready to make some money to pay some of your loan backs to buy the house that you've been waiting to buy. So money matters. It's not the main driver, but they need to pay you more than they paid you in residency and that's universally true. What else you care about. I do think it's very dependent. And we can talk about a path to partnership. We can talk about clinical autonomy, we can talk about protected time for whatever else you want to do, whether it is research, surgery, family, administrative, whatever it is, if it matters to you, that's something that that might be a deal breaker for you. And then there's all this other kind of you No smaller things that are more or less intangible. Can I teach residents? You know, who does my marketing? What does the IVF lab look like? Can I go into the IVF? Lab? You know, how am I paid? Is it what your kid model? I said a salaried model? Do I have an incentive to work? How much vacation do I have? How much leaves? Do I have? What complete looks like? Can I keep my own IP? Is it all owned by the company. So there's a million things that might matter a little, ultimately, for each person that's different. And what I hope to get Fellows is the ability to at least know the questions to ask so that they can form their idea. There's no perfect job for everyone, you just gotta find the perfect or the most close enough to perfect job for you as an individual. And I think the interview process is not something where I'm like, I know where I want to be. Let me just see who can get me there. It's a self discovery process in a way, because as you go, and you meet these practice owners and these physicians and see what their career like, you're like, Wow, I never imagined going to a place where you could have eight weeks of vacation that wasn't even in my idea. But now that I think about it, and how I grew up with my summers in my house with my grandparents, that might be nice. So your priorities might change as you explore the breadth of opportunities that exist outside of your traditional academic medicine path.


Griffin Jones  16:21

But I'm a millennial, Eduardo, I want all of it. I want all of these things. So I let's I do want to go down that potential different paths. Maybe we talk about how to rank order them. And maybe we talk about, well, maybe we talk about how much of them it is possible to have because this is not unique to our eyes is not unique to physicians happening everywhere in the marketplace where it used to be, well, maybe I'm willing to trade off some work life balance for a higher salary, maybe I'm willing to trade off some of each of those. If I work for something that's mission driven, I really identify with and a luxury, one sampled becomes a necessity. And that's what we're seeing when there is a undersupplied high demand dynamic in the market, which there is in the job market, which there is in the REI market. And people are like, Well, I just want I want I want the mission driven, I want the benefits, I want the salary I want the 40 hour, week or less I want the professional development. Everything that was once a trade off becomes table stakes is that not senior doctors very often feel this way about this is what's happening from younger ducks. Do you share that perspective?


Dr. Eduardo Hariton  17:51

I mean, I think yes, and no, I'd say you can't get everything you want. That you know that if and if you find that job, then good for you. Like that's great. Like, if someone's willing to give you everything you want in the location that you want for the salary that you want, then you did really well it means that you have come into a market that is favorable to you. This is a capitalist economy, someone thought that you were worth all of the things that you wanted. You know, my advice for Fellows is like, Yes, this is a fellow's market, but you gotta come in humble, like you can come into these conversations being like, you know, I work on gold, because I just did training for seven years, and everybody's looking for fellows and coming cocky, because it's not that they can give it to you or that you're not worth it is that they're not gonna want to work with you, right? Like, you're recruiting the person that's going to take care of your patients. And at the end of the day, we're all here to take care of patients. So if you don't like the interactions that you have with someone during the interview process from the practice owner side, it's not that they're not the right person for the job clinically, or they don't have the right expertise is a you don't want that partner, you don't want that person taking care of your patients. So it's really important to Yes, advocate for what you want, but come humbled to the conversation. We don't learn everything we need to learn. I mean, I've been at my job for a month and a half. And I'm learning a ton every day from my partners, and I went to a great fellowship program where I had great faculty. So this career is a lifelong process. We need to continue to learn throughout. So come to that conversation humble as to like whether you can get everything to one. The answer's no. Like there's an idea that the practice will have of what they want to offer to you. And you come with an idea of what you want. You know, ideally, you're coming from a place where you're close together, because this is the right job for you. But you might say no, it's really important for me that I'm able to take six weeks off a year, even though your standards for because my family is abroad in Asia in India and I want to take some time to go see them. And the practice has to decide, is that something that we can do in our model, can we make this work for this person we'd really like them otherwise So I'd say, some practices, you're so far apart that, you know, even though they want you and you want them, you just can make that work, someone has to compromise. When you're close together, it's a matter of saying what really matters to me, you're not gonna get everything you want, that is very rare. But you got to figure out what's really important to you and ask for a couple of things. And I think that that can be done in a tasteful matter where you come from a place of compromise and trying to make this work. Or it can be done in a place where you feel like you're negotiating with someone that you don't ever have to see again, and that's the opposite, you're gonna see them every day. So you have to be really thoughtful about how you approach those conversations,


Griffin Jones  20:42

I want to jump back to that process of prioritization, I want to stay for a second on the employer side with a notion that you mentioned of the interview is essentially a sample of the working relationship. If you're not getting along and the interview process, if you can't see eye to eye, then that's going to be indicative of how it would be like to work for work with each other. That is fairly conventional wisdom across hiring. And many of us. Probably the vast majority of us at one point or another in the last two years or so have ignored that conventional wisdom have ignored that. Gut feeling intuition, because of the necessity if you have embryologists that are about to all quit, because the because they're so slammed, and there's one or two in there that that's not a good cultural fit. I don't like having them in the office, it's really hard to fire that person or part ways with them, because it will hurt the others, and it will be really hard to replace them. So many have ignored that wisdom. And and so what is your view on that? To the extent you can speak to it?


Dr. Eduardo Hariton  22:11

In terms of like, what happens when you have a bad apple in? Yeah, yeah. So


Griffin Jones  22:16

you said, Okay, you'd said to the employers, like, if it's not a good fit, just, you know, it's not a good fit. But if almost all of the cohort is coming in, and they're all wanting things that aren't a good fit, and the leverage is so tilted in their favor, and you've got a 10 week waitlist, and or you've got five years to sell your practice or three last, let's say you have two or three years to sell your practice. And you know, you're not going to get that much for it unless you have somebody underneath you or somebody else working alongside you. What about that concept when it's tilted so far against your favor, that it's hard to do the right thing?


Dr. Eduardo Hariton  23:01

Well, I mean, I'd say that's a complex question. You know, if you have someone in your group, that is a bad apple, but you need them for a certain expertise in a market that's really tight. That is a very tough situation. And you have to weigh, you know, is this person bringing down my employee morale, that my overall productivity of the company is suffering, and we that we would be slammed, but I'd rather take his salary and give it to other people and pay overtime. And that's going to make people happier, because they're getting more take home pay, even though they're working lower hours, maybe, maybe it's worth having this bad apple because the system breaks without them. I can't get rid of them, I'll do my best to replace them. So that's a very complex decision. I don't envy the lab directors that are trying to hire embryologist. They are in a similar bind, that sometimes the practice owners are in recruiting areas, because we are growing too fast. And you've had a lot of smart people thinking through solutions on how do we address that gap? How do we increase access? Not our topic today, but I'm sure you and I will talk about it at ASRM over lunch. That being said, on the hiring side, it is challenging to hire someone and you have these things were like yeah, they're not the right fit. But it's the only person that wants to come to my small market in the last two years. And I'm looking at an exit. So from on one hand, yes, that, you know, practice director might say I don't care about the working relationship, or their personality quirks. I need a person and I need them now. But when you think about it from the shallow side and your like, this person really needs you. They don't want to hire you but they will for their own interests. You think our from the fellow side that's not fair to the fellow either, right? You're going to a market so that someone can sell their practice. I bet you they didn't hire you and tell you how I'm gonna exit in two years. You're gonna be you know, your job is gonna completely change. I bet you they said, Hey, this is a partnership track and we are going to give you a great salary and support you and I'll mentor you and you know, I'm there He's still here for like 510 years, which is probably true, at least for five. So, you know, that dynamic plays both ways. And and I think that, yes, the standards might be lower for some people, because they don't have a lot of options. At the same time. You know, it is important for all of those to come to the table and be forthcoming. And, you know, you might not walk away from the person like you did before as a practice owner, but you should really think about and if you need them, you need them. I don't think we're going to solve that one today.


Griffin Jones  25:34

Well, let's talk about some more of that when we talk about how young dogs can get screwed. But let's revisit the prioritization self discovery process, you mentioned that the interview process is a self discovery process, that very often you're finding out what's most important to you by being exposed to others that know how much self discovery should be done early on, I believe that's just, that's inherently true as sales process I learn more every time I have a sales conversation, I learn more every time I interview or hire someone, the more that I have up front, the more sophisticated I can be with that discovery process, the more and the better experience it is for the other person to because it's a better way of assessing fit. And you yourself, when we were friends, when you were going through all this stuff, and you knew what was important to you at a general level. Like I think you learn more along the way of what was possible. But you thought about what you wanted. And then it became more refined as you went through the process. So what what should it be to start with? Is it as simple as writing down the must haves and putting one at the top and trying to clarify them as much as possible?


Dr. Eduardo Hariton  26:57

Yeah, I mean, I think I would say I kind of knew what I want. And I still discovered a lot, but I had a sense of things that mattered to me. And I think that that's important. You know, when I think about them, like you kind of know if you have a location preference or not. And that may make your sense search really broad and not separated at all, you kind of understand the the practice type you want to be and the usual split is academic versus not, although now we have a lot of private EMIC practices, which have academic affiliations, but are still working in the traditional private practice model? And then from there, the list goes on, do you want to be fully clinical? Do you not want to be fully clinical? And you make this list of things? So I kind of wrote those out. And they said, You know, I want how do I want to spend my time? How do I? How do they want my week to go? And, and you craft that vision? And then you look at the options. Like let's say you were someone like me who wanted to be in the San Francisco Bay area, I sketched out all the practices that were out there. I talked to mentors who knew them to get a sense. And then I talked to the people at the practices and said, What's your day? Like, you know, how, you know, how many patients do you see how does it work, etc. And you can go down the line. So yes, you have to have a sense of what you want, because that's going to help guide your conversations. And that might save you some time. Like this is a hard, long process, you get to meet people who are also busy, you take time out of your day. So if there's 10 practices in your market, you automatically can probably discard half of them by just knowing that the model might not be somewhere where you want to work. And they can tell you, you know, intangibly like there are practices that are very set in their ways, because they're part of large systems. You know, someone like me, I like to go and I'd like to see a problem and try to fix it and like talk to my nurse and talk to my practice manager and be like, how about we try this? I think this might be better. How do we flip these things around? I knew that at some of those places, there is no way that that could happen. That's a great, we put it on the agenda for q2 2023. And we'll talk about it then. And that would slowly kill me inside. So I knew that yes, that play, plays well, and does good IVF and has great colleagues. But that was not a right fit for me, in terms of the place that I needed to work. So you, you figure out these things as you go. There's all of the things that through the process of talking to people, I was like, wow, this is really valuable. I didn't even think of that didn't even make my list. But let me go back and ask these other four practices, how they do this thing? Because that's something that's informative, and that's part of the self discovery process. Should you know what you want? Yes, absolutely. So that you know what questions to ask. But I guarantee you that even if you're the most prepared person, you will figure out a couple other things that you care about through the through the process.


Griffin Jones  29:58

That's absolutely right. And especially Sometimes you see the limit to your own imagination. Once you see something else that's possible, we could exactly further develop that thread and talk about potential career paths. I do want to touch on it, but I kinda want to bring them in tangentially, because we have talked them about them in the show, I want to talk, I want to introduce them as they become relevant in the conversation, I want to tilt a little bit more to the direction we touched on 10 minutes ago of how young doctors can sometimes get screwed, because that's what that's what a lot of people are tuning in for. And we talked a little bit about how employers can get screwed. And I do want to talk about that too. But what are the pitfalls that you're seeing that are common when when fellow fellows or other associate Doc's, or even folks in their halfway through their career are running into when they're signing with groups?


Dr. Eduardo Hariton  30:53

Well, I'm no longer a fellow fellow, and Associates now. But I do feel like I'm still in practice, because I spend a ton of time talking to fellows going through this process. And it's one of the parts Yeah,


Griffin Jones  31:04

you're not always fellow you're, yeah, you're the the non creepy Matthew makhana, hey, Rei fellowship, you're always going to be around the high school in a good way.


Dr. Eduardo Hariton  31:17

That's why shave everyday still look young and not out of place. But that's an important question. And I spend a lot of time talking to fellows for that exact reason, because I hate seeing the other side, when they're like, Man, I got to this place. And like, that is not what I felt my contract said, and I didn't realize I was going to be in a satellite in like, you know, the third ring of this major city. So it is really important to do a couple of things. And this is not an exhaustive list. But I think you really need to get to know everybody in your practice. So I joined that seven physician practice. And I am incredibly lucky, because it's exactly what I expected coming in, but I spoke for at least an hour to every single person there. I wanted to know where they're from, how they came, how they were treated throughout a, you know, I spoke to a person who left the practice to understand why did they left? How was that relationship? You know, was there a sour taste, I wanted to know what happened. And you know, it was a positive experience, which made me really reassured, but you want to really spend the time getting to know the people that you work with. And listen, you know, some practices are so large in a given market, that you might not get to talk to everybody, they might not want to talk to you. But if you can only talk to one or two people, and they really keep the other ones at arm's length, that's probably not a good thing. So spend the time especially as you narrow down into your top choice top couple, spend the time getting to know those people, I talked to the nurses because I wanted to see how they felt. I talked to the lab director because I wanted to see what the lab culture was like, You know what that, you know, what's the lab hiring practices going to change my decision? No, but this is someone that's gonna be your go to person to call. So you kind of want to know what that buyer is, like, I like think that that's important. There's this


Griffin Jones  33:08

piece of advice to get to know everyone in the practice come from people running into Well, I I love Dr. Hariton. When and I really got to know Dr. Erickson, but then I found out Dr. Jones is total aihole. Or that the nursing manager has Dr. Hair done in a vise and, and nothing gets done? Because she's the bottom eight are you hearing about these things happen, and that's part of the dissatisfaction?


Dr. Eduardo Hariton  33:39

Well, it's more of like, hey, like the person that they put in front of you, it's either happy or really incentivized to, or you, but you have might have a group of people that's not happy, that feels like their contract, and, you know, they're not gonna come out and like, you know, spill their beans to you. But you can get a sense from a conversation, is this person super satisfied? Are they you know,


Griffin Jones  34:00

exciting times, they will. Sometimes they will sometimes saying like,


Dr. Eduardo Hariton  34:05

but that's what you want. That's exactly what you want. You want the canary to sing before you get into the coal mine. Like, you really want to know what's happening. And then there's imbalance, there's like, everybody's so good. We love working with our doctors, like, you know, they really take the time to teach us they give us independence, or like, yeah, you know, you know, the doctors are nice, we have a couple of things to fix. We're always working on it, you know, we're excited to have some fresh blood, like, you know, it's a different conversation. It doesn't mean you can't go there, but go there with your eyes open. So that's one thing. I think the other thing is compensation, right? We all want to be paid fairly. And it's not all about the money, but that money, the money is a reflection of what you're worth to them and the value that you're bringing to the table. And let's be real, like this market is growing and we need more physicians. So you are very valuable. You might lose money for the practice as first as you ramp up, but over the you know, Multi decade career, you're going to bring a lot of value to this practice. So you need to be paid fairly. And there's multiple compensation models, when there is salary, salary plus bonus, eat what you kill. And more importantly, that changes over time and usually changes to become a partner. I think a big pitfall I see is people going from a high upfront salary, without realizing there's a reason why they're paying you so much. It doesn't mean that, you know, a high salary is a bad thing. But if someone's offering you something that's like 50, or 100%, higher than everybody else you've talked to, there's probably a catch, right people and don't just dole out money for no reason. So understand how you're being paid, understand what your metrics are, understand what you control on your metrics, right? Because if they say, this is what you have to do to get your bonus, but you have no control over that, then you don't control your ability to get your bonus. And that is challenging, and a bad incentive design. And I think more importantly, understand what your career trajectory at that practice looks like, you know, everybody says, you have a partnership track, you know, except if you're in academia, for the most part, most people say, you know, after X time your partner, well, what does it take to get there? Like, I like, I asked practices, like, you know, what are the metrics, and some of them put in in contracts and say, once you hit this revenue, by this time, you know, that you're considered a third partner, so you know, what your goal posts are. And some say, once you get to three years, we consider you for partner, but you don't know what you're shooting for. You don't know if you're doing well. So I think really defining that is important. And even more important that that is, what does being a partner mean, you know, everybody calls it partnership, but are you actually buying into the medical practice? Are you putting money down? You know, are they lending you the money? Are you taking a bank loan or taking it out. But also, some people call it profit sharing a partnership, there is no equity exchange, there's a profit pool that you get to participate in, that is not a partnership, that is profit sharing. And you know, sometimes there's now a lot of like the back companies, a lot of which you've talked to, that have equity in the MSO, or the top organization? How are those shares are located? Are they class A? Are they Class B? What does that mean? Are you actually gonna get it? Are there options that are worth nothing unless a company doubles, or triples in value, and they go in the money? All of these things? You know, I don't feel like even after doing this for years, and trying to understand that I have every little part figured out. And they spend a lot of time on this. So how can you expect someone who has been in a traditional academic career for seven years to get handed a multi page contract and understand that you can't, but as a fellow, you have to spend the time and you have to spend the money understanding with a lawyer what these contracts mean, and you might have nothing to do to change it. And it might be a great structure. I'm not saying one way is better than the other, although I did vote with my feet. But I think it's if you don't understand what you're signing, then that's a real setup to being screwed. And then the last thing is, understand your clinical practice, understand? Are you going to work in the satellite? Or are you going to work with people in the main campus? What does your schedule look like? Do you have control? If your kid needs to be picked up for school at 3pm? On Wednesdays, can you actually make that decision to make that, because you don't want to figure out what the bounds of your schedule are? When you show up the first day, that's a setup for failure, you want to ask and say, Listen, I don't need this every day. None of these things are non negotiable for me. But I want to understand, can I start at seven, so I can be done at three, or mindset for a number of hours like getting you actually Lilly put me in a satellite that wasn't even built when I started two years ago, because you might not want to drive an hour here, there. We put that in writing. So if you don't want to drive an hour, just say I want to be working at the main campus. And you know, there could be a ton more. That's why I spend time talking to fellows. But there are a lot of ways and the best thing you can do is equip yourself with the right questions. So as I have a list that I circulated that I made for myself, and then I send it out to the fellow so happy to share it around. I'm sure it's floating somewhere. But you really got to ask the questions and spend the time.


Griffin Jones  39:30

One thing that you can think about when you're looking at which practice to go to to judge how forward thinking they are, how state of the art they are, how embracing they are of the new technology to improve patient relations to improve workflow for staff is are they using engaged me I wish I could remember who first said that to me was the younger doc when they were talking about what type of practice they were looking for and what other people should look for. Everybody can say that They're forward thinking. But what's the evidence and one great piece of evidence is using engaged MB when half the practices in the United States and Canada are using engaged MD. It's something that dramatically improves workflow for staff, especially nurses, but also providers and other staff, it helps improve the quality of informed consent, it improves patient relations, because it puts the experience on their time in a cadence that allows them to be informed and then use their time with providers and staff and nurses to be personalized, personalized, individualized care for them engaged md.com/griffin We'll get you a free workflow assessment. Should you be using engaged MD as a means of flexing to attract Doc's it'll help, but it's really going to help your patients and your staff go to engage them d.com/griffin. Now back to enjoying this episode with Dr. Eduardo Hariton, we've got a ton of meat here. So I want to go through it surgically. And I want to start with something that you said about salary, how often people get big eyes when they see a salary number, and maybe they're leaving something on the table of for equity, for example. I want to talk about what the things that you think that they're leaving on the table for salary? Is it just equity that they're leaving on the table? When they when they see big salary numbers? What else do you think they're overlooking,


Dr. Eduardo Hariton  41:40

they're probably overlooking controls. Because like with equity comes saying the decision making and some degree of control. So it doesn't mean that you can be a practice, like, if you're in a market that is hard to recruit, you might need to put out a pretty big salary. And you might still have a true partnership track. So I'm not saying that if you have a high number, the rest of the salary, the rest of the experience, or the practice is gonna be negative. Sometimes it's not. But you gotta really, you know, open that second eye and really look deep. And understand if that's the case, you could if you have a high salary, what does that mean? Do you mean, you have a high base and not a ton of productivity incentives? Is that a long term sustainable model for the practice? are, you know, are your partners working really hard anyways? And are they paid in the same way? Or do you have a high salary, but it's, you know, a very low base, and the rest is incentives, right. So if it's production incentives, you're getting paid up to this high salary based on the number of retrievals, you do. And then you look at your contract, and you look at the volume that they're doing. And you say, Wait, in order to get to the highest salary, I have to do the same number of retrievals, as the top producing doctor in this practice, who has been here for 17 years, that's gonna be hard to do in your first couple years, right? So don't you know, the numbers are six figures and look impressive, when you've been making, you know, a fifth of that, but you really got to understand like, how is that money going to flow through you? And do you really have the ability to get there? And I will tell you sometimes, yes. And a lot of times no, like, these contracts are written in a way that they look exciting. But when, when push comes to shove, you know, you can, you know, their most productive fellow out of practice will never meet the numbers that they need to get to there. So it's important to understand that, well,


Griffin Jones  43:33

let's talk about equity and control, starting with equity and understanding a little bit of different kinds of equity. So you have a lot of people reaching out to you. So President, I have a lot of young doctors, bye, bye. Eight or 12 times a year, I have young doctors reaching out asking me about what they should do. And I do the advisory for free, because unless they're unless they're thinking of starting a practice and like they have plans to start a practice, I'll charge them a little bit for a consulting engagement. But the reason why I do it for free is because they have just enough knowledge for it to be valuable for both of us to have the conversation, but not enough to be able to tell them what to do they, they like me because I get to talk to so many people and I don't have a dog and fight. I don't work for practice or anything. But there's still a lot that I don't know. So in many cases, I can just tell them, what I see. And something that I'm seeing recently that I don't know how to say I can't categorically say which is better. Maybe one isn't universally better than the other but there's parent there's equity in the practice itself, the established business in most cases, or there's equity in the parent company. Sometimes there's both I can see pros and cons to each of those. The the if it's equity in the locally owned practice, then there's that's the established business. That's the one that's already made money that's probably going to continue to be there. Whether they're under different ownership in the future or not, I can see pros to the parent company and that they're growing. That's the one that the PE firm hopes to flip for a lot more. And you can increase that multiple by acquiring more practices and making the network bigger. But you could also go bottom up like Integra med. And so what do you see as the pros? And is do you think one is generally better? Or worse for equity in practice versus equity and parent company?


Dr. Eduardo Hariton  45:34

I would say that, you know, after spending some time they said, say, you can't answer that question with looking at the specific company. Because the way that the structures work has gotten incredibly complex in terms of how they're issued, how the transaction happens. So saying, broadly, you can say yes, you are incentivized with the investor. In the same way, if you have equity at the parent company, and you can say, you have a little bit more control over how much your individual practice produces, because you're working there. But you might not benefit of what the other markets are doing, if they're doing really well. One might be more risky, one might be less. But the reality is, you can answer that question unless you're comparing, like one deal at one structure at one company versus the other. Because the way that they're issued to you whether you have to buy them, whether they're options, whether they have, you know, some sort of strike price, the tax implications, sometimes you get granted equity, and you have to pay the tax bill when you're granted the equity, but you have no cash to pay the tax bill with. So all of these things are difficult to you know, talk about in you know, kind of broad terms, because they are so different. And you have to really understand the the nitpicky parts of each, I would say, I find, at least for me, it was important to be able to share in the value of what I helped build. And I work very hard. And I love what I do every day, I love what I do. So I want to make sure that I say work hard and keep growing and hopefully add value clinically to my practice and add value to my network in terms of my other roles, I am able to share in in that and that profit. So you you I don't want to give advice of what model is better, because it truly depends on the individual situation with the employer that you're looking at. But I do think it's important for you to understand how and when that value might come. And also know what kind of incentives does the value that you're getting, provide not only for you as an individual, but for everybody else around you. Because if you are incentivized only for an Exit Multiple, that's going to drive a much different behavior in your partners and the people around you than if you're incentivized on a clinical production site or whatever else it might be. And, and you have to be really thoughtful about what what culture that builds.


Griffin Jones  48:17

So did you focus more on the parent company or the practice as you are having the attitude of I want to be I want to have a piece of what I'm helping to build,


Dr. Eduardo Hariton  48:27

I wanted to focus on a model that would allow me to have a partnership that over time became equal to the people I worked with. And I didn't really care if it was one or the other. Ideally, it's both right. So you have partnership in your local level, and then you have partnership in the parent company. Because it's truly well aligned. I think the other part that was important to me was that he was completely transparent. What that was like that it was, you know, I know exactly where I need to be in three years, how much I need to produce, I know. And I know what that means for me. So over time, every three months, I plan to truly track Am I on track to get there? You know, what am I doing better? Let me sit in the console with a cup of my amazing partners and see, what is it that they do differently than me because they're converting better, or they're patients like, stick with them. And I think that's the whole culture of learning. That's also why I joined a network because I also don't think my practice I love it. We are not the best at everything. But someone down the street on the other side, like we are part of us fertility, someone on the other side of the country might be doing something better than us. Let's fly there. Let's check out that lab. Let's check out that marketing department. Let's share best practices. And I think that that was part of the value of of having a bit network is that we can learn from each other. I think another thing that I didn't mention that I find important is not all practices are the same and not all practices are going to be our around in the way that they are in the future. So you have to really, and this is a hard thing to do evaluate whether you think your practice is going to do well in the market, right? Whether it's part of like a large multinational network, US based network, you know, geographic behemoth, as solo practitioner and academic center, like you are coming in to spend a lot of time and effort to come into a market and in a lot of markets, you're tight because you have a noncompete. Is your practice gonna succeed in that market? Are they well points for long term success? And what does that mean that from you join in the rocket ship at this point where they're already here? Those are hard questions to ask. But important because you don't want to join a failing practice as their lifeboat, you do not want to be the lifeboat of the sinking Titanic, like you want to jump on to a rocket ship, or at least something that has a good trajectory. And you have to figure out what that is.


Griffin Jones  50:57

There were a lot of people on lifeboats in the Integra med situation that they wish that there were a lot of people that went other places after that, that happened. Not at every practice, of course, it's different, but that the lifeboats happened a lot. And I do want to talk about the type of control that's necessary to achieve the outcomes that are specified should be specified for sponsorship, I want to say a, for a second on the equity of, of parent companies and versus salary versus practice, because I looked at an agreement recently, that the salary was high man, and the and the the signing bonus was high and it could have been taken in could have been taken as equity could have been taken as, as cash, it was gonna be more if it was equity, and less if it was cash. And so that was a that was a scenario of both both like the the equity signing was high and the salary was high. It's, I've found that the networks that are overpaying the most both for practices in terms of multiple, and for Docs, are the new ones on the block, that they just got that, that huge money from the PE firm, they just found a practice to buy, and they're putting the networks together. And of course, there's been several of those in the last year and a half. So when I'm looking at this agreement, and I'm trying to advise these, I can only tell I can't tell them what to do, I can only tell them, what I'm seeing is that, yes, it would ultimately be more valuable to take the equity. But what do we know about these guys? Like they just came in from Wall Street got a couple docs together? And, you know, it's like to even know the chief medical officer is yeah, do they even have their flagship center purchased yet? And they're like everybody else are gonna be putting all of this stuff together as they're flying the airplane. And so it was hard for me to say what was more valuable, the cash or the equity? Because what if there is a 40% drop in the market? What if the Fed does have to raise interest rates to 10%? There's no more free money. And some of these people have to cash out for their limited partners, and it just goes belly up, like, what do you see?


Dr. Eduardo Hariton  53:38

I think it depends on the network. Right? It's a hard question. I don't know. I'm talking about one of


Griffin Jones  53:42

them. Like, it's not a specific one. But it's a but it's somebody that's come around in the last year and a half, let's say, and we're not singling anybody out. Because there's multiple yeah, there's enough. Yeah. And there's gonna be yeah, by the end of this episode, there's gonna be five more so. So like, it's one of the new ones. They're just get people to gather, whether they've come out in the last two years, or in the coming two years. So it doesn't even have to be somebody now, but they they're clearly building the airplane as they're flying it is, is is the equity still worth more than the cash with all those unknowns?


Dr. Eduardo Hariton  54:22

You will know the equity is gonna be discounted discussion, head is always king. But if you want some upside and meaningful upside into the future, you should take that equity. So this is how I don't know the answer to that. But this is how I would evaluate a decision. I went to lunch for two and a half hours with the managing director of the PE firm before I joined because I wanted to understand their goals. I want to understand who they were, where they were coming from, what was their vision, how do they see physician autonomy? Like how how do they partner like people, you know, just


Griffin Jones  54:50

want to be clear for the listening audience. While you're not talking about Mark Segal, the CEO of us fertility just stepped down. You're talking about the managing director of have you on Capitol?


Dr. Eduardo Hariton  55:01

Yes, J rose went to LA. I mean, I was lucky, we live in the Bay Area 30 miles from each other. It was important for me. And I'm not saying everybody has to do this. But this is a way to approach it. We went to lunch. And he asked me questions about myself and my vision about the future. And it seemed questions about himself and his vision about the future. And you want to make sure that you're joining a network that sees the future fertility in the way that you do. And the network that where they are willing to make investments behind things that might pay off during their holding period. And some that might not, but are important to the success of the business or at least are important to you. You want to understand how they see physician autonomy, what are the things that they think we should centralize? What are the things that should say at the practice level? It's kind of the US, you know, there's states and there's the federal government, and there's decision making that needs to be outlined. And you know, in our network, physicians have a lot of autonomy, because they are still owners, and they are still on the board. So these are the kinds of things that you can do. I think the other way to do it is that that private equity networks, those networks that are growing fresh with cash just off the boat, they have managed to convince physicians that they have the right vision. So you're joining a medical group of ARIA eyes that was already convinced for the vision. So you can ask your partners and say, What was it about private equity X or Y or Z? I mean, I'm sure you had five offers, why did you pick this one? What is their vision? What do you hope will change over the next five years, private equity gets a bad rap, some of it deserves some of it not. But all not not all of them are alike. And they're actually very different in their strategy and approach to entering our field. Some of it is a traditional rollout calling cards growing, you know, margins, EBITDA, and selling, some of them are thinking of doing different things. And the value that they hope to bring to the table is different. And I tell this to fellows, and it's something that I think about myself, the lifespan of investment for these companies is three to seven years plus minus a few, right? So we recruit two years ahead of time, sometimes longer, there is a good chance that the person who is partnering with your network, by the time that you're illegible for partnership will be different, there's nothing we can do about that there's no fellow that can negotiate that, oh, I want to say in this exit, that just doesn't exist, right? It's an investment, it might happen. So you really gotta trust the vision of the network. And you have to trust the vision of your partners, because they make that bed with a lot more at stake than we do when you're joining a job. You know, this is their baby, their practice. And they chose to partner with this group. And they bought into the vision knowing that that vision is going to change, you can choose your second wife before you choose your first one. But you really got to be comfortable with the attributes that you care about. Hopefully, you'll make the decision. And you're going to have less control about the second one that the first, but you really gotta believe that both the private equity company and the network of physicians are aligned in what that looks like. And unfortunately, in some cases, they need Him because that's the way it works. And in some cases, they don't need to be aligned at all. So it's a leap of faith. And that's why I think it's the most important thing to me, is, am I working with partners that I trust and respect because at the end of the day, 90 plus percent of your interaction will be with the people around you at your clinic, not with everything else, and you just need to be comfortable with that.


Griffin Jones  58:42

Fair enough that they won't have a say in the exit. But should younger Doc's be looking to have a no assignment clause in their contracts. And if they do go for that, is that something that the that the other party, the network, or the practice would, would would stomach in a negotiation? So a lot of people don't even know what an assignment clause is, meaning if there's no assignment, if I can't sell the contract, or the contract doesn't transfer if I sell the business, but in an assignment clause, one party can have assignment and the other cannot, they can both have assignment. You wouldn't really be able to sign your contracts some other doctor because that wouldn't work with it. But can you ever notice Yeah, no, I work as a doc that says if you sell my contract does not go to the I don't know if that's something that I


Dr. Eduardo Hariton  59:39

think that's really challenging though, because, you know, you have to understand like yes, you have leverage and you're coming out and you're in demand, but the practice invest a lot in getting you to play right, right. They they build a team for you. They lose money for on you for about a year it takes a while to get ramped up, your new patient visits will trickle through. They get to me so it's up They get investment for the practice. And so I don't think it's fair to say to a practice, like, yes, our investor change, you know, all of our partners are still here, everything is still the same. We haven't changed anything of the goalposts that we gave you. But now you can walk away with, you know, and void your noncompete and go to our competitor, when we build you up for two years, because they now have a ton of cash and when, you know, incentivize you, I think that's unfair to the practices in some regard. So if you can negotiate it more power to you, but I think realistically, you know, no, that diminishes the value of the whole network. Because if you have, you know, 20% of your physicians or 30% of our associates, and the moment you sell all 30%, can walk out the door with no ramifications, the person buying is not going to want to pay for that. And that's going to take a hit. So, you know, I don't see that as a super viable model long term. But at an individual level, if you're a felon, you can negotiate that. And that's how you feel protected that your family's in Houston, you're wondering, you're stoned, no matter what you want to stay. So you need that safety. Maybe, maybe that's something you can do. That's why every contract is different. And you need an attorney to walk you through what those means. But I think at a broad level, that's probably not something that's going to work for most.


Griffin Jones  1:01:19

It's also different from a non compete. So okay, so that's generally probably not in the interest of the employer. That's how the employer could get screwed. Let's talk a bit more about the type of control that you need for Revit. Well, actually, let's first specify the market. So you said, you know exactly what you need to do to hit partnership. And this is what over two years or three years? Three years? And you're reviewing it quarterly? What are you reviewing quarterly? Is it IVF? cycles? Is it billing in dollars? Is it number of patients,


Dr. Eduardo Hariton  1:01:55

everything like I you want to practice subtracts those, all of those things, because those are all important. I want to know how many new patients I So how many of them converted? What dollar amount, those lead to how many cycles I'm doing, and knowing that this is where I need to be, like, Am I on track? Like, you know, if I keep going at the same trajectory? Am I gonna hit that? What do I need to do? You know, if my conversion rate is not what I would like it to be, I can work on my conversion rate, or I can add more new patients. So maybe I just need to work a little harder there. There's no right answer there. But you need to know what you need to hit to make it to where you want to be. And, you know, this is a separate question. But I talked to a lot of practices that don't track anything, they don't track productivity, they don't have a dashboard to see what people are doing. Some people don't even track the lab on a weekly basis, they track the lab on a monthly or quarterly basis. That to me seems


Griffin Jones  1:02:51

the bridge makes them. Yeah, there's a lot of people that don't


Dr. Eduardo Hariton  1:02:54

listen, you cannot improve what you don't measure, I'm gonna save it again. Because it's really important, you cannot improve what you don't measure. So it's really important to go to a place that knows how to measure, you will not know if if things go south, and you can pinpoint the problem, because you did not establish the systems that you needed to understand what has changed, it's going to be a fire, like you're really need to measure. And it doesn't mean you know, people are moving that direction. This is all like CEOs breathe. And I think that's part of the value of these networks. professional management does this across healthcare, and they're bringing it to fertility to some degree. Sometimes it doesn't feel good because you you're not doing so well. It's uncomfortable to be measured. And it's especially uncomfortable to sometimes measure against other people, we are uncomfortable with that. But that is the only way we're going to improve. So me as an individual, I want to be measured, I want to know what I'm good at. I want to know what I'm bad at. I want to know who's good at what I'm bad at. And I want to go spend time with that person to get better. And when you leave that ego at the door and say these metrics are not meant to put you down or single you out. They're meant to bring you up to standard and make you better. And by that, you know, racing tides. What's the saying like racing tides, you know, make all boats go out for boats are lifted in a rising tide? Yeah, this is the lighting way of the thing that code, everybody will go out before measuring. So I found that that was another thing I didn't really think about when I was going through but as I saw, I thought everybody measured because where I trained, we had a methodical lead director that was good at measuring. So, you know, is it important? I didn't think so. But now absolutely through the process. I found that out. And it is really important.


Griffin Jones  1:04:48

Are all of those things in your employment agreement as the criteria for partnership track that the if it this much in volume is are those things special? To find in your employment agreement as a clause of for partnership track.


Dr. Eduardo Hariton  1:05:04

Yeah, I mean, they're, they're specified as like, once you get to X percentage of what your partners are doing. So it's not a static goal, because things change, right? Like, it doesn't mean that like, you know, that you have to hit this number, which might be meaningless in three to five years, like you signed this contract two years before starting, it's a three year partnership drag somebody places is three to five, so you don't know what they got, you know, but you know, it should be relative to what your partners are doing, because you're gonna become one of them, right? So I know that I need to hit X amount of what my partner started doing by a given time, and they'll know what they're doing, and they know what I'm doing. And they know what I need to do to get


Griffin Jones  1:05:42

there also alliance partners interests


Dr. Eduardo Hariton  1:05:45

100%. And then the other thing is, there are some times in bad economies where your base salary might be higher than what your partner started taking home. Like, you know, being an associate or being an employee is not all bad, you might not have the upside. But you also don't have the downside, guys, like, you know, if there's a bad economy, if we get a big hit your base salary comes home every day, some people like that, like, you know, partnership is not for everybody, some people want to come in come out, not worry about hiring, the worry about firing, not have the downside of a lab failure, they just check in and check out and that's okay. So there are situations where your nice cushy, associate salary might be good enough. And your partners might be taking from less than a month, you don't want to enter into that partnership at that time, because you're going to pay to take a pay cut. And that's something that you want to understand and your partners are going to want to do. And my partner said, there are situations where that might happen, we would never make your partner to have you take a pay cut. And that is a nice thing to do. So really understanding where to go and where you are is super important. And I cannot stress that enough. And if no one can give you an answer, and it's just we're just talking about it when we're three years, that seems suspect. And that's when I say talk to the people who stay talk to the people who left and get get out of their experiences, you will learn a ton from doing that.


Griffin Jones  1:07:14

There's way too much of that that happens in sales. We call it mutual mystification. It's the reason why I ended up making my sales process so rigorous sometimes over the top, but I made it really rigorous because it just that was how practices wanted to engage. They're like, Oh, yeah, you know, we'll just kind of do this. You're the guy in the red pants in the haircut. And I said, No, we have to have measurements, we have to agree that this is what's going to be required to achieve the measurements. And I want to talk about that with you the outcomes because you talked about the relationship of control to those KPIs that are necessary for partnership, I'm gonna write a book someday wardo called delegate to outcome, because I'm really figuring this out. And by the way, I have not mastered it. The reason why I am going to master it is because I've sucked so bad at it at times in my career, because it's simply not as easy as saying delegate to outcome. There's variables that affect the outcome, there's specificity, and, and, and just there's expectations. So one of these days, I'm really going to be able to I'm like, halfway there. I've I've improved so much in the last three months, because there have been people that I micromanage that never should have been micromanage. And people that I didn't fire that I should have fired in short order. And I'm figuring those things out. But when you have the outcomes they need to be they need to be specific. That's it's on the the person who's who's proposing it to say, okay, these are the outcomes that we need in exchange for this. And then what I do when I'm hiring people, as I spell out, here's what I have for you to achieve the outcomes, here's what I don't have for you to achieve the outcomes. So when we're talking about hitting IVF volumes, when we're talking about hitting certain patient numbers, we're talking about hitting a certain amount of billing and doing a certain percentage that other partners are doing, what are the factors that we have to have in our control in order to be able to achieve them?


Dr. Eduardo Hariton  1:09:21

Well, you want to make sure that you know sometimes you don't have them in your control in a way in what he says like, you want to be able to see if they pay you a new patient visit you know, can you add slots, right? Like, you know, how are they filled? Who's your marketing ended? Are you going to practices are they investing in you filling your slots? What how long is the waitlist, like if the senior partner has a two week waitlist and everybody else can feed a patient the next day or two, it's gonna be hard to get your feet you know, patient slots filled out type of thing, etc. Same thing with IVF cycles like what are the benchmarks that you need to hit to get your at risk compensation or your bonus time? sensation, and then is everybody else hitting them are all the partners hitting them, if the partners are not hitting the numbers that you need to start getting your bonus, you're probably not going to hit them. So that is that is the kind of thing you know, if you cannot near patients basics, and you can get a, you know, a controller the right way. But if you can add and work harder there to get your bonus compensations, which I would say, in most cases, you can, because they want you to work hard, they want to get the bonus, because if you're getting the bonus, it means that they are also getting some upside, right. But if there's no way to get there, and it's just a number on a page to get you to sign the contract. That's not good. So that's what I meant about kind of those control control scenarios. It's like, is it feasible to get to where they say you can get, and it's not always obvious, and you have to push and see whether everybody else got there. I also think another nice thing that I didn't mention before now that I think about it is the value of talking to people that have been through there. And I asked all the practices, like how many people have joined in the last 10 years? Where are they? How many of them are still around? What percentage of people that join as an associate become partner? You know, the best way to predict history is to learn history, right? You know, you want to see what happens to people, yes, talk to them. But if 95% of people become part there, you should feel pretty good. That's not a group of partners that are in the business of screwing people over. If 25% of people become partners, this is like an investment banking firm like it's a steep pyramid, only few are going to make it so if you're looking for your forever job, you got a one in four chance of making it to partner who knows after that, so that history is also important. There are related to control, but I wanted to drop that in.


Griffin Jones  1:11:57

Yeah, but those are really actionable things that people should be looking because I always tell people to look for the KPIs you did a good job of, of hitting on some of those things are necessary in order to be able to achieve the KPIs. What about outside of measurable KPIs like, especially with independent practices, they have to split business responsibilities among the partners. So sometimes this partner is responsible for marketing, this partner is responsible for HR, this partner is responsible for keeping the p&l this this partner is responsible for if they've they do building, if they acquire by billing. Are there other other other responsibilities that are necessary for partnerships in your agreement that aren't KPIs like that?


Dr. Eduardo Hariton  1:12:48

I mean, the other responsibilities like be part of a team. I mean, the reality is, is you will never find an agreement that forces the practice to make your partner at a given point. So, you know, I could you know, Bill more than all my partners, if I'm not a team player, if the nurses hate me, if they don't want to work with me, they have no obligation to make me a partner. And I would never expect that, like, you know, you don't marry without dating, you want to get to know someone, and some people are not the right fit. They might be nice doctors, they might be crushing productivity. But there is something about bringing you into a partnership that you need to share that ether. So yes, no one, you cannot force someone at the time of signing the contract to say if you do this, you will come a partner. Because there's a lot in between culture wise and you need to fit in there. Can that screw you? Yes, practice might say, I did everything I could I thought I was part of the thing. You always give me good feedback, year five came you're gonna sell tomorrow, you didn't make me a partner when I thought you would. Yes, and this is why the track record is really important. This is why you really want to know who you're getting in bed with an A, becoming a an associate for because they will take care of you most likely, like they took care of everybody else, you know, you feel special, you are just as special as every other area that have joined them. So really pay attention to that. But for the most part, they they can decide at the time when you get there, whether it's the right fit or not, hopefully, in the three to five years where you're an associate that will become clear so that someone doesn't string you along. If it's not the right fit. I think that's usually the case either you don't want to be there or they don't want you to be there and you part ways, but it is always up to the partners whether to make your partner or not. And I think that is the the right way because they they're bringing you into their family for long term. And they want to make sure that you're the right person for that.


Griffin Jones  1:14:46

See this. This is the light bulb going off over my head because you said that it's a place where fellows could get screwed because you can't you can't have something that's that wouldn't be in the interest of the practice to do They, that you, you are going to be a partner just because of these things. But I can think of a middle ground. And that would be a non compete, that if I hit these numbers, I'm out of my non compete the entire argument against a non compete is we invest all this money, but it's like, okay, even if we're not a good fit for partner after the fact, if I hit these numbers, my non compete doesn't stand anymore, because I've made, I've made my money for you, you see that as a potential middle ground?


Dr. Eduardo Hariton  1:15:28

You know, I've learned with talking to enough business people that I'm not an attorney, I don't know enough about these non competes. But what I will


Griffin Jones  1:15:35

say in some states are enforced in some states are not in California, you can enforce them in Texas, you can you very often, you can you certainly most places you


Dr. Eduardo Hariton  1:15:44

do have it. What I would say is like, if you are worried, like if you are joining a practice, they have a really bad track record, but they really have you and you're worried, I don't know that getting to a certain number is the right way to get out of a non compete, because they knew are very valuable in that market. But you could say something like, if you don't hit this by a given, if you hit this way, given time, and you've been this for this long, and XYZ and you're eligible for partnership, and the partners decide not to grant you that option, then you could explore having something that lets you add to your non compete, so that you don't get scared in that way. You know, again, why not go to a place that allows you to, to really feel comfortable, like, you know, it sucks to go into a job where you're like thinking every day that am I gonna get screwed at year 5am, I not gonna get screwed at year five XYZ, I hope that that's not the place that you're going to. So hopefully you join somewhere we say I trust these people, they're gonna do right by me. And over time without being worried and not get screwed on the backend.


Griffin Jones  1:16:51

Let's talk about class A's and Class B shares before you go because a lot of people don't even know what they are. So what should people be looking for? Look


Dr. Eduardo Hariton  1:17:01

with an attorney is the best advice I get, you know, Class A shares might have more control, so they have more votes. So this is a way where you know what happens with Facebook, Mark Zuckerberg controls Facebook, because he even though he doesn't own most of the company, he has like control. So not immediately obvious, you're getting shares, it's really important to understand shares of what and what you're getting. So you gotta look with them during the you got to understand that doesn't mean that there's a wrong structure if someone else has control, but at least you go in and understand what that looks like. Another thing that I talked to fellows, they're like, they gave me 500,000 shares, like, that must be amazing. I was like, 500,000, out of 10,500,000 out of 1 billion, like shares mean, nothing shares mean a part of something else, you need to understand the denominator to understand the value, you need to understand the price of the shares. And you need to understand the plan, and what you have those shares with go to. So all of these questions. This is why build fertility plane, because you don't know what questions to ask until you ask them until you learn until you see. So I hope to empower fellows with the ability to understand all of the ways in which they can get screwed all of the questions that they might need to ask, and you're not gonna be able to, like answer them yourself, you're not gonna be able to answer all of them. But my hope is that you're able to answer the majority of them use look at your blind spots, you get help. And I'm happy to talk to everybody, I do it for free I make, you know, it's, it's something that I enjoy. I do it while I drive. Hopefully it helps some people, it makes me a talk to the next generation and feel young and like a millennial, I guess they're forever fellow. I like that. But I hope it adds value. And I hope it helps people get their dream job. And I hope it helps people not get screwed. And some of them come work with their network, and it makes me happy. And some of them go work for our competitors. And that's a great job for them. And it also makes me happy. Like I have great relationships with some people at the other networks at solo practices. And now help a fellow get any job that they want. That helps them realize their career. Because this is a small field, we're all going to work together, we're all gonna see each other at conferences. And it's not about you know, I want my network to do well, but I want my field to well, and I want the areas that work so hard and got there to have a meaningful career at a place that values them. So that's why I love doing this because I truly think that it's not all about the money. It's about what you do day in and day out and you're gonna bring a nice paycheck to your kids and you don't want to get screwed in a big transaction. But ultimately, it's about getting the setup where you can be happy take care of patients and feel valued both in the environment around you and the financial rewards of your work.


Griffin Jones  1:19:50

That's a good place to conclude I've got to hit up some more of your content. I got to hit up Investopedia a little bit for just going back to basics. For a little bit, you were smart enough to have my assistant extend this time, because you knew we could go over because I can always go over with you. I could I could talk to you for another hour and a half and it would be valuable for the audience. So next time, I will be smart enough to schedule more time at a time, and I will have you back on because people will absolutely love to hear more from you. Where can people find you?


Dr. Eduardo Hariton  1:20:29

So you can Yeah, me. Everybody usually gets my fertility explained emails, you can email me@hariton.md at gmail, you can find me on Instagram, you can find me at SRM. You can email grief, and He'll put you in touch. I'm happy to chat. If it's helpful. I'm happy to send you resources. We do have a lot of our webinars taped. And I do always recommend people just spend a couple hours go through them in the car, when you're home when you're doing this is just listen, listen to the questions, listen to how all of these people in employment, etc. Think about their contracts. And if you want to chat, I'm happy to ultimately, you know, you are in a great field. You know, I've been in practice for a month and a half. So I say this humbly, like we picked a good field not only because what we get to do as doctors is incredibly satisfying, but we happen to be at a time where our field is growing. So hopefully you have a place where you can take care of your family, pursue your career vision, take care of patients and also be meaningfully rewarded for the growth that you help create and the families that you help build.


Griffin Jones  1:21:39

My good friend, Dr. Eduardo Harrison, thank you very much for coming back on inside reproductive health.


Dr. Eduardo Hariton  1:21:44

My pleasure, Griff. Thanks for having me. I look forward to seeing you. In a few weeks.


1:21:49

You You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health




Revisiting Improving Patient Experience by Building An Empowered Team, An Interview With Dr. Peter Klatsky

There’s a challenge in finding the balance between keeping both your staff and patients happy. On this episode of Inside Reproductive Health, originally aired in 2020, Griffin gets Dr. Peter Klatsky’s take on managing everyone’s satisfaction while providing a new standard of care. Working with his partners at Spring Fertility in California, their goal is to provide their patients a level of service that isn’t seen anywhere else, all while keeping their employees happy and in for the long haul. 

Learn more about Dr. Klatsky and Spring Fertility by visiting www.springfertility.com/

Read about the work done by Mama Rescue and support their vision by visiting www.mamarescue.org/

To get started on a marketing plan for your company, complete the Goal and Competitive Diagnostic at FertilityBridge.com.

Other episodes mentioned in Episode 54:

Ep. 50, Dr. Pietro Bortoletto

Ep. 54, TJ Farnsworth


Transcript


Dr. Klatsky  00:04

I've learned that not every single patient is going to have to have perfect experience. And our commitment is when we have a patient who had an experience that didn't live up to our goals that we listen and react immediately and try to improve our system.


Griffin Jones  00:18

Here's another flashback episode for you tell me if you do, or if you don't like these flashback episodes, email me, text me, many of you thought that they're a good idea. I always hated them, watching them on sitcoms, as a kid couldn't stand when they did that. So you tell me, if you liked them, I think it's useful to go back and see the growth that some of these folks have done. And for those of you starting your career, growing your practice, calling on some of these practices, it can be useful to go back and listen, I had Dr. Peter Klasky, on in the winter of 2020. Anything big happened since then. And we talked about the growth of spring fertility. And at that time, there was a handful of practices that were on the up growing fast and new practices, I should say a lot of established practices were still growing. And many networks were forming to buy practices, there really only handful of groups starting at that time, kind of it made it may have not even had a brick and mortar that time. I don't remember, there was spring and there was bias. And and then you know, maybe a couple others in different senses. But if like these brand new practices that were moving real fast, then of course we know Vioxx was acquired by combat even know that kind body went on to raise a lot more money and make an acquisition, like viruses grow to a number of different marketplaces. Spring fertility also has grown quite a bit in that time and time. When I spoke with Dr. Klasky. There, he was just they were just in San Francisco in the Bay Area, at least. And I don't know how many providers a day at that time, but I think it was Dr. Klasky, Dr. Trim and a few others. Now they're 1314 physicians are 1314 rei physicians, and a number of advanced practice providers. They're in different marketplaces that include scheme self was practicing in the Bay Area at that time that was back in New York, that are in Canada now with an acquisition of Genesis Fertility Center in Vancouver. And so this has been tremendous growth. And and it's from one of these brands that was meant to be one of the new exciting practices, one of the new exciting ways of opening up a practice. So you decided is spring fertility, done it the way they said they were going to do I think model for others going forward? Are they a new contender they they now part of the establishment? Are others going to do what they do love to hear your thoughts about spring fertility student group based on this old episode with Dr. Klasky, from January of 2020. Enjoy. So I want to talk about what that means to the standard of care not seen anywhere. But I want to talk about what that vision for spring fertility is because there's a pretty common trajectory for a lot of people to either join up with an existing group or to maybe start their own, which is less common because it's harder to start one's own group. Now you've done it with a pretty impressive speed and starting to be scale. So what was it that made you want to do that in the first place? What was the void in the marketplace that you thought? This is what I could add to it?


Dr. Klatsky  03:46

Well, you know, I think it starts with seeing an opportunity to practice medicine the way I always dreamed. And I felt that it for a variety of reasons in this places that I was I wasn't able to practice the kind of medicine that I wanted to practice. I was fortunate enough to have a best friend from residency, who I went through fellowship with and that was Dr. Nam Tran. He was practicing at UCSF, I was practicing in Albert Einstein College of Medicine. And we both had wonderful academic medical careers. But when it came to the practice of seeing patients and the way in which we wanted to deliver care for a variety of reasons, we weren't able to practice the way we wanted to in a larger academic center. We then also noted that most of the major innovations in our field had come from the private sector. And so they had come from people came before us who we were fortunate enough to follow people like Bill Schoolcraft and CCRM, where he worked with one of our partners. Now Dr. Devin haras, who's brilliant and amazing people like Richard Scott who really really innovated people like on at Cobo and our colleagues over in Spain and So nominate woke up. And we said, Gosh, the really big game changing innovations in our field seem to have come not through NIH funding, which is near to absent in our field, or at least in the IVF component of our field. But we're coming from from the terrific world class private Fertility Centers that invested their own money and time to research and develop. So there was a combination of one, we could leave academic medicine, and still do provide the cutting edge care and actually provide it in an even more cutting edge and even more rapid way we could control the kind of research that we wanted to, and try to push the field forward one and then two, from a patient experience standpoint, there were so many areas where we felt like we wouldn't have been, we were not able to serve patients the way we would have wanted to be cared for if we were the patient. And so we may add to that, that I'm having this conversation with my best friend, who we happen to be on different sides of the country. But we blue sky, what would it be like if we had our own practice, we could do it the way we wanted to do it? And what would that vision look like? And then we were fortunate enough to have two other close friends who happened to be the best embryologist on the West Coast, who also shared our vision. And they wanted to push the field forward. And, you know, in their words, they felt like they were what they were wonderful institutions, but felt that if they had stayed there, they wouldn't, they wouldn't be practicing the same way 10 years from now that they were at that time. And so the four of us came together and sort of had this idea that, what would it look like if we were starting from scratch? From the patient experience from the patient care? And what would it look like in the lab, if we could take the best technology available? And then imagine what technology might bring us over the next 10 or 15 years? And how would we design and build a lab. And then after about a year to a year and a half of planning and thoughtful analysis, we then decided to take this job.


Griffin Jones  07:06

So I want to come back to that question of the lab and springs perspective on the lab. But I want to explore this idea of why you felt you couldn't pursue the way you wanted to practice medicine or build your own infrastructure in the Academy because I've only talked about the academic side of our field really once on the show with Dr. Petro Borgia Leto, and I'm having a few more guests on to talk about it in 2020, because I realized that it's a void that we really haven't covered. I've done a little bit of business with academic centers, and the very smallest consulting engagements are like a bureaucratic nightmare to go through the red tape. So I can infer why you might not have been able to realize the practice of medicine that you would want to realize in the academy. But describe why you had to take your vision out of it. And it's probably beyond NIH funding, I'm guessing.


Dr. Klatsky  08:08

Yeah, I think one of the draws to an academic centers to do amazing research, and to do amazing teaching. And the thing that you still can do in a one in a great academic institution is provide terrific teaching. And you can teach residents, medical students fellows, and that is incredibly rewarding. In a private sector practice, you can also continue to teach, we have residents come to spring fertility from an endocrinology group, we have new physicians who are when you join spring fertility you before you see a patient, you probably spend another two to three months just training with us learning our protocols and our perspectives on how to deliver care in so we haven't lost that that teaching angle from public funding the NIH, whether it's the NIH or somebody else, there's just not a lot of research dollars into the really exciting stuff that we do when it involves human embryos. And too, it's not a high priority for the NIH. From a bureaucratic standpoint, I share some of your frustrations I one point had over a quarter million dollars of funding from the World Bank to do maternal mortality research in Uganda. And that was matched by several other private foundations. And being able to deploy funds that we already got, you had to go through multiple layers. And so you can imagine what it's like as a vendor trying to, you know, work with your services. But But even more than that, from a patient that to get what it means to be a provider, occasionally to have a patient who wanted to be seen earlier so she could get to work and you knew she had a very stressful job. And it was important for her to be seen and out of the office by 730. So Nam or myself, we're pretty committed to our patients. We're not pretty but we're very committed to our patients. And we're willing to come in at 7am but in you know, essentially that you don't have control over the resources. There might not be a nurse or a medical assistant to help you do it all For Sale, and therefore you can't do that. So I've noticed you'd say, well, I, I'd like to come in and see this patient this time. No, that's not available, we don't have the staffing for that. And so when you have control over the system setup, you can set up so that something that would be incredibly popular, like earlier monitoring hours is a viable option for your patients.


Griffin Jones  10:22

Yeah, it seems to point out, the nuance between where the standard of care begins in the form of whether it's best business practices or simply is now the standard of care. To me, it's not immediately obvious. It's something I talk a lot about on the show, but you're talking about being able to accommodate patients in a way that works for them. That might be best business practices, and therefore, is favored by the private sector. But at what point? Is it just the standard of care?


Dr. Klatsky  10:57

Yeah, I don't like to think in terms of best business practices, but I like to think in terms of what's best for my patient. And well,


Griffin Jones  11:04

that's what I mean, Peter, I think we divorced those two concepts. And but Customer Service at one point is patient service.


Dr. Klatsky  11:13

Yeah. 100%. And so, you know, that's where you we, and all it really takes us is looking at, what would I want if I was a patient? Right? And then it takes a little more effort to figure out how would I change my system, for example, we have two shifts of nurses. Why do we have two sets of nurses because that's the only way we can have patients come in early. And also get results to patients in the afternoon. But that, but that's not the way most larger institutions are set up. And that's also not the way an institution, even private sector institutions are set up. Because if you if you were the only Fertility Center in New York City in 1992, you didn't have to worry about what patients wanted, right? You had 612, month, waitlist, whatever you did, and you could make the patient's jump through whatever hoops were necessary. And, and they could go through that bureaucratic maze, and the doctor could get there, you know, have the best parking spot in the lot and then show up at the time that was convenient for the clinic or for the provider, and patients would wait. And what we're seeing today, you know, is that patients do demand more and a place like spring fertility that actually thinks what would I wanted I was the patient is going to continue to grow and have incredibly positive patient experiences, if other centers aren't going to do the same thing,


Griffin Jones  12:32

which really makes me wonder how someone can worry about what the patient wants, while also serving the patients. So we've had others on the show and have talked about the CEO role. And a lot of companies now have a chief executive officer who is in charge of the C suite, and they manage all of the business. And mostly the physicians are often their advisors, but it's effectively the employees of the company. There's a few folks like yourself who are physician led groups who are in the entrepreneurial seat and in the physician seat, so you didn't have to worry or a physician didn't have to worry about what patients wanted in 1992, you Peter Klasky, very much do. And you also have a patient caseload, you have to do retrievals you're still an REI, within the practice group, as well as being an entrepreneur that leads the vision and the scale and the future value of the group. How are you able to do both things at the same time? Because I'm just running a client services firm. And it ain't frickin easy. How do you manage it?


Dr. Klatsky  13:49

Not alone. And so I focused during the day from 7am until 6pm, I focused entirely on my patients. And when I'm focusing on my patients that's going to inform what spring fertility should do from an operational perspective. I'm lucky that I don't it no part of spring has been Peter Cloudscape. Alone at all. I have the best partner in the world. Dr. Nam Tran, who is the smartest person I know. And in addition to being the smartest scientist in position, I know you he's also the best operational leader that one can have. And we were very fortunate early on to hire really terrific people. So I we have a chief operating officer who is excellent at taking our vision. And in managing the day to day operations. We just hired an amazing woman who is running our VP of operations. And she came from, from the Vita which is a large healthcare organization where she takes a lot of the structure and organizational stuff. And so you know, between Derald and Marin, and then we've got an array of additional folks who we have both given direction to and who who we trust to carry out that direction and trust to check in with us. So we have weekly check in meetings. And when Nam and I are seeing patients, we're getting feedback so that we know how to adjust operations, right? When we when I'm seeing patient nice to hear somebody's frustrated about something, we respond not, you know, in a month or in two months, we respond that day. And our team is all motivated. So the other important important thing is to make sure you have a happy team, and that you empower those people. So we were so fortunate to hire Dr. Devin unharnessed, who is now the CO medical director of spring fertility, and overseas medical operations and process on par alongside of Dr. Trump non track. And so the way we do it is not the way your question was sort of, Peter, how do you do it? I don't, you know, we have an amazing team that together functions really well. And we complement each other. And what we share also is a vision for how to be everybody join spring wants to deliver the best service for their patients. And we define services in equal parts, patient experience, and clinical outcomes. And, and everybody knows that that second best isn't good enough. And so we're united by a desire to deliver the best experience for our patients, the best care for our patients, and a desire to be the best at that. And then we hire wonderful people. We hire people who are effective operationally, but also fun to hang out with. And so we have a great time hanging out tonight, I'm going out to dinner with all of the providers and we've got a dinner for eight with some of our key management people and the providers. And it's going to be our end of year last physician meeting, we have a physician meeting every month, everybody has an equal weight, everybody has an equal say. And we take feedback, whether it's from our patients, or our teammates, or their physicians incredibly seriously, if you joined spring, and now we're seven positions, if you join spring, and you have a suggestion for something you think we can do better, we want to hear, right, we don't want somebody else to come up with that idea. And and we want to make sure that we hire the best Doc's and that we keep those Doc's in New, and then we, we make sure they're happy. And in California, there's no non compete either, right? So so it is all about making sure your team is empowered, you have the right people, and everybody communicates well. And so a lot, also a lot of hard work, right? late hours, but I think the thing that's you allowed spring to, to effectively scales thus far, has been a team of people who will complement each other.


Griffin Jones  17:42

It started with two, how does your skill set and Dr. Trim skill set? Where do they overlap? And where do they diverge?


Dr. Klatsky  17:53

You know, usually, this is where I would make a joke and say that I'm better looking and more charming. And he he's good at managing the plantings around our office and some of the wires that sometimes get tangled. But all kidding aside, there's a total joke, I think that nom is these isn't has always has been the smartest guy in our field for for as long as I've known him. And he's just one of the smartest people I've ever met. And I and I'm comfortable enough to recognize that and confident, are smart enough to recognize that and confident enough to let him run most operational practices and not feel threatened by him saying, Hey, I think we should do it this way. When I've been doing it a different way. I think that there are areas where I have strengths that may be complement areas where he's not quite as strong. And both of us if we had to, or you're over everything, or if we had ego around who would get to do this or who would lead that it would just slow us down and get in our way. And it would affect our relationship. We really also liked each other. So even though we're quite different, and but because we like each other, it creates an environment where the nurses like working with us because we're because we're going to be having more fun, we're going to probably be making fun of each other. And we're going to be supporting each other. And we're never going to worry about who took more calls or who had a little bit more work on one thing or another. We're both trying to make sure we're not holding the other person back. And then when you have that environment, and you bring in somebody like dedmon, Horace Uzziah Harris, these are are incredibly brilliant physicians who are also committed to that same vision, give patients the best clinical experience possible. And, and one of the most amazing things that I've experienced and then on the lab side, we're led but by just to an amazing team of embryologist. And you know, in as to married embryologist, who we started with Sergio Bukhari, he's to monitor Porsche. And they just delivered the best not only the best quality work, and constantly trying to push the envelope for innovation and to improve outcomes. But they also create an environment in the lab, that is a wonderful place to work. So we're able to attract and retain top embryology talent. But But I think, if I were to shorten it, and try to make it more concise, NOM manages detailed operating protocols. And I probably manage some of the vision voice. And I'm very attentive to the patient experience.


Griffin Jones  20:42

When you're growing up fertility practice fast, you need the best that there is. And the best that there is that I'm hearing from half of the Fertility Centers on this continent is engaged in the with regard to the informed consent, the pre treatment, education, and the workflow assistance that engaged in the software provides engaged MD is over and over again, something I hear from clients and from you all, at SRM and a meetings about how useful it's been for staff how useful it's been improving patient satisfaction, because the patient gets to go through the modules on their time that makes their care with you their time with you personalized, and you'd have a much more defensible informed consent. As you can see, people were watching these modules, they have the time to do it, they agree that these different phases, and you don't have to track down all this paperwork, all the time that you save your staff, how you make them more efficient, and improve the satisfaction of the patient. That's part of the standard of care, the patient has to go through paperwork, if they have to do all the education themselves, they're a deer in their headlights, they're a deer in headlights in their interactions with you is that the highest standard of care, engage them the input improves these things. And you can get on board with engaging in the you're among now the minority that are not going to engage md.com/griffin to get a free workflow assessment, assessment from engaged and V. Team. And you'll also help to create more inside reproductive health content, because you let a sponsor know that this is one of the places that you've heard them. I heard from the show you heard that from me. But it's an advantage to your team. And it's most necessary if you're going fast. It's a competitive advantage engaged in the.com/griffin. Now back to this conversation to Dr. Peter Klasky. Spring is often known for its vision for the lab, it's its functional outlay of the lab and looking at the lab very differently from how IVF labs have been structured in the past. When people say that, what are they referring to?


Dr. Klatsky  23:04

Well, there's a lot of things we do uniquely in the lab. But we the flow in our lab is extremely efficient, and designed to prevent minimal movements and to minimize any risks to embryos or eggs. With regard to egg and embryo storage. There's everything has not just redundancy, but two layers of redundancy. There are some things we do very uniquely in our lab. We are the only I believe we are the only practice in the country that injects in those ACCION eggs in a hypoxic environment. That's the same ambient air quality that exists in the incubators. We are the only lab in the country that does the same thing from egg retrieval. So when the eggs are being retrieved from somebody's body, they immediately go into an isolette while the embryologist is looking at them, where the carbon dioxide level is 5% and the oxygen levels 5%. So that's matching what it is in the fallopian tubes. I don't believe I don't know of any center that's doing that currently. And to be honest, we weren't able to do that when we built the lab because the technology didn't exist to lower the oxygen to displace oxygen in a nice sight. And within two years of opening, we were able to do that. But we built the infrastructure in our lab that can do that. So we have nitrogen gas and co2 Gas throughout our lab. And we have other infrastructure that's anticipating what technology will bring five years from now. That is amazing innovation that we you know, I credit 100% to Dr. Trump, and his vision for what the lab, the IVF lab will look like in 2025.


Griffin Jones  24:41

I think innovation like that, which is groundbreaking in some ways and other things that other people are doing and it harkens back to something that TJ Farnsworth had said on the show a few weeks ago and I actually really agree with that I've thought about both before and even more since I want to see if Few agree. First off, if you if you don't why, and if you do, what do you think can be done about it, but his sentiment was coming from the oncology field was that there? There is less peer to peer sharing of best operations practices of best practices, both from a business and clinical setting. And I really do see that, Peter, I really see it from independent owners, especially I think everybody feels like they've got the secret sauce. And maybe you're a guy that really does have the secret sauce. And you think Well, I do. And I don't want to share with folks that are doing the same. First, do you see it that way? Do you see that our field isn't nearly as collaborative as it could be? Why or why not?


Dr. Klatsky  25:45

I don't, you know, I think we I don't see it that way. And I'm sad that TJ doesn't feel that way. It feels that way. I actually think that there. I started this off by saying, we followed great minds and great practices that shared their advances in our field. And he, I don't think oncology even moves as quickly as the field of fertility does and oncology moves incredibly quickly. But why do we have egg freezing because of a commitment of somebody in Japan, carried forth with clinical trials performed in Spain. And those publications came out in 2010. And by 2012, egg freezing was no longer considered experimental in Europe or the US. And it was, and people were traveling to other places to learn how to do that. I think that Richard Scott and Bill Schoolcraft, shared advances in pre Implantation Genetic testing with the field. So I don't know that there's been a lack of peer to peer sharing, even when even when people have secrets. When we opened up the lab, we had Barry bear, who's whose lab director for Stanford, which is maybe 40 miles away, walk through our lab, and tour it with us and in the professionals in our, in our field, I expect that they do share. So I know the embryologist are constantly sharing with each other what they're doing, because they have long standing relationships. It's kind of like when Nam was at UCSF and I was at Einstein, we'd always talked about what each other was doing. So and, you know, all of us had peers and colleagues and other centers of so I've not seen that that much. I do think people are tied to their practices, I think maybe some of the border docks, and we're pretty young group, but maybe some of the older dots don't want to change the way they're doing it. And that's what he's referring to. And so they say, Oh, this is really special. Because this way, I've always done it. But I think most innovations have been pretty. It's hard to keep secrets in our field, you know, trade secrets, because our trade secrets are information and knowledge. For example, what I just shared with you on your podcast, everybody I know nobody else is doing hypoxic xe made me you know, but I'm not. I haven't been shy about that, since we've opened that, you know, and maybe people will start doing it, people have to buy into something and believe that there's a benefit to it. But I don't think people are really secretive.


Griffin Jones  28:08

I see both sides, I definitely see enough examples of both. And perhaps you're right, that there is an age difference. I think there's probably a practice structure difference. The people that I see sharing are the people that you mentioned, plus yourself plus TJ, the people that are growing groups pretty quickly, and adding a lot of new things tend to share. And then there are probably another class of folks that they want to hold on to their piece of their particular market. And I often find those folks are reluctant to talk to the folks across the street or have nice things to say about the folks across the street are reluctant to meet with them or join some of the broader groups. And so


Dr. Klatsky  28:57

we all just do. And that's where so if they're acting that way, that's what's silly. Like, they may not be but you but you're embryologist are when you're nurses aren't as RM they're sharing. Your your junior Doc's who both went through fellowship together are sharing with each other. So that's where we try not to be, you know, we try to have good collegial relationships with everybody. And, and, and we always want it and the great thing about our field is it doesn't stand still. So what is amazingly cutting edge today in five years, four years, maybe standard of care, and you'll have to continually move the needle. And that's really to really really keep growing, you're gonna have to attract and keep the best people who all have that future in mind, you know, want to move the field forward. So we have better patient outcomes, so we can provide a better patient experience and I guess that part you need to really give voice to your your new hires. So that doc who is straight out of fellowship Hey, you know Meet me. Maybe that's the person who's going to be Richard Scott or Bill Schoolcraft, you know, in 20 years. So listen to the suggestions that they have. And that opportunity.


Griffin Jones  30:12

Yeah, that was gonna be my next question is does it become binary for Talent Recruitment and how you're able to build your group because I belong to a few different masterminds of owners of other creative firms. And our fertility marketing blueprint took us years to build the way it is a really good strategy piece and allows us to make sure that almost any group is going to be successful if it's if it's done right. And took us years to do, and I willingly share it with other agency owners. And I just tell them, if you decide that you're now going to go into fertility field with this, you'll burn in business development, hell, but other than that, I'm not making people sign an NDA, I'm not, I'm just sharing it with other peers. And so that they can use it to help


Dr. Klatsky  31:08

like you, Griffin, and in your your, your becoming a thought leader in our field. So people are gonna want to always have your, your thoughts and opinion and I think that makes sense.


Griffin Jones  31:20

Well, to your point, though, I can't keep secret sauce anyway, there is no secret sauce. The embryologist are talking to each other, the nurses are talking to each other, the Jr. Doc's are they're talking with their pharma reps who come in who are talking with other folks. And so it's either you're either offense of this is what we're doing. And I'm doing a podcast episode every single week, and Peter is sharing his version of xe on the podcast with everyone and sharing that and bringing that to the field on offense, or on your or your you're on defense. And I'm starting to see the folks that are struggling with that. But to me, it's binary, there is no maintaining the secret sauce, you've talked about how you are building a team based on that ethos, how else are you building the team to be collaborative, like what's the structure of springs team that makes sure that it's one of as you say, advancing the core value of what's in the best interests of the patient, we


Dr. Klatsky  32:21

onboard people slowly providers, you know, most places, you're seeing patients a week out, provider out of fellowship will probably take a minimum of two months before they're seeing their first new patient. And more likely closer to four, we maintain regular full team meetings where we talk about clinical issues and also practice issues. And what we have built in, I guess, modeled from the top down is a relatively flat system or flat operating system. So that medical assistant, you may have just heard somebody knock on my door, nobody feels timid about knocking on anybody's door, it's spring fertility, and if a physician is running five minutes late, that means a patient's been waiting for too long. And so everybody's instructed to let that patient that physician know and empowered to do so. So we've actually a small waiting room has been virtually every year in San Francisco combined. And people are usually surprised because these patients don't wait here. And that's because you know, the physician would be in trouble, regardless of who the physician is, if the patient's waiting for them. And that's, you know, a core value is that the patients come first. And everybody gets a copy of our mission statement. Everybody knows what our pillars are. And everybody is oriented for two days, every single hire, whether you're in the finance area, or whether you're in a clinical operations area, to understand what that mission is, and we try to hire Well, we try to screen for people who are interested in that mission before we bring people on.


Griffin Jones  33:55

Yeah, other thing when I say binarias offense and defense, it's really Who do you want to work with and for? And who do you not want to work with and for and in order to attract people who are self motivated. The values and the reinforcement of the values, the reiteration of them, I think, is critical. And I think in that group of clinics that were founded in, let's say, the mid into late 1990s, many of those don't have them. And I think part of the reason why some of them are starting to struggle now is because they're not built in this way, which is not only just built for talent shouldn't be built for patients but also built to attract talent. So where do you see this going in the next decade, let's say in terms of I guess what you want to do with spring but where you see the field, really starting to bear to some of the demands that have been eking the past couple years,


Dr. Klatsky  35:05

I think the field is growing expansively they massively. And so I think I think that it will continue to be growth in our field, driven by demand for IVF services as women continue to have their first child and start families later on in life, but also with the advent of egg freezing. And as people get more comfortable with that technologies, we have more data on the on the viability of that technology, I think people will demand more and our patients are are more demanding. And they're used to having an individualized and personal experience. And so the centers that are able to provide that enable to provide a patient experience will grow in those that want to continue putting the doctor first as opposed to the patient will see you know, probably see a retraction in their market share and clinics like ours, where people like working together. I said last night, we went out to dinner with a candidate, a new physician recruitment candidate, and she was lovely, and the team was just happy to be out together for dinner. And mentioned tonight, we're having another dinner with all the physician and providers, and then we're having a party for our entire staff and their partners on Friday night or holiday party. And so sprint like spring is a fun place to work. We every quarter, we do something as a team and not, you know, they're usually not boring. And, and sometimes, they're arguably too fun. But we really try to make sure everybody in the in the organization feels valued, and that people enjoy being around each other. And so if you can do, and I think that's a critical element to the patient experience, it is almost impossible to deliver a wonderful patient experience. If your team does not like working together. In order to make patients happy, you have to start by making your staff ensure that vision that we're all what we're doing is important, and it's about the patient.


Griffin Jones  36:57

The old adage had been shareholders first customers second, employees. Third, I think many forward thinkers have corrected in our field, you could say its employees first patient second, in that case, the for the for the exact reason that you described


Dr. Klatsky  37:16

would be very, I don't want to say that because I still think the patients come first. But but almost like in order, you have


Griffin Jones  37:22

to say that because you're a doctor, if you were if you were just a business owner, not a physician, you wouldn't have to say that because I'll say it right now in front of everybody, clients come second, if any of my clients are listening, and most of them do, they know, my employees come first. And if I felt like my employees, were not someone that put the client's interests at the top of their mind, and we're willing to go the extra mile, they wouldn't be on my team to begin with. But if it ever came down to, you know, if client ever dog cost an employee, I would rip them apart in front of the whole team just to boost morale.


Dr. Klatsky  37:59

Yeah, wouldn't rip apart a patient. We're very sensitive with our patient, but but you can have both. Let's agree you can both they're both critically important. Your mission is about your patients. But you can't fulfill that mission. If you're if your staffs unhappy or feels like you're in any way not doing right. But


Griffin Jones  38:17

I just don't think that point can be understated that when employees when team members are happy, they take really good care of the people that they're supposed to be taking care of. And that's true in medicine, as well as client services I wasn't going to ask you about this wasn't on my list. But I do want to talk about your endeavors for social good particularly in Uganda. One of the reasons why I started my own company is because I want to be a philanthropist. But for me, they're very much separate I guess that my business is what I do to make money so that I can give money to the organizations that I care about. We're not like TOMS Shoes where we're selling a pair of shoes and then another pair it goes to the individual in need for you are your endeavors for social good, very much infused with spring or is spring a business venture that helps you to contribute in the ways that you want to.


Dr. Klatsky  39:14

I think it's all in so so first spring is about providing really excellent care to people on a really important level. So if you're an infertility patient been trying for the last 12 months to get pregnant, and every period feels like a wound in a stabbing, you know, insult and pain and injury, then providing sensitive, compassionate fertility care, you know, is a social good in its own right, helping somebody preserve their future fertility and their options and empowering them to go on their next date and not feel stressed. Like it has to be the guy they're going to marry. You know, for somebody who's going to freeze eggs is a social good so I feel like I'm so fortunate that the business or profession that I'm in just doing my job is a social good No, no, I'm passionate also about just reproductive health globally and in reducing disparities in care. And so the mama rescue program that I started in Uganda was really successful. And we were funded by the World Bank by UNICEF. And I basically had a decision to make whether I was going to get out of the fertility space, and go full time into the nonprofit space, or go all into the fertility space. And I chose the ladder in the way we sort of marry those two things right now is it spring fertility is actually making a donation sort of like TOMS Shoes. And so we make a donation for every person, we get pregnant. To spring fertility last month, we authorized the $24,000 payment to the organization's running mama rescue. And that will provide for every pregnancy, we have, we provide for two women in rural Africa to get an emergency transport in the event of an obstetric emergency, and to transport 10 women to a health center for skilled obstetric care. And so and we do that, with every pregnancy achieved at Spring. And so so that's where we get to marry, you know, helping women who can afford advanced reproductive technologies have gradually built up care in the United States, with women who are no less deserving in an environment in an area with far fewer resources, and try to connect those two worlds through our shared humanity. And that's something that's been important since we started in, I mentioned that, that Nam Tran is the smartest person I know, you know, he came to United States as a refugee. Like, my God, like if Donald Trump was President, you know, 40 years ago, we might not have had the benefit of having somebody like him in our country. And so we still believe in that shared humanity and that shared reproductive health, and I sort of pivoted off on the politics, but I like to, but we're real infertility is real. And in frankly, like, I'm disgusted with our current administration, and as a CEO of a company, or as a founder of a company, I probably shouldn't say that. But I don't care. Because it's reproductive health, right. And that's what we're passionate about. And so we're passionate about helping improve the lives of women, both in our own community. And if we can tie those eyes to women who are deserving and caring and, and underserved. We want to and so that's what we do with every pregnancy we we actually support access to skilled obstetric and antenatal care in in western and central Uganda.


Griffin Jones  42:36

How do you want to conclude with our audience of how spring fertility is going to build this new standard of care that's not seen anywhere.


Dr. Klatsky  42:46

I hope that we continue to have great feedback from our patients. I've learned that not every single patient is going to have to have perfect experience. But our commitment is when we have a patient who had an experience that didn't live up to our goals that we listen and react immediately and try to improve our system right now. I think we deliver amazing care. And I hope that we can continue to hear the kind of feedback from patients that they have pregnancies quicker, that the experience is less uncomfortable and more empowering. And if we can continue to do that, and continue to empower our patients provide a more comfortable, compassionate and efficient experience. Those are words that don't always go together. It spring will continue to grow. It will continue to grow in the Bay Area. And as well as new geographies. And anybody who's interested in that mission should give me a call or send me an email because we are hiring


Griffin Jones  43:48

new geographies, watch out folks that are coming to your town. Dr. Peter Klasky. Thank you very much for coming on inside reproductive.


43:56

Thank you. You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society, visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health


157 How to Phase a Fertility Brand Update: Secrets from Griffin Jones

This week, Griffin Jones hosts a Marketing Secrets Shorts episode, disseminating branding phases. Whether you are considering a rebrand for your clinic, beginning de novo, or somewhere in between, it is important to know where to start out if you want to end up with a marketable brand in the end. Listen now for tips and tricks to properly phasing your branding efforts, on Inside Reproductive Health with Griffin Jones.


Transcript




Griffin Jones  00:04

Here's a tip on differentiators, guys, if the next person next to you can say it, it's not a differentiator, I'm going to give you some marketing gold inside reproductive health audience before we start making an editorial transition, there's gonna be less fertility bridge content, more content about news coverage and fields of reporting news stories, as they have a list of new podcasts with guests. But I want to bring you more news coverage because that's what people are asking for. And we don't have a Forbes of our field, you don't have a Bloomberg of our field, we don't have that trade media outlet. It's always been the insight, reproductive health podcast, I want to bring that to you in other formats, in weekly digest and in the podcast, as well. And then others, to the extent that we get more people behind it and build out more, but the types of things we want to report on is Mark Segal stepping down as CEO of us fertility, John Pardew is stepping down as CEO of CCRM fertility, what does that mean? People doing fundraisers, and closes like engaged MD closing around recently, and so I want to bring that type of news to you, because you all are hungry for it. And for the most part, it's not being reported in other media outlets. So you're gonna have less of this type of marketing advice, or the things that fertility bridge does, those brands are starting to separate. But I want to give you some brand wisdom before I do. And I want you to do this and think about this, whether you use fertility bridge, my firm or any other I don't care, I don't care guys, this is the way it works. 


When I talk about Kindbody, I'm not talking about frickin’ yellow colors, I'm talking about the power of Apple, the power of things, the power of Nike coming to the fertility field, and many of you are positioned on the complete opposite spectrum. I'm not saying that you have to go to that level of global consumer branding, most of you wouldn't be able to even if you want it to cost a ton of money. It takes a ton of effort and institutional structure to be able to accomplish it. But you can at least make sure that you're not positioned like an old general practice firm. When do I want to go there? Or do I want to go to the place that looks like it is most in line with my values and what I'm comfortable with. So I'm going to phase it out for you. And, and I want you to approach it in this phase. Because you can err on either side, when you start to do a brand, you can err on the side of the creatives and doing all of the work and you get something that isn't you or you can err on the side of you feel like you're doing everything. And like what did I even hire these designers, this brand manager, these writers, this creative team for? 


So the first thing is positioning has to be done. I recently had a client ask that when we're talking about core values, isn't this like this like kind of like millennial fluffy stuff? It is if you don't do anything with it, if it's just words on paper than it is the first thing that you have to do is say these are our practices, core values, our purpose our differentiators. Here's a tip on differentiators: guess if the next person next to you can say it. It's not a differentiator. If the next person next to us said yeah, we offer personalized care to Yeah, we offer state of the art technology. Yeah, we have the best doctors. That's not a differentiator. A differentiator is something that someone else can't empirically say. We were the first egg freezing practice in town. We do the most cycles in this marketplace. We're the biggest independent practice in this state, whatever it might be. Those things are your differentiators. And with regard to your values, your purpose, your mission statement. If it feels fluffy to you, make it less make it less than but make it the things that you can point to if this person isn't these things, then they have no business working at our firm. They have no business working In our practice that is, and, and you should have no less than three of them, you should have no more than seven. 


Here's a tip for you too. This is what I do with our clients. So clients that are spending more money on branding, we will actually talk with employees, and we'll do surveys, and we'll do surveys with patients and get them to sign they have authorizations that we can talk to them all that sort of thing actually have a number of the creative team talk to these folks. But for clients that spend less on branding, we will go through fertility IQ, we'll go through Google reviews will go through Glassdoor if they have enough reviews and see what people have said about them. And then when there is something that they can use, that is that is said enough, this is a frequent pattern, everyone talks about how this practice to hold your hand through the way and maybe that becomes a something that has to compassion become your core values.


 Conversely, if they do something, that if there's a common pattern of you know, your your, your nurses dropped the ball or, you know, an example of you know, they they were slammed, were slammed so busy that we don't get back to people, we want to have a value that addresses that. So that people you're getting people in that aren't totally floored by it. So if you, if you're if you have the type of managerial behavior where you just tell people how it is, you have to have some type of value for directness, that you're getting people that that are aligned with that. So that's your position, you do that, first, you do that with your partners, that has to be done by the Chief Executive, the managing partner, whoever the senior partner is, has to be done at the very top marketing director can't do it for a CMO can't do it for you, a firm can't do it for you, you have to do the position. Those a firm can facilitate it for you. But you have to do it yourself. 


Now, when you move on to the actual brand, the first thing that you want to have done is have the creative should be doing an assessment and they should be coming to you with more specific questions. Remember, the erring on either side, you can err on the side of the creative team is doing everything for you. They're suggesting everything and it's not your brand, it's something that just gets slapped on you. Or you're doing everything to change that color, change that word. And then it's like, Why did I even hire these people? And so because you can do that they should be coming to you with specific questions. I notice when we ask, you've got somebody new uncrating for example, we ask general questions. That is, is the client off? pisses me off, too. It's a bit counterintuitive, because normally the more open ended questions that you ask the more of a true authentic listener, you are right. And often the more someone feels hurt, because you're not coming in with any assumptions. But when you do that, and branding it, it especially with physicians and people that this is not their main thing that they want to be doing. They feel less heard, like, why don't you know that? Why? What did we hired you for? What does that even mean? 


If you watch the movie, The Greatest Movie Ever Sold, it's Morgan Spurlock, the filmmaker from Supersize Me. And he does a movie entirely about product placement. And they go to the big creative agency in Pittsburgh. And they're asking him these very open ended questions like what does that mean to you? How do you feel when you see this and his brain starts to spin? So I try to pair up creative team down more than they probably like. But if they had their way it would be infinite and the client doesn't want that. So you want to have an assessment where they're coming to you with some specific questions, not so open ended a couple open ended questions and not the infinite number of questions to six or eight questions, and then you can go down some rabbit holes. And they should also be coming with what they're ready to challenge you about your brand. If there's something about the logo that they see, not right but the marketplace, your colors, your design, your messaging, they should be able to have that in the brand assessment that discussion happens after position, that it's what helps to establish the voice in the image later on, to done positioning, then you've done an assessment which leads you into voice and image. And it's good to voice first come up with that mission statement. They can come up with options for you or you can do a workshop and come up with a tagline or a slogan for you. And then come up with your brand voice. We do taglines and slogans for people we have taglines and slogans for both inside reproductive health and for fertility bridge. And they're different the slogan, it's like the rah rah. And the tagline is literally what you do that you can explain to somebody. It's never heard of you in one sentence ever inside reproductive health. Our slogan is takeaways every time the rah-rah sounds good, if you know it inside reproductive health is, you know, that means you don't own reproductive inside reproductive health. that would just be a platitude, too. So the tagline is the media outlet for the business side of infertility. Oh, I know what that is tagline, literal slogan, rah rah. And your brand voice. We've done big brand voice sections in brand guides before. And we've also done smaller ones, for most of you for dealing feel the smaller ones are better, what happens most of the time is writers look at a big brand voice. And they end up not using it because it's not communicated what they're supposed to write. So we make a page, half a page, sometimes this how we sound and, and then make sure that your writers actually use that anybody writing for you, whether it's web content, or social media, or for stuff you're doing internally, make sure that they actually use it the length isn't, isn't the biggest deal. Like, yes, I can see why Disney would have a big brand voice. But for most of you smaller, and then just make sure that they use it. So you've done a positioning, you've assessed your brand. You've done your voice, and you're proving all of these in sections, because our goal is that you have a really nice brand guide. Before you implement anything you don't want to be not implementing. While you're doing it. You're not like, Oh, we got our slogan, let's update this on the website, or we have our mission statement. Let's make sure we got this up on the wall right now not doing any of that until your whole brand is done in that guide. You're getting your Bible first before you go out and and start changing everything. Otherwise, you go into revision hell, and everyone will hate you. 


Once you've done voice, now you're ready to do image, the first thing should be your image guy. And yeah, taking photos or doing videos. At this point, it's just this is what our images look like. This is the style that we use our lab posts, we don't use our lab coats, we take candid fun ones or we don't. You should have images that represent that style. And that should be your guide before you start doing video and photo. Do your fonts and your colors separately isolate the variables. I've seen clients and creatives do this opposite that they've each erred on either side, the best way to think of this is you make you pick out your dress first positioning, then you pick out your shoes, then you pick out your belt, then you pick up the accessories not have to wait for to see which one looks for best with this one. It's which shoes look best with this dress right now which belt looks best with this shoes. And this. And this, I understand that some of you are going to buck from that. And there's probably some brands where it makes sense to buck from that for the vast majority, especially those multiple partners having say, do it that way, pick up your fonts, pick up your colors, pick out your image guy and do this all before you do the next phase. Because you will you'll you'll run into less of those variables. 


So when you're looking at fonts when I have our creatives present fonts, I have them present the fonts in the clients normal colors or in there or in black and white. And then when I have them do colors I have them do with their existing font in their existing logo. So they're not, they're not seeing so many variables at once. Okay, I like those fonts. I like those colors. So, if you've improved your positioning, you had an assessment that set you up for your voice and you went through and you improved your voice and your mission statement, your tagline your slogan, your voice guide, then you've approved then you went on to the next phase with the image and you prove Jeremy's guide your fonts or colors, then you can start to make some of the the templates and And that is a great brand story.


 If you know that you're going to be wanting doing video soon, and I recommend most people do have a brand story for videos, it's awesome that gets everybody excited, it can last for years, it's worth spending a ton of money on. And it's worth closing your office on Thursday or Friday. And coming in on a weekend, if you have to do it, as long as you do it, right. So that's where the brain storyboard is, if you if you're going to make a video about your brand story, build out the whole storyboard first, prove that first. That's where your logo your redoing logo, that's where that's going to come into play is that now you have a new logo. And because you've already approved the fonts have already proved the color. So you're just looking at what any approved your voice, so the logo should be representative of that it should, it should be some kind of symbol for that, even if you're just updating your logo. So we have some clients that would really like this, though, tell us more about what you'd like to buy, tell us more. And then and then we'll often end up updating. So you know, we'll come to them with the design principles or other things to consider in the marketplace. And and then we're updating it based on net. So when when you're approving your logo, it should be you're looking at the logo, and you're not thinking about all the other potential things because it will it will drive you off track. 


And that's when you start creating templates before you start implementing. And this is the web page mock up this is the social media mock up our business cards. And so at the end of this, you want your final brand guide, it can be maybe 12 pages you have most of you probably should be more than 20. There are some of you that might have really long brand guides for those of you that are like consumer brands, global consumer brands, but that's only a few of you listening for the most part, it's going to be somewhere between 10 and 20 pages for your final brand guide. The point is that people use it, it's not. It's not how long it is. And that's worth spending time on it's worth spending some money on. And then you can implement those things, we do it in that order, you got to have a brand you're happy with that your position well, but against the consumer global brands coming in, you don't look like an old doctor's office, old pharmacy or whatever kind of company you are. But you also haven't just copied somebody else and you haven't forced yourself so much into the rah rah or the fluffy that doesn't feel like you do it in that order to thoughtfully spend some money spend some time but those are the phases you do those things you're going to have a successful brand.


 So I hope this has been useful too. And if you like some of my tips on it, just send me an email Griffin at fertility bridge calm. And I hope you enjoy this episode because there's only gonna be a couple more like them. And as we start to cover more of the news content in separate the fertility bridge, and inside reproductive brands, some more anti reproductive health brands some more. I should be reading from my guide.


18:22

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


156 6 Of The Biggest Fertility News Stories You Should Know Before ASRM

Just in time for the ASRM conference, we share insights on the hottest fertility field news stories you can take with you to the Networking Lounge.


Listen to hear:

  • About the acquisition that took place, which was not reported in the US or Canada.

  • US Fertility’s recent change of CEO.

  • KKR’s debt for the IVIRMA deal.

  • The recent celebrity embryo lawsuit that has now turned against the clinic


With this roundup, Griffin offers a sneak peek into the future of Inside Reproductive Health and news coverage of the business of the fertility field.





Transcript


Griffin Jones  00:04

The biggest Fertility Center in Canada being sold to an overseas company and it not being reported on in North America KKR the global investment firm be behind the EV RMA deal. And the banks behind them selling off their debt, getting rid of their debt to private lenders. CCRM expanding into New Jersey with an acquisition, kind body expanding into Houston and getting the Walmart deal, a major lawsuit happening with that you knew about but now being directed towards the fertility clinic. The this is the news that I'm going to try to give you some insights on today. This is the type of news that inside reproductive health wants to report on in the future. This news content that I'm giving you today is not reported on by us. I'm giving you kind of a preview of the direction that inside reproductive health is going on. Many of you are coming back from SRM. Many of you talking about these things, at SRM. So I wanted to give you some water cooler topics to think about and reflect on catch you up a bit. By the time this episode airs. I'm sure there's probably a big announcement or two that happened today. That didn't make it to this episode. But inside reproductive health is moving in the direction of news media outlet of being able to cover more of these stories, we're still going to do the podcast where we go more in depth. But we also want to cover new stories like these. And many of you listening may have had a meeting about sponsorship with me at ASRM because we are starting to close those sponsorships and only a few companies are able to get in now. And for you, the listening audience, the docs, the CEOs that listen in to reproductive health and read, it's for the aim of getting you more content, some of which is is like this. So I'm gonna go through these stories today, I'm going to try to give my insights. As always, if I get something wrong, please email me and tell me and we can correct on a future episode or you can come on to give more insights or just complain about it quietly to a friend, whichever you prefer. First story is an older one I'm gonna go from older to more recent. And the reason I still want to talk about a story from over a year ago with the Yujun deal of TRIO fertility is because it was never reported on in North America. If you Google Eugin, TRIO, fertility, there's no story that I can find from the Toronto Star from the from Bloomberg from any US or Canadian media outlets. Eugin. If that name sounds familiar to you, is the health system out of Spain that bought Boston IVF. Some years back, they're owned by a another company that's a public traded company. And I think this is significant for two reasons. One is that I think that trio was the largest center in Canada, if you recall, there was a merger some years ago, between five and 10 years, probably seven, eight years ago, something like that, where there was a merger that made trio fertility between life quest and T carts. And then they became true, I believe there were the largest center in Toronto, according to this Spanish media outlet lab on guardia the they did 2700 cycles a year. And so I think that's significant. But I also think it's significant of parent companies that are buying centers, when some of their subsidiaries are large enough to also have done this acquisition. So just just like by you, just by numbers and speculation, Boston IVF could have done this deal. I don't know, I have no idea if they wanted to go to Canada or not. But I think about this when Shady Grove buys CRM and Houston that it's like well, did somebody else in US fertility want to do it? Do it will will these parent companies opened de novo clinics as part of the bigger brand or or will one of their subsidiaries. So I think that's significant. And I also think that it's significant that none of us knew about that. And it shows that there is a lot of strategy happening not just from Wall Street private equity, but European health systems and, and health systems and large networks in other countries that are still TGT coming to different markets in North America as far as I can tell, this is the their first acquisition in Canada, but with their, with their, all their acquisition of Boston IVF, or at least partial acquisition of Boston IVF as well. This media outlet plus mundo se is reporting that Eujin covers more than 37,000 IVF cycles in 2019. So you might infer how much they're doing. Now. Next story also a little bit older, but there's been an update in the last month or so is the what's behind the KKR deal of edrms. So many of you know that there was RMA of New Jersey, and then there was there were armies that are not affiliated with RMA of New Jersey, and there are their armies that were and then they merged with EV of Spain to be to form their global company, EV RMA a few years back. And then the company, the global investment firm KKR made an acquisition of e vrma. Global back in early 2020. To deal that is reported by Axios to have been $3 billion euros at the time, that would have been 3.2 million US, but they're probably paid in euros, at least according to that report. And but the latest development is that the banks that helped to finance that deal the some of them like Morgan Stanley, and Credit Suisse AG, according to this report by Bloomberg, have decided to sell off that debt to private credit firms. So instead of them getting the interest from that, that loan, there, they'd sold it, according to what Bloomberg says, for 96 and a half cents on the euro. So these banks took a little bit of a loss on it. And in order to sell it to the private lenders, they're not going to be getting that interest, the private credit firms will be and they sold what they had for a little bit because KKR they're using some of that some of what they're buying, you know, some of what they paid for is going to be from their limited partners. The pension funds, the the high net worth individuals, the these these big funds that they used to purchase, make a 3 billion euro purchase, according to this article, 800 million of that came from debt. And so that's been sold, what the greater applications are beyond that. That's beyond my paygrade right now, but if you know you can come on in, we could do an analysis of that. Next door is ecrm made a big acquisition of IRM s in New Jersey and I rms used to be part of the St. Barnabas health system there they were a private center on probably one of the largest independently owned private centers on the East Coast, they have 11 rd eyes. And that acquisition was officially announced at the end of August. And so this is going to add to CRMs footprint in the northeast, it may give them more leverage with insurance companies because they have CCRM, New York they also just added a doctor there. And so they may be able to have more leverage with insurance companies there may be more efficiencies in marketing and some of the services that they're offering that allows them to expand but this is a group that a lot of people wanted and was independent for a long time. And it's it's really big. There's not so many of these size groups anymore. There's there's very few and and CCRM got one of the last ones of that size. Next story. There's a big CEO change at one of the largest fertility companies in North America. That's us fertility. You of course know them from Shady Grove fertility Mark Segal, having been the CEO there then going on to be the CEO of the newly formed parent company that was formed in 2022. With the backing of the private equity firm amulet capital they took. They took one of the groups in Florida fertility Fertility Center of Illinois and RSC of the Bay Area to form us fertility at that time. Mark Segal, who had been the CEO for 25 Five years at Shady Grove, went on to become the CEO of that company. And it will be stepping down come the New Year, the new CEO is Richard Jennings. Jennings was the CEO of California cryo bank and then went on to be the CEO of generate life sciences, Derek lifesciences was acquired by Cooper in 2021. What this could mean is I wonder if this means companies like us fertility will be looking to expand more in the third party space, acquiring companies that are either surrogacy agencies or donor agencies or both. I think a lot of networks are creating their own. And it might make sense to do some acquisitions, it probably does make sense to do some acquisition. So I wonder if this would if Jennings being CEO of us fertility will help with something like that, if that's part of their vision. And I also wonder what this means for Shady Grove, because I don't know who the shady the CEO of Shady Grove is right now. I probably should. I don't know if Mark Segal held that position as he became the CEO of us fertility, according to his LinkedIn profile. He didn't I don't know what that means, if you just marked it, as you know, through that time through 2020. Or if if he was concurrently serving in that position, if they filled that with someone else, or if they decided not to feel that because they then had a parent company and US fertility and didn't feel that they needed that role, but perhaps a different type of President role. I don't know that somebody's probably going to get a bunch of texts saying how do you not know who this is and update me and you are absolutely free to do that. A big story on the fertility benefits coverage front is Walmart signing with kind body for a number of years, I thought that it was a one horse race with progeny, maybe it would become a two horse race with carrot, and then kind body started adding employer benefits as they grew into the company that they're building. And now maybe it's a two horse race, maybe it's a three horse race. Walmart's a pretty big deal. Insider reports that the benefits include financial support of up to $20,000 lifetime for eligible surrogacy and adoption costs that they are rolling this out company wide. And this is a company with 1.7 million associates but insider doesn't report how many of them will have access to that benefit or what the vesting terms are in other kind body news channel too. And Houston reports that came about he is opening and clinic there is that big news. I think it's big news because of what Houston is. Houston is sort of the anti Phoenix in terms of consolidation of clinics. Houston was a market that consolidated relatively early relative to the rest of the country. Of course, you had HFI Houston fertility Institute, which had sold their lab or at least part of their lab to Vera that was in the early days, sometimes in the mid 2000s. And then we've seen a lot more acquisitions since a spire had acquired Houston fertility specialists to have a spire Houston. They later went on to buy after they merged with Prelude and who had already acquired the Vera at that point merger acquired with Vera at that point they had, they had HFR as part of their portfolio, but then went on to buy the rest of the practice. The center of reproductive medicine was the last sizable independent practice in Houston. And then last year, they were acquired by Shady Grove fertility. So Houston has been a very consolidated market, there still are a few, much smaller independent practices there. Maybe they'll grow. But now there's more competition coming into that marketplace. Finally, the media outlets suggest reports on a update to a story that you've probably known about for some time, but this is the first time I've heard about this. And it sounds like they're now going after the clinic. So you've probably heard about the Sofia Vergara lawsuits that have been happening for the last decade or so with her ex fiance, Nick Loeb, if I'm understanding that correctly, where he was suing her to prevent her from taking the embryos from destroying the embryos. And he did not win that lawsuit over several years of litigation suggests now reports that the clinic itself is being sued. that art reproductive services, which I believe is our Reproductive Center in Beverly Hills, is now being named by Nick Loeb in the latest suit. This is reported as of October 9 22. I can't give you too many more legal insights here. I'm happy to have one of the reproductive attorneys that we've had on in the past, come back on and talk about more protection for you doctors and covered entities. But what I can see happening here is that the plaintiff, the ex fiance, didn't win against his ex fiance, who was probably well lawyered up. And so now he's going after another target. He didn't go after the fertility center at first went after his ex fiance he lost. And now for whatever reason, perhaps for this further say I have no idea is now going after the clinic. So I think it's something to think about for Fertility Centers that even if you might feel that, okay, this clearly isn't between us, you may need some extra legal protection, simply because you might be the easier target to go after in terms of arsenal of legal defense. That's a bit of my speculation. But that's the latest on that case that's being reported in the news. These are the insights that I have for you. Hopefully, you're talking about them at ASRM and sharing this episode and talking about these headlines, because we want to create a lot more news for you. In the future. We're working with journalists to bring original news stories for you. I've given you the stories that are currently in the news. We will expand the podcast coverage, we'll expand the news coverage. It's for you, the doctors and the nursing managers, the practice managers, the executives working in the fertility field, so that you have this news firsthand, into your mailbox. And thanks to the sponsors, that will be a part of it. And thanks to you all for listening. And if you've enjoyed this direction, please let me know please send me an email because it helps us to decide what content to cover next. Hope I got to see you at SRM and hope you have a safe journey back.


17:23

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


155 Where does the money go? What's new? What's different? With Executive Director, Dr. Jared Robins

This week on Inside Reproductive Health, Griffin Jones hosts guest Dr. Jared Robins, Executive Director at ASRM, to discuss all things conference. Tune in to hear what innovations are coming to the annual gathering for 2022, where all that endowment money comes from (and what it goes toward), desired outcomes for the future of ASRM, as well as an exchange of ideas on the business of business in medicine.

Listen now to hear:

  • What Dr. Robins has been working on since being named Executive Director of ASRM.

  • What the new and improved events and features will be at the conference, and how you can benefit from them. (Hint: fireside chat, networking lounge, interactive e-posters, Med-Talks, and more).

  • Where ASRM endowment money is procured and what it funds.

  • Griffin question Dr. Robins on the validity of disclosures in the medical field regarding business interests.

  • Griffin press about the level of influence business and medicine should have on each other, both financially and philosophically.


Dr. Robins’ information:

LinkedIn: https://www.linkedin.com/in/jared-robins-68a2825b/

Transcript


Dr. Jared Robins  00:00

As the healthcare providers and the business people should can't work, can't make decisions in isolation of each other. And they need a forum by which to come together and make those decisions.


Griffin Jones  00:14

Dr. Robbins, Jared, welcome to Inside Reproductive Health.


Dr. Jared Robins  00:19

Thanks, I appreciate you having me. Having me. join you. I'm excited to be here.


Griffin Jones  00:25

Your motto could be I'm not always the executive director of professional societies. But when I am, it's ironic because I don't want to call you the most interesting guy, Jared, because I don't like I don't like inflating egos that much. But I think it bears a little bit of talking about on the show you and I had dinner together in Atlanta, and I got to learn a little bit about your life. And I always say, Wow, this is like the Dos Equis guy. Is it you know, you said oh, yeah, I used to live in Atlanta. Oh, yeah. What? When was that? Oh, back in the 80s when I was a firefighter what? Oh, yeah, I was a firefighter for five years before I went to film school. What? And so let's can we tell people a little bit about your life before med school before we get into your trajectory as around?


Dr. Jared Robins  01:09

Sure. So I was doing some fire did some work because mostly working as a paramedic with the fire department in the northern suburb of Atlanta, what,


Griffin Jones  01:21

what brought you down there because you grew up in New Yorker, Long Island. Yeah, I


Dr. Jared Robins  01:25

i grew up on Long Island, I always wanted to be a firefighter paramedic, long wait to do such in the New York area, was looking at schools in order to really in most fire departments. In order to advance through the ranks, you had to have an associate's degree or a bachelor's degree, depending on how high you want to join the ranks. I always wanted to be chief, you know, and so I knew I needed a bachelor's degree. And I applied to schools, Emory was one of the schools I applied to the firefighting magazine was advertising heavily for fire departments in and around the Atlanta area. And so I applied to needed to pay for school. And also, I mean, I think that that was a big, big concern for me, as I wanted to go to


Griffin Jones  02:09

college, I had to pay for college. So you were a paramedic while you were at school. Correct? Yeah. And that why film school.


Dr. Jared Robins  02:19

So I was a, I was had an interest in in film and arts, and, you know, what creative thinker, and, you know, it was going to college really, for the degree more than for the knowledge and so I thought I would do something that was gonna be really fun. So I was a film studies major with the bio minor, and then, you know, as kind of progressing through school, decided, I think, really, through my experiences, as a paramedic, really decided that that medicine was going to the way I was going to be the way I went. And so, you know, made sure I hit my medical school prereqs. But I'm not really sure that that was the way I was gonna go when I was when I started the application process, but wanted to make sure I had those prereqs in case I decided that that was an avenue that I wanted to pursue.


Griffin Jones  03:05

Do you ever end up working on any films or TV? Do you


Dr. Jared Robins  03:09

did some short, you know, some short school type programs, but never anything professionally? Now?


Griffin Jones  03:14

How did the transition to medicine happen?


Dr. Jared Robins  03:18

Really. So, you know, had a strong interest in science. And so was taking some of those science classes along, you know, in school nature, like I said, I hit those prereqs I was in a fraternity as well, a lot of my fraternity brothers, were taking the MCAT, my girlfriend at the time was studying for the MCAT. So I thought I would take the MCAT to just see how I did and did well on the MCAT and just, you know, sort of almost out of fun applied for to Emory into state university of Stony Brook for to see if I would get into medical school and I did and had a long, you know, sort of inner conversation, you know, deciding is this really what I wanted to do talk to my friends, my advisers, my parents, you know, prayed on it a little bit and decided, you know, I thought let's go to medical school and see what happens. It doesn't mean I can't be a fireman in the end. But let's see how back to school goes. So State University of New York at Stony Brook was relatively inexpensive at the time. Not anymore. But and so I would be able to go there to school and not have to worry about taking out a whole bunch of loans. And so I went to medical school and I loved it.


Griffin Jones  04:29

So that brought you back to Long Island and then and then did the did you immediately do residency and OB GYN and then immediately sub specialize or was there a time between no being an OB GYN and sub specializing?


Dr. Jared Robins  04:45

So it's interesting. So obviously, when I went to medical school, I thought I would, at first I didn't know what I wanted to do, you know, my interests were trauma and, you know, trauma surgery, you know, and those sorts of things and you know, So I took my you know, in medical school, for those that don't know you do in your third year, you do what's called clerkships where you essentially spend time on the wards in the different fields. And knowing that I wanted to do surgery, and OB GYN is a surgical subspecialty. And this is actually a common story about what we do when I scheduled my OBGYN rotation immediately before my surgical rotation. So I would have that surgical experience, I would feel like you know, more confident when I walked into the AOR to impress the surgeons, and I loved OB GYN, I felt like there was a lot of some of the things that OBGYN had that that surgery really didn't have, is that idea of really being part of really developing a relationship with you, with your patients being part of the family. And, and I really love that idea of having that, that, that closeness with your patients with that ability to really impact, you know, someone's life over the course of their life. And so, but I also wanted to be a surgeon, so obviously weren't really was the best of both of those worlds, you had that ability to, to, to be a doctor, you know, to be a part of their family as a doctor and to also, you know, be a surgeon. And then we presented the chronology, which was relatively new, you know, this is now 1990, early 1990s. So it's a relatively new field. And there's this that ton of creativity currently going back to those roots of I was a film studies major. You know, there was that idea of being able to be creative and innovative and really thinking, you know, long term about how to solve problems. And so I was really drawn to that reproductive endocrinology can making families what can be more fun and exciting and rewarding than building families and, and at the same time, being creative and innovative and being able to do surgery that so it really


Griffin Jones  06:56

was often here are you guys that like surgery say that Rei isn't enough surgery for them that they miss surgery? Do you find that to be the case?


Dr. Jared Robins  07:05

So you know, I think that the art, the art world has definitely changed a lot. Since the 1990s. We did a lot more medicine back in the 1990s. You know, we we were this you know, we started laparoscopic, laparoscopic surgery in many ways, it's was started by the RBIs. And so, a lot of that, you know, we now consider make surgeon make surgery. It's it was an offshoot of REI I think that um, you know, we become very, we become less surgical, surgically focused a lot of the reprogramming chronologist out there, there's still a bunch of us that still do a lot of surgery now. And so I think it's, you know, I think we as individuals have to sort of find our way, ASRM, through the Society for Reproductive surgeons actually has a surgical track that surgical scholars track for reproductive endocrinology fellows. So those fellows that really do want to be more surgically involved can be part of that reproductive surgical tract. And and, you know, these are programs that have higher volumes of surgery. So there is so it is out there for a lot. I mean, my practice certainly became much less surgically heavy as I as I got older.


Griffin Jones  08:11

Well, that's a good thing for the fellows and residents to learn about. If you're listening, if you've been on the show before and you're wondering, Hey, Griffin didn't ask me that much about my backstory. Why not? I don't know go to film school and be a fire department paramedic for years and and tell me about it dinner sometime because I think it's interesting. So let's fast forward a bit. And, and let's get to the position that you are that you now hold that ASRM, which is a full time position as executive director for the American Society for Reproductive Medicine. And let's talk about how that came to be.


Dr. Jared Robins  08:51

So gosh, so you know, I, I went to business school. I graduated from Kellogg with my MBA in 2020. And was thinking about ways in which to really have an impact on, you know, on our health system. Really my interest in,


Griffin Jones  09:12

in what did you decide to do the MBA, so I


Dr. Jared Robins  09:16

really wanted to learn to be more involved in healthcare operations that I felt like to after the healthcare system is rapidly changing. You know, big health systems are not run by physicians, they're run by MBAs and attorneys. And and but why


Griffin Jones  09:33

why an MBA and not an M H A, then if it was healthcare operations that interested you. Yeah.


Dr. Jared Robins  09:39

I mean, it's its business. It's really these big businesses that are having such an impact on our health system, not just in reproductive biology, but throughout the whole entire health system. For me, getting my MBA was just learning a language right? I never had any business classes again, film studies many directly weren't, you know, we weren't looking at business classes. And so, you know, as a division chief, so I was division director of reprogramming chronology at Northwestern. And, you know, so much of my job was understanding business. And, you know, we all Northwestern worked as a dyad. So it was a physician and a business person sharing the role of running these practices. And I really felt like there was a language that I understand that, you know, medicine has its own language. And we know that when we talk to patients, we have to remember that we have to read, you know, think in lay language, not not thinking in medical language, and business has its own language as well. And I just didn't need to know what that business language was in order to really be able to effectively run a practice.


Griffin Jones  10:48

And you say business language, what are you referring to financial modeling? What do you answer


Dr. Jared Robins  10:52

modeling, p&l sheets, even in marketing, I mean, there's just a whole, you know, the way in which the way in which people spoke was very business oriented, right, it had its own focus. You know, when when they're talking about the price setting, and that and I cannot economic, the economic modeling behind that, and when, when we're dealing with insurance companies, and you know, talking about how, you know, to negotiate, and all of that was stuff that I had really never learned, I was terrible negotiator, 233 courses, and, you know, I took 12 negotiation credits at business school, I think that was really important to understand that and really looking at the system, even how to do things like how to affect change, how to how to lead up, you know, these are all business concepts that physicians really never learn. And so I really felt if I was going to be effective at changing the way the health system is that there needed to be more doctors involved in that. And in order to be at the table, we needed to know the language. And because, you know, we were being told as physicians by these health care, business practitioners, that you know, we should stay in our lane, you do the doctoring, and we'll do the operations. But I felt like how can they do the operations if they don't really understand what we do? And so they really needed to have that physician voice at the table until we understood the language, we wouldn't get that voice. And so really, I was like going to language school for me to go to business school.


Griffin Jones  12:30

Were there any other physicians in your class at Kellogg at that time?


Dr. Jared Robins  12:33

So Kellogg actually has an interesting program. So first of all, there's a lot of business there's so the executive Health Program has a bunch of doctors in it. And then they also have a joint MBA residency program with a couple of the residency programs at Northwestern. I wasn't in any of those because I really didn't know anything about business. I felt really like a blank slate. I wanted to do a traditional MBA school. So, you know, Kellogg was like, Are you sure you want to do this? You don't want to be in the executive program, you know, you're kind of old. And I said, No, I really want to do a traditional program. So I actually did what they call the managers program, which is a part time evening and weekends program, where it's typically young managers, the average age in the class is around 27. It was definitely the oldest by far. I didn't have any other doctors although after I joined the program, a couple of doctors joined a couple of young doctors behind me. So but it was not a program that was aimed at physicians, it was really aimed at managers. And so for me, it was really getting that basics. I mean, basic accounting, right? Financial accounting and managerial accounting. It's one of those real basics that they may not have covered as in depth and a more senior program.


Griffin Jones  13:51

I want to talk about how that led you day is around. But I do you think it's interesting enough for the audience to sidebar for a moment on the type of negotiation that taught you at Kellogg, because from what I've come, Kellogg seems to be the greater proponent or perhaps a louder proponent of anchoring in negotiation. Whereas mo very often negotiation schools and teachers in negotiation will say, Never say the first number never give a number first. And I've done both in my career a lot. And I see that there are uses for each tactic. But generally speaking, I think it does make sense to say the first number in many cases. What were you taught there?


Dr. Jared Robins  14:41

Yeah, so College definitely is about first of all, Win Win, win win win win negotiations, right? I mean, that's a big belief in the Kellogg community is that your negotiation should always be win win. But but they do focus a lot on anchoring. I think that you do. You know, I think the anchor thing is important because it sets the tone of the negotiation. But you know, the fear of anchoring is that you could, you can anchor yourself out of a negotiation as well, right? If you, you know, if you think, all right, I'm gonna anchor high because I know we're gonna settle somewhere in the middle, you got to make sure you're not too high, because that just, you know, anchor yourself out. And so I think anchoring is definitely a big focus of, you know, and being the first to make an offer, I think it's often a really good strategy doesn't always work. And, you know, in a lot of ways that I took 12 credits, I took a bunch of negotiation classes. You know, it doesn't always, you don't always want to be the first anchor, there are definitely situations where you where that may work against you. But, you know, I think that there is definitely a focus on making that first offer. And making it realistic.


Griffin Jones  15:52

Negotiation is interesting, because you have so much to gain in a negotiation. You know, when you come by, if you go and buy a car, you buy a house, you buy a mattress, it doesn't matter, just by asking, sometimes one question can save you hundreds of 1000s of dollars, but you can, and you couldn't make that money in that in in a 10 second timeframe doing anything else. And that's what makes negotiation so valuable. And then on the other end of the spectrum, is that sometimes it's negotiation can just really hamper speed and say you want to you want to get out of there. And so anchoring does have to do with with that sometimes, sometimes you don't, it ties back to value based pricing, too, right? Yes. Let's use an example outside of medicine, so that we're not putting anybody on the spot. But let's pretend we're a web development agency. And we are a niche agency for financial institutions. If we're just selling website development, that we're being commoditized against every other web developer, that's an area where we actually do want to do value based pricing, because we want to see how many more loans do you want to sell? How many more? How many, how many more credit card applications do you want to bring on, because we know how to increase those by X percent. And so you would want you do want to do value based pricing. And you might, you probably don't want to anchor in a situation like that, because you want to see what it's really worth to that person because you're going to help them get a certain amount of outcome. And then there's other times where you just want to move as quickly as possible, and maybe not as quickly as possible. But you but it is better just to have a good position, say this is what the price is either you want it you don't and you can move through engagements more rapidly. Do you have a view on two views?


Dr. Jared Robins  17:49

So I think, you know, the kind of bring it back to kind of the question as to how I got to SRM. You know, or what, you know, what did my MBA teach me that brought me to SRM. I think that what negotiations to me was more was not only learning about how to, you know, work your way through a dealings, it's, you know, in order to be to be good at negotiations, you have to ask good questions of your of the person with whom you're working. And that brings you back to that whole idea of values, like, what's important to you, you know, where you're under, you know, really understanding where, what, what is what's critical to them, and that in their need, so that you can make your offer, you know, to fit that what that value structure is. And so it's for me negotiations was about how to ask good questions about person's values, and what's important to them, and, and, you know, where they're, you know, where their needs are. And that's what I feel like, I have to do a lot of this around, like, you know, my goal is to create value for our members. And that's about, you know, arrows say that I'm negotiating with them, because I don't, it's not like, you know, again, it is that idea of a win win. But, you know, it's about understanding where their needs are and what and, and what their values are. And developing programming and value based on those needs.


Griffin Jones  19:10

Depends on how semantic we're being right, expansive enough definition, everything's in negotiation. But tell me about the Win Win concept. And what did you learn there at Kellogg, and how do you think you're into that? How do you think you're using that principle in your position today? So I'm the Win Win concept of negotiation?


Dr. Jared Robins  19:33

Yeah, I think that. Again, I think we have a very diverse membership that, you know, very interesting and diverse membership, and we, you know, we need to make sure where we're fitting a lot of different needs, right. And as ROM, you know, it's we're not just an organization of physicians, where, you know, we're an organization that's actually 50% of us are physicians, and the remainder of the organization are business people and, you know, nurses and radiologists, mental health professionals, genetic counselors, and we have this diverse group of people, and we need to be really, you know, make sure that we're fitting everyone's needs. And so we know and with limited resources, and so there is definitely that negotiation among, you know, I often negotiate with my, with my, with my executive team as to, you know, what is going to be the next thing that we do have to negotiate with our, with our, with the board, right, to make sure that we're, you know, that we're, you know, fitting everyone's needs and, and, you know, and with members who are, you know, went when, you know, who, who want things done now, or, you know, what is, you know, who, you know, to develop the right programming, I think that there's, there's, there's lots of opportunities for negotiation. But, you know, we definitely don't want to see any of that negotiation is adversarial, right, I think that we, you know, my job is to is for everyone to, to get what there was to meet everyone's needs here. Right. And so, definitely thinking about ways in which to try to, you know, accomplish that with limited resources, limited time, small staff.


Griffin Jones  21:17

I want to talk about what you're trying to accomplish, given those considerations in wrapping up this, this negotiation side segue, did Kellogg teach you all to use the word fair, early? And often? I forget where I picked that up, but I find that it is it's perhaps even more for me than it is for the other person using the word fair, when I'm talking to them. Do you find this to be fair? Do you would you agree that this is fair? I when I do that, it makes me scrutinize my interests more. Is this really is, is the other party really going to gain from this and and then I'm also detaching from something where if it just isn't a good fit for me that we part ways friends. And so I find it really, really useful. Did that come up at all?


Dr. Jared Robins  22:10

Again, values, that idea of when we're in fairness, using the term is this fair, it's something that we definitely do a lot.


Griffin Jones  22:19

So, so I'm getting how, like, you had this interest for really figuring out how the healthcare system works, not not just your fertility practice, but like really getting a handle on how healthcare works, and that it's inseparable from business in many ways. And in order to understand that language, you had to get your MBA and that gave you a foundation for being able to run SRM and being able to bring in this this Win Win sense from of negotiation and and problem solving. But how did like, but how did like it actually be the SRM position.


Dr. Jared Robins  23:03

So the SRM position was available. As firms and organization I've been involved in over 20 years, I think that it has a great opportunity to have a strong impact on the field of women's health and men and construction of the Women's Health Organization. Let me back that up and say, on reproductive health, both for men and women, and from an advocate education standpoint, from an advocacy standpoint, from a research standpoint, but like it really answer him encompasses everything that that has been important to me, as I move through my career as a Republican technologist. And so given the opportunity to lead an organization that that has such breadth and reach was, was just an office and opportunity I couldn't pass up I'm really excited to, to be here. It's been eight months now, drinking from the firehose really learning about the organization from the inside. You know, I think that I mean, I've done the organization, I've been a part of this organization and a leader in this organization for a long time. But being on this side of the curtain has really been been eye opening in terms of just opportunities and creation of opportunities. And it's been really fun. It's been a great, it's been a great eight months. So I'm hoping that it's a lot longer. And it will see some of the fruits of that of that work as we get to our annual meeting in a couple of weeks.


Griffin Jones  24:33

And so everyone listening knows you're not doing this remotely from Chicago, you moved down to Birmingham. I did


Dr. Jared Robins  24:39

I happen to be in Chicago today because I'm going to be at a Chicago meeting tomorrow, but But yeah, I moved to Birmingham and I'm living you know, our headquarters are in Washington DC, but we have administrative offices in campus in Birmingham as well. And you know, because of the fact that that are so much of our operations happen out of Birmingham, I felt it was important to be close. To those people and so I'm living in Birmingham. Now,


Griffin Jones  25:02

I want to hear about the fire hose that you're drinking out of. But I thought this could be interesting as from history, because I bet you most people don't know how did alstrom end up being headquartered in Birmingham, Alabama,


Dr. Jared Robins  25:16

we had a, we had a leader, you know, a CMO that was part of UAB. And so that's how that's how it became part of it. Yeah,


Griffin Jones  25:27

it was, it was the inception of the society or years after,


Dr. Jared Robins  25:32

sorry, it's actually been around since the mid 1940s. But the headquarters was actually, you know, it. It rotated from sort of President to President and you know, before it became, you know, before it became established, you know, with a full staff and, but when it when it finally got headquarters, and when it finally really bought a building in the 1970s in Birmingham, so it was that building that that started at sort of headquartered,


Griffin Jones  26:01

low, some, you know, you sponsors that do all of these little events for trivia night, go ahead and stick that one in there for your for


Dr. Jared Robins  26:09

your whole answer. I'm trivia. Either do with our board, we'll do


Griffin Jones  26:15

a whole episode on SRM trivia. Somebody would somebody would sponsor it. Anyway, let's let's talk about like you said, you're drinking from the firehose, which is the case in many leadership positions, and certainly one with society's largest ASRM. What, what are the things that you're like getting your hands around right now?


Dr. Jared Robins  26:38

Yeah, so, you know, I think that, um, obviously, you know, we have a, I had to learn a lot about, about our budget, about our endowments. So that was a, that was learning a lot, I learned a lot about, you know, where the money goes. So that was a, that was certainly something we can talk about, you know, focusing on our meeting coming up really how the meeting is run, you know, I think that we all go to this meeting, I've been going, I've been at this meeting every year for almost the last 20 years. And, and the meeting just just happens, right? I mean, we have no idea when we're attending this meeting, the amount of work that goes on behind the scenes to get to make this meeting happen, the numbers of vendors that we that we have that necessary in order to make sure the meeting runs properly, from the electronics and the lighting to, you know, to staffing the rooms, I mean, it's just, there's so much that goes on in running this meeting, and I just had no idea how just how much there was and how hard these people work, in order to really, you know, the SRM staff is just unbelievable, when it comes to me, you know, when it comes to running this meeting, and, you know, the entire staff is, is actually at this meeting, making sure that it runs smoothly. And so, you know, I suggested changes, as you know, because you're involved in some of these changes at this meeting. And to make these happen, I was like, Oh, this will be so easy, let's just do that. Let's just do this. And, you know, the dominoes that that suggestion created, and in order to make it happen, and the staff did, I mean, you know, I came in with this idea that I wasn't going to make any changes, because I really just wanted to learn the organization. You know, I came in at a time when it was sort of at the end of the planning of the meeting in January, because the meeting is planned at months in advance. And, and I was like, oh, you know, we should really have more of this at the meeting. And we should really do this at the meeting. And, you know, my staff was like, alright, well, we're just gonna listen to this crazy guy and make these things happen. And, and I think that, you know, learning what, what actually took to me, these small, what seemed to me to be small changes happen was, was amazing. And I'm so lucky to have this incredible staff that I work with


Griffin Jones  28:50

every day. I want to talk about a couple of those. Let's let's you said we could talk about where where the money goes. So where does the money go? Jared?


Dr. Jared Robins  28:59

Yeah, so, you know, we we have? We have a lot of endowments. Right. So a big focus of our money is the Research Institute. Right? We have, we've established the Research Institute was established in 2019. By committee, and, and that, and that is to put that the purpose for the research institute is to make sure we're getting projects funded that wouldn't be funded through traditional funding mechanisms. So, you know, stem cell research, we know we can't get funded through through the NIH, or we're trying to do nursing research. We have, you know, funds set aside for that. I mean, really, you know, things that are very relevant to our field that are going to move our field forward, but when they get funded through traditional funding mechanisms this year would give me over, you know, over a million I want to say, as close to a million behalf, but I don't want to overstate the truth, but it's definitely over a billion dollars in grants this year. And so a large part of our endowment. You know, when you look at how much money we have, you know, a large part of that is committed to the Research Institute, in order to make sure that we can do that funding, and in order to really have that endowment fully funded, we needed a whole lot more money. Right now, you know, we're trying to only use, you know, interest generated from the research institute in order so that we don't have to touch the endowment. But we all know what's happening in the financial world right now. And so, you know, our endowment is certainly not going to last, that market doesn't turn around. You know, another big part of our endowment is the Center for Policy and Leadership that that recently launched, we're really we're pushing the launch for the Center for Policy Leadership at the at the annual meeting this year. And that is a nonpartisan Think Tank. Right, we know that reproductive policy happens. And and there are a few things tanks out there that are that are helping to inform our policymakers and the public about what the implications of these policies have the of developing this, this policy and law, we, you know, a lot of them are biased. And these think tanks and a lot and none of them are really run by reproductive medicine specialists. And so we have put together a Center for Policy and Leadership to the SRM to be a nonpartisan at, you know, think tank to help provide policymakers with data. I think the PERT the example that we're that, that they're focusing on a lot now is just data to access to care. So we, you know, the we're helping the military to develop an Access to Care policy for Reproductive Medicine. And, you know, our one of the white papers that we put out is what would that cost the government in order to do that, so again, it's non partisan, partisan, and just information, research developing concept. And so that's, you know, that's a lot of went in depth. So we have some educational endowment. So you know, this money isn't just available for us to use, when we look at our endowment, we have about two and a half times our operating budget and on declared funds. But that's fairly modest for organization of our size. You know, the rest of that the rest of that the money that we have sort of as our as our, you know, money in the bank, they're committed or dominant. So, you know, people have donated that money for specific purposes, and we really can't touch that, but except for the purposes for which they're, you know, have been, have been endowed.


Griffin Jones  32:34

Did the endowment, did the damage just come from donor funds? They also come from sponsor funds. How does that work?


Dr. Jared Robins  32:41

Yeah, so some sponsor funds, some donor funds, it's also it's donated money, right, where we're a 5013 c organization. And so it's money that's been donated to answer for for these purposes.


Griffin Jones  32:55

So but it does, like, when a company gets a big boost, or does a Ruby sponsorship at SRAM, does that ever go to the endowment? Does that go to OP X for earmark for the event? How does that work?


Dr. Jared Robins  33:08

Yeah, so the funds that we raised, say, I thought at the Expo at Amsterdam, that's all going towards operating funds.


Griffin Jones  33:16

So he talked a little bit about the things that you want to do. And you did. The Research Institute was established in 2019. Before you there's also the Center for Policy Leadership. But you also said that I want to start doing some things that ASRM and your staff said, Okay, well listen to the crazy guy and do what he wants. I know what a couple of those things are, because you did the SRM med talks, for example, business of medicine. There's probably others that I don't know about. So why don't we start with those to tell us what's going on?


Dr. Jared Robins  33:55

Yeah, so let's talk about SRM med talks. One of the criticisms I've heard in my years as an SRM member is that we should have, you know, some, some might some some small clinical focus, right, let's let's focus on what can we do clinically? And so what we conceived of was these short macro learning this, you know, short talks, 15 minute lectures on clinical topic. I wish I had them in front of me, I would have been really smart to have for this meeting. So one of them is like disasters in the in the IVF. Center, right? So we have someone who is going to talk about how to prepare your lab, you know, your to protect your cryopreserved tissues in the case of a disaster. We're going to talk about, you know, the what, how, how Kerrygold medicine talked about how she responded to Hurricane Sandy at NYU when they had to worry about, you know, protecting their tissues. And so we're going to do these short 15 minute talks. That like crossover, the different specialties, right? So we're going to have maybe a talk from our urology group, talk from our we're going to be chronology group, and maybe a talk from the nurses, you know, so that we're covering all the areas,


Griffin Jones  35:13

I'm giving a talk on how to use messaging to engage patients and staff,


Dr. Jared Robins  35:17

so I could have helped you. One of our topics is, is actually how to improve patient engagement. And so you're going to be talking about patient engagement, we're talking the urology group, and that same lecture group is going to talk about when you know, appropriate referrals to the urologist and how the urology in the REI should partner to, you know, improve patient engagement and in that fashion. So, again, so that way, we have a business person, we have virologist, you know, we're trying to cross over, I think that same group, we have a talk on, on the use of EMR, for instance, I think in that group, as well. And so, you know, this idea of the EMR portal, so this whole, this whole idea of how, you know, we want to be we want to a group of talks that have clinically oriented, but that span the whole society, so that the our business people, our medical people, and our nurses, for instance, could get together here a group of talks, and that would spark conversation about ways in which we could practice better. And that was really the idea behind the that talks is, you know, is to create, just to create a conversation, where everyone is where all the different areas of our field are able to get together. And here are a series of talks that that can, that really could could interest all of them. And spark conversations, sparking conversations is right next to where the man talks are going to be in the exhibit hall, we've developed that networking lounge. Again, one of the can, one of the concerns and complaints about SRM is that there's no place to just network with people that you know, there's, there's often like, chairs or tables set up in the in the hallways, but not really, you know, those could often be taken, you know, if you want to sit down with a group of like minded people, there wasn't really a good place to do that at the meeting. And networking, when we when we polled people about what they're what the value they get out of the meeting, a big part of that is networking. And that's why it was so important for us to be back in person this year. Because, you know, the online meetings were great from a content perspective, but miss that idea of being able to just network with your colleagues. And so this year at the meeting, we've established a networking lounge, that networking lounges will have some some programming there. So we're going to do, for example, meet the editors. So you have an opportunity to get together with the editors in an informal setting. But the whole idea is it's it'll be a place for us to be able to sit down and talk and network with each other without having to go searching for a place somewhere in the convention center. You know, if you want to get a group together, you can say, you know, meet us in the networking lounge at 1030. And, and I think that that is sitting right next to these med talks. So you'll be able to if you know, we just had a really great talk, let's all go chat about it. Now. You know, let's we're you know, we're going to talk about it the business of medicine session, too. So we did create the business of medicine session, the our association for reproductive managers, which Griff is a very, I think it's I think you're on the board right? Is a board member of that organization and really important organization to ASRM, it's, you know, it's a group of managers of IVF programs and of REI programs. And we turn to to arm and said, we need to we need to have more business at this meeting that, you know, I think one of the things that we hear often is that our physicians and again, I can speak personally about this don't have an opportunity to learn much about the business of medicine. And we we have a lot of business people that come to the meeting, we want to make sure we're creating value for them as well. And so we're, this year we're doing two sessions on the business of medicine is involved in involved with them. We're doing a TED talk session, four or five hours for five sessions, rather five TED talks, I think it's five TED talks, maybe three TED Talks. We're doing a group of TED talks like God, we're doing a group of TED talks on the business of medicine on Monday. So with question and answer sessions, we have some excellent speakers that are coming to give those TED Talks and then the following day, so that's Monday and then on Tuesday, we're doing a CEO fireside chat that Griffin's gonna be moderating for us, where you have an opportunity to talk to we have representatives from a variety of different types of practices from private equity to physician owned academic practices, and private Demmick and private dynamic practices and we're going to talk about how we how What the What the similarities are and differences are and really give an opportunity for people to ask questions of these leaders. And the second half of that session, we're going to do an open brainstorming session about how to create a business of medicine track today is around. So really trying to engage our members to tell us, what do you want, right? I mean, I think, you know, I can sit down and figure out what I think you want. But, but more importantly, we want to sit down and hear from you say, what do you want and learning about business of medicine so that in 2023, we can, we can have a real business of medicine tract at our meeting,


Griffin Jones  40:39

I want to introduce a philosophical question for that, it will be useful as people come to show up and give feedback on the business of medicine track, I'm interested in what you think about it. I remember, years before I ever got involved, before I ever worked in health care, one to one of my more hippie cousins, were sitting around and said health care shouldn't be a businessman, you know, my family leans a certain way. You know, I'll nodded and, and, and I remember thinking, but, but how can that be? And I think that attitude still prevails a little bit even in our field. And in many cases, I don't think it's useful. But but the first one, the first is, is that it? How could How could it not be a business, it's in it, there are craftsmen and craftswomen there, there are people that are providing services, and there is a race to constantly improve and, and provide advantages, and by nature, that is business. And so how could you ever totally remove it? And the second one is, how much harm are we doing when we pretend that that it isn't intact? Because we want to, we want to, we want to, we want to make sure that the tone is right. And we do have did providers certainly have a responsibility to patients, patients have a certain set of rights, and those have to be protected? But I don't I don't see it as being useful to say that it isn't a business I'd see that as being disingenuous almost like, you know, abstinent, you know, it's, it's 100% abstinence on sex because sex is sex can be dangerous, it sure can. But, but pretending that people aren't doing it often leads to all kinds of perversions. So what is your view on the role of, of, of how much business and medicine should be constrained versus should be facilitated in some way like this?


Dr. Jared Robins  42:45

Look, there's all kinds of philosophies about how you know about how we should have medicine should be. I don't, I don't want to wax philosophical about that. I think right now in the world of rebirth of Endocrinology, whether you're in the US or abroad and can serve as an international society, it is a business. And, you know, I think whether whether that is a government run business, or it's a private equity run business, or it's a physician owned business, there's, we have to, you know, we have an obligation we I think we do as physicians have an obligation to meet the needs of our patients, but we have to do that in a way that, that it's, you know, economically feasible, in order to, to achieve that. And I think that the business of medicine is changing over time, you know, I think that the, that we need to understand as physicians and not even just as physicians, as a society, we need to understand that we have to understand we have to negotiate and come back to negotiations, we have to be able to negotiate and negotiate with our insurance industry, and we have to be able to negotiate with our, with our media providers, right with our, with the people of whom we're going to buy our band aids from, you know, I think that there there are, there are needs that we have, as a group of, you know, have have providers in order to in order to be able to give the best quality care, which is what we all want, right? I don't care what type of practice you're in our ultimate goal is that we want to give the best quality of care to our patients. We have to figure out a way to do that without, you know, with was still being able to make a living and keep are and you know, we all have employees. I mean, as I have nurses, we have nurses that that work for us and embryologist and, you know, cleaning people that are that we need to make sure clean our rooms. I mean, I think everyone is equally important. So we need to make sure that we can stay solvent and the way in which to do that is changing dramatically and as a society, we need to understand that In order to make sure that we can keep our practices afloat. And that's what we want to make sure SRM is providing value to help us to do that, as that business of medicine changes, we, we will continue to evolve. I think that, you know, that idea of evolving as a society is really, really important to make sure that we're constantly meeting the needs of our of our members. And I think right now, the needs of our members are to understand how to do better business.


Griffin Jones  45:28

Maybe it's always been a business, right? In the 19 centuries, somebody still made the blinkers, right. So it was just all business was smaller back then. And some businesses have gotten so good at providing certain needs, whether it be entertainment or food, that the frontier really is madness, as human beings, we don't want to die, and we don't want to get sick. And medicine is the is what allows us to constantly push the limit of those two otherwise, natural limits. And and so the the things that contribute to that, and you said, you know, it's it's affecting reproductive medicine, I think it's it's affecting all medicine, whether it's single payer, whether it's public payer, that how many companies are in Israel alone, right now working on artificial intelligence, they're not, they're not doing it just for they're doing it as part of because they know that by innovating this way, that's going to give them a competitive advantage. The people that creates laparoscopic technologies and improves the quality of health care, they're doing it because it's going to give them a competitive advantage. And so to for systems like engaged MD that didn't exist 10 years ago, improves the quality of the experience for patients. And, and, and it's a value for them to enter the marketplace. But what constraints Jared need to be in place, say, Okay, you guys aren't running the show. And I think it during COVID, we saw pharma companies take a little bit of say, doctors eventually had to say, so it's like, alright, slow down, like, Okay, once we look at the research, then we'll tell you, it's safe. You're telling us it's safe early, like we'll agree, or we won't, but But it's us that make the call. So what constraints need to be in place so that it isn't just businesses manipulating? The system for lack of a better word?


Dr. Jared Robins  47:36

Yeah, that's a really hard question. I think that, you know, I think society is like, like the American Society of Reproductive Medicine is a great could provide a really great vehicle by which people to bring people together to have those conversations. Right. I think that


Griffin Jones  47:54

lets you and I have the conversation now.


Dr. Jared Robins  47:58

Even about where what I don't know, I think the constraints are gonna be really situational. Right? I think that, um, I don't think that, you know, I think that we need to make sure we're again, we're meeting everyone's needs, right. And so, you know, I think COVID was a really difficult COVID was a unique and really difficult situation where we were getting, were we getting lots of different inputs of information. And not everyone was getting that same information, and there was a ton of misinformation. And so, right, I think that I think, ultimately, it should be, again, I think the physicians and the health, the health care providers should control healthcare, right. And it shouldn't be a bunch of attorneys and business people that necessarily tell us how to take care of patients. But we need the input of everybody, right, we need the input of the of the health, that's where that dyad, if it would work would really be a good diet, where you have a healthcare provider and a business person sort of working together. I think that neither one of those, the healthcare providers and the business people should can't work, can't make decisions in isolation of each other. And they need a forum by which to come together and make those decisions. I think that, you know, the government also had there was biases in the government and COVID was incredibly politicized. And so, you know, what I think is what the I think the can, I don't I wouldn't say constraints. I think it's about decision making and being you know, intelligent and decision makers and having a a buyer and not a non partisan like an unbiased forum like our Center for Policy of leadership being a place where we can bring those leaders together to have conversations because you know, I think that that none of those groups should be able to work in isolation of each other.


Griffin Jones  49:46

I'm going through this same how I don't know exercise, I guess you would say because I want to expand inside reproductive health beyond the podcast that it's been. It's it has been so Serving as a trade media outlet. So I want to make it more of a trade media like Wall Street Journal for the fertility field. And that means I've been working on the sponsorship structure, the advertiser structure, I haven't had many I've had very few advertisers on because I don't, I don't want to do an endorsement for most people, I simply can't. So I couldn't sell advertisers until I came up with an advertising structure. But now the audience is there and, and I'm, I'm ready to do that. But I've been putting in the policy like we have editorial control. We're going to cover the news that's at mergers, acquisitions, layoffs, lawsuits, think sometimes it's going to be flattering for businesses, sometimes it's not going to be flattering for businesses, and you get editorial control over a featured content piece, where it says sponsored feature content, and nothing else you don't get to tell me not to write about these other folks are. And I know that we're probably going to write some things about sponsors that aren't great for this company sponsors, and then they just laid off 500 people. That's but but so that's one constraint that I that I view, is there any place that you think, like we should have no industry side, industry citing quotes representation in this part of ASRM or in this type of policy?


Dr. Jared Robins  51:23

I don't know. I have to, I'd have to think about that more. Nothing really, honestly, I feel like disclosure is the key there. Right. I think that when when there is industry sponsorship, that that conflict should be disclosed. But I feel that industry is a big part of our organization, and, you know, and a big part of our of our field. And, you know, I enjoy talking to the industry and learning from them. from the business perspective, do I think that they, you know, industry should be teaching physicians how to practice, you know, no, I mean, I think there's a bias there. But I do think that, you know, we learn a lot, even when we get, you know, our industry, you know, salespeople come tell us about a product. And so, you know, do you think that, you know, as long as that disclosure is there, and people have the ability to to, you know, to hear the that, that perspective, without understanding that it's a bias perspective, it's a sales oriented perspective.


Griffin Jones  52:29

Well, this is a great question for you then and then I'll let you conclude how you want to conclude, but is, is the scope for disclosures, too narrow Jared, because I don't remember if it was asked from or PCRs or both. But I had in my disclosure, in my speaker disclosure, I own a client services firm called fertility bridge, I am a paid endorser of engaged MD, I just felt like people should know those things. And it was either ASM or PCs or both. That said, take that out of your slide. You don't you don't need that. It's just It's just if you're, if you're related to pharma, and I think as I high if you want me to take it out, I'll take it out. But I still tell people in the talk I because I think they should know, I think they should know any financial interest that I have. So is our is our disclosure system or a rubric to limited in scope?


Dr. Jared Robins  53:21

So are, so we follow the rules that are set out by the ACC or VI. Right. And so that, so our disclosures for our particular, are there,


Griffin Jones  53:29

are there rules?


Dr. Jared Robins  53:30

I do think that, you know, I think it's important to know, I mean, if you're not talking about something that, you know, you're really engaged in D, as you mentioned, and, you know, then maybe it's not as important to me to know that. But I think it's important to know, those disclosures, you know, and one of the questions that we ask is, you know, are is are you going to discuss anything that is involved in one of your conflicts of interest, essentially? Right, I mean, that is part of the disclosure. So it may be that they asked you to check it out, just because the answer that question was no, but, but, but yeah, I do think that being aware of, of educators, speakers, conflicts of interest is important, because it creates wealth, it creates a bias that's both conscious and unconscious, right? I mean, you know, I think that unconscious bias is something we really need to think about.


Griffin Jones  54:23

I want to let you conclude, and I'm gonna, I'm gonna work hard to make sure that this episode comes out before the ASRM meeting, especially you sweat. You spent half the episode talking about the meeting. So I want to, we might be able to squeak it out the week before, which would be perfect timing. And knowing that the majority of our audience are members of ASRM. How do you want to conclude either about the meeting to come or just what you'd like to see from them in the coming year?


Dr. Jared Robins  54:52

Yeah, so let me say first of all, thank you for allowing me to be on definitely I thought we were going to talk only about the meeting. So this is It's really fun to sort of talk to wax more philosophically around a number of different items and topics. I do think that I, what I do want people to know about the meeting is that we do have a bunch of new things. In the meeting, we talked a little bit about the networking lounge, we talked about the business medicine track, but I think it's really important. We, we are doing things to try to appeal to younger members and to create to creating greater values. So we are having an electronic poster hall this year, so no more printing of the posters, that's all going to be electronic. And we'll see how that works like flat screens, flat screens, yep. Flat Screen poster presentations, everyone's gonna have a specific time to present. So you're not just standing there for an hour waiting, hoping that someone's going to find interest in your poster, smaller groups of poster presentations, but, but also we're going to have the posters are going to be available throughout the meeting. So if for instance, you go to that you are scrolling through the posters, and you see my poster, I don't really have a poster. So that one happened. But you know, you see a poster from Dr. Robbins or whatever and you want to speak to that person, you can contact him through the app. And I'd say aren't, you know, I like to speak to you about your poster, can we meet in the networking lounge and chat about it. So that is hopefully going to change the way in which we view our posters. And we were going to get feedback from that at this meeting and continue to adjust that for the next for next year's meeting. We are doing, one of the big value that our organization provides, I think is through our special interest groups. And only 50% of members are are a part of a special interest group. And so we aren't trying to highlight the special interest groups by doing a what we're calling are all in reception. And that is going to be on Monday night. Where we are highest, where we're going to have our special interest groups and our professional groups and our affiliate societies all present sort of as a career fair, where you get to go around and talk to people about the different special interests and find a place that you might, you know, create more value for yourself in our organization. We're doing we talked about answering trivia, we are doing what we call live cube boost. Cube boost is a product that we've had available for answering for a while now. It's a just in time, just in time micro learning platform where you get a question sent to your email every day. And then you get to answer that question. It tells you if you're right or wrong, and then gives you links and other information around that question. Yes, my turn off. Notifications. So so. So Q boost is this micro learning platform, you get opportunities, you get a daily email, which is sent to your inbox, you get to answer the question tells you if you're right or wrong. If it's if you're wrong answering that question, it goes back into that question bank for you. And you'll get asked that question again later, and then it gives you a bunch of links to further information about that question. And in addition to a brief summary. So in cumulus has been available, it's not many of our members are really aware that keeping us out there. So we're actually going to do live cube news this year. Where we're going to it's going to be trivia, you're willing to do it as a big trivia contest, five to 10 questions and with prizes, so really trying to promote that educational opportunity. And then the last thing I just wanted to mention it is camp SRM. So again, trying to appeal to young to young families, again, we were all about building families, and we want to make sure that we're, you know, supporting our families. And one of the biggest challenges I think, to come into the meeting for many young families is they're having childcare. So this year, we're sponsoring camp Amsterdam, where


Griffin Jones  58:54

we had to big deal I didn't know about that. Yeah,


Dr. Jared Robins  58:57

and we've been advertising and advertising and people keep telling me they don't know about it, so


Griffin Jones  59:01

well don't don't know about it, when they is going to be at the convention centers, they're gonna be


Dr. Jared Robins  59:06

it's actually gonna be in the hotel, and I think in the Hilton because we didn't have room we're with all of our new with all of the new offerings and our meeting we didn't have any space for it at the meeting itself, but we will be marketing it at the meeting as well. But we want people to know about it so that you know if one of the reasons they're not coming to the meeting, I mean, the meetings in Anaheim it's across the street from Disney, you know, come to the meeting, bring your kids put them in camp ask around and at the end of the meeting, head over to Disney with them or spend an extra day before after the meeting and, you know, go over that to to Disney and


Griffin Jones  59:39

I wonder if Disneyland be being there will mean more people staying through Wednesday. You know how a lot of people often leave Tuesday or they'll leave Wednesday morning or I wonder if if Disneyland being there means more people staying through Wednesday because they want to take the rest of the week with their family at Disneyland. But that's it Yeah, you know, the in 2020 I was like, how much are in person events gonna come back? And so, you know, I think that there's always going to be a need for them they'll have to be redone in different ways than they were done previously. And you're coming back to in a big way. This is like rocket just like you're like Rocky for with in person events. Jerry, you like it coming back in a big way? Well, so this episode, we will make sure that it airs beforehand. And part of the reason why you're covering so much is because you have so much to cover. And there's just so much into those interesting side. rabbit holes for for me to go down. I hope the audience agrees. But everyone will be able to hear this episode before the meeting. It should be in great time. Dr. Jared Robins, Executive Director of VA SRM. Thank you very much for coming on inside reproductive health.


Dr. Jared Robins  1:01:06

Griffin, thank you so much for having me.


1:01:10

Inside reproductive health podcast with Griffin Jones, if you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society, visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health


Revisiting the Affordable IVF Model

This episode, originally released in 2020, Griffin revisits Secrets of The Affordable IVF Model, as we head into what could be another recession. Is your practice prepared for the potential downturn? Listen now, as Dr. Robert Kiltz, Dr. Paul Magarelli, and Dr. Mark Amols discuss their implementation of the Affordable IVF Model, and how it benefited their programs.

This episode was recorded during a live webinar, originally released in 2020

On this special live episode of Inside Reproductive Health, Griffin spoke with three leading doctors whose clinics follow the Affordable IVF Model: Dr. Robert Kiltz of CNY Fertility, Dr. Paul Magarelli of Magarelli Fertility, and Dr. Mark Amols of New Direction Fertility Centers. Together, they talk about just how they make the Affordable IVF Model work, as well as answer common objections to their services. 




Transcript

Griffin Jones:

CEOs are preparing for recession, and they don't think it will be short. That's the headline that I'm looking at on CNN RIGHT NOW. Headline Schmedline, Griffin, you can't predict the future. I cannot I have thought that the recession much sooner than it's happened, it does appear that it's here could be a bad moment. I've been preparing for recession since 2008. Because I'm Irish Catholic, from Buffalo, New York, and you should always be prepared for the worst things to happen. Some of you are also prepared for a recession, and some of you are not. And when recessions happen, bad things can happen. People lose their livelihoods, the impact that that has on health and family for people is really sad. And so for those people and those concerns, it's something I take very seriously. And then there's a part of me that for some people, I don't feel bad for when the fat cap that they had before, is no longer before them, because they could have made so much better structural improvement when times were good. Their design. No, we're getting patients now. We're getting customers now, people are offering us six 810 times, done now. And I don't feel bad for those people. In either case, now is a new time, you can decide what you're going to do. So I want to revisit this episode of Secrets of the Affordable IVF Model, how it's totally poised to win market share. Because originally did this as COVID was breaking, clinics were shut down. We didn't know how much money the government was going to pump in how long that effect would be for. And so we talked about market downturns and what's behind the affordable IVF model. And this was a really popular app. So we actually did it live first did live with Dr. Paul Magarelli, Dr. Kiltz, Dr. Mark Amols, from Colorado Springs, New York State and Phoenix respectively. And we had we had over I remember, you know, I only had 100 People limit on the zoom at that time that we, we felt that we had to turn people away and then made it into a podcast episode. So as you start to think of what it's going to be like if if companies might maybe drop coverage or if people lose employment, they don't have fertility benefits. So people have less discretionary and disposable income. And waitlists aren't eight weeks, and they start to drop down and more. How will you respond? I hope this episode is useful for you and your possible recession planning. 

GRIFFIN JONES  0:55  

I just want to maybe start the conversation off with the reason why I invited the guests that I did-- Dr. Kiltz, Dr. Magarelli, and Dr. Amols--is because they've all used the affordable IVF model in different parts of the country. And I have said for years that I think that it's going to be an economic downturn that makes that model scale. And I want to explore what that is like for those that are curious, for those that think that it's the end of IVF as we know it, for those that think it’s the best thing, I want to solicit the experience of our guests that are on board. I want to start with this concept of timing and Dr. Amols before this kicked off, you and I were talking about the fact that you were surprised that this hadn't taken off sooner. Meaning, I think what you meant by that, and I'm paraphrasing, that there hasn't been a scale of affordable IVF. What did you mean by that? And why do you suppose that is?

DR. MARK AMOLS  1:54  

Yeah, you know, I think if you look at the industry in other places they'll say like, plastic surgery, look at dentistry, almost all of those medical treatments had to eventually go down to kind of a more affordable scale and more volume. And usually when you have something that's a high cost, eventually people find a way to make it lower cost, and then it takes over, because volume will always make more money in the end over just a few cycles at a high cost. And so I'm surprised it hasn't because, again, we're doing it very well, Dr. Kiltz is doing very well, Dr. Magarelli is doing very well. It's not a hard model. And eventually, I mean, like I said, like anything, even when it comes to all the other fields of medicine, people seem to eventually narrow it down to lower cost, you know, and help more people. And it’s the concept of a big pond versus small pond, do you get a lot more fish for a lower price and then you have more patients or do you keep going after these individual fish? And it's just harder. So like I said, What's nice About our model is you really benefit from a downturn like this. So you know, when when things go down, we still do fine when people are doing well, we still do well. And so I'm surprised the model hasn't taken off more. I mean, look at Target, WalMart, those are examples of, again, high volume, affordable cost.

JONES  3:17  

And so for those that aren't familiar with you, Dr. Amols, you are in suburban Phoenix, is that right?

AMOLS  3:22  

Correct. We're in one of the suburbs of the Phoenix Metropolitan.

JONES  3:26  

So you're in one of the largest markets in the country. Dr. Magarelli and Dr. Kiltz have both done this model in smaller markets. Dr. Mag, you're in Colorado Springs, why did you decide that this model could work in a market that size?

DR. PAUL MAGARELLI  3:42  

Well, I wasn't looking at it as simply a market issue. I was looking at more of an access issue. So for me, when I sort of gravitated towards doing an affordable model, I mean, I live near Denver, I mean, I'm 45 minutes outside of Denver, so that’s certainly a big market, a famous IVF market.

JONES  4:03  

Well, now that Denver has grown out so damn far!

MAGARELLI  4:09  

Yeah, so  it was more--I have about 40,000 military folks who every two years go through the bases here in Colorado Springs. So we have an influx of very young, reproductively-active couples. So that was a resource that I knew that A) didn't have a lot of money, you know. B) at the time when I introduced it, we were in the middle of the Iraq and Afghanistan war, and so a lot of folks really needed help gaining access to what I consider one of the best fields of medicine. So it was a risk. I mean, I don't have a population 2-3, 5 million, but it turned out we grew 600% in less than four months in terms of my market. So as Dr. Amols was describing, once you give access to care, you'll be surprised at the number of folks that want it. And we, as a country, have one of the lowest utilization rates for IVF compared to most industrialized countries. And that is because of the fees. Really no other reason we have high success rates, so it's not performance, but it's really just access. And so by making access available, instead of doing, which we've done in the United States, 200,000 cycles, that hasn't changed really in about 15 years. 2 hospitals in China to do approximately 200,000 cycles! So it was more a matter of let's get more folks care.

JONES  5:38  

Dr. Kiltz, you have one of the most-known operations for the affordable model in the East Coast. And people might think New York, and they might hear Central New York and think of the New York part of it, but Syracuse is a small market--600,000 in the metro of Syracuse and maybe some more throughout Central New York. And you have one of the highest volume programs in the country because you're bringing in people from out of state and from New York City. When did that start to happen?

DR. ROBERT KILTZ  6:11  

25 years ago, nearly when we started. Obviously, Syracuse is a small market, small town. I'm from Los Angeles, been here, and I came up here to get away from the big city! But the recognition that people are travelling--

JONES  6:27

Mission Accomplished!

KILTZ  6:29

Well, that wasn't my intention, though. My intention was to come and practice medicine, do what I love to do. But I realized that there were some barriers from the way we were doing it. When I started IVF in 1997, here in Syracuse, I charged $2,000 for a self pay IVF. We have gone up a little bit over the years, but we've always been focused on affordability, access, and quality, and people are traveling for medical care and have been for many years. In IVF and Fertility Care, for sure they're traveling. And we know the very largest programs in America bring people from all over the world, and all over the country. So just like the more expensive places do that, recognizing that there's a much greater pie in the lower cost IVF than there is in a more expensive IVF. If, as Mark was saying, you know, the models of Target, and you can just say Walmart, and many other companies that are highly successful. And so that wasn't our plan, in our mission. Again, we became doctors and I became a physician in order to help people not, you know, sit around and do five cases a month, which made no sense. And if you look at the ability to be efficient, we are highly inefficient in this fertility world. And so that's not to tell anyone that they should do it differently. I just chose to do it this way. And I know Paul and Mark did the same thing. So I think there's plenty of access opportunities, but in general, most people are not going to lower the prices because there's so few of us that do what we do. There's not a need to do that.

JONES  8:12  

We have a question that came in from that discussion of quality. And I'll let any of the three of you take a stab, but I want to give it to Dr. Mag first because he talks often about making the state-of-the-art the standard and the question Dr. Mag is how is quality defined?

MAGARELLI  8:28  

Well, for me, quality is defined as performing a medical procedure in a method that has been demonstrated to be most effective for the outcome desired. So for me, quality is utilizing all of our technology and techniques for that patient, to optimize the response to the medications, to optimize the growth and development of the blastocysts, to optimize the way in which you do the transfers, and you manage the patients, to optimize and use all of the systems that have been known to be effective like ICSI, like a 5, 6, 7 blastocyst culture. vitrification, you know, frozen embryo transfers, use everything possible. It's like, if you break an arm and you go to the emergency room, quality care would be a cast. Something that isn't quality would be a bunch of band aids to help you. It'll work. With enough band aids, it might help your broken arm, but no other field in medicine can give what I consider less care and consider it good care. So to me, quality is providing what we all know and all of us here are board-certified, all of us have been in this for many years. We know what works, the patient doesn't. So let's provide them with the best of the best that we have to offer, and then let their biology determine their success. So for me, quality is defined that way.

JONES  9:59  

I'm not a clinician, but I know that not all of our clients use ICSI on every cycle for example, what about those that say, well doing ICSI on every cycle, that's not necessary? Or do we really know how much PGT impacts successful pregnancy rates? Should we really be doing that on every cycle? How do you respond to questions like those?

MAGARELLI  10:18  

Generally? Or just me?

JONES  10:24  

I brought you on because I want to hear the Magarelli answer!

MAGARELLI  10:28  

Okay! Well, the answer is yes and no. The answer is not every technology works for every person in every situation in every circumstance. You can offer it, you can offer it in those circumstances. We are a learning profession. It’s the art of medicine. We grow and discover and yes, when ICSI first came out, it was considered only for a certain subset of male factor. And then it was broadly used and it is broadly used in about 80% of most are somewhere between 60 and 80% of most IVF cycles, not because it's better for the sperm, it’s because you make more embryos. PGT-A was hailed as a miracle and I embrace it completely--85% of my patients do PGT-A. However, with increasing data there may be a loss function to wastage--they call it embryo wastage--where you may lose a high quality embryo because it was misread. So you have to be flexible, you have to--you don't just fix it. But my issue with those who are detractors is that they may not offer it to all patients because they “want a low cost IVF” rather than is that right for the patient? To me, there's a big difference between How can I make it look cheap, and then hence possibly have a poor outcome, versus How do I make it optimal and let the patients choose. It’s not going to discount their cycle. You don't have to do ICSI in my place. There's no charge for it up and there's no charge for it down. It's your choice. But it's easy to say, Oh, well, I only grow to day one, because that's the most optimal. Whereas for someone, a day five transfer might be the best for them, you have to look at that and offer all of it. And then the patient can subtract. Or the experience. I know all of the doctors here have had the same experience where some folks just magically do better with a day three transfer. And, and it goes against logic, but they do. So you offer it. I had a patient today who failed a day five and now I'm going to try a day three transfer. Why? It might save me a little money. But the goal is how do I get her a baby? So that's kind of my short answer to that detractor.

JONES  12:46  

So this concept of quality comes a lot when we're talking about the Affordable model. Dr. Amols, you mentioned earlier the Target model, the Walmart model, if we're thinking of just bringing something to bare at scale. And some people will say, well, Walmart that's not Saks Fifth Avenue, that's not Barney's, it's a lower quality in their mind. How do you respond to this issue of cost must be related to quality?

AMOLS  13:14  

So I wanted to take a step back. So earlier you asked me, we talked about why I didn't think this model had taken off. I'm just talking from a business standpoint, when you see these CCRM’s down building on their stuff. From a business standpoint, I meant, I'm surprised it hasn't. When I use Walmart/Target example. I'm purely only talking about the example of volume. Okay? You're absolutely right when you said I think what you were asking earlier about the quality issue is that we're under the gun more than any other clinic. When the other clinic pays $15-20,000, amazingly, they get nothing out of that cycle. They walk away and go, Ah, this didn't work. They go to a clinic like mine, Dr. Kiltz, Dr. Magarelli’s, and they don't get through they go Oh, it's probably because it was lower cost. So we are really actually under the gun more than I think most clinics because we're always against that. And that's one of the reasons you rarely hear anybody say we're the cheapest. Our goal has never been to be the cheapest. We've been wanting to be affordable. And the definition of quality is if you're doing best practices, and as long as we're doing best practices, you know, I would consider us quality Now, one thing I want to talk about is, what got me into this actually is because my own personal IVF story. So my wife and I spent $20,000, my wife doesn't make many eggs. And so we had to go through IVF. And we spent a lot of money and we barely got pregnant, but we did. We were very fortunate. And it just was curious. I've always been a numbers person, I’ve always been a business mind, I wanted to figure out how much does it cost per IVF cycle? Why is there a difference in cost between clinics? And when I looked it up, what was surprising was it actually isn't that expensive. And so it's interesting, like your title is Secrets of the Affordable IVF Model. But really, there's not a secret. None of us are doing anything tricky. None of us are getting less. If anything, we're probably getting more than most clinics. We're just not overpriced. So when I first started and people said to me, You know what’s the trick? What are you doing? I said there's no trick, I just make less. And I'll even give you another thing that's really interesting about my client is that I love what they're doing. In fact, when I was going to start, I was scared to death I called up Dr. Magarelli and I said that I had this idea, I heard you're doing it. I'm scared to death, am I gonna go poor? Like what's gonna happen here and he told me, Don't worry, it's gonna go fine. It works. And so one of the things I wanted to do was, I actually want to be one of the top clinics in the country, meaning success rates. So if you look at all of us, you look at national rates, we're doing well, but we're-- the 2018--we’ll probably be in the top 10-15. So it has nothing to do with quality and anyone who says that is just saying that to distract from it. Again, we have some of the highest rates in the country. And yet we're a third the cost of the most of them. This is about all of us are in this for the same reason, which is we want to help more people. We want to be able, as you said, more accessibility for people who can't afford it. Dr. Kiltz said, and I agree hundred percent, there are people who come to us and say, “I would have never had a kid if it wasn't for you. I could never afford to go anywhere else.” And that's a great feeling when you know that someone who scrounged up from family members to make $5,000 and have a baby, it's a great feeling. 

JONES  16:14  

Dr. Kiltz, this concept, you and I have talked about it before, which is who's responsible for making care affordable. And as Mark says, maybe it's maybe I'm making a little bit less money. And you have mentioned that before. But I remember one thing that you said to me, that always stands out to my mind, Rob, is you and I were in Washington, DC a few years ago. We were there for access to care, and we're advocating for insurance coverage. And at that time, we're advocating for benefits for veterans. But you said at the end of the day, these folks, meaning everyone that was there, and I'm paraphrasing, so I'll let you clarify that, but who's responsible? It's us and so talk a bit more about how you're able to do that.

KILTZ  17:04  

So the question is, why does it cost what it does? And I got paid $2,000 for nine months of OB care and deliver a baby. And when I started my practice, I was delivering babies. And I was trying to come up with a price of IVF. And I realized, well, I no longer do a nine months of care, up at two in the morning to deliver a baby, why should it cost more than it did? And I actually didn't know what it cost around the country. I just charged $2,000. But I would say ultimately, we're all running our own businesses. We're all practicing medicine. I think on the quality side, we're all members of the societies, we’re inspected by every organization, and our numbers are all reported. And we understand that outcomes that are shown in the statistics aren't always apples to apples, and we all know that. But, it's really a decision of how do we want to practice and how do we want to run our businesses? And the model of of how many IVF cycles do you do in a day, or in a month, or in a year, each of us has to pinpoint that for ourselves, and the amount of people that we work with and the team members we have and putting it all together. I know that I run a very large ship today, that our overhead is very different than it used to be. So when it was just me in a smaller space and fewer employees, 14, it was easier than now it's 300 employees and having all of that to run. So you got to keep the machine working a little bit in the process. But ultimately, we each decide. You know, there's no magic, that some big something in the skies, gonna, you know, tell us all what to do. We just have decided to do it the way we do it. And sometimes it's difficult as human beings to do it that way because we all feel like we have to conform. But really, all new things, changing things happen through nonconformity. And no one's here to try and tell everyone else they should do it this way, I wouldn't suggest it actually. But you know, it's something we are passionate about and enjoy doing. And we definitely--we do internal financing for everyone. We sell IVF on Shopify, and really just kind of offering new and different things, which aren't so crazy when you look at medicine in so many other areas or selling any other widget. But at the end of the day, it's not a Ford, a Porsche Ferrari, we're comparing, it's a baby. And they're all babies. And ultimately, people are traveling to Europe and all of the places to get affordable IVF. We just happen to put it right here in our backyard.

JONES  19:48  

So I want to come back to some of those new and different things and how you do some things in house, so I've made a note of it. We've had a couple of questions that are coming back to the same thing. It has to do with this issue of quality, and so I feel like we need to address it some more because one question, one person asked, What about pregnancy rates? And then the other person asked if rates would indicate that someone would need to go two or three times at one center and only one time at another center? How is that more affordable? That sounds like a loaded question to me. But I think it also goes back to Dr. Amol’s point. So you can look at at the success or you have the same data that everyone else does on CDC--

KILTZ  20:34  

May I interrupt, Grif?

JONES  20:35

Please!

KILTZ  20:36

So first of all, should we be comparing clinics outcomes? 

JONES  20:40

Not according to start for marketing,

KILTZ  20:46

Then why are we having this conversation? 

JONES  20:47

Because that's the--

KILTZ  20:28

But it is not true. Because it depends on the patient population, if it depends on many, many things, okay? And so it also depends when you're doing PGS or freeze all or not, whether you're doing blasto--there's so many things that come into this, that we can spend the rest of our lives talking about that. I would say, in general, across America, the real numbers are probably very, very similar. It's just a matter of who you're taking care of as much as anything else.

MAGARELLI  21:18  

If I can interject--I agree with Dr. Kiltz completely. That's been the biggest bugaboo since the 1980s when this idea of we're going to report data, and that data is going to be put out there, but please, please, please don't compare clinics. And of course, what is the first thing that happens is people compare. But I want to get to the heart of the issue. Look at the CDC data. Look at the live births since 2010. And the live births per IVF start is declining. It is not increasing. pregnancy rates are increasing and they're impressive, but live births per cycle stored has been declining precipitously, almost 30% since 2010 with the onset of a lot of technologies. So there may be a biologic potential there that we're hitting. But if you really--if let's say we homogenize all 400 IVF centers in the United States, and it comes out to approximately 2.2 IVF cycles if you do a fresh, untested embryo transfer. If you look across the board for the past 10 years it’s 2.2 IVF cycles per baby. And that's not counting regions, that's the United States: 200,000. If you do IVF with PGT-A, it's approximately 1.8. So let's say in every case, everyone's going to do two cycles to make a baby, regardless of where you are, what country, what elevation, New York, California--it doesn't matter. If that's the case and just let's flatten--I hate to use the term flatten the curve--but let's just let's just look at that number. In Denver, it's approximately $25,000 per cycle, two cycles, let's say two cycles is $50,000 to a baby. My clinic, that would be probably around $14,000 to a baby. Very different, very different model, but still, it's 2.2 tries to make a baby. In Dr. Kiltz’s situation, it would probably be about $6,000 to a baby. Now, as Rob said, it's to a baby. So if nationally our numbers are 2.2, it hasn't changed or even gotten worse to a baby over the past 10 years, that supposition of quality is in error because it's to a baby. It hasn't changed. There aren't really that many--there might be five or six outliers, but that doesn't count for the field. So if you go to the field, 2.2 is a good number. Just figure out what it's going to cost you, if it's in your budget and you want to go to a place that has a two story waterfall, and it's got a, you know, Mercedes outside, great. Or you just go to the regular folks, get your baby, and that's what you do.

AMOLS  24:06  

So I don't mind being the devil's advocate here. I think that Dr. Kiltz is absolutely right. When we talk about statistics, you have to look at the patient population, there's no question about it. And when you're doing what we're doing, you get people who have failed multiple times, who are coming in now for their six, seventh, eighth IVF. So you have to understand it is a different population. And none of us--one thing that's really unique, all three of us--none of us turn patients away. We take all the CCRM patients that they get canceled in the middle of their cycle, and we take them over. So he's right. However, it's a fair question. Because the point is people do know the difference between Walmart, and you know, a really high-quality store. And so I think the thing here is, is that, in the end, as Dr. Kiltz said, we're using the same places they are. We use the same equipment, my clinic, we use only benchtop incubators. That's it. Every patient gets their own incubator. And if anyone's concerned about the rates, the thing is that again, you have to look at is donors, that would be the only thing I would tell you to never really compare donors, because that's really the same population. But it's a fair question to ask. It's one of the things when I started, I felt there was a thing I had to defend more than anything. And that's one of the reasons like I said, that we want to be better. So just for the people who are asking that I just want to--I got the statistics here. So the national average in 2018, for the percent of live births for retrieval was 54.5%. For transfer, and it was 48.5%. Now, I'm not going to talk about other clinics, I’m just going to talk about mine. But just to show you, our retrieval percentage for live birth was 64.1%. So we were 10% above the national average, when we look at the transfers were 61.4%, almost 15% higher than the national average. So the point I want to make here is that being low cost doesn't mean low quality. They have nothing to do with each other. Now, can another clinic have lower rates? Well, yeah, if they're seeing more older women. We're very fortunate, I'm in the population where I see a lot of young people. And matter of fact, we don't even tell our patients our actual pregnancy rate because we don't think it's fair. You know, when I'm getting same sex couples who I'm doing, you know, reciprocal IVF on, that's not a fair rate to give to someone who's been trying for six years. So we actually give a lower rate than with our actual real--we have a very high percentage--but we give a lower rate because we know it's not a fair number. And so that's why he's right. You can't compare it. But what I would say to people is, if we have this high rate, and we're this affordable as well, and then other places have a lower rate and they charge the full amount. Clearly, cost and quality are not together. And I think another thing that's really important is not just that we're lower cost, we're transparent. I mean, if there's anything that I think is great about us, all of us have our costs on our websites, you know, we're not trying to hide anything, we're telling everything and we're packages. That's the thing I love about what we all do is no one comes to my place and goes okay, so is $6,000 for IVF, $3,000 the walk in the door, $4,000 to ICSI by the time they get done, they're like, oh, wow, I thought was only $6,000? And it's $18,000. Whereas all of us, you can look at our website and go, that's what I'm walking out the door with. Other than medications, obviously no one is selling their medication, other than that, that's separate. That's another thing that I think makes us a really unique model. And so when I go back to the point of why I say, I'm surprised everyone hasn't got there yet. We are going to become a mandated country, it's going to happen. It's just a matter of time. And we talk about the secrets of the affordable model, one of the things that's most important, Kiltz hit on it earlier, it’s got to be efficient. There is so much inefficiency in IVF. The places I worked at before, I can’t imagine going back to what we used to do--spending an hour with someone talking about something that literally in five minutes, we could talk about or my nurse could do in 15 minutes. The point is, is that the reason everyone should start doing this model is because when it goes to a mandated country, and they're only making $4,000, $5,000 per IVF cycle, you're going to need more volume, and if you can't do it, then you're going to be in trouble. And so one of the things we are poised I think to do well, no matter what happens. And I do have one question I’d like to ask them as well. One of the things that's funny when I started with everything included. Matter of fact, we included anesthesia, ICSI, it was hundred percent out the door, and we had to remove it, not because we needed money, but I actually ran into issues that when you are a low cost model, people for some reason don't see the worth in things. And so for example, I would have a patient perfect sperm, I'd say we did standard insemination, hundred percent fertilization, and they get mad at us and say, I'm so upset. Why didn't you do ICSI? Well, we had 100% fertilization that seems pretty good. And they're like, Yeah, but I wouldn't have done this if I would have known you weren't gonna do ICSI. And, and so we finally had to charge even $500 for it, just to make it worth something. And so I wanted to talk to you guys and ask you, do you run into those same problems where something so goofy as ICSI with someone at 100% and they're saying, you know, Why didn't you do it? And I just wonder if you guys run into those issues, too?

KILTZ  29:06  

It’s the nature of human beings to find something to complain about. If you just accept it and listen to it and move on, that works really well. So no matter what you do--and I wanted to make a point that almost all clothing is made in Bangladesh or Pakistan, it doesn't matter whose label is on it. So ultimately, there's no difference in quality, in general, in most everything and anything. Walmart, that has the same stuff that's sold pretty much everywhere else. So I think that we're all really just out here to practice what we do and help people out. And the fact that we are lower cost, and I don't think the higher cost models are going to go away. They will continue to be successful as we will continue to be successful because it's a blue ocean and blue sky, it's huge. The amount of people that don't get served by what we do is tremendous. And so there's plenty of room for everyone. And I always come back to you can never compare the numbers, because there's so many variables and as scientists, and the fact that we are members of a society that say you can't compare them, I'm still always amazed by the fact that we try to.

JONES  30:30  

What about this idea? Because it harkens back to what Dr. Amols was talking about, and Dr. Magarelli, you mentioned, when you're talking about per baby price, if you're thinking of it in terms of outcome, and Dr. Amols, you’re talking about different packages. One thing that--a hypothesis I have is that if you are goingfor  the affordable model, you can't half-ass it, at least from a marketing perspective. What I've seen is you--let's say someone's in the backyard of someone doing $13,000 average cycle price and they say we're gonna market that we do 10, that it doesn't work. That what makes it work is having a huge delta and really letting that be a big part of the differentiator that you all are using. Do you think that that's true? That's what I've found to be the case. That I don't recommend people say yeah, we've got a $9,500 base IVF cycle price that I think people get killed in the middle. What do you all think?

MAGARELLI  31:36  

Oh, I think people get killed in the middle. And I think that what happens is that they substitute or subtract services to get to that number. That's what I think. And then it’s like half in half out. When I decided to do this high quality, affordable model, I just have to say this out loud because Mark mentioned that he called me, well I called Robert, so this troika we have here is how this all--it started with the man on the bottom of my screen, Robert Kiltz, then it came to me then it went to Dr. Amols and it's amazing that you've got us all here because this is the family, The Three Musketeers. And what I had to do, and it took a lot of conversations with Dr. Kiltz was, this doesn't make sense. He’d say Okay, let's do the numbers. So you have to jump in. When I jumped in, I told my team, ti's very likely all of us are going to take a pay cut. Absolutely, everybody across the board took a 15% pay cut. And I said, and all of us have to be in it. Because quite frankly, I don't know if the volume is going to be growing fast enough to meet the bills. You know, and at that time, I was a fairly large program. And so you can't just discount a little. You have to make--if this is the area you want to be, look at your numbers, look at your costs, your real cost--not your cost plus profit--your real costs, figure out what margin you want and then probably don't accept the margin, subtract that margin and just go for the raw score. I don't think you can do this one toe here, one toe there, and you can't do it by subtracting services. I mean, I know I'm harping on that. But that's the key is none of us subtract services. All of us have all services at the highest level. And I think that would be my answer to your question about the middleman doesn't work. Because I had a marketing person who told me to raise my prices, which put me in the middle and my volume immediately fell. So I had to scurry back to where I had been. And so that's would be my recommendation.

KILTZ  33:42  

Fixed costs. We have a tremendous amount of fixed costs in this business. The variable costs are actually small. So our buildings, the rent, insurance, the staffing. And so I equate us like a bus or an airplane. You have seats that are empty, and you have capacity to grow. It's just basic economics of running a business, right? Obviously, if you're charging $20,000, you know, people can do that. But I looked at my model where I was and what I was doing and made a decision that my capacity was greater and we can do more. I even lowered my prices more in order to fill the capacity, at the same time, was able to meet our goals and greater.

AMOLS  34:36  

I want to address your question. So you were asking the question about the middleman. 

JONES  34:40

Yeah, do people get squashed in the middle?

AMOLS  34:42

From a business standpoint, this is actually very common for humans. If you have a great steak that costs 20 bucks, and then the other guy says to you, Hey, I got steak, too. It's 15 bucks. It's pretty common sense. Most people go, You know what, for 25% more, I'm just gonna go with what I know works better. I'm going to go with the filet mignon. But when you drop down to let's say, five bucks or six bucks, then most people go, you know, it's worth the risk. It's worth at least trying. And I used to even tell patients, I used to love when they came to me and they said, Oh, well, what if your lower rates. I said, well, let's do an experiment, let's say I am 20% lower, you can do three cycles at my clinic for the cost of one cycle there. So if you actually look at cumulative pregnancy rate, we would actually have a higher rate than them at the same cost. And I want to make one comment about Dr. Kiltz said, and I'm just gonna give a real world example versus using a plane. If I put one person's embryo in my liquid nitrogen containers, I still pay the same amount to keep that liquid nitrogen in that container. So if I don't fill that thing up, it's just wasted money. And that's what he's talking about. You know, when you buy equipment, when you buy a media, they don’t give you one one per patient. You get a whole bunch. Remember, if you buy more of it, you get a better discount, and so it actually lowers your costs. So as Dr. Magarelli said, you got to jump into this. You can't do this kind of half in, half-assed type of thing. You got to do it 100%. You jump in. And like I said, your costs will go down, your overhead will go down at first, because, again, you're spraying it over more patients, and you're being cost efficient. And I ran to the problem, unlike Dr. Kiltz, we actually are so packed, I can't take any more patients. So really the smartest thing for me, I'm a bad business person, I should raise my prices. But again, that was never my goal. My goal has always been to make it affordable. So I'm also looking to get more doctors to build on to what he does. And that's he's right. I mean, you just keep it full like a plane, don't let it be half empty.

JONES  36:34  

Well, that's I think that's a really good way of describing why the middle gets squashed. Because to that point earlier, when someone asked, well, isn't doing three cycles at one place, less cost effective than doing it one elsewhere. That's probably why the middle doesn't work so well because that would be true if it were the middle, but when you're talking about $4,000 IVF base cycle prices, or you’re talking about real affordable, that'd still be more cost effective--doing three with one model than doing one at another place. I think that's a really good way of putting it. You also--Go ahead.

AMOLS  37:16  

Are you familiar with the concept of cost-disruptive model in business?

JONES  37:20  

In business? No, not if it's the same thing as price anchoring.

AMOLS  37:24  

So when you look at the Walmarts and the Target, one of the things they looked at in businesses, is that when you just went a little bit lower, you looked cheap. When you went ultra lower, then what happened is people were willing to take the risk. And what ended up happening was a lot of your competition had a more difficult time because now people were going there. And so this is actually a very common model in business called the cost-disruptive model that is used and like I said, it works. It's worked in every industry.

JONES  37:54  

It's a really great point. And for those--there are some people on this call that I have counseled  against marketing towards that middle. And now you know why!

**COMMERCIAL**

Hi everyone, it's Griffin. This is the break in the show where normally, I do a little commercial for our small engagement. And we do have a small engagement that's relevant to the COVID-19 business response. If you're cutting marketing. if you're trying to bring back your people as quickly as possible. If you're trying to build a cache of treatment ready patients. We do have that, but I would rather use this break to just ask if you find this useful if you would share it with a colleague, either via email or on social media. We're doing everything we can to put out as many webinars, articles, free podcasts, all free resources to include as many people from the field as we possibly can to give you resources on how to manage and operate a fertility business or an IVF center during this time. And it's changing so quickly. 

So if you find this useful, I would really appreciate it if you would please share it with a colleague via email or via social media and help us grow the audience, but only if you find it valuable, and hopefully you are. Now, back to your program.

JONES  39:12

You concluded your point with another point, which is now I'm at a point where I'm so busy, I can't even see all of the patients. One way would be to raise prices and make demand go down a bit. The other is to scale and Dr. Kiltz, that's probably what you have really, that you've really focused on the last some years and when I had you on my show last year, you talked about the bottleneck often being the REI. And you've talked about training, OB/GYNs and Physician Assistants and perhaps Nurse Practitioners or just advanced providers in general. And when I sometimes will, we work with groups and we will get them to a point where it's like, what more do you want? You’re at a four week waiting list and we got to do a six week waiting list, it's like there's a bottleneck here. Does the use of advanced providers and other physicians--is it requisite to scaling a model like this?

KILTZ  40:13  

Well, it's not requisite, it's just another way to do it. There are a limited number of REs and our model has typically been to spend an hour with the patient and do our consultations and our follow ups. That gives us limited time due to retrievals and transfers and maybe surgical and other things. And as we're seeing this shifting and changing the way we practice medicine, just in the last several months, we realized that to do an ultrasound and IUI and even managing and monitoring our patients can be done a lot more efficiently. That can be done by a skilled fertility RN and also our practitioners. And also as we've utilized gynecologists for a number of years to do retrievals and transfers that can be well trained and do an excellent job at it. So we know some of the top fertility doctors in the nation, in the world, are not board-certified or even trained in a fellowship in REI, which I think is unnecessary, but it just happens to be where we're at. But I think the way to scale and provide more access, more affordability is to look to those methods to do that. My practitioners will do consults, either video, phone or in person in the past. Our gynecologist will help us with our surgery, retrievals, and transfers. At the same time, we’re able to focus on the things that I think we're really trained to do, which is manage and develop and teach and train others to be part of this because the only way we're going to make it more affordable and more accessible for more people is more of us to be able to do that. And it's happening in more and more areas of medicine all the time. That's where it's branching out. Anesthesiologists, I have mostly Nurse Anesthetists doing the anesthesia today. And we can look at that in every other area of medicine. I think we need to open that up and even trained practitioners to do potentially retrievals and transfers. I'm throwing it out there. I think certainly, they're doing IUI and most everything else in our practice.

JONES  42:22  

I see a little bit of reluctance to accept this. I also see a general acknowledgement that this is the case. I can't consult on it because it's clinical. The only reason it touches my purview is because it has to do with capacity and how many people we bring in. And if that capacity is raised, we bring in more people. But I have heard people raise the objection, or the concern that they'll be--well is the REI just going to be useless in 20 years? And I don't see that unless, you know, Watson and artificial intelligence has evolved to the point where we're all useless and that's going to happen eventually, hopefully not in 20 years. But I see a little bit of this idea that well, I need to--as the REI, the patient is paying to see me or expects to see me. And I don't know that that's always true. And I use this analogy and I know it's gonna piss off every REI on this webinar because I know you're not dentists and we're not talking about dental and I know that Fertility Care is much different from dental. So I'm providing that--I'm laying that down right now. But I went to Inspire Dental which is one of these large scale affordable dentists backed by or owned by either private equity or on the public market. And I go in, it's a nice experience. It's very standardized. I go back, the dental hygienist almost diagnoses me. He's cleaning my teeth, says what he thinks it is. The dentist comes in for two minutes, really confirms that, leaves and then when my follow up is scheduled. It's the dental hygienist doing the advanced cleaning. And I as a patient, I'm okay with that. And I think the bottom line is that patient needs to be and feel cared for. And I think that there's a little bit of reluctance. The doctor feels like, well, I need to be--I need to be in every ultrasound. I need to be doing retrievals, whatever it might be. And I don't know that the patient necessarily sees it that way. Can you all talk a little bit more about what really should be the role versus what should be support staff or advanced providers?

MAGARELLI  44:33  

Well, I'm not going to say what should be, but I will tell you my thoughts about that. I was one of those Duke-trained, UCLA-trained, big headed, egocentric, narcissistic physicians who felt if I didn't do it, it wasn't done and it wasn't done right. And that does work if in a model in which you're seeing very few patients and you're all getting that personal care, and as long as you're not worried about that many 10s of thousands or millions of people who aren't getting care, you can feed your ego that way. Over time, what I've come to learn is, it is really my responsibility as a professor or professional, to make my team provide the service, make my team be able to manage issues, and I be the guy who takes care of the fascinomas or the oddities to allow for efficiency that Dr. Kiltz was mentioning. And I will tell you like Dr. Kiltz, I have been fascinated and scared at first, but fascinated with the use of gynecologists, but these gynecologists are doing major surgeries that I wouldn't do and why would I be concerned about them sucking some eggs through a small little needle through the vagina. It doesn't make--it's almost illogical that they couldn't do it. So by utilizing them, I was able to grow the practice rapidly. Patients were getting care and I followed them point by point, number of eggs retrieved, number of embryos created, embryo transfer rates, pregnancy rates, and I could not find a difference. We both went up and down 1% depending on the month because we split it. So from the standpoint of it is always going to be the reproductive endocrinologist, just like any captain of a ship, you don't expect the captain of the ship to be down in the in the propeller room and in the ballast tanks and in the mess, you expect the captain of that ship to manage the ship to go in the direction and reach the port safely. That's what our jobs are as reproductive endocrinologists and we are a lucky field. We deal with healthy folks. So it's even less risky because we are not dealing with sick folks. We're dealing with very vigorous young, 18 to 40 year old folks. So that risk equation is lower than persons dealing, you know, 90 to 100 years old with a cardiac condition. So it does work. It is safe. As Dr. Kiltz mentioned, the 1, 2, 3, or 4 most famous reproductive programs in the country are run by either gynecologists, Maternal Fetal Medicine doc, or a perinatologist and yet, the impression is they're the best and they're the ones we should go to for because they're good marketers. So that is not going to give you the qualification. It is exactly like Dr. Kiltz said, my job is to train them, to follow up on them, to QA QC on them, and to ensure that the quality is always there, and to innovate. That's the other part. You don't expect your gynecologist or your practitioners to innovate, to take a new concept to apply it. And that's my job as the professor or Captain, down the future, is to help them just to separate the wheat from the chaff about what are the technologies that are effective, cost-effective, efficient, and perform. I can't have everybody in my clinic doing that. But I can do that if I had them doing these other tests, which are easily trained as well. And they're actually better at it because they're focused on one thing. We have to be focused on 100 things. So that would be my answer to that situation.

JONES  48:17  

Dr. Amols, you want to add to that?

AMOLS  48:19  

Yeah, I can. So I think there's a couple things there. It depends on the patient that's coming in, right. So obviously, if someone's going for egg freezing, they don't care [inaudible] they just want to freeze eggs. You have a person trying to come for a baby, they want that kind of touchy, touchy feeling. And I think that's a normal thing. As a doctor, we want to have that. And I would say it's not so much--there's almost nothing that has to have a doctor. I mean, I think nurse anesthetists have shown, if you teach someone a specialty, they can do it very well and as well as a physician. So I think there is this point where there's nothing we really have to do, but we do still have to be involved. And I think part of the art of what we do is being able to make the patient feel where they're 100% when we’re not. I have patients tell me all the time. I'm in the room for five minutes sometimes. And you know, I tell them sorry, if you felt rushed or like, No, I never feel rushed with you. But I'm with them for five minutes. They're with another doctor for 20-30 minutes in the room. And then they come back and tell me that they learned more from me in five minutes than they did from them in 20-30 minutes. So I think part of what you're seeing is true. You have to as a doctor be able to engage your patients. And I agree completely with what Dr. Kitlz said earlier. I mean, you could have practitioners doing I mean, you really could there's no reason they couldn't. It's not like this skill is this amazing skill that we learned in fellowship. I mean, most of us didn't even do some of them in fellowship. But the point is, is that there are these certain patients though, who absolutely want the doctor every visit so at my clinic, it's a little bit different. Everyone does it different. Doesn't make a right or wrong. I do all the ultrasounds for IVF. Only IVF. Everything else I do have people doing for me. So I have an ultrasonographer checking for cysts. Nurse Practitioner helps me. There are patients who I tell them right from beginning, if you are wanting me at every visit or you wanting 20 minutes from every time, I'm not the right clinic for you. You're better off going down the street paying someone $20,000 who can do it. And that's where I'd agree with Dr. Kiltz because they're gonna be clinics like that forever. These clinics that people want the doctor doing everything 100%. But in reality, there are studies that have shown a nurse, nurse practitioner doctor during the IUI, no difference in pregnancy rate. And I'm pretty sure if you look at even the nurse practitioner probably doing the retrieval, there probably would be no difference at some point, you know, if again, if they've been taught the skill set. So it really doesn't need all of us. None of us are that powerful. It's the lab. The lab is what gets people pregnant. Our job is very miniscule, maybe 20-30% at most, when it comes to stimulation. But in the end, we can still do that without physically doing that. And so what I would say to those patients are, I mean, those other doctors who want to do this, engage with your patients, talk to them, be a human, and they're not going to feel like they're not getting care because when you are with them, you give them 100% of your attention.

JONES  51:00  

And I might even take that a little bit further from the patient's perspective of feeling cared for. The not just advanced providers or the nurses, but all the way down to the welcome staff. It is the aggregate of everyone involved. And I won't say who it was if this person wants to acknowledge that it was their clinic, they can do so because they're in the webinar--but we worked with a client for years, that when we did their social media for them, the the celebrity of their group was the phlebotomist. People just adored this phlebotomist and she's drawing blood the same way that all phlebotomists do physically, but she did something to really touch people and that can come from multiple people in the practice. So we just have a few minutes left. And so I'd like to conclude with your opinion from all three of you on this because Dr. Kiltz you were talking about doing new different things. You know, you like doing so many things in house and you mentioned a lot of the things just take away and add to the cost. You mentioned in-house financing, you talked about IVF on Shopify. And I want to get your opinion in closing from each of you, either what innovations will come from the affordable care model? Or what innovations will impact and allow the affordable care model to scale even further. So what innovations will come from or aid the affordable care model?

KILTZ  52:29  

Well, first of all, thank you guys very much for being part of this and inviting m.e I really enjoyed it tremendously. I don't know many of the answers. And I think what we're doing is we're learning by doing something different. But we're also learning from many different models, but change is the most critical thing that we must learn as practitioners. If we cannot change, we will die. And it's always learning from others what they're doing. Fertility just happens to be this thing that we've sort of felt that this is the way it is and when we see these changes going on, it's uncomfortable. I wasn't trained as a business person. I didn't know anything about business when I started my practice almost 25 years ago, but I've learned and I continue to look at other areas and what are people doing in business that I can utilize in changing and growing what we do. And whether it's going to be more artificial intelligence, but ultimately, as you mentioned about the phlebotomist is, is really the person that people are drawn to. We're all in some ways--ultimately, the human touch is so important, as Mark talks about, you know, the patients and going and meeting them. We love that! We don't want to lose that. In many ways, we created something that so many people wanted to come to, so we need to always be innovative, and making it accessible and affordable. And that's some of the things that I really love to do more than anything, but we all need to be doing something we're passionate about. Every single day, and if you're not passionate and having fun in this business, there's plenty of other things to do in life.

AMOLS  54:06  

You know, I don't know if I can answer your question either about how to make it scale. I think what I would like to maybe give us the people who are interested in doing this, want to know a little bit about how to do it, I think, you know, again, hopefully, they're not scared to go into this. But one of the things that's interesting is that, once you start it, the biggest fear, I think the getting into is someone looks at my cycles and goes, Oh, my God, I don't think that Dr. Amols ever gets to go out and see his family. And it's actually not true. I mean, I come in at 8, I leave by 5pm, I get almost every weekend off, I get to work one or two weekends a month at most for a few hours. And I don't want anyone else to think that I'm making very little money. I do very well. And I'm pretty sure they do very well as well. And that's because again, it comes down to volume. And so what this is about is if you want to open the practice, where you're able to now allow more people to do IVF, who originally couldn't. And what's interesting is those people usually are pretty healthy. I mean, I get people who don't even need IVF who do IVF. And I even tried to talk them out of it. But the point is, is that it's not hard to get into. The trick is being efficient, and being able to talk to patients. Now, if you're not able to talk to patients, I don't think you're gonna do well anywhere, whether in our model or someone else's model, because who cares if you get to spend 20 minutes with a doctor. If they suck, and they don't like talking to them, it's still gonna be the same bad 20 minutes, whether it's five minutes or 20 minutes. So I think the biggest thing for people who are wanting to know about this is don't be afraid that you're working forever till the end of night. You won't be. But you’ve got to make sure you get a nice efficient system. Definitely talk to all of us. We've gone through the pains and stuff in the grind. And don't be afraid you're not gonna make money either because you will, because again, you may not make as much per patient, but you're so efficient, that you're able to make more. You're just doing it with more patients.

MAGARELLI  55:53  

So doing it with love, is what Dr. Kiltz is saying. Dr. Amols is saying is do it with the business acumen. And the question is can and all of us are saying this, we are successful in what we do. I think COVID has taught us something, and it certainly has taught me something is that I am actually more intimate with my patients now doing a Zoom meeting with them. And I'm much more efficient in terms of my office and functionality than I would ever have imagined ever in my career. I can tell you that probably 40% of them are still in bed as a couple talking to me on my Zoom. And to have the husband there and to have the partners there to have that intimate discussion, so I'm not going to lose that, but I probably am going to be able to double or triple the number of interfaces I have with them. And then as we all have said, hand them off to trained professionals to do the next steps. And then when we need to be involved, if it is the retrieval, and if it is the transfer, if it is the surgery, we do it, but if it turns out we have even a practitioner, a gynecologist who could do it just as well, trust that they can, track it--I'm a researcher--track it, and then as long as they can, you can assure the patient they're going to get the result. So I think Rob said change, change, change, but you know act with love. My dear friend, Dr. Amols is saying there's a business component to this, we can do it. He likes to be in there every minute to touch his patients so that he can show them he's there. I can tell you I've spent many a day with Dr. Kiltz walking up and down the clinic. He knows every patient, he knows every person, he knows every every staff member and what's happening with their children. It is being personal and interacting. We all are well-trained. We all have a passion to help people. And if that is your--and by the way, you will work hard. You have to also be willing to work hard. This is not something you're going to do half time. This is long hours. And yes, you can design a Sunday off or a weekend off or two. But this is long hours. And if you don't want to do long hours, this won't work for you.

JONES  58:12  

Well, gentlemen, it's been a great conversation. We’ve gotten lots of thanks and kudos in the comments. And I say, gentlemen, because people might say, why are there four men on a panel? Well, you're stuck with yours truly, and these are the three guys that are doing it. These are the three people that I know that are doing it. And I would love to have you all back on because I do think that this model is going to advance even further as near as six to 18 months. And so I'd love to have you back on in six months and revisit this because we had so many questions that we didn't have time to get to a lot of them. And Dr. Amols, Dr. Magarelli, Dr. Kiltz, thank you all so much for coming on this live show for Inside Reproductive Health. I look forward to having you back.

You've been listening to the Coronavirus Business Response Series on Inside Reproductive Health. If you find our free resources to be valuable, we ask that you share this episode on social media or with a colleague in the fertility field. Subscribe for the latest insights on managing and owning an IVF center or fertility business during the COVID-19 pandemic at FertilityBridge.com or anywhere you listen to podcasts.






154 What is Oma Fertility Doing With $37.5 Million?

This week, Griffin hosts Drs. Gurjeet Singh and Sahil Gupta, founders of Oma Fertility and Oma Robotics, to discuss their plans for utilizing $37.5 M in venture capital. Who will have access to the tech? How much automation can they bring to the industry? Tune in to the latest episode of Inside Reproductive Health, as Griffin Jones presses these entrepreneurs on their plans to scale their company.

Tune in to hear:

  • How Oma Fertility and Oma Robotics came to be, how they raised so much capital, and what role debt plays in their plans to scale their organization.

  • What Drs. Sahil Gupta and Gurjeet Singh have to say about the role of AI in increasing productivity and reliability in the labs.

  • Griffin ask about their growth, especially the pros and cons of purchasing clinics vs. beginning de novo, and where their footprint is expanding.


Gurjeet’s information:

CEO and Co-founder at Oma Fertility

LinkedIn: https://www.linkedin.com/in/gurjeetsingh/

Website: https://omafertility.com/


Sahil’s information:

Chief Commercial Officer & Co-Founder at Oma Robotics

LinkedIn: https://www.linkedin.com/in/sahilgup/

Website: https://www.omarobotics.com/


Transcript


Griffin Jones  00:00

So let's talk about the debt side for a second, because maybe I'm making an assumption. But my assumption is that many people aren't leveraging debt in that way, like directly from the financier that they're often they're either selling to private equity and then they might be leveraging some debt or, or they're selling equity to a venture capital firm. But it seems like people forget that you don't necessarily have to sell part of your company. If you want to get more money to invest in expansion. You can do it the old you can do it the old fashioned way. One way of getting your technology adapted in the field of reproductive health to advance assisted reproductive technology is to build clinics yourself and put it in those clinics. That's where Oma Fertility is. I have their co-founders Sahil Gupta, Gurjeet Singh on and they are the co-founders of Omar fertility and Omar robotics, they just raised 37 and a half million dollars, both in equity through venture capital. And in debt. We talk about the pros and cons of those two tools. We talk about how debt is often underused, and why they were able to get access to more debt than many people can often get from banks, we talk about their strategy of opening new centers as a means of advancing the technology that they're aiming to improve on the lab side trying to automate the lab trying to use artificial intelligence to dramatically increase the the productivity and reliability of embryologist. We talked about how they are buying clinics in order to be able to do that, how they're starting clinics de novo, the pros and cons of doing each of those things. So this is an interesting model guys, I think of all of the AI companies that are coming in and they might have excellent value to add, but they're kind of struggling to get adopted. This is one way of doing it and a lot of people are talking about some of the newer private equity backed fertility networks. I think you might be interested in this. I hope you enjoy this episode with Sahil Gupta and Gurjeet Singh. Mr. or Dr. Gupta Mr. or Dr. Saying Sahil Gurjeet Welcome to Inside reproductive health.


Gurjeet Singh  02:45

Thanks so much for having us.


Griffin Jones  02:47

So the that little joke for the audience was that Singh, he was a he was trained as a physician and Gurjeet has a PhD in mathematics. They both said they don't normally go by doctor but guess what on inside reproductive health you do you get the full honor of your previous degrees in training. And the reason why I think it was my team that reached out to you all to talk was that as we started to cover more of just what's happening in the field, like more of the current events, the name OMA fertility popped up. And the name Alma robotics is associated with that. But I want to stick on OMA Fertility for a second, because I think it wasn't really familiar with the group outside of your location, Southern California and then saw Oh, they're in St. Louis now. And so us deciding where to start this conversation is interesting enough, but let's start there. Where did OMA Fertility come from? And then what's the expansion that's happening? Is it fair to start there?


Gurjeet Singh  03:57

Yeah, that sounds great. I can give you a little backstory on OMA Fertility, and then I can tell you where we are and where we plan to go. Great. So we, you know, I had a friend of my wife's, I believe, of my wife, who was going through IVF. They went through six cycles of IVF treatments, didn't succeed, paid about $45,000 per cycle and ended up having to file for bankruptcy. You know, it completely destroyed their life. And very coincidentally, as all of this was going on, my wife was helping them think through how to put their life back together. cyl was visiting us as a family friend, both cyl and I had grown up in Delhi in India. And you know, Sahil as a physician, he had built a chain of IVF clinics in India where they see 15,000 patients a year and do 6000 cycles a year. And so my wife and I were venting at him about this whole thing. And he said, Why don't you come visit a lab? You know, just so you can see how it works, you know, you can get a sense for perspective. So I went to India and saw an IVF lab, and I was just completely blown away. You know, my I didn't know anything At the time, I'm a mathematician, as you mentioned, my expectation was that, you know, there will be some science fiction stuff going on behind the scenes, you know, but it turns out it was like a high school biology lab right at the same microscopes, incubators, the same kind of equipment that I had seen in a high school biology setting.


Griffin Jones  05:18

You were disappointed at the lack of sci-fi? Yeah, I was


Gurjeet Singh  05:21

like I was expecting there would be some science fiction stuff going on. They'd be like, some sequences of some sort. I'm gonna be naive. I didn't know it was so disappointing. I came back to the US, I visited a bunch of labs here, because I just couldn't believe it. And you know, I will say, perhaps they were slightly cleaner in the US the labs, but they had the same exact equipment, the same media, the same manufacturers, the same procedures. And I think there's something wrong, and then science had, you know, he had been going to fertility conferences for a decade, and he was like, they just don't change. That's just it's the same people show up every year, the same equipment, it just doesn't evolve. So tell


Griffin Jones  06:01

me what was wrong other than the aesthetics other than okay, that it looks so tell me what's wrong about it?


Gurjeet Singh  06:06

Yeah. So first of all, nothing is wrong, right. Like the labs are obviously doing well, you know, people who are struggling with infertility, babies are getting created, you know, so, so nothing is objectively wrong. It's just that it felt super manual, right. So when I, when I looked at the embryologist looking under a microscope, they are literally hunched over, right, looking at a petri dish, moving cells around manually with manipulators. It just felt super subjective. Right? What if somebody was having a bad day? What if they were tired? What if it was late in the evening, and they've been working since seven in the morning? So like, a lot of the decisions that they were making, with all of their great experience, felt so subjective, that anything could go wrong? Like not even the intent would always be great. But you could always make, you know, a mistake. And so I want it to be more automated. Sorry,


Sahil Gupta  07:03

yeah. I just wanted to add that one of the conversations, early conversations we had with between us was Gurjeet is asking, Where do embryologist train? Where are training schools? And, you know, I literally had no answer because the embryologist actually trained inside the labs. And you know, they are probably the most important part of the IVF process and the lab and, and then having to make subjective calls was really surprising to him at the time. Like how could such important decisions be made, you know, subjectively and cannot like, are not consistent. So I think that's probably where it started, where we decided that our focus, you know, as a company would be to make tools for embryologists to make it more consistent in order to give them tools to make it more consistent, and the results being more consistent.


Griffin Jones  07:58

Who and what are the tools that they needed in your view?


Gurjeet Singh  08:02

So I'm gonna go ahead.


Sahil Gupta  08:07

No, I was trying to break down the IVF process into two parts. The first being, you know, where the embryos are created. And once the embryos, embryos are created, the second half is about grading and biopsy. So I think we as a company started to focus on the starting part of the process, on creation of embryos, where embryologists have to sort of make this subjective call on which sperm to decide on when they pick it for ICSI and then ICSI iitself, you know, different embryologists trained differently. Some are better than others while doing xe, I think these are the steps we thought were the most objective. And we we decided to go after them first. But I think we can talk about more details on the technology. But sponsor elections and Ixy are the first thing that we are going after. But our Northstar as a company is to is to automate the entire thing. And just have a human in the loop. You know who can oversee the process? Good. Yeah.


Griffin Jones  09:17

What would you add? Well, where does where does the math background come in?


Gurjeet Singh  09:22

Yeah, so the math background is right, basically, let's do some math. So for sperm selection, as I was just describing, you know, in a typical IVF cycle, you're dealing with a handful of eggs, that's 20 eggs. And you know, the eggs are extremely precious. Right eggs become embryos, they are physically challenging for the patient. They are all with the egg retrievals which are obviously financially expensive and emotionally challenging. So eggs are you know, very, very precious, and you kind of get what you get right so the physician works with the patient, you get the eggs that you get, and you have to use all the exotic and get your hands on in a cycle. Right. On the other hand, on the male side, in a typical healthy male sperm sample, there are 100 million sperm cells also vary typically 4% normal morphology is considered good, which means that only 4% of those 100 million cells have normal morphology. Today, an embryologist looks at 20 cells, maybe 30 cells order of 20 to 30 cells out of 100 million for about 10 seconds before they pick one sperm cell to fertilize an egg. And if you again do the math, right, the probability that 20 cells seen out of 100 million would even contain one of the 4 million normal sperm cells is so abysmally small, that it's, uh, you know, it basically speaks volumes about the robustness of biology that it still works. So that's kind of where the math comes in. And using machine learning and AI to help embryologist make the determination would fit sperm cells to pink.


Griffin Jones  10:58

So, so the lab side is making sense, the AI side is making sense, how the heck does this end you up with a clinic in Southern California and in St. Louis?


Gurjeet Singh  11:11

Yeah. So then I think the main question is, what is the best way of building the tech? Right? Okay, you got up, the tech is important to build. And so how do you best build it? And what we, you know, I have I have done business in healthcare before I've sold into healthcare before. You know, there's a lot of potential benefits that AI brings to healthcare, which I've seen firsthand in my previous company. And so when we started building Omar, basically, we had a cold start problem, right? When you start to build this device, you need data to machine to, you know, for machine learning to train the systems. And so we decided that the most efficient way of getting this data would be actually to start a clinic, capture the data, because it needed, we needed some special hardware that we have developed to do this. So to the beginning, install the hardware, capture the data, build machine learning systems, and then deploy it in the in the lab can sort of see results in real time and then tweak it. So that's kind of how we initially decided on building the clinics. But then as we started building, we also noticed that patients or families who had gone through IVF, in the past, you know, we did user interviews, we spoke to them, even people who had been successful, you know, felt like there were a number in the system. They felt like they were just there to enrich the clinic, they did not feel empowered or educated. You know, they felt like they had lost power in sort of going into this whole situation. And so we then decide that we're going to double down and we're going to build a chain of fertility clinics. Where, you know, we will bring our technology to bear in in helping embryologist work consistently as well as serving patients in a in a consumer first customer first mindset.


Griffin Jones  13:02

Such an interesting, it's an interesting concept, because the challenge. Well, I've been selling to Fertility Centers for eight years, and I know how difficult it is I've gotten pretty good at it. But we're just a little client services firm. There are so many tech companies that are that, you know, there weren't like how are we going to get this into use? And you just said, eff it will buy it will buy one and we'll do it ourselves. So, so Did it start? So it started with one clinic, the clinic in Santa Barbara?


Gurjeet Singh  13:34

Yeah, yeah. It started with a clinic in Santa Barbara. And we've just started a clinic in St. Louis. We are actually we are about to announce an acquisition next week. We have acquired a clinic that's based out of Long Island. We are building one in Atlanta. We are building one in New York. And then we are hoping to launch two more clinics next year in LA. Yeah.


Griffin Jones  13:57

So who is this where you're coming in? So you've done this in in India before it was a via the group that you? You have seriously?


Sahil Gupta  14:07

Yeah, I started awareness in 2015 with one clinic. And affordability was kind of like the core of that clinic as well and accessibility. And by the time I sold it in 2019. It was a network of eight clinics in India and Nepal. And as Gurjeet mentioned, you know, we started with Santa Barbara and by the end of March 2023, will have seven, seven operations.


Griffin Jones  14:34

And so I help people chart the timeline. When did when did Santa Barbara take its inception?


Sahil Gupta  14:39

So Santa Barbara started somewhere in January of 2021. And I think this year, we are launching three clinics by the end of this year. So Atlanta, St. Louis and New York. Go live by the end of this year. As Gucci mentioned we have acquired a clinic in Long Island in New York, this, you know, hopefully in the next week or so it will be live. And then we are building the two clinics in LA, which will go live in March 2023.


Griffin Jones  15:15

Was Santa Barbara, was that an acquisition?


Sahil Gupta  15:18

No, no. So apart from Long Island, all the other six clinics are served in all those, we are building it from the ground up.


Griffin Jones  15:27

Why did you decide to go that route?


Sahil Gupta  15:33

So I think there are multiple reasons why we decided to do that. First of all, I think it's always easier to sign up, sort of bring about the change that we want to in terms of experience, when we are building things ground up, there's not only we also wanted to make the physical space, you know, change the digital and both digital and physical space that we were building, I think in terms of in terms of just the build, you know, I had experience building these clinics in India. So I knew what it takes the systems that are required. And then we found great physicians to partner with, with whom we could, you know, launch these clinics from from ground up.


Griffin Jones  16:26

Oh, why do you say this? I'm asking you to speculate about other folks. But most of the people coming into the unless they're already an established group, most of them are going acquisition, why do you think more people haven't tried the VC, venture capital de novo route?


Gurjeet Singh  16:48

So I think from a venture capital perspective, right the to do the de novo route, your venture capitalist model requires some tech innovation, it requires some step change that you can foresee in the future. And so I think if you're just going to start fertility clinics, without any tech innovation, inside it, that can lead to a step change in the, you know, along some metric, you know, it's not a venture scale business otherwise.


Griffin Jones  17:19

So what about us if you've done this before? Is it? Is this a model that could be that we're going to see more replicate? Like, are we going to see companies like Cooper, for example, or whoever the new AI companies, whoever IBM might spin off of a healthcare division, are they gonna start going this route of a build of, okay, we want to get our technology adapted, and we want to have a full tech stack, we're going to build, we're going to build the clinics ourselves.


Sahil Gupta  17:55

So again, you know, as you had mentioned, there's been a lot of private equity, you know, activity in this space over the last three, four years. And I think when, when there is private equity, there's a lot of roll up acquisitions, as you had mentioned, a lot of groups trying that. I think as good as you'd mentioned, with venture capitalists, there has to be some underlying tech that fundamentally changes or disrupts the industry, which we believe we are doing. And I think if other groups come up with, you know, similar other ideas there, there might be, you know, similar companies in the future. But I think we have the right mix. As a company, as you know, with with the team, we are, we have been able to put together over the last couple of years that we see ourselves growing with both the novel and acquisitions over the next couple of years.


Griffin Jones  18:53

How are you going to interact with those Fertility Centers, I will Oma Robotics sell to service Fertility Centers that are not a part of the OMA Fertility partnership.


Gurjeet Singh  19:08

So our plan is that our technology and devices are for exclusive use of Oma clinics, we're not selling our technology or devices into any other clinics, and don't plan to either. But there are several clinical practices across the US. You know, where the practice is great, but we do but they don't have their own lab, or they want to use a third party lab. So we definitely want to approach clinical practices, you know, that don't have their own lab or want to switch labs or want to use our technology to come use our labs. So that we are okay with but we are not, we are not selling technology into any other clinic.


Griffin Jones  19:47

Tell me about that decision.


Sahil Gupta  19:50

I think part of it. Part of what we are building and we have seen in different clinics in larger chains, is that if you go to let's say an A We see clinic on the East Coast versus, like the same ABC clinic on the West Coast, their results are different, just because they have the same name, but results are different from in all their clinics is because of the embryologist or could be any number of reasons. We believe that we are building a network, it doesn't matter if you go to St. Louis, or Santa Barbara, or New York, you're going to get the same consistent results and same consistent OMA experience. And that's going to be our differentiator, as we continue to build our own clinics and acquire clinics that have similar mindset or clinics that align with our mission and vision.


Griffin Jones  20:45

You don't see any application within the device other than the entire lab itself. But we could license this technology to these other surely you must have had that discussion with each other, hey, let's break off this piece. Let's license it. What was that conversation like when you decided against that


Sahil Gupta  21:04

our North Star as a company with in terms of building tech is full automation. And I think it was that time we reach there this this isn't a conversation that, you know, we want to have it next we want to make sure that we are able to build all these steps along the way. And I think we're at full automation, then the conversation to be had with other clinics or clinics outside the US where we might be willing to, you know, probably sell it to other clinics outside or inside the US.


Griffin Jones  21:40

You talked about it a little bit before but I think I need a clearer picture of what you mean when you say full automation?


Gurjeet Singh  21:50

Yeah, I think that's all we can say on that at this point, as we see a future in which we sort of build much, much more automated devices that do more than just bomb selection or just to automatic See, we want to sort of build more of the automation, the embryology process, to help embryologist basically get consistent results, even outside of just the fertilization and sperm selection where we are focused today.


Griffin Jones  22:18

So this is on the lab side. What about on the clinic side?


Gurjeet Singh  22:23

Yeah, I think thus far, I think AI has a role to play on the clinic side. And what we are planning to do is we are planning on mining data from the clinic to help physicians with better protocols, or to kind of have a better standard of care that we deliver to our patients. But at this stage, our focus is squarely on on the lab side.


Griffin Jones  22:48

So if you're not selling to clinics, and you're not, like you said for those clinics that don't have labs, or they want to switch labs that, that that's an opportunity. But if you're not going to be sending to clinics, how much of other companies will be up using in your labs?


Gurjeet Singh  23:07

Yeah, so for example, if you look at our Omar lab, today, it looks it basically I'm a little horrified to say it looks the same as any other lab, except that our devices are kind of, you know, built inside the microscopes and so on. So we, we buy equipment off the shelf, and then we install our hardware inside that equipment. So it from from the external viewpoint, it looks exactly the same, but kind of all the magic is inside.


Griffin Jones  23:34

Oh, are you working with? So like embryoscope? TMRW? Are those companies that are using the tomorrow tank? Or are those things that you all are using?


Gurjeet Singh  23:43

Not yet, we want to and so we are in discussions with TMRW? And you know, we are we are optimistic we can get to an agreement.


Griffin Jones  23:52

The discussion is the discussion about how does our stuff, talk to your stuff? And vice versa?


Gurjeet Singh  23:58

Yeah, how does that stuff work to your staff? And and just the business terms? Right.


Griffin Jones  24:04

So go ahead. So are you


Sahil Gupta  24:08

saying, you know, a lot of our value proposition for our patients is about accessibility and affordability? So that's the other thing we have to think about while we form these partnerships, if we are able to, you know, pass on savings to our customers and to our patients as well.


Griffin Jones  24:31

Are you focused on the United States right now? Are you also working on opening places in India and elsewhere?


Gurjeet Singh  24:39

Yeah, we are focused in the US. But we have done partnerships with some third party agencies that are international.


Griffin Jones  24:47

What about things that are not involved with the lab tech stack because you're doing this for your own clinics as well? What about EMR Do you have your own EMR? Are you using one of the others?


Gurjeet Singh  25:05

No, we don't have our own EMR. As of now. And we don't plan to build an EMR system.


Griffin Jones  25:16

How about things on the financial side? Like, like patient financing or the guarantee backings or employer benefits? Is that in your future scope?


Gurjeet Singh  25:31

We do. We are partnered with a company in LA called capeX Md. And we offer financing to organs or, you know, families that work with us to capex MD. And on the benefit side, we currently don't have any plans on going on the benefit side.


Griffin Jones  25:47

So for you all, it's it really has to do with this this lab focus and then the patient experience in the clinic. How are you getting Doc's? Everybody's fighting for doctors right now? And in your three years old as a company, how are you? How are you getting docs for these new clinics that you're opening?


Gurjeet Singh  26:06

We are two years old..


Sahil Gupta  26:13

So I think everybody in the industry knew that this is there's, you know, there's disruption coming. Everybody has been excited about it, you know, and I think whenever I talk to doctors, 100% of them actually get intrigued by what we are building. But when they see our devices working in our labs, that's when really, you know, there, you can see their eyes open up, right. There's like so much enthusiasm in them willing to talk and wanting to, you know, start the discussion of joining the network. And in general, I think we are trying to do things differently. I truly believe that Omar clinics are different considering, like, I've seen a lot of clinics in India, I've seen a lot of clinics in the US. And I think when we present our vision to our doctors, they get really excited and thus far, you know, the doctors that are working with us are super happy with what they're seeing and what we are building. And I think we are getting a lot of referrals from our existing doctors. So three of the doctors that we have hired are referrals from our existing doctors. And I think generally there's enthusiasm to join a company that is disruptive. And I think many of our Doc's are also aligning on the mission of accessibility. I think it's important work, you know, access in the US is a problem. Only 2.1% of the births happen via IVF compared to, let's say 10%. But in Denmark, where IVF is free. So I think it's important for a lot of people to solve the access issue as well.


Griffin Jones  28:04

Let's talk about the access issue, because a lot of people say that they want to solve that issue. And then some people say you're not solving for it at all, there's still the bottleneck. And there's at least two bottlenecks. One is the bottleneck of areas, there's only 1100 in the United States. And so we've had that discussion about top about what you can train, OBGYN and advanced providers to do. And then there's also the, the bottleneck in the lab, and mean the shortage of embryologist and I will tell you guys how blown away I am by how many young embryologists want to get the heck out of the lab. They're applying to jobs at my firm and marketing jobs. And I'm like, why are you everybody trying to hire an embryologist? Why are you applying here and some version of we don't want to stand in a box all day. We don't, we just don't want to stand here all day. So there. So there's, you already have a shortage of embryologists and then you have young embryologists wanting to get out of the lab. And as Dr. Carroll Curchoe pointed out on the show. So many of these labs are run by five lab directors that oversee multiple labs. And they're going to be retiring in the next half decade. And so let's talk about the lab bottleneck first, how is the AI going to solve for are you going to be able to do more cases? How are you going to solve for the lab bottleneck?


Gurjeet Singh  29:38

Yeah, on the lab part, the main way of scaling the embryology lab is by building more AI robotics and more automation. And that's kind of what we are working on. So we sort of foresee a future in which you know, most of what happens in an IVF lab is automated. And you know you basically build systems that bring out the best in Human embryologist, but then also since you automate the physical tasks that you require fewer of them and maybe they can even be remote. That's kind of what our vision for the future of the embryology lab is. It's massively automated.


Griffin Jones  30:18

And so then though, you would, you would still hit the other bottleneck if let's and that and the clinic bottleneck happened first, by the way, the lab bottleneck really didn't happen until late 2020, early 2021, in my view, that for the most part, there were there were many clinics that were they were, they were okay at capacity for new patients, but they still felt like they could have converted more to treatment. And then by the end of 2020, early 2021, is when people said, we can't even vert, even if we converted more to treatment, we don't have the lab space, or the lab staff to be able to fulfill all those cycles. And so what if most of your tech stack is focused? On the lab side, you solve this lab bottleneck? How will you improve access to care?


Sahil Gupta  31:17

You know, just just adding one more thing to the lab pod? I think there is enough. You know, there can be enough embryologists, I think the problem is, with all the apprenticeship that happens to make them skillful. So we are also making a lot of tools that, you know, Junior embryologist could use and still get the similar or consistent results that, you know, top five percentile embryologist would get. Talking about the clinic, I think one of the things that I was surprised or almost shocked to know when I moved from India is that the average number of cases that Rei does is about 150 to 200. So that was very, that sounded very low. So we actually spend a lot of time with Rei is with physicians and really like what we did was to map their time out what you know, most of their time look like and most of the time, actually went into tasks that were not related to clinical practice. So I think what we've done in our online clinics, is to actually take a lot of the tasks from the clinics, to our central or to our head office, remotely. And for example, we are not doing a lot of like billing HR, or, you know, a lot of our chart reviews are offline. You know, even, you know, some some of the stuff that was traditionally done inside Atlanta, is now done remotely by our, you know, central team. And I think what it has done is that it's made the physicians do things that they love doing, which is to see patients. So our physicians basically focus on three things, just to see patients and do the procedures. And just, for example, in Santa Barbara, our throughput for the physician right now is roughly about 400 cycles a year. And it doesn't feel to him that, you know, he's working longer hours, just the same amount of time. We are just running this more efficiently and taking a lot of this in house to in in our central office.


Griffin Jones  33:36

What are your views on using advanced providers in this mechanism?


Gurjeet Singh  33:47

Or do we


Griffin Jones  33:49

decide by advanced practice provider, I mean, nurse practitioners and physician assistants.


Sahil Gupta  33:56

So I think that's one of the things that we are using a lot in our clinics. For example, in our clinics, we've also hired ultrasound techs, that would do all the monitoring. You know, the physician doesn't, we feel like there's important touch points in which the physician has to be there for the patient and only those important touch points or milestones the physician would meet, meet the patient, and the rest of the time, either the ultrasound tech or nurse practitioners that will deliver the care to the patient. I think one more thing that I wanted to talk about why we are unique is that we have two points of contact for our patients. One in our remote team, what we call the care advocate, and there's a point of contact in the clinic. So each time a patient goes to the clinic they only meet this person who sort of project manages their cycle or their treatment inside the clinic. Similarly, when they are not in the clinic, they are only dealing with one person outside of the clinic. Home Project manages their treatment and gets them all the answers that they need. So from the patient experience side, it doesn't feel like you know, they're just a number and we make sure that all their questions are answered and they are, you know, taken care of throughout the process.


Griffin Jones  35:25

I should have asked Sahil and Gurjeet if they use EngagedMD in the so if the OMA fertility people are listening right now, this is my question to you. If you're using EngagedMD, and I was thinking after we're recording, then I'll then I'll ask them, and I forgot, because when I think of a group like this, it's that purports to improve the patient experience. It's become so clear from talking to clinic manager, practice director, Medical Director, nursing manager after the other one right after the other of how EngagedMD is no longer just a business plus, like it might have been if it were around 15 years ago, but it's now part of the standard of care that patients have so much on their plate, and they're so overwhelmed, and putting a stack of papers in front of them right now and trying to condense a whole course of information into a 3040 60 minute console. It's just so unfair, and then not giving them the opportunity to customize that to themselves. It's so hard on the patient that it's now part of the standard of care that EngagedMD is able to provide to patients. Most recently I've been talking about engagedMD’s benefits for nurses, staff providers, because those are the people that are texting me talking about how much they love the platform, how much time it saves them how much nursing time you can get back by using EngagedMD and provider time that you can get back and time clerical time from tray tracking down informed consents that, by the way, aren't as informed as they are, when they're through a module like EngagedMD, I've spent so much time talking about this, your staff side that I forget to talk about the patient benefits. And if you go online and look at EngagedMDin these reviews, from the patient side, it's overwhelming how in powered, engage them the makes them feel, and so you can get the benefits from your staff side, the benefits from the patient side. It's one of the quickest and biggest wins that you can do for your practice. If you're not already using EngagedMD, this goes for my friends at OMA fertility, but it goes for everybody listening, go on over to engagedmd.com/griffin They will give you a free workflow assessment, they're going to show you what it looks like that you're doing that other clinics are doing, that's free, whether you decide to move forward with EngagedMD or not after that, either one is going to be valuable, that you're going to get value out of it engaged md.com/griffin. Now back to the show.


 What about training OBGYN means to be able to do retrievals and then you can have more doctors and then a board certified Rei oversees those cases that's been that people are often on one side of the fence or the other about that, and a lot more people are on the OBGYN side of the fence now than than there were five years ago. And there are people that are vehemently opposed that Dr. Anate Brauer was on the show and and she said that we How Why are we even talking about this? And so there are some people that feel like that's a big risk. Other people think that it's it's a very minimal risk, and it's necessary to expand the clinical side of care. And then Rei should be practicing at the top of their license. Where did you all fall on that?


Sahil Gupta  39:18

I think we are on this side of you know, having OBGYN to as much or train them. But I think as a company, we've decided not to do it as far. And I think it's a decision we have taken collectively along with our positions and we are open to changing that in the future. But for now we've decided to stick to our API's.


Griffin Jones  39:39

So you're so well that's a smart way of doing it. By the way Sahil is because people have said that they're categorically against it. And then they come up and when necessity merits it they they end up doing it. Did you go with that decision? Because so you think it's necessary to expand access to care but I just don't feel ready to do it at this point.


Sahil Gupta  40:04

I think for us, it's, we have to first ramp up all sort of be at a level where we are running full capacity. And we can test the elasticity of, you know, how many cycles, we can go with a single physician. And I think after that, you know, we are in that position where we have to expand even with a single physician, we might look at other options.


Gurjeet Singh  40:32

Also, I think from a training perspective, right, we are not in the training game, right? We are alike, in some sense, if there is, you know, there is a future in which, you know, there's an exceptional OB GYN who has learned to sort of do retrievers and transfers and are great at the craft at medicine, I think we would absolutely consider them having them in our network. But we are not in the game of training OB gyns to becoming REIs. So are


Sahil Gupta  41:02

doing procedures? I think it's, it's, as I said, we are open to it, but we're not doing it. I know.


Griffin Jones  41:08

Okay, yeah. So then tell me a bit about the fundraising that you've done. And that was what caught my attention. Because as inside reproductive health, we want to start becoming more of a news media outlet and just covering some of these things. And, and that's part of what made me reach out. And so you raised 37, and a half million dollars, some of it is in equity, and some of it is in debt. Our audience is mostly used to talking about private equity. And they've heard me hammer the definitions in their mind private equity, typically taking controlling stake of businesses, typically mature businesses, typically, in an exit plan of a couple years. Venture capital, usually not taking a controlling stake, usually, for something that's new, and, and aiming to scale. And so talk to us a little bit about the this mix. Why? Why this much in debt, because I don't know if people are, are not in so by debt financing, is that from one of the VC partners, or that's the old fashioned way from a bank.


Gurjeet Singh  42:26

It's from our bank, it's our banking partners, Silicon Valley Bank. And again, I've had a long relationship with them. They were our bankers, my previous company, as well. And so the debt that you've taken, it's not like a private equity model. It's like a very standard, you can think of it as a more flexible loan, if you will. Right. So it's, it essentially does not dilute us from an equity perspective. And to the sort of, you know, if we are able to get clinics up and running and scaled and profitable, you know, you can easily pay off their debt, and then continue building.


Griffin Jones  43:03

So let's talk about let's talk about the debt side for a second, because maybe I'm making an assumption, but my assumption is that many people aren't leveraging debt in that way, like directly from the financier that they're often they're either selling to private equity, and then they might be leveraging some debt or, or they're selling equity to a venture capital firm. But it seems like people forget that you don't necessarily have to sell part of your company, if you want to get more money to invest in expansion. You can do it the old, you can do it the old fashioned way, and just borrow some power, some good old money and pay some good old interest. So why aren't people doing that more?


Gurjeet Singh  43:51

I think it's difficult. So banks typically don't underwrite too much risk. So in fact, in our case, right, the reason why Silicon Valley Bank has been comfortable with this is because we've had relationships, our investors have relationships with them, I have relationships with them. But then be you know, at the same time, we also raised a bunch of money in equity capital. So you know, they were convinced that, you know, one way or another, they would get their money and their interest back. So I think if you did not if we did not have the equity raise done, we would not it would be very difficult to get this level of debt.


Griffin Jones  44:25

Did they happen concurrently? Or did the 29 million raise in equity happens first?


Gurjeet Singh  44:32

I mean, it technically happened first, but call it within two weeks of each other like it's pretty concurrent.


Griffin Jones  44:39

And why Silicon Valley? I mean, normally that question would be obvious, but you because you've had such experience, and you have relationships and partners in New Delhi, I assume that there's a again, I'm assuming so you might take me to church right now and I'm totally wrong, but that there is a burgeoning venture. Your capital ecosystem in New Delhi Am I wrong about that? If I'm not wrong about that, why Silicon Valley?


Gurjeet Singh  45:10

Why are we building the company in Silicon Valley? Or why did we?


Griffin Jones  45:13

Why raise the money there? Why not raise the money from the venture capital ecosystem in New Delhi?


Gurjeet Singh  45:21

Okay, so I think first of all this the venture capital ecosystem in Silicon Valley is beyond compare. There is no other place in the world, which is anywhere near still


Griffin Jones  45:32

still, even in 2022. Even in Singapore and Hong Kong, they're still nowhere. No one's touching them.


Gurjeet Singh  45:40

No, no, there are venture capital firms and you know, they, it's, they have VCs and they are growing and so on. But if you look at the deal volume, the investor experience, you know, the deal terms are standard, like there's a lot of muscle memory that we've built up in Silicon Valley, to actually get deals like this done easily and painlessly.


Sahil Gupta  46:01

And the other answer is that we live here. That's right. Next door, and we can do this. You both


Griffin Jones  46:09

live in the Bay Area. Yeah. Yeah. So why did you start in Santa Barbara, then why not start in? In Northern California?


Gurjeet Singh  46:18

Yeah, that's actually a great question. So when we first started out, I remember when we decided on starting our Santa Barbara clinic. We were like three guys and a dog. And we did not have the dog yet. Didn't have any resources IPI? So you know, we went out to look for physicians. We were very lucky. We found Dr. Rich lake in Santa Barbara. And, you know, he saw the vision with us. And he took some risks join us.


Griffin Jones  46:48

Did you get your dog?


Gurjeet Singh  46:51

I did. He's like, Yeah,


Sahil Gupta  46:53

I think one of the other reasons for choosing Santa Barbara was, you know, there's an interesting mix of diversity in population in Santa Barbara in surrounding areas. So it was an interesting experiment for us to learn where most of our customers would come from. And, you know, that was one of the other reasons


Griffin Jones  47:19

I want to get an education from you Gurjeet about what makes Silicon Valley so much more robust and developed than other venture capital ecosystem, because most of our audience, they're not used to us talking about VC, and I think this will be interesting to them as well, I would have thought that there's no way that that Silicon Valley or I know that there isn't a way, but I just would have thought that they likely wouldn't have had the same differential advantage that they would have had 20 years ago to the whatever this the VC ecosystem is in Hong Kong and Singapore and New Delhi and London and, and New York. And but it sounds like it's still very much the place and by a longshot, so what are the things that make it so much more developed and robust for entrepreneurs?


Gurjeet Singh  48:21

So I think the first thing is that a lot of Silicon Valley is still run by operators, right. So these are people who have operated companies in the past who have experience. And, you know, when they, when they sort of grew up, or, you know, maybe are not in an operational role anymore, you know, they're, they have a great home, in various venture capital firms to go start operating there. But then I think, second, they're just muscle memory, right. So there are, you know, if you're going to do a seed financing, or a series, a financing, a lot of the terms are pretty common. And people know that. While for example, I have a friend, you know, who's based out of Switzerland, as an example. And Zurich has a venture venture capital ecosystem. But you know, the deal terms that they get there are very, very different, right, the amount of dilution. You know, if in many European venture ecosystems, if you go for a financing meeting, typically the investor will ask you, how much are you putting in? Right? And in Silicon Valley, things are different, right, where, you know, if a company is great, and obviously, only the great companies get invested in, you know, then there's a fight. There's a fight about, you know, how much money can you put into the company to be on the cap table? So in like, in other words, right, risk capital is something that's sort of everywhere in Silicon Valley. It's what people you know, talk about, it's what they live and breathe. It's kind of like, if you're going to make movies, is there a better ecosystem to be, you know, down in LA, or if you want to be in finance, is there a better place to be compared to, let's say, New York or London? Maybe? There isn't right because that's what that's people are used to those to that ecos stem, they have muscle memory, they know how to get deals done. And there's a concentration. So like the number of investors who are available, you know, call it within a stone's throw in Silicon Valley is, you know, beyond compare.


Griffin Jones  50:13

So what was the fundraising process? Like, because you had previous relationships, but are you going to multiple firms? And you're pitching all over the place? What's that? Like?


Gurjeet Singh  50:22

Yeah, so again, it you know, it depends. In our case, we, we had relationships with root ventures, and, and jazz ventures and, you know, we met, you know, when you're raising money, since in Silicon Valley, finding people who know and want to do deals is certainly not that difficult. The main thing that you optimize for is that you want people who are with you on the journey, who pie the same vision that you have. And we'll support the build of the company and the growth of it. And you know, in route ventures and jazz ventures, we certainly found partners who are super like minded, see the same future that we do, and you and you don't want it to help us build the company.


Griffin Jones  51:10

So what are you going to do with this 37 and a half million dollars, so you're buying clinics? That's that's part of it, you're starting your buying clinic on Long Island, the other six years starting, you know, or have started yourselves? What else are you going to use the money for?


Gurjeet Singh  51:27

So a significant amount of the financing is basically earmarked for research and development. Right, we are building more devices. We went public about our sperm selection device that's already being used in our clinics. But we are building more devices to automate parts of embryology.


Griffin Jones  51:45

And that certain that sperm selection device is not going to be available to any other groups until the lab is fully automated. Is that my understanding that right?


Gurjeet Singh  51:58

We'll see. I think it's in the foreseeable future, we are not selling it.


Griffin Jones  52:03

So okay, so there's more r&d, is there more fundraising to be done in the near future?


Gurjeet Singh  52:09

There's always more fundraising. You know, every CEO is always raising money. So yeah, there will be more fundraising. If he


Griffin Jones  52:19

asks any CEO, would they say that in that IPO? Is the the end journey to is that is that on your Horizon?


Gurjeet Singh  52:29

Yeah. So I think an IPO is a tool, right? It's a tool to kind of raise a type of capital to, you know, basically go after a type of growth. And I think certainly, that's something that's on our radar, right? We want to grow the company and build a company. And at a certain scale, we see that we will need an amount of money that will be viable with an IPO. So it's a means to an end. It's not a destination in and of itself.


Griffin Jones  52:55

What about when you get big enough? Yeah, so now you all are in the game. And because you're making de novo clinics, you're full network yourself. So now there's OMA fertility, there's pinnacle, there's CCRM, which as we're speaking, I see just bought IRM S. In New Jersey, there's IV, there's us fertility, Inception, Prelude first fertility, who am I forget, I'm forgetting somebody, and they're going to be picked up Boston, IVF. And so they're not all just going to the, they're not all just going to remain independent fertility partners, they're not all going to remain independent networks, some of them are going to merge with each other. And maybe some of them will be cashless mergers. I suspect most of them will be acquisitions. But why is that in? In your essay, you said, you want to have full control of the lab, and you'll work with clinics if they're building a new lab, but would you acquire a group, and update all of their labs?


Gurjeet Singh  54:02

I mean, absolutely. It's a question of capital. Right? If we have the capital, then yeah, absolutely. That's a super attractive option. I


Sahil Gupta  54:11

you know, one thing is capital. And we also need to make sure that we are aligned on on what we are building, I think, again, like I'll pull back and say, you know, if the leadership of whoever we are merging with it's not aligned on access, so affordability, that's something that that might not be a good fit for us in terms of an acquisition or so we will continue to look for partners that believe in a lot of our core values. And we want to make sure that we partner with the right people. And one more thing that I wanted to add is I think we also want to make sure that you know, the physicians are aligned and we want to make sure that you know we create any ecosystem for them in which they thrive. I think I've heard this a lot from a lot of physicians that we've interviewed, that they've been burned by a lot of the interviews that are happening in the past couple of years. And I think we make sure that we create a system or an ecosystem in which they are also taken care of.


Griffin Jones  55:26

Tell me a bit about the brand. What's the significance behind Oma?


Gurjeet Singh  55:32

Yeah, so OMA is a is a special word, you know, in, in Sanskrit, it means “the giver of life”. In many languages, it means mother or grandmother. So we love the name, it's a very caring name. And we believe it sort of espouses our value of caring for our patients above everything else. And if you, you know, bear the name, OMA alongside our logo, you will notice our logo has built up dots, and then there is one dot that we have highlighted. And so that dot that sort of thought process behind that is that it's, it's a notion of going from many to one, which sort of significant, you know, it's a, it's a story of IVF read, you have to go from many eggs to one embryo from, you know, two people being sufficient to make a child to sort of be taking a team of people to make a child. And so I think it's sort of this notion of many to one is embedded in our logo. And we kind of knew that we wanted the logo to be scientific and precise. And so that's why we chose the name, which was, which, you know, emanated a sense of care, and empathy.


Griffin Jones  56:41

I want to let each of you conclude, knowing that our audience is mostly for utility doctors, execs in the field. At practice owners, that's mostly who listens to this show. And I've asked you so much today about venture capital about the advantage or disadvantage of using debt of your plans for the lab have the bottlenecks in the clinic and the lab as well. I probably didn't ask you for something that I could have. So I will let each of you conclude the way you'd like to


Gurjeet Singh  57:19

say your first.


Sahil Gupta  57:22

Okay. So, I think about let me talk about Omar, we started Omar with a mission to democratize IVF I think we believe in a world in which whoever wants to have a child and cannot get pregnant naturally gets access to high quality, consistent care, you know, through our clinics, leveraging our technology, I want to end it by calling out to like all your listeners, especially doctors, and, you know, physicians to come talk to us, we want to build a network will with all of you, and, you know, with people who align with our mission, and we are acquiring practice, especially smaller practices, and we would also love to chat about that as well. So it's a bit of a plug.


Gurjeet Singh  58:19

What I would say is, look, we you know, there are three kind of key things that we care about, we want to get our patients successful in as few cycles as possible. That's why we are building our tech, we want to provide empathetic care, Human Centered Care, where we educate our patients and we give them support all along their journey. And third, we want to make IVF accessible, right, these are the three things that we are after. So, to that end, similar to what I was saying anybody who you know, listens to your to the show and and is interested in, you know, working with us jamming with us talking to us in whatever capacity we are super interested in, in sort of connecting. Second, what I would say is that, you know, personally I believe, I, you know, I believe that we are kind of at the very beginning of the beginning that we are sort of looking at this process, as in particularly in the lab as something that people do today and we are building engineering to you know, help and make it more consistent. But we but we see a future in which sort of this notion of operating on single cells using robotic devices similar to what we are building is going to have many, many other applications. And we are excited for that any academics or scientists who are listening to the show who are interested in that you know, or need help. We are happy to connect.


Griffin Jones  59:47

I suspect a couple of them will so we'll we'll link to each of you your LinkedIn profiles in the in the show notes and maybe people will reach out or they can email me Griffin and fertility dot com and I'll make an email connection. Be happy to make an intro if, if some of you that I know would like to talk to our guests today. So Gupta, Gurjeet Singh. Thank you so much for coming on inside reproductive health.


Gurjeet Singh  1:00:12

Thanks for having us. We appreciate it. Thank you so much.


1:00:16

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


149 Extend Fertility’s Lessons From The Market For Egg Freezing

Dr. Joshua Klein, REI,  Chief Clinical Officer, Medical Director, and Co-founder of Extend Fertility in NYC joins Griffin this week on Inside Reproductive Health to discuss the business of getting into business. Listen as they share perspectives on risk tolerance, people-management, financial backing, and the potential to lose -or gain- it all on the path to entrepreneurial leadership.  


Tune in to hear:

  •  Dr. Joshua Klein share how he successfully cornered an underdeveloped segment of the fertility market, and what steps he took to get there.

  • Griffin question Dr. Klein on how he knew when to time the change in his career path, and what others in the same position should consider before making a move.

  • Griffin question Dr. Klein when he says “people are the hardest part.”

  • How to not get way over your head in overhead before you even start.

Dr. Klein’s information:

LinkedIn https://www.linkedin.com/in/joshuakleinmd/

Website: www.extendfertility.com

Transcript

Griffin Jones  00:04

How many ways are there to start an REI practice? How many ways are there to start fertility business? Explore that today with my guest, Dr. Joshua Klein because a lot of younger REIs think about well, do I have to go partner with somebody? Do I get a salary right at an academic center? Do I go off on my own, and I risk everything, because I've got this stupid medical school debt. And I went to some very expensive undergraduate college and maybe my parents were wealthy enough to help me but maybe they weren't. And I've got that debt to some of you who are coming out with a lot of debt. And, and so starting a venture, your own entrepreneurial venture can seem pretty daunting. And so our guest today Dr. Klein talks about another possibility is finding other people with financial backing. And in starting your own endeavor, as a piece of that you won't necessarily be a majority owner and own everything. But that's one way to do it. So we talk about the massive learning curve that you're gonna go on, if you want to learn more about the business of fertility, whether you own it or not, that it's drinking from a firehose. So Dr. Klein talks about some of the things that he picked up and the challenges of managing people, a vision for an REI practice. To start the whole thing of looking at fertility preservation is something that was underserved in the market. And what Dr. Klein thinks is the right demographic, or the more appropriate demographics for fertility preservation, and why he saw that as a need in the marketplace, and other hard lessons learned, like cost per lead cost per new patient acquisition. And so we both we talked about those things, and Dr. Klein closes with thoughts of how younger dogs might approach making that choice. So I hope you enjoy today's episode, Dr. Klein originally was a he completed his fellowship at Columbia. And then he was an associate physician at RMA of New York. And now he is a partner at Extend Fertility. And I hope you enjoy this conversation with him. Josh, welcome to Inside reproductive health. 

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Thank you so much for having me, Griffin. I am interested in the topic for today because we have had people to talk about egg freezing on in the past. And but I'm interesting because your group extend fertility was one of the first to make a brand around. Yes, you're a comprehensive IVF practice. But you did have a special focus in fertility preservation early on. And so I want to spend some time talking about that. Maybe we get to the business second, but you were where were you in your career, when you started to feel like, you know, fertility preservation was something that was clinically viable, because, you know, that wasn't the case. 20 years ago, maybe the people just getting on board now are late. So when was it for you? Yeah, that's a question that that I thought a lot about. When we first were putting this place together.


Dr. Joshua Klein  03:31

I came out of training in 2012. So I finished my fellowship at Columbia in 2012 and took my first job at RMA New York, which is as many listeners probably know, is affiliated with Mount Sinai. It's one of the big academically affiliated programs in New York City. And part of it is just history because ASRM? Well, I should say, the studies that demonstrated that egg freezing could be done through vitrification relatively reliably and reproducibly. And with relatively good success rates really came out in the late 2000s Going into the early 2010 2011. That sort of timeframe. And then actually was at the end of 2012, technically published, I believe, in January of 2013, when he ASRM sort of put their guideline out that said that egg freezing can be offered as a method of fertility preservation without the rubric of an IRB without an experimental protocol. There was a lot of buzz around that that didn't mean that ASRM was you know, endorsing egg freezing or something that everybody should be doing. But at the very least, it wasn't considered an experimental modality anymore. And so that that was 2012 2013 which was literally the first year I was out in practice and kind of getting my feet under me. And, you know, sitting in an office in New York City and Manhattan with that The culture around us, you know, certainly being the case that most women are not getting getting pregnant and building their families in their 20s People are, are sort of young if they're getting pregnant in their 30s. It felt like to me, egg freezing is something that might be super valuable to like, a lot of women, not just a select few, but to like, sort of in some way, the average educated professional 30 something year old Manhattanites, who isn't, you know, hasn't partnered up yet, or isn't ready to settle down yet is still building their career and not at that stage of their personal or professional life where they're ready to have kids. And so, you know, at that time, egg freezing was still very small, it was still new, most people didn't know about it, and this people weren't accessing it for one reason or another. And so even at a big program, like RMA, they were doing, I think, something like 120 Egg freezing cycles a year, which means, you know, maybe 10 a month and the entire practice. So I was seeing a small handful of patients of who are interested in egg freezing. And it just felt like it didn't match the demographics of what it should. So at some point, that kind of light bulb went off that there's a disconnect between the number of like single, professional educated women who might want to do this, and then people are actually doing it. And then of course, the question became like, what's the missing link here? How come? How come it's a mismatch. And so the things that I thought about and that kind of got parlayed into building extend fertility, where people don't know about it. So there was a lack of proactive education about fertility preservation, you know, IVF, clinics, are doing a really good job of keeping busy helping people build their families, people who are struggling to get pregnant with IVF. And so egg freezing was kind of not the center of their attention. So that's one was education and awareness. Two was sort of, I think, the environment, I think egg freezing was never really thought of as like an important piece of an IVF clinic. And so I always used to say that, like, you could pick out the egg freezers in the waiting room, because you know, they were the ones sitting by themselves younger, kind of looking awkward when most of the infertility IVF waiting room is couples who, you know, kind of sad and tortured a little bit in the egg freezers, or they don't have a problem, they just are wanting to be proactive about planning their, their their reproductive life. And then third is cost because egg freezing tends to be priced as sort of like the IVF pricing, but a tiny notch less, even though technically, it's a lot less work for the lab to do so. So it kind of was overpriced, I think at that time. And so those principles were the ones that we tried to harness when we created a Extend Fertility as a center that focused on egg freezing back in 2015 2016. To kind of build a brand and a culture around the idea of making egg freezing and fertility preservation more understandable, more accessible, making the experience a little bit less unpleasant, especially if it's a sort of a purpose built environment, and then bringing the price point down in a way that that could still allow us to have a viable business model. So that's kind of the threads that went into it.


Griffin Jones  08:11

So you saw the market. You saw the the the the flaw in the market when it came to pricing and availability. What about demographics? Because that is a point of maybe contention, but that I just I don't I don't hear a lot of consensus about is what is the ideal demographic, and there are both clinicians and egg freezers did say, the younger, the better. And it it should be something that, you know, 22 year olds parents gift to them for graduating college, I hear both clinicians and egg freezers say that I also hear clinicians and egg freezer say that no way, like it's a very narrow demographic, and it's for 3839 year olds, maybe who are right, right, just before the window of have a real DOI risk, I suppose. And so, where how do you? How do you come to what you think the proper demographic is? Yeah,


Dr. Joshua Klein  09:19

it's a that's a great question, because it is something that I think gets debated hotly, and we have patients every day that say, you know, can I wait a year? Can I wait two years and sometimes it gets a little silly, you know, how can I wait six months? It's like a negotiation. But I think what, what has to be recognized to sort of think through that intelligently is that it's in arguable that in general, if someone does egg freezing younger, they're going to get a more valuable end product meaning younger woman will get or any particular woman if she doesn't younger, will probably get more eggs and more healthy eggs and that same woman who in an alternative universe does it older So, by that rationale, it's, which is oversimplified, as I'll explain, everybody should do it, like you just said at 22. Like, it should be a universal thing, the younger, the better. And so there's not much to argue about. But the reality is that even even at a place like extendable, we tried to keep it on the more affordable side, it is a luxury good meaning between the cost of of the service and the cost of the medications, and then the cost of storage, it's a, it's a, it's a significant amount of money. It's not the easiest process, we try to make it as easy as possible. But it's not the easiest process, it does take a lot of wherewithal to kind of get through it. And so it's not, you know, if if it really was something that you can get come into the doctor's office, you know, get a procedure done for 10 minutes, and it costs $100, I probably wouldn't be singing that same song of everybody should just do it when they're 22. Because kind of why not. And it could, could really be an important thing in your life. But but it's a lot different than that. And so what I what I want to point out is that every year that passes that you don't do it is another year that you might not end up having to do it, right. Because if you're 25, and thinking about doing it, but you wait. And then by 28, you actually got married and then started your family naturally, then that you want that gamble, right? Because you didn't have to do it. And now you may never have to do it, because you're already getting getting your family started naturally. And so you kind of dodged that bullet and you save the money and you save the anxiety and the investment of time, energy and resources to do it. And so in a certain way waiting to do it longer makes sense. Because the younger you are, the more likely you're going to end up starting your family in an easier way than egg freezing, if you just give it some time. And that's why I don't think that the 22 year olds should be less, there's a special situation which I'll actually get to also in a moment. But for most average healthy women, 22 Doesn't make sense because you can afford to wait because if you do it when you're in your late 20s or early 30s, you'll still get a very good end product. And there's a large percentage of women who will in fact, the majority of women who are thinking about it 22 By the time they get to 30 they won't need it anymore. So I think we're overselling it if we're selling it to 20 year olds. So that's something I think isn't always articulated clearly. But that's a reason not to do it too early, even though it's true. If you do it at 22, we'll do it at 30, you'll get more out of it 20 at 22. But you might not need to do it at 30. And so a lot of times it makes sense to wait to sort of let your life unfold. And then but then you gotta be careful not to let that slippery slope slip. Right. So if you do it at 39, I certainly would think that that's a mistake, because that's already you're sort of reacting when egg freezing works best as a proactive maneuver, right? If you're freezing eggs that are mostly not healthy already, which is when you're getting close to 40. That's the reality, it might work. But it's certainly not a great situation. The other thing Oh, the other thing I wanted to emphasize is the fact that age is only half the story, which is to say age is the best marker of egg quality. But there's another issue which is quantity, right how many eggs a woman has and we've learned over the last 1020 years, especially through how Hmh testing has become very common. And actually a symbol of a test. That is , it's been a very important development, I think, in the last 1020 years of fertility, management and treatment. Because if you're a 28 year old with a very low Hmh, which there are a lot of healthy 20 year olds that are going to have a low AMI, it's something that's very highly individual variable, it will probably make a lot more sense than thinking about freezing eggs at that point. If you're 28 year old with a very great Hi imH. You could say okay, I've waited a year. And that's not such a terrible decision. So I think that's another thing that's often overlooked is it's not only about age, it's another dimension when it comes to egg freezing, which is your egg supplier ovarian reserve and Hmh testing is so easy to get it's almost a shame that, you know, I believe that that OB GYN should just be doing it routinely, they do a lot of other health maintenance stuff that may or may not be helpful. And this is something that could be really useful. And I think slowly they are doing it more and more. But I think that's another dimension of calculus that needs to be recognized. And that can help a woman who's trying to strategize to make that kind of decision is really useful to have.


Griffin Jones  14:16

I don't think that this question is gonna go away because it doesn't seem that it doesn't seem that we have hit the plateau for the age of first birth in this country. So I think everybody remembers that headlines from earlier this year hit the first average birth. For women in the US the median age hit 30. And if my records are right from the CDC, it was even just in 2014 it was a little over 26 years old. Yeah. So it went, it went up one and a half years from just shy of 25 and 2000 to 2026 in less than 26 and a half in 2014. And then in 2022, it's 30. So I suck at math, but I think most of the people listening can see the exponential growth. So I don't think that this is going away. What do you see in the marketplace? Do you see peaks and valleys? You know, what I wondered is when you started in 2015, in New York is like, okay, are we going to see this in Charlotte in three years? And then in Cleveland, two years after that, and talk to us about what you're seeing?


Dr. Joshua Klein  15:46

Well, I think you're right, first of all, that this is still a moving target, and the market is still maturing. The, it's interesting, because there were some well publicized predictions that were made 2014, let's say I think about what the expected size of the egg freezing market would be. And there's one quote that's out in the media that said something like 85,000, or 100,000 cycles of egg freezing by 2020. The truth is, it hasn't grown that explosively. And you could think about lots of different reasons why that might be the case. But I think that egg freezing has clearly grown a lot. I do think it's going to continue to grow, I actually think that some of the kind of spin off growth that we're seeing, and that others probably are seeing as well, is more and more married couples, or not just married, but I guess more and more couples are coming in to proactively plan their families, even as couples when they're not ready to have their children yet. And also, and this gets a little hazy, where the line gets drawn between fertility treatment and fertility preservation. And sometimes it's an issue with insurance coverage, and so forth. But lots of patients who, you know, come in in their late 30s, for fertility treatment, they do IVF, and they get an embryo. And they say, Well, wait a minute, we always wanted two kids, and we struggled to even get one good embryo. So what we want to do is we want to do another stimulation cycle to at least get one more before we go ahead and use this one. And that happens all the time, these days that people are trying to bank at least, you know, not bank inventory of embryos, in some unreasonable way. But to put away one or two good embryos for the second baby if they're having their first baby in their late 30s, or 40, which is actually very logical. And so the I think the fertility preservation concept is kind of growing and branching out into other in other ways that in some way, are still evolving, by the way, another, I think, idea that will come to fruition, but I don't think it's happened yet, is I've had a handful of patients who have read about and are interested in doing proactive couples who are interested in making embryos for PGPT, which is the polygenic testing, you know, looking at, particularly if let's say, a couple comes in, the guy says, you know, my, my dad has terrible Parkinson's disease. And I know there's no gene for a consensus disease that I can screen for, but it just scares me to death that that's something that I might have a kid and it's going to be at high risk for. And so what I want to do is do these kinds of polygenic testing, you know, involving multiple genes to say which embryos have a higher or lower risk for developing, whether it's Parkinson's or Alzheimer's or diabetes or heart disease and things like that. So that's something that's not common yet. But I think that it's coming, as this sort of feeling devolves into a lot of this proactive planning your family type of and then genetics is obviously evolving and improving as well.


Griffin Jones  19:02

So you made a brand that I think is pretty well positioned for that. The brand Extend Fertility really works for both sides of fertility preservation and fertility treatment, it is because it's the extension is very intentional. And so you, you started this in 2015 is when the was when the business started, right. So you completed a fellowship at Columbia in 2012. You go work for RMA for three years. This is the point that a lot of the listeners are at they're either just leaving fellowship or their associate docks and they're thinking about the next step. You are at a place where you're at a great practice. You could pursue partnership there, or you could go off and do something risky. What was your decisions? When did it start? to appear in your mind of I could go off and do a venture like how did that originate?


Dr. Joshua Klein  20:07

That's a great question. So, yeah, I mean, without getting, I guess, too personal, I have a lot of gratitude towards my years at RMA, I learned a lot. And it's a good place. I think that for me, I think that it well, it was a hard decision, let me just say that much. The truth is that when I started speaking to one of my associates, my business partners who was interested in investing money, putting together investors to build out Extend Fertility, my original expectations that I would sort of be some kind of consultant on the project and not actually do it myself. But as we kind of continue those conversations, and I got more enthusiastic and excited about the idea, and he got more enthusiastic about me actually getting in it, it took some time, to warm to the idea, but I kind of got more excited about about doing it myself. But it's scary, you know, especially first job out of training. And I was fortunate to have, you know, good training and at large academic centers at Ivy Ivy League institutions. And so I hadn't kind of been really out in the business world before before then. But I think that my mindset essentially was that I felt like a small fish in a big pond at RMA, which isn't necessarily passing a judgement, it just the way it is, when you're working for a large institution like that. It's a big pond, it's a big pond, and to their credit, it's a big pond. And so I felt like I was young enough at that point where if I was going to ever take a risk, you know, I didn't, I probably couldn't have done it the day after I finished fellowship. Or I certainly think it's very hard to do it. The day after you finished fellowship, there are those who do it, and I give them credit, too. But I felt like having gotten my feet under me at for a couple of years. If I if I stayed for another few years, it probably would have been that much harder to leave. Probably my income, presumably would rise slowly. And so that, you know, the better you're doing the more than make it attractive to stay. And so, you know, when you're young, you're just getting started, it's a little easier, because you're not giving up so much. And so, I don't know, I guess my thought process was basically I felt like this was a good idea. And at the end of the day, I felt like, before I started my before I finished fellowship, before I started my professional career, I felt like I questioned, like everybody has self doubt, I knew I was a bright kid. But like, it's hard to see yourself doing what your what your teachers and mentors and superiors are doing, like, Can I really handle it when when stuff gets, you know, kind of difficult when there's an unhappy patient? And how do you? How do you deal with that, or when you have some issue with like an inspection and there's regulatory stuff, and hiring and firing and all that it's very intimidating as a young, you know, kind of medical trainee. But I think that what I started to realize was that the hard stuff is still hard when you get older, and everybody does their best to handle it. And so and everybody's just human, I think that's what I what I really kind of it became clear to me that everybody's doing this is doing their best and no one knows all the answers in advance and kind of everyday brings another challenge with it. But if you know if the other guy can handle it, probably so can you and you just have to kind of have that courage and have that confidence in yourself. And so that was what I think allowed me to take that leap is sort of getting out in the world seeing that nothing's perfect. Even behind the curtain, every practice, every lab has its own questions and issues and, you know, uncertainties and every practice has its own issues that come up and like that's life and you kind of do your best to keep people happy and to do to keep the patients happy and go home, you know, doing the right thing and hopefully sleeping well at night. And you know, so it kind of lost that in that side of the intimidation. And then I felt like you know what, I'm going to take the leap. And by the way, if you take the leap and you kind of just fall on the floor. So you still have your training and you're kind of embarrassed probably but you can get up and go get a job and so you know, I felt like it's it's not if you if you let that opportunity go when you're young doc it may not come back to you. But if you take it and you swing and miss Well, no one's gonna fault you for taking the swing I think and and your career isn't ruined just because you tried something it didn't work so


Griffin Jones  24:40

and if you fall flat on your face and you're humble and self aware enough, it will make you a better partner somewhere else absolutely Well, as long as you are and those are two big as. Those are two big conditions. Not everybody is onboard and self-aware. But but if you are falling flat on your face can give can can make you do that much more valuable as a as a partner somewhere else is if the gays and then you know, if you are successful, then that's then you have you've done it long before most other people have. So in your view, what's harder? owning a business or residency


Dr. Joshua Klein  25:21

apples and oranges I guess I mean, I think I think Well, the obvious answer residency is harder, because it's physically so demanding. And then you also have to kind of keep your mind sharp while you're literally exhausted. To be clear, and for the record, I don't, I'm a very small part owner of extent, but I wouldn't call myself the owner of extent, because there's a lot of investor money that went into building this place out, and that and by the way, too, for, for the, for the, for the record for the listenership here also. So I'm talking like a big shot, oh, yeah, I'm gonna, you know, go off my own and start something new. And I in some ways, that's true. But I wasn't in a position to put up tons of my own capital, because I didn't have it. And so I did start off with investor money. And I guess I had to earn their their respect and their confidence to get that investor money, but I didn't, I didn't find $5 million in my own pocket to put down and build out a lab and build out a program. So I didn't have that much courage, or I guess, wherewithal at that point. But having said that, there's no doubt that running a program is hard. And I think that the reason that that's true is because literally you feel stressed and responsible for like 1000 different things that can come up and everyday, something does come up. A lot of it's the people, the people is the hardest thing. You know, they say hiring and firing. And that's, that's the most blatant example. But, you know, people who are thinking of leaving, and people are unhappy for X, Y, or Z and people who don't get along with each other. And they're both important pieces of your, of your of your of your team, and you gotta help them get along somehow. And, you know, the day to day, team, building, Team preserving is is is is complicated, and there's no playbook and you just got to do your best to sort of read people's emotions and feelings and instincts. And that's obviously not easy. Also, the fact that you feel responsible for everything, and maybe I that's one of the things I have to continue to mature to learn, let go. But like a silly little example, there was a, someone who dropped off a gift bag for a patient letter retrieval. Was it yesterday morning or two days ago. And somehow that gift bag disappeared. And it never got to the patient in their post op, it was supposed to be like some snack. It was nothing. It was like some snacks. And some, I don't know what, maybe a heating pad or something. And the person who dropped it off was obviously not happy because the patient was was was heard about and they were expecting and and I don't even know what happened. Somehow it never, never, never made the way and so then I'm was approached by the person who dropped it off. Because of course, like, you know, I'm kind of considered responsible for everything and like, Where can we figure it out? And then I'm asking you at the security cameras and the security camera wasn't focused, it wasn't working. And then I'm asking the lab and it's just like, this is the last thing I want to be you know, working on is finding the snack bag. Like Who else am I gonna you know, I did get help and and still not figure it out. But the point is, like, from the littlest to the biggest things, you worry about it because you feel responsible for everything that happens under the under the four walls or under the roof. And so that's that's not an easy way to live. And my hair's a lot grayer than it was five years ago, that's for sure. But well good news,


Griffin Jones  28:36

Josh. That means you're not a sociopath. So you it's, it's like it to be a business owner is one I it's so hard and I'm not running a medical practice but just you know, even running a client services are it is so hard for the reasons that you describe balancing, delivery and sales and, and the people that the to do all of those things and and you have to be so you have to be receptive to people. You have to listen and then there are other times where you have to forge ahead and say okay, we're moving on and and so you have to be agreeable enough to listen to not be a sociopath AND and OR a narcissist and but also not so agreeable, that you're just Oh, okay. Yeah, I guess I guess that is too much work for you to do. Yeah, I guess. I guess the patient doesn't really need that. You know, it's you have to you have to walk a line that can be pretty heavy.


Dr. Joshua Klein  29:48

It's funny the way you frame that because I also think it sort of tangentially but it connects to, in my opinion, how to be a doctor with a good manner in terms of how you manage patients and patient make patient recommendations. In the sense that, especially with infertility, where most of our patients are, you know, relatively young, relatively educated, lots of them are doing lots of Google research. And they're on the message boards, and they're talking to their friends and their and their sisters and whoever else that that their doctor said, you have to do this or that doctor said that never should be doing them like that, or Google, you know, says X, Y, and Z. So I think it's a really hard balance to strike, you always want to be open to hearing your patients feedback, or thoughts or questions or suggestions. If you're perceived as as dismissive of their input, that's going to be the kiss of death, patients hate bad. But at the same time, and this is something that I've also learned and continue to learn is that it's not healthy to just say, Oh, you read about that, you want to try that, or your friend did this, I'm sure we'll do that. Like, I think you not only is it not good practice, but it also you lose respect. And it's not a healthy dynamic for the patient, if you're just willing to do whatever. And so, you know, you have to really strike that balance of being being open minded, willing to discuss but also firm when you know, sort of what's right and what's wrong, and make sure that you express your opinions, so that people know that you kind of have something that you kind of believe in and that you're willing to draw boundaries and give firm recommendation. So anyway, tangential to the managing a practice. But I think it's the same skill set in a certain way to be able to read people and allow them to see that you're willing to listen to them, but not kind of just they're


Griffin Jones  31:43

both examples of leadership. So the idea of partly being is that you're meant to lead me as the patient Yeah, you have to listen to me in order to be able to lead me effectively. But at the end, you you are not the pharmacist and I am not the physician, you are the physician, I am the patient. And you have to be able to lead me in the same as drew in a business and for not just fertility practice owners and other business owners in the fertility field who listen to this show. But all of us business owners across the market think the last year and a half, two years have gotten unbalanced advice from it's all been about the employee, just go on LinkedIn. And see I haven't seen one post on frickin LinkedIn sticking up for a business owner in two darn years. Everything is and we deserve this too. And we also should have that and we're finally making what we're worth. It's like, really, that's what your worth is, is right now in the most unprecedented inflated economy of all time, like, is that house really worth a million and a half dollars? Okay, but then does that mean that that's what you're worth when there's a recession or or the pendulum swings the other way. And for business owners, the advice has been do whatever you can to retain, show that you care show that. Listen, give them what what they're asking for. And in many cases, you do have to do that. It also has to be balanced with leadership and saying this is where we're going and holding people accountable. And many people, the last few years, many of us have been afraid to hold people accountable, have been afraid to, to really, you know, leverage leadership. Because it's like, well, if I lose that person, you know, we're already down three people. And, but, but it sure makes things worse. Because then it becomes a cancer in the organization. And and then nothing you do is good enough, when you are listening when you are if you don't have the other side to balance and say this is where the organization is going. And we're all accountable to it.


Dr. Joshua Klein  33:56

Right, right. Yep. And it's not easy. You know, it's and it's, I think it's probably as hard as it's ever been for the reasons that you're talking about it. We all do appreciate our employees and our colleagues and genuinely, and they do deserve what they deserve. But yes, it can get out of hand pretty quickly if you don't set sort of some framework for what's reasonable. And that's not an easy thing to do. So


Griffin Jones  34:25

other than like principles like that, about people just even like function? What are things about business that you knew nothing about when you started? Like, I think now, good advice for most people, unless they're 100 on this on the entrepreneurial spectrum, and by 100, I mean, Mark Zuckerberg, I mean, Elon Musk, I mean, that type of but you know, your average business owner might be like a 70 on that spectrum. And, and so I think for most people, unless they're the most extreme on the entrepreneurial spectrum are better off I'm going to work for someone first learning as much as they possibly can, and then starting their own business, if they still think that's a good idea. And I say that and I believe that at the same time, though, I know things like I wouldn't even Effingham County what to look for, in many cases. So what are some of those things where you're like, I didn't even know, to look for that. Before I was, before I managed to practice.


Dr. Joshua Klein  35:30

I think I mean, in a very fundamental way, I think one of the things that has become clear to me is that so much of business relies on assumptions that are necessarily loose. You know, one of the things we struggled with and as they struggled with, but but that we, that we learned along the way was, I mentioned earlier that when we started extended, we wanted to push down the price point and egg freezing to help make it more accessible. And this has been an ongoing debate that's still ongoing, you know, what's a reasonable price for for an egg freezing cycle? And even more, it might sound crazy, but what does it cost for us to deliver an egg freezing cycle, because it's not simple math. You know, there's fixed costs and variable costs. And so I think when I when I agreed to join in San fertility, and I had some really accomplished smart business, people who joined as well, and we started, you know, kind of making decisions about how we're going to set things up in the framework. I was, I think, expecting that these business business people with their MBAs, Ivy League MBAs would have some magic formula, they're going to pull out some Excel spreadsheet, and they're going to just have it all figured out. And like this is, you know, it should cost x. And as it turns out, they don't know, at best, they say, well, let's assume that this year, we're going to do this number of cycles. And let's assume we're gonna have to do X number of embryologist, doctors and obviously, you all the different things you have to put on paper. And then yes, there is some smart math you can do to sort of make a smart, smart decision and a smart assumption. But I think that it was sort of a little bit disturbing about how much of a business is done in a way that you just have to like, make thoughtful decisions based on as much available data and often there isn't a lot of available data, and kind of just try it and see what happens and then adjust along along the way. So I think that, you know, it definitely I've learned a lot about business over the last number of years. And I've learned to respect people enormously for their successes in business. At the same time, I think the my perception that there's like this business secret book that like you only get if you're a business person, and that doctors aren't privy to that, I think misconception has been, or I've been abused of that notion. So you kind of just have to get comfortable with saying, Well, this is like the best guess we're gonna make. And let's, let's go with it. So that's something I think that you only learn when you're on the other side and really see the books and know how the some of those decisions are made with regards to the dollars dollars and cents. That's one, I'd say another sort of big learning item for me was, I think, when you're on the outside and thinking about a business, from a financial perspective, in a relatively unsophisticated way, are you tend to think mostly about revenue and not about overhead, and he's out while they're doing 1000 cycles of IVF. And every cycle is, you know, they're getting 10,000 bucks. And so that's like, well, whatever that is $10 million of revenue. And so like, it's 10 million bucks, like that must be rolling in the dough, except that you don't realize that, like, your annual rent, if you're in Manhattan can be easily a million dollars or more. And then you've got, you know, four or $5 million of payroll for all of your people. And then you've got all of your equipment, and then we got like, etc, malpractice insurance. Yeah, and the insurance and not just malpractice and liability and the cyber insurance and like, and all of a sudden 10 million bucks is not exactly a ton of money anymore, you know? So I think that the to the to the uninitiated, it's easy to see a business as as a revenue entity, but it's not it's it's a it's a P&L entity. And so and there's so many more overhead items that you never dream of before you're kind of in it. And so I think that's something that I would definitely caution people to think about if they haven't gotten on the other side of the curtain yet is just you got to realize that that delivering a product and certainly a high quality product and certainly a you know, a high touch service. highly regulated product, like health care in America, for fertility patients is a very expensive thing to deliver. And it's not so easy to cut out a lot of these major major expenses and so, you know, it's for full transparency, you know, I kind of imagined we'd be able to push price points down a lot more than than is realistic before I knew what goes into it. And so you know what we charge for our server He says now is more than I thought we'd have to charge but the reality is, it's it's it's very expensive to deliver good quality care or even mediocre quality care, let alone good call quality care. And so, so don't forget the overhead it's it's it's an important other


Griffin Jones  40:14

how I remember the first time you did a budget, the first time we tried doing a budget was like, it's like, I don't know how much that's gonna like before we launch the podcast, but I don't know how much it is to podcast, like, I don't know how much we're going to end. So it does take some, like some expense tracking, which is different from budgeting that helps that informs but you know, it's a lot easier for us to do a budget and forecasting, because like, How the heck are we going to sales forecasts in the beginning? I don't know, how many clients am I going to sell this year? How many. And so that's that's two areas that I really would recommend that if somebody's thinking about starting their own business, their own practice and their their in an organization, I would I would try to do two things. And the first, well, maybe three. First is is see as much of the financials as you can some people do like that our firm is moving towards open book management, where we share that with our team. And maybe some places you can only see a piece of it. But David sable recommended a book to me last year called how to read a financial report. That's exactly what it sounds like. It's as interesting as reading New York state tax code. But it is it's the basics. And it would be great if you could do that for your own practice, or even your own Rei division if you're at an academic center, and to see what that is to have some education that the second is to know what to know, the sales and marketing pipeline, how are people coming in? That is extremely important to know, as deeply as you can. And the third is the Human Resources pipeline. How are we getting in retaining people? And like those are three areas where I think it makes sense to really delve in May, maybe even more than operations and delivery, I might even put those three areas ahead of operations and delivery. In terms of priority of learning, what do you think?


Dr. Joshua Klein  42:15

I think you're right, because that's kind of how you get to have a team that can do the things you want to do. And if you have that, then you figure out how to do you know, if you have the right team, you're gonna do the things you want to do the operations and delivery, but you can't, you can't get there without sort of getting your Human Resources figured out without getting your sales and marketing figured out. So you have you know, a customer and that you get your finances straight. So yeah, I think that's probably right. And by the way, the sales and marketing piece is also another thing. And I can reflect with our own experience that extend you know, we came in to be open and came into the market heavy on the increasing, increasing is more so than, you know, infertility treatment, an elective service line, it has less insurance coverage than IVF does. Even today, you know, even with progeny and Karen and when fertility, there's still only a very small percentage of of women will have coverage for fertility preservation, and only a minority percentage of our patients have coverage. And we were very aggressive with our marketing and our marketing spend early on. And we grew very fast. And so it was clear to us from the first couple years of doing it that marketing works when it comes to egg freezing. The problem is that that only actually works. Ultimately, in the long run, if you can spend money to get customers in a way that allows you to still have a profit margin on what you're charging for your service. Meaning if you got to spend $5,000 on marketing for every customer that you're going to convert every patient you're going to convert, that may not be a viable business model, because you're not charging enough to justify it. And so you know, how you're gonna get your patients the best way, of course, is when they show up, you know, they word of mouth, it's free. But the reality of fertility in the US right now, certainly in any major metropolitan area for sure, is that there's lots of competition, and everybody's got an angle. And most practices, even the academic practices are doing something on the sales and marketing. And so it's important to be realistic about the fact that that stuff has to be done carefully, thoughtfully, and it costs money and you have to keep track of how much money you're spending and what you're getting for that for those dollars. And once again, like maybe I was way too naive, but this isn't stuff that I thought about, you know, figuring okay, just buy some Google ads and there's your marketing and like it, you know, it's a lot more complicated than that, obviously. So that's definitely another area that that I've learned a lot about over the last number of years.


Griffin Jones  44:55

We're talking about lessons learned, you know, owning a practice or owning a business in the future. silletti field and things that you may want to learn how to do or learn about before you go and start your own venture. Another thing is some of the systems that are used, and oh people that can give really good recommendations on the different EMRs. They've shopped and the depth and scope of functions. But I would ask someone that you know, that uses engaged MD, if you're not already, if you don't use engage them D in your system, you're thinking, I want to open my own office within my own group, or I want to open my own practice, I want to go join somebody else, and I want to be able to add something to it, engage them D is one of the surest bets that you can do, but you don't take my word for it. Ask someone that you know, because more than half of your colleagues are using EngagedMD and more than half of your colleagues are extremely delighted with EngagedMD because they got real informed consent. They don't have stacks of papers that people have to sign and then account for and then keep an eye out file cabinet somewhere. They have true informed consent from patients that have a module at their convenience, so that the staff isn't overburdened with questions that they don't need to be getting that they can help the patient with the attention that needs to be devoted to that patient's case. Because the elementary the rudimentary is covered, and now it's just what that patient is stuck on or what's unique to their case that the care team can focus their care on. That's what personalized care is. And more than half of your colleagues have seen the benefit from engaged MD that way, so just reach out to any of them. Hey, guys, do you use EngagedMDin the people you want to fellowship with people that you see it ASRM? Hey, do you use engage MD? What do you think I hear Griff, talk about it. But he doesn't want to practice? What do you guys think, and see what they say. But if you want that free workflow assessment, want to see what other practices are doing, you want those insights that engagedMD has, and you want to see how your practice stacks against that ideal workflow, then you go to engage them the.com/griffin. And you mentioned that you heard them on the show, you mentioned that you heard them from me, and then you're going to get that free workflow assessment. So ask somebody else, don't take my word for it, but go to engage them db.com/griffin Or say, or an on the show. So you heard from me, so you can get that free work assessment for you. That's one of the biggest system wins that you can have right off the bat. And you can verify that just by asking people you already know, I hope you enjoy the rest of this episode about things you need to know for the fertility business, you might start, I'm gonna let you conclude on whatever topic you want to but before that, because we have so many younger Doc's that listen. And they're thinking about like, how do I choose who I'm going to work with you were you chose your your business partners, and, and they chose you. And so talk about how you did that? Well,


Dr. Joshua Klein  48:21

I'd say I was probably luckier than I realized, the main person, the main business person that I that I partnered with, is a wonderful guy named Michael Kohn, whose private equity hedge fund guy, the truth is looking back, I got lucky that he is of as high integrity as he is, because I probably could have gotten really treated much more poorly or gotten abused more if I wasn't so lucky to find someone. So I think that the advice would be, you definitely have to choose we get into bed with very, very carefully, especially when it comes to business people because I think that they're not all going to be the most high integrity people. And to be fair, like business people are, their profession is to use business to make money. And that's true for doctors too, obviously, with our professionals, how we pay our bills and make a living. But I think the mindset of young doctors is a little bit more idealistic than the mindset of probably mid career fitness people is and you got to be very careful not to be too trusting or too idealistic in that sense, you know, for young blacks are coming out and looking at job opportunities. So it's, it's complicated, because I think that, you know, the people that you're going to work with day to day are the clinical team, you're going to have obviously Doctor colleagues, and then other clinical colleagues and embryology colleagues and so forth, but these days, a lot of practices are either owned or part owned or managed by business entities that you may or may not have much direct interaction with. And it's it's a very, very seen I think that I Have the level of involvement and exposure to the business behind the practice is going to be very different from one place to another. And I think that that's those are important questions to try to really investigate while you're looking at different practice opportunities, you know, if there are going to be places that are looking at the conversion metrics, you know, how many consults did you do, and how many of those turned into IVF patients, and if you're below a certain bar, maybe they're gonna get dinged, or you're not going to get your bonus. And, you know, to some degree, that's not crazy. But if that's gonna bother you, like you better you should be aware of it. And in other places, certainly in more academic environments, the culture, maybe more sleepy, but, but that might be more comfortable, to not have to sort of think about numbers like that. And so I think that I'm not sure that I have much brilliant insight other than to say, it's a very, very playing field out there. And so you really want to ask as many questions as you can and talk to as many people as you can, looking at to what degree is that practice run like a business or like a medical practice that has a business behind it, because the culture of the place and look, business is not terrible. And there are some very successful, very busy places out there that run like a business and that patients are happy, and the doctors are happy. And you know, that's not necessarily always the worst thing. But I think different doctors have very different priorities of how they want to practice medicine, and what kind of lifestyle they're looking for. And it's going to be pretty different from one practice environment to another. And so just Just do as much investigation and homework as you can. Because it is going to be very different from one opportunity to another.


Griffin Jones  51:45

So that's for the homework, let's conclude with the introspection thing, because a lot of people listening are in the position of the 2012, Josh or Jean Klein. And maybe there's a couple different routes for that type of person, but some of them should stay at Columbia or wherever their academic center is, wherever they're doing fellowship, because they're going to be happy, they're at another one, some of them should go on to be should should just gobble and gobbling, gobbling till they're a bigger fish in the bigger pond that they end up with it someplace like an RMA or or an RMA or wherever they end up, some should go off on their own. And then there's other people still that it's like, oh, there's somebody that just started their own thing couple years ago, I don't totally want to start my own thing that I don't feel like starting from zero. But there's also a lot of opportunity for me to help make this bigger, I want to go join the Josh Klein's out there. So there's a couple of different options introspectively. And then this will this will be your final thought for the program? What How should people decide what's best for them?


Dr. Joshua Klein  52:58

That's a great question. I think that you can't have everything, I think that it's important to be realistic about the fact that if you're someone who is going to prioritize, you know, maximizing income, then you're probably not going to get that at a pure academic program. Because you're going to be salaried. And usually, that's not the culture. If you're someone who enjoys teaching who enjoys having some abstract today's stream every year going to conferences, then you're going to get that at a more academic program, it's gonna be much harder, you're gonna be sort of swimming upstream at at a pure private practice. If you're someone who has, you know, family, or hobbies or outside interests that are very important to them, that that, you know, you want to be out of the office by 5pm every every evening and not work weekends, you know, that that's going to be something that you want to take into account. And I think the bottom line is that there's no job, probably, that's gonna let you be like the division chief, and academically active going to conferences every couple of months. And you know, making a seven figure income, and not working weekends, and being out of the office by 5pm, every month, and every week, every day. So, so I think it's just a matter of, and again, no brilliant insight here, but you really just have to think about what are the things that are most important to you and your lifestyle and money is important, but it really is not necessarily the most important. And so, you know, make your list and then try to get as many of those things as as you can, because you're just it's like buying a house you're just not going to get everything unless unless something's you know, your I guess our unlimited budget, but most people are going to have to pick and choose. And so just think seriously about what's going to make you happy in five years and 10 years and then chase after those things. And maybe some of it will come along with it. You know, you can be in a private practice and still be the research person who does put together some research abstracts every year and like that's fantastic. But as long as you you know, are are comfortable the fact that that's kind of if you can, you'll do it but it may not happen then you're being being smart. So I think it's it's really a matter of triaging what what is going to be highest priority for you and your career and, you know, being honest with yourself about what's going to make you happy. And if you do that you should be landing in a good place. And there's lots of good places. That's another comment is that there's not like one right job, I think there's a lot of ways to be happy. So we're in a good time, there's a lot of good going on.


Griffin Jones  55:27

Well, if if one of those routes makes sense to talk to you, as you say, talk to everybody is that an offer you would extend are there that you would extend to the younger dogs that they can reach out to you on LinkedIn. So we will include that in the


Dr. Joshua Klein  55:45

video, I think my journey has been an interesting one and not the most common, you know, working and big place academic place, and then in New York, kind of CO founding my own place, and it's been a journey and it's been a learning journey. And so I do think that I can give people guidance, or at least my, my personal, you know, perspective, so I'd be happy to be available.


Griffin Jones  56:05

Dr. Josh Klein, thank you for coming on inside reproductive health.


Dr. Joshua Klein  56:09

Thank you for having me. It's been my pleasure.


56:12

You've been listening to the inside reproductive health podcast with Griffin Jones. If you're ready to take action to make sure that your practice thrives beyond the revolutionary changes that are happening in our field and in society. Visit fertility bridge.com To begin the first piece of the fertility marketing system, the goal and competitive diagnostic. Thank you for listening to inside reproductive health



153 Elizabeth Carr: What is U.S. IVF’s First Born Working For and What Is She Doing Now?

 This week on Inside Reproductive Health, Elizabeth Carr shares her experience from birth to where she is today, at TMRW, and everywhere in between. Born quite literally into the industry and its spotlight, Elizabeth has chosen to be an advocate for IVF, working to change public education, and further ‘industry’ advancements. 

Tune in to hear:

  • What Elizabeth Carr is doing to give back to the community that made her existence possible.

  • How her relationship with Dr. Jones and his family contributed to her life and ultimate career path.

  • What she wishes people in the industry would push harder for. 

Elizabeth’s information:

LinkedIn:https://www.linkedin.com/in/elizabethc

Twitter: @ejordancarr

Website: www.ejordancarr.com


Transcript

Elizabeth Carr  00:04

My speaking up and out has always been kind of my love letter to the industry as a thank you and to all the patients. As a thank you for saying thanks for not giving up and making sure that I got here.

Griffin Jones  00:17

unlimited human potential Do you ever think about the line of work that you're in, in those terms, unlimited human potential. That's what I think about when I think about the in finite or at least in depth finite number of IVF babies that can be born or babies born from art in general, my guest is Elizabeth Carr, you know who she is because she was the first baby born from in vitro fertilization in the United States, through Dr. Howard Jones and his Institute. And we talk about what that was like to always be in the limelight. But I think the reason why you'll get an interest in or you'll take an interest in this episode is because partly the relationship that she talks about with her family and Dr. Jones and, and then what the other IVF babies that she knows from the institute, what their relationship was like, and their fondness and even the way she thinks of Dr. Jones's colleagues, and that weren't there at the institute, but But everywhere. And so I think as you think about what kind of legacy that you're having, maybe we take a little break from the private equity and the hiring and the marketing and the business development and all of the this stuff, the important stuff that we do have to do we take a break for a second, so that you all can reflect on the legacy that you're leaving from someone who had one is very good about speaking about it, but to at least in this country, has been living it for the longest. So now she's with TMRW Life Sciences. And I get to talk a little bit about that, and a little bit about advocacy and an opening up. But think about this episode with regard to your legacy. And enjoy this interview with Elizabeth Carr. Ms. Carr. Elizabeth, welcome to Inside reproductive health.

Elizabeth Carr  02:23

Thank you so much for having me. It's great to be here.

Griffin Jones  02:26

You are the United States of America's first baby to be born through in vitro fertilization. So does Louise Brown, like ever? Just Does she ever throw some nationalistic crap at you that the UK beat us to it? Or does the stet you know, does that Steptoe Jones legacy does it? Does it manifest itself as a rivalry decades later, or was it the whole world collaborating to? To try to do the right thing?

Elizabeth Carr  02:57

Yeah, no, no shade, definitely no shade from Louise. And yeah, my doctors Jones actually worked with Steptoe and Edwards to kind of understand what they had success with, and then tried to replicate. In the US, of course, my distinction versus Louise, where maybe I'm throwing a little shade is that I'm really the first IVF baby, that, you know, when we think of modern IVF, I'm it so Louise was a natural cycle, whereas I was the first baby born using all of the, like, hormone protocols that we're also familiar with now.

Griffin Jones  03:35

Wow. So well, that's another reason why whenever somebody says, and normally there's playing around, but our country did this first or our team, our university, whatever did this versus like, but yeah, they did that one step first. And then because you did that one step and you help somebody out, they figured out another step. And then the other guys and gals over here figured out another step and as much better to think collegially Exactly. So. So when did that start to become a part of your life? Because it was always a part of your parents life, but But for you, it definitely wasn't, you know, in the first couple years of your life, in terms of like you knowing that, you know, at least age two and three

Elizabeth Carr  04:25

you Well, I mean, yes and no. So I let me put it this way. My first press conference ever was at three days old. So while I may not have had the cognitive realization of what was going on, I have always known that I was not like all of my other peers, you know, other kindergarteners weren't going on Good Morning America, but I was, you know, think things like that. So I may not have realized until I was older. What this meant: But, but I knew that my parents went through something different in order to get me here. That was kind of like my understanding when I was very young.

Griffin Jones  05:10

My assumption was no, it would have taken a few years before some of the to be able to explain it to you. But you were just never out of the limelight is what you're saying.

Elizabeth Carr  05:19

Correct? No. I mean, it was a media firestorm from the day that it was announced that there was a pregnancy even before I was born, just even a pregnancy there and woman impregnated was the headline that my father recalls reading. And he was like, yep, that's my wife. So yeah, it's always been a subject of media spotlight and scrutiny.

Griffin Jones  05:45

And so how long did that last for? You said you went to? You went to kindergarten, and then

Elizabeth Carr  05:54

I made its last my whole life. Yeah, it still happens. It's lasted my whole life. Basically, every reproductive milestone, somebody will want to talk to me about what this means, or you want to check in and make sure I was developmentally just like everybody else, because this was, you know, had never posted, by the way. Yeah, I mean, you know, mostly abnormal, I

Griffin Jones  06:19

think, crazy as everybody else.

Elizabeth Carr  06:22

Exactly. I don't think there's any real normal out there. But yeah, so I mean, it's been a constant. limelight. I mean, I had a camera crew here last week at my house, and I'm, you know, I'm just living my life. So

Griffin Jones  06:37

were there. Were there points in your life where people were less aware the media was less interested, like, oh, 13 year olds are gross. Let's bother again, when she's old enough to vote? Like, Were there ever lows in? Were there? And, or maybe at least lows compared to the peaks?

Elizabeth Carr  06:58

Yeah, I think, yeah, the ages that were less exciting, right. So like, nine was not a big deal. But 10 was a huge deal. Because it had been a decade since I had been born. You know, when I turned 16, it was like sweet 16. Right? When I turned 20, when I got married, when I had my son, when, you know, it's like, all of these kinds of life milestones that people go through. Mine had an additional level of media interest that I don't think many people realize until we start talking about it.

Griffin Jones  07:29

Hey, are you gunning for centenarian status? triple digits, because

Elizabeth Carr  07:35

I know that the running joke is, you know, this year, I turned 40. And I was like, you know, I can't lie about my age. Everybody knows when my birthday is exactly how old I am forever. Never. That's, you know, that's what I'm stuck with. So yeah, it's, it's crazy.

Griffin Jones  07:52

So when did this notoriety start to get you involved with the fertility field, like the fertility field had always known about you? The doctors knew who you were, and they certainly knew our Jones was. But at what point? Did it start to get you involved with them?

Elizabeth Carr  08:22

Yeah, so I mean, aside from the media attention, and all the interviews that I've had, over the course of my life growing up, I, I've always had an interest in science, I'm not good at math. But I've always liked to explain the science. So I've always, and I always, I think I was probably 10, when I started really paying attention to the industry and seeing what was going on and developing. So I've always paid attention to the reproductive field. But I also started realizing that because I had this weird platform in life, that I could use my voice for good and for change. And so I've really, from a pretty young age, started speaking up about different reproductive options out there, and became kind of like a junior advocate, you know, Junior age, probably 1011, I really started paying attention to what was going on with insurance. And I'm still actively fighting those insurance battles and testifying in front of various committees and on state by state basis and paying attention to all the laws and, you know, looking into just helping people understand their options. So I started really paying attention to that stuff, probably when I was 10. And then I went on to be a journalist and wrote, not surprising to many I don't think primarily about health and science and again, stayed up on everything going on. And then I've worked for a few fertility startups and done a bunch of free then to writing and social media for various companies. And now I'm at TMRW Life Sciences as director of marketing.

Griffin Jones  10:07

So you started off as a journalist, were you ever kind of covering just a regular beat? Or was it always Health and Science?

Elizabeth Carr  10:16

Yeah, so I did a range of things. When that you, when I started out, I worked from age 18, at the Boston Globe. And I actually started out as an obituary writer, because you can't label a dead person, believe it or not, so they let you start there. And then I did a lot of general assignment. And then I went into health and wellness was a writer, then I became a health and wellness editor. And so I've done you name that you name it, it runs the gamut in terms of journalism,

Griffin Jones  10:47

what made the switch or the transition from journalism to marketing.

Elizabeth Carr  10:53

So I spent 15 years of my career at the Boston Globe. And I actually jumped from the editorial side of the business to the marketing side of the business, because I wanted to learn, you know, the dirty little secret of newspapers is that you don't make money selling a newspaper, you make it doing events, and marketing, and in house advertising, and all these other kinds of modalities that a newspaper has available to them. So I just wanted to learn soup to nuts, the business. And so that's why I jumped to the marketing side. And then I figured out that, you know, this was an important skill in the fertility world for, you know, anyone looking to grow their practice or understand the business of infertility services or reproductive technologies as well. And, you know, it's hard, it's, it's complicated, right? If you don't understand the reproductive field, it's hard to translate it into plain English for people sometimes. And I that's, that's a skill that I wanted to learn and adopt very early, that I wanted to be able to explain something very complex in a way that people could understand it.

Griffin Jones  12:05

So what areas of marketing did you experience both at the Boston Globe and then afterward?

Elizabeth Carr  12:12

So I was one of the first digital reporters, you know, back before anybody knew what a blogger was, I was blogging, doing social media, tweeting, you know, doing kind of the early days of podcasting, where, you know, we did audio over stills, it wasn't really movies back then. But audio over stills kind of storytelling. You know, things like that, basically anything I could get my hands on and play around with I was experimenting with.

Griffin Jones  12:46

And then and then what happens after the Boston Globe.

Elizabeth Carr  12:51

Let me see, after the Boston Globe, I actually went to work for Runner's World Magazine, I was an editor there because in my free time, I am an endurance runner, and I run marathons. And so again, kind of still in that health and wellness bent, was a was a writer and editor there. Then I went to work for over science for a very short period of time, I then I worked for genomic prediction, I've done nonprofit fundraising, and leads kind of all the way up to today, TMRW.

Griffin Jones  13:27

All the while that you're doing like that you're at the globe that you're Runner's World. Are you? Are you involved in the advocacy? You said? Yeah, surance passion never left you. So what were you doing during that time?

Elizabeth Carr  13:42

Yeah. So it's all the stuff that nobody sees, right? It's all the stuff behind the scenes that we all know, hopefully we all know is going on, of, you know, fighting to get insurance mandates in various states where there aren't mandates and coverage, as well as making sure that bills that are being proposed have language that is protective of all, not just some seeking reproductive options. So all of the nitty gritty stuff that's behind the scenes that nobody really, you know, it's not visible, but it's critical work. So I've kind of always been doing that, since I was very young. It's just not something that people see.

Griffin Jones  14:23

So then how did you when did the logical or now seemingly logical conclusion of starting to work with startups in the IVF space? When did that happen? And how did it happen?

Elizabeth Carr  14:38

Probably. I don't I'm trying to think how many years ago probably 10 years ago, I think is when I started. Sorry, my dog is drinking water loudly off camera. Miracle. Thank you. So probably about 10 years ago, is when I started working in the infertility slash startup space in a in a professional capacity as opposed to just in a patient advocacy capacity? And how did it happen? You know, I'm not really sure I've just always kind of known a lot of people in the space. And I happen to have this like weird digital tool set to or skill set in my tool belt of various things I was good at. And I understood the needs of patients as well as the needs of clinics or providers as well. And so it was kind of marrying all of these various skills from journalism, marketing, patient advocacy, kind of all into one. You know, one multi tool, I guess you would call it,

Griffin Jones  15:47

as you've established, we all know how old you are. This took place about 30. Why not? Until then was was it? Was it just because you were just another person doing other things in your career? Or was it because there weren't as many startups in the fertility space at that? I think,

Elizabeth Carr  16:05

yeah, I think it was both to be honest with you, I think I was just kind of still, I felt like I still had a lot of growth to go at when i i left the globe, and I was 33. So I still kind of had this mini city of people to learn from and that was, I was really grateful that I spent a majority of my career there because I have learned so many different skills from so many different people. And then yeah, I think also, yes, we have seen more and more fertility startups survive those early days, to be honest with you. I think it's there's there's many, many out there, but not many of them become known until after they survived that first few bumpy like six months to a year. Right. And so that's kind of when I feel like people rise to bubble up to the surface.

Griffin Jones  17:02

What was it? What were people working on at that time that you found interesting in the fertility space?

Elizabeth Carr  17:09

I mean, back then, you know, it was a lot of the early days of pre Implantation Genetic testing, which is fascinating to me, because it was not even in the realm of possibility. And when I was born, I mean, this is really dating me, but they had a statement written, or my doctors had a statement written in their pocket about how it was a sad day for infertility that they had on backup, just because ultrasound was showing that I was really, really small and they were worried I was going to come out with birth defects because I was only five pounds 12 ounces. And ultrasound was so bad back then. Right. So people forget that, like the things that we take for granted now. vitrification I remember when vitrification became possible, and that was like, the catalyst and game changer in the field. You know, egg freezing was I remember being probably my late teens and touring a facility that had done the first egg freezing for fertility preservation for cancer patients, because that was it was very niche back then. And it was like groundbreaking that they figured out that, you know, we can freeze eggs and and they can still go on to become viable pregnancies. People didn't know that that was possible. So it's kind of like all of these milestone moments that I remember growing up with industry really in, in my view.

Griffin Jones  18:37

And then what, what landed you TMRW, and how long have you been there for?

Elizabeth Carr  18:44

So I'm trying to think I think I've been here six months now. I saw TMW at ASRM, actually. And I just thought, wow, this is the kind of safety and transparency that I hear from a daily basis that patients really are kind of clamoring for that they want, you know, they want more information. I know that we we all think it can be information overload because it can be right we didn't my my mother always jokes that she was kind of grateful that there was no Dr. Google back then when she was going through IVF. Because it is so overwhelming the amount of options and information out there. But I hear from people you know, I really wish there was a way I could just stay up to date on all of my eggs, embryos, health information, everything I needed to know and not wonder where things are or what the status of them is, in in the moment really, to know that everything is safe and I've worked so hard to you know, get these eggs or embryos that I want to protect them at all costs. And I think that you know, TMRW unique digital chain of custody and patented technology is just It's just, you know, so interesting in kind of leveling up that transparency and peace of mind for patients.

Griffin Jones  20:08

I don't know exactly when a startup becomes not a startup is.

Elizabeth Carr  20:13

I don't either.

Griffin Jones  20:16

Do we still call TMRW a startup?

Elizabeth Carr  20:18

I mean, I don't know. That's a very good question.

Griffin Jones  20:22

A lot of money, a lot of people.

Elizabeth Carr  20:25

We're all working very hard roster

Griffin Jones  20:27

at this point. So yeah. So in your director of marketing,

Elizabeth Carr  20:34

that's your director of product and clinic marketing,

Griffin Jones  20:37

clinic market? So do they pull you out like a dog and pony show? Yours? Which is, which is partly the role of marketing director anyway. But given your status, how was that used?

Elizabeth Carr  20:55

No, I mean, it's really kind of, I'm always the one saying like, Oh, I know them, or or, you know, like, let me I want to help or, you know, I'm really the one who kind of said, I want to help move the needle in whatever way I can for the industry. That is kind of my that is my, like, personal stake in the ground aside from TMRW, or any other company I've ever worked with? It's really how can I personally move the needle? For the better in the industry at for patients? That is, that is my end game. And so everything I do is kind of with that mindset, you know, moving forward? And no, it's really my job to kind of, again, translate all of the complex things about the about this technology that we have, and explain it to people in a way that makes sense. And let people know, you know, why it matters.

Griffin Jones  21:50

So our director of clinic and Product Marketing means of what TMRW is marketing to clinics, yeah, helping

Elizabeth Carr  21:59

helping clinics so that they can level up their practices in terms of having our cutting edge technology at their practice. And then as well as explaining the product itself, like soup to nuts, nuts and bolts in a very, you know, non technical way to understand.

Griffin Jones  22:16

So what are you doing to, to talk to practices now?

Elizabeth Carr  22:22

Yeah, so essentially, you know, my job now is to interface with all of our current partners, and help them explain to their patients, you know, this is the TMRW platform, this is why we're using it, this is what it means, you know, that kind of stuff. So I help them explain to their own patient populations, why this is important, and it matters as well. And then again, explaining the product to the clinic so that the clinic can then explain the product to their patients as well.

Griffin Jones  22:49

We're talking about lessons learned in owning a practice or owning a business in the fertility field and things that you may want to learn how to do or learn about before you go and start your own venture. Another thing is some of the systems that are used, and oh, people that can give really good recommendations on the different EMRs. They've shopped in the depth and scope of functions. But I would ask someone that you know, that uses engaged MD, if you're not already, if you don't use engage MD, and you're CISM, you're thinking I want to open my own office within my own group, or I want to open my own practice, I want to go join somebody else, and I want to be able to add something to it, engage them D is one of the surest bets that you can do, but you don't take my word for it. Ask someone that you know, because more than half of your colleagues are using engaged MD and more than half of your colleagues are extremely delighted with engaged and be because they got real informed consent. They don't have stacks of papers that people have to sign in then account for and then keep an eye out file cabinet somewhere. They have true informed consent from patients that have a module at their convenience, so that the staff isn't overburdened with questions that they don't need to be getting that they can help the patient with the attention that needs to be devoted to that patient's case. Because the elementary the rudimentary is covered, and now it's just what that patient is stuck on or what's unique to their case that the care team can focus their care on. That's what personalized care is. And more than half of your colleagues have seen the benefit from engaged MD that way so just reach out to any of them Hey, guys do use engage in the people you want to fellowship with people that you see it ASRM Hey, do you use engage them D What do you think I hear Griff talk about it. But he doesn't want to practice. What do you guys think? And see what they say but if you want At every workflow assessment want to see what other practices are doing, you want those insights that engage them D has, and you want to see how your practice stacks against that ideal workflow, then you go to engage them. the.com/griffin. And you mentioned that you heard them on the show, you mentioned that you heard them from me, and then you're gonna get that free workflow assessment. So ask somebody else, don't take my word for it, but go to engage md.com/griffin Or say you're on the show. So you heard from me, so that you can get that free work assessment for you. That's one of the biggest system wins that you could have right off the bat. And you can verify that just by asking people you already know, I hope you enjoy the rest of this episode about things you need to know for the fertility business you might start. When you're at SRM, especially like if you're either talking or you're involved with a session, or somebody invites you to be the guest. They're the guest of honor at their party, and you meet fertility doctors, what do they say to you?

Elizabeth Carr  26:05

Oh, it runs the gamut.

Griffin Jones  26:08

I want to hear the game I want to hear all the time, I want to hear

Elizabeth Carr  26:12

all of the games. I mean, I've heard everything from the very young embryologist who are like you're in all my textbooks, which makes me feel really old and weird, but in a good way. versus you know, some of the older physicians who remember by doctors, Dr. Howard and Dr. Georgiana Jones, and comparing notes to like, what it was like back then versus what it's like now. I've had people ask me really odd questions such as, Do I have a belly button? Spoiler? Yes, I do. I was born just like everybody else.

Griffin Jones  26:48

Doctors are asking that question. And doctors and patients have asked

Elizabeth Carr  26:51

me that question. I kid you not which it's always shocking when a clinician asks me that question. Mostly OBGYN so I have to be honest.

Griffin Jones  27:02

I wonder if there's what the reason that they're asking that question because

Elizabeth Carr  27:05

there's because in the early days of IVF, the slang term was test tube baby, right. And so the, the image in everybody's head was that I was grown in a test tube, which is just wildly inaccurate. Also, fertilization happened in a petri dish. And there were no test tubes involved in any way, shape, or form. So I always found that very amusing. And I've always hated that nickname.

Griffin Jones  27:30

But I thought there might have been like, but they didn't know that you that you went through gestation in utero, they didn't know that. They are a lot of people. A lot of people vitro fertilization also means grown

Elizabeth Carr  27:43

in a lab, like literally. Yeah. And I have to, I often have to remind people that that, honestly, the only difference was that fertilization happened in in a petri dish. And then I was placed back in my mother's womb. And nine months later, I came out just like everybody else does.

Griffin Jones  28:01

I mean, a lot of people think that, you know, like, Alaska is a country or that. Queen Elizabeth lives in Brazil. So like, it could, it could be, you know, I could see a lot of people thinking anything about that. But it surprise surprises me that OBGYN ins have

Elizabeth Carr  28:23

not awesome just to fit. You know, I'm just not I'm not saying everybody. But yeah, I mean, it's I think that's the one thing that surprises me still to this day, is that I have to do so much still basic education on what IVF? You know, I only primarily speak about IVF, because it's what what got me here, so I know it intimately well. But in terms of education on what exactly IVF is, there's still a lot of baseline education that needs to happen on a on a general level for a lot of people, many people have maybe heard about it, and think they understand what it is. But a lot of people there are still misconceptions about it. Yeah.

Griffin Jones  29:05

Unfortunately, it doesn't happen to me as much now that that generation is mostly gone. But I used to meet people that that knew my grandparents, I would meet older people that knew my grandparents, and they would talk about how they, how they knew my grandpa's. I guess that happens with my parents generation, too. But I guess I know more about my parents generation. So I'm just Yeah, a couple years ago, my brother and I were at a neighborhood bar in the neighborhood that were for the working class outside of Buffalo neighborhood for generation two, and we're at a neighborhood bar where like, all of the Irish working class stereotypes are coming together like our second cousin is our attending that we don't know that was oh, yeah, I know. And then there's this older couple there and that oh, and I know who your who your family where they were the Burns is and they were like telling me about my grant. parents and their family and great grandparents. I wonder, do you ever get that vibe from from older physicians like, who were maybe just behind the Steptoe Jones generation? And, like, do they want to tell you about Dr. Jones or duck, maybe even Dr. Steptoe, even though he wasn't in this country, like do they want to tell you about them in the same way that your grandparents friends would want to tell you about your grandparents?

Elizabeth Carr  30:33

Absolutely. And the grandparent analogy actually is a very good one, because that's how I've always referred to the Jones is my second set of grandparents. Our relationship for my whole life until they died was very, very close. Phone calls, emails, writing all sorts of correspondence. When I had my son, Dr. Howard wanted to make sure that I was going to a hospital with a level two NICU just in case, you know, all these kinds of things. So, yeah, people definitely want to share their stories with me of Oh, I was a fellow I was a Jones fellow or I went through the program, or, you know, I learned from so and so who was on the original team, or, you know, all those kinds of things, I actually really appreciate when people share those stories with me, because, you know, those were, those were kind of the Wild West days back then. Right? They were trying to figure out what was going to work, I don't think people realize that my parents you know, they didn't realize they were going to be the first until my mother got pregnant. And then the Jones were like, by the way, you're the first. And my parents, I think, naively assumed that there had been success, like it didn't dawn on them that there wasn't success. beforehand. And they weren't the only couple going through this. There were a group of other people going through this process at the same time, my parents were, but all the couples had a different protocol. And so none of the couples knew like, are we going to be the ones that the protocol works? Or is it going to be somebody else? And they weren't really allowed to share notes or talk about, you know, how their protocols were different. So it was kind of like, you'd pass in the hallway and wave and but you didn't know like, are they? Are they pregnant? Are we pregnant? What's going on? So yeah, it as I said, it was a wild west. So it's always interesting to hear those stories from from the very early group.

Griffin Jones  32:33

And so Dr. Jones passed away, like when I got into the fertility business, I started working with that, our first fertility client in 2014, but moved back to the US in June of 2015. And he passed away that summer. And how much correspondence did you have with Dr. Jones throughout your life?

Elizabeth Carr  33:00

Oh, as I said, so much correspondence. I mean, when I was little, we had a Mother's Day reunion every year at the Jones Institute in Norfolk, for the first 100 Babies essentially. And when it got to be 1000, and 1001 babies, that was our last reunion, because it just got to be too many people. And that was just from the one, you know, clinic. So throughout my life, you know, he would come to the airport and pick us up, or he would you know, I've got Birthday, birthday cards and phone calls every Christmas and on my birthday from them. I when I interned as a writer at The Virginian pilot newspaper, Dr. Howard actually helped me figure out my housing and I stayed with one of his fellows. And he and I had a standing lunch date every Wednesday. Well, I was there for the entire summer. He was one of the first people I told when I was pregnant with my son. He was invited to my wedding, you know, they were invited to my wedding. You know, anytime I had a newspaper article that made the front page or something like that, he would send me a note. So if people I think don't realize that we had such a close relationship, and they really were like a second set of grandparents, as I said,

Griffin Jones  34:23

so I just had a client asked me today, they were like, because we're doing a photo shoot for them. And we have a part of that where we we have just like an open period where people can come in and they can take their pick, they can bring their kids and they can take a picture and and they asked me what's the age limit because we just had someone in their early 20s who reached out to Dr. Toe and toe and said that they're now beginning medical school and as like there's no age like Yeah, that's great. That's incredible lady Yeah, like, that's it's not just a cute chubby cheeks that that is the whole story like, and you could argue that that's like, that's the story like, you know this, more broadly speaking this unlimited human potential you don't know what the human potential is, but we know that it wouldn't have existed if not for. Right. And so you like you were a part of of of that growing up. So I want to ask this question that has to do with the infertility community. If you think it's personal to me, I'll edit it out. I think it's, I think it's germane to the conversation. So sure. Did you go through infertility treatment

Elizabeth Carr  35:44

for everybody asks me that, no. So that was the other the other interesting thing about my mother's fertility journey to have me, she actually didn't have traditional infertility. She like where it was unexplained, or, you know, something was going on like that. It was scar tissue from a botched appendix surgery when she was in her teens. And she actually had three ectopic pregnancies before having me and so her fallopian tubes were removed, which, then that's where her fertility issues really came in. Because you, you know, back then you couldn't have a child unless you had fallopian tubes. So ironically, my mother could get could always get pregnant, she couldn't stay pregnant, the reason she couldn't stay pregnant was because of that scar tissue. So she was kind of the ideal candidate for this IVF program. And then No, I had no fertility issues at all. And I had my son at the same age actually, that my mother had me I was 28 when I had my son.

Griffin Jones  36:46

The reason why I asked is because I wonder what that's like the fertility community is such a tribe in many, in many cases, partly because they have at least some, some similar roots to draw upon. Like, even though the journeys are different, there's, there's some common threads, and sometimes those common threads are so distinct from the rest of society, that's where they form their bond. And, and you don't have that with them, you have a different kind of bond with them. It's like it's, it's as though they're, it's like their kids, you know, the the ones that have gone through treatment and been successful, are gone through time. Fast forward to be a grown up and now are with them in that community. So what what is that like, like to be to be not one of them at all, in one sense, and to them? And to be like, the most proud I know, there's so yeah, right, and product and and others? What's that? Like?

Elizabeth Carr  37:49

Yeah, so I mean, that's where, to me, I've always been very cognizant of that. There's like, I cannot speak to what it is like to exactly experience infertile infertility or trouble with your family building, right? I'm very aware of that. So I never speak to what that is like, what I can say is I can relate to what my, my parents went through, in their very unique situation. And that is where it has become my goal, that I am very humbled and privileged to be here. And I realized that I am very humbled and privileged to be here. And so my work as a patient advocate, or, as somebody who can be a resource or connector for somebody else going through this, my goal has always been for people to know what their options are before they need them. Because my parents really, you know, we're kind of given this option in a moment of crisis of like, Oh, my God, what do we do we have, we can have a child of her own, what are we going to do, and I never want anyone to feel like they don't know where to turn. And so my speaking up and out has always been kind of my love letter to the industry as a thank you and to all the patients. As a as a thank you for saying like, Thanks for not giving up and making sure that I got here. Because it took everybody it took all of my parents willpower of fighting. It took all of the scientists and lab technicians and embryologist and nurses, and even receptionists answering the phone and all the billing folks, it took so many people just for me to be here talking to you today. And so that's where I'm going to keep keep using my unique platform and voice to keep moving the needle ahead in this industry. And it's it's just it's it's honestly my only way of saying thank you because the words thank you seem wildly inadequate.

Griffin Jones  39:48

How old were you when you started meeting other adults that well, maybe now I won't even ask the question adults. How often How old were you? You when other people started introducing them to themselves, do you say I'm an IVF? Baby, too?

Elizabeth Carr  40:08

I mean, I think I'm a bad person to ask that question only because I have a magnet right at the end. And, you know, we had those reunions from from when I was very little with a Mother's Day stuff. So, so I always had other IVF babies around me, always. The only difference was, you know, when I was little, we would all introduce ourselves using our numbers. And so, you know, a friend of mine would be like, I'm never 10 and be like, I'm number one. You know, so nice to meet you. Where's number five? We don't know, like. So but then, you know, to have friends of mine. Now my age saying, Oh, I'm going through IVF or I'm having an IVF. Baby, myself. And they often say thank you. And I'm like, you know, I appreciate that sentiment so much. But like, honestly, I my, my joke is that I didn't really do anything I just showed up. It was really everybody else did the hard work, you know, I had no control. And whether I was here or not, it was everybody else.

Griffin Jones  41:06

Because you've got this passion, because you got this unique perspective. Are you ever asked to? Or do you take it upon yourself to be a public relations force when something bad happens, like when there is the the rare tank leak or embryo mix up? Or some sociopath in some, like OB GYN clinic from 30 years ago that fathers, how many embryos like when that stuff happens, and people are looking at the fertility field? Like, wait, what like, is that witchcraft? What's going on over there? And we know how rare that is, we know how much of a sliver it is to, in comparison to the good in the hundreds of 1000s of lives now over a million IVF babies that have been born from the treatment. But like, do you see yourself in in a unique position? Like do you feel an obligation to to be a counter voice when that stuff starts to get a larger share of voice in the public sphere?

Elizabeth Carr  42:23

I mean, yes and no. So obviously, especially with with my role TMRW, we're always trying to move the needle ahead for safety and you know, best practices and upping the standard of care, right? And so on, on that kind of mission level, I'm always saying like, this is why this technology is so desperately needed, so that in the rare circumstance or whatever that it happens, this is this is not a possibility, or the risk is mitigated to, you know, such a degree. On the other hand, I also know, because I grew up in this industry, how deeply IVF clinicians and lab techs and embryologist and everybody care about what they're doing. And, you know, I come at it from a very different lens of like, nobody would ever do anything on purpose, right? Like this is, as you said, like, these are catastrophic mix ups that I don't think anybody obviously ever wants to have happen. And so therefore, like, let's come together, link arms, let's talk about best practices, let's make sure that we're all doing everything in our power to make sure that this never happens, right, that this this is, this is the one thing we all collectively have agreed that we want to avoid from happening. So let's figure out how to do that together. And it is not from a place of, you know, fear mongering, it's, you know, we had a practice in place that was the best at the time. Now there's a new option, you know, let's let's go forward with the new option. Because it's new, it's a new standard. And it's just like, you know, kind of same thing with how the industry itself has grown up, right? We used to use certain hormones in the early days of IVF that now we don't really like my mom was on personnel, they don't make personnel anymore. There's now a new version out there. That's the next best, latest, greatest right? So we're always iterating we're always moving the needle. Again, even vitrification wasn't it was a moment in time where they were we were moving the needle, right? We went from fresh transfer to now we know we can vitrify and we can flash free. So what does that mean for moving the needle? And so that's where I always am kind of coming from like, what do we have to do now to move the needle? From an advocacy standpoint, from a safety and technology standpoint? What can we do together?

Griffin Jones  44:53

I'm curious a little bit while we're talking about that, I do want to conclude with you sharing what you think the field should be paying attention to. But I want to ask with regard to the extent that you're able to talk about what, what is TMRW’s vision or potential outside of just the IVF space? Like, I got to believe that this company is, is also going to do other things with this technology. So what's on the horizon?

Elizabeth Carr  45:25

Yeah. So I mean, I'm actually a terrible person to ask. Because I am so ingrained in this in this particular field and this particular dish that I'm like only, like a horse with blinders on that this is our goal right now, this is our mission, this is our drive. I'm, I'm the wrong person to talk about future looking, because at this point, it's we just want everybody to understand what we have going on. Right now. That's in the marketplace for patients and clinics to move forward. But I am excited about where where the potential of this could go. Although I don't necessarily I'm not the person that's necessarily involved in those discussions. But I am excited about yours, knowing about the person perceived benefits of this technology in, you know, potentially other fields. Who knows?

Griffin Jones  46:20

Well, let's talk then about what you think that the field should be paying attention to. And so let's maybe start this conclusion with what do you think that people aren't paying attention to enough of that, that you see, from your vantage point from having worked for all these different startups from our comfort mile from having talked to so many doctors and been involved in the institutional structure? What do you think that people just aren't paying attention to enough of right now?

Elizabeth Carr  46:55

I mean, that is such a hard question. For me, I think it's always the coverage and insurance landscape. We have known for many, many years that, you know, in many ways, reproductive technologies are cost prohibitive for so many people. And that continues to be a really tough nut to crack to make it more accessible to more people, and, and that is something that I know, we're all striving to change, but it's so hard, and it's so slow, that I think that that, you know, in this Roe v Wade overturned landscape, it's really come to the forefront even more, you know, as as a, as a worry that, you know, it will become less accessible, as opposed to more accessible. So I think, for me, personally, that's always one that I'm like, you know, if everybody can really pay attention, not just to the technology and best practices going on in the world, because we know that's going to continue to march forward. But really the landscape itself and, and making sure that everybody has access, and, and that is so key, and I don't think we can ever stop paying attention to it. Truthfully, like, if we take our eyes off that ball for one minute. I think it can be really harmful in the long run.

Griffin Jones  48:32

Well, then I'll let you conclude, however you want to clean our audience of practice owners and Doc's and fertility execs. Maybe it's it's a call for how you'd like them to get involved with that. But how would you like to conclude?

Elizabeth Carr  48:46

Yeah, I mean, I think, you know, for me, it's always, it always comes down to what do we think we need? And how do we think we need to get there. And I grew up in an industry where everything was highly collaborative, right? That was what everybody that talks about the Jones remarks how collegial and academic and collaborative they were, back then, that they, you know, wanted to share the latest and greatest research, they wanted to share best practices. And I think we all still need to kind of especially in this current landscape, continue to link arms and and kind of look around and say like, Yes, I know, we're competing, maybe for customer acquisition and those kinds of things. But let's make sure that we all agree that we want to provide the best care that we can to our ability, period, full stop, and whatever that looks like in the current day, landscape, technology, whatever it is, if we can all say that we're all driving towards the utmost best patient care. That's really all that matters to me. And I think that that's really all that matters to patients as well as they all want to know that we are marching in the same direction, you know, towards the best care and I think wholesale, you know, all of the practitioners that I've come into contact with, you know, embody that, which is a lovely thing. And it's very rare to have a whole industry care so deeply about, you know, their patients on it on a very human level. So I just hope that we continue that, and that we don't let any political landscapes or law changes kind of derail us from from really providing the best that we can.

Griffin Jones  50:34

And then we'll have a few more million Elizabeth cars. Oh, God. I'll be guests on the show. Maybe not me. But we'll, we'll do like every every million dollars or maybe 100,000. That can can be a guest.

Elizabeth Carr  50:50

That's that's the running joke of why my parents never had another they were like we were good with you. We decided to stop after you,

Griffin Jones  50:58

Elizabeth. Karen, thank you very much for coming on inside reproductive health.

Elizabeth Carr  51:02

Thanks so much for having me.

51:03

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

152 Pinnacle Fertility: Where’d They Come From?!

Inside Reproductive Health guest, Andrew Mintz, shares the evolution of Pinnacle Fertility on this week’s podcast episode with Griffin Jones. The fertility network which now owns ORM (Oregon Reproductive Medicine), SRM (Seattle Reproductive Medicine) and others, seemingly came out of nowhere. Is their model scalable? Will it stand the test of time?

Tune in to hear:

  • Andrew Mintz detail the Pinnacle Fertility model, including how they constructed their Medical Director and Lab Director Councils, and how they contribute to the overarching success and development of their network.

  • Griffin press Andrew on the efficacy of Pinnacle Fertility’s physician buy-in program, and how it could potentially implode.

  • Griffin question whether or not Pinnacle Fertility’s private equity backing equally beneficial to physicians across the board, or only those stepping into retirement.

  • Griffin ask how Andrew Mintz and his team approached the selection of the ever-challenging EMR system, and how they decided on just one. 

Andrew’s information:

LinkedIn: https://www.linkedin.com/in/andrew-mintz-712a999/

Instagram: https://www.instagram.com/pinnaclefertility

Facebook: https://www.facebook.com/PinnacleFertility

Website: https://www.pinnaclefertility.com/


Transcript



Griffin Jones  00:04

Nobody says we put the patient last, Andrew, and nobody says we're a bunch of dishonest dirtbags that are going to stab you later. So how were you able to actually demonstrate that almost every Fertility Center in North America is going to be owned by one of two companies in the coming years. It's one of the things that I talk about with our guest, Andrew Mintz. He's the CEO of Pinnacle fertility. If you're like me, you didn't know about Pinnacle fertility last year until he was ASRM last year, maybe even PSP CRS this year that that name really took off, they acquired six groups at the end of 2021. They have acquired more since including Seattle reproductive medicine. So they're quickly becoming a big group. And we talk about their model for making protocols uniform, raising the standard of care in their view, including having a council of lab directors, a council of medical directors, which I think that concept is interesting for you to listen to. I push Andrew on the criticisms that people have of private equity is it really just for the benefit of the retiring Doc's? I asked him that question of do we think that this is going to become a two horse race in the future? I talked about brands, that Kindbody style of brand versus this network style of brand and tell him which side I think is better, and ask him for his opinion. I also asked him to talk about choosing an EMR what goes into that process and should go into any that process and why they chose the EMR that they did. I asked about the model of doctors buying into the parent company and not into not not the equity coming from the at the practice local level. So we get some good answers in there. If you feel that I can go deeper on a specific set of questions, email me, let me know and our next guest will be the victim for that. In the meantime, enjoy this interview with the CEO of Pinnacle fertility, Andrew Mintz. Mr. Mintz, Andrew, welcome to Inside reproductive health.

Andrew Mintz  02:21

Thank you, nice to finally meet you in person.

Griffin Jones  02:25

I had never heard of Pinnacle fertility before the winter of 2022. And then by the time I got to PCRs, it was all the buzz, it was blue Pinnacle liquid pinnacle is doing now. And it's and so here's a company that, as far as I know, didn't exist a year ago, or a year and a half ago, maybe you'll correct me on the timeline. But then, in short order, started making a splash in the field. So why don't we start with the timeline of Pinnacle. And the the opening or need that you all saw in the marketplace to to state your own existence?

Andrew Mintz  03:05

Sure. So we actually started in December of 2019, with the acquisition of Santa Monica, fertility out in California, and then you know, COVID, hit kind of right away, and there wasn't a lot done for the year 2020. But come 2021 We started to reengage in the market. And we closed six practices in 2021. In the second half of 2021. We didn't actually create our name of Pinnacle fertility until like October, which is why no one's ever heard of Pinnacle before. But we brought on first RGA of Ohio, which is out of Akron and Westerville. And brought on a Dominion fertility and Virginia ihr. In Chicago. We brought on advanced Fertility Centers in Arizona, California fertility partners in in California, and ORM in Portland, so a really good group. And I think, you know, there were a couple of things that we saw as an opportunity to partner with groups, and that was that I had this conversation with Richard Morris, who runs our medical director Council, which I'll tell you about in a minute. But years ago, the way the fertility industry used to work is that doctors were very collaborative with each other not competitive. So they would go to their meetings, and they'd really start sharing all kinds of information about what they did in the lab, what their clinical protocols were, what they were seeing in terms of outcomes, how they're trying to improve outcomes. It was a very collaborative approach. I think that over time, as more clinics were created, especially as those that were created in the same markets, it became more competitive and The willingness to share the secret sauce started to whittle away. And so I think we had lots of people who were doing their own thing, and seeing what their outcomes were and, you know, comparing themselves against national benchmarks, as they saw in SART or the CDC database, we really wanted to bring back the concept of doctors working together, sharing what they're doing in the lab, reducing the variation in care, and to really improve the outcome. And we saw that as an opportunity that we didn't see happening in this marketplace as much as it could have.

Griffin Jones  05:42

Well, what do you feel that you can do to facilitate that happening that many of the existing networks aren't or can't?

Andrew Mintz  05:50

Yeah, so I mean, we've done a several things. So one, we started a couple of councils, which have real teeth behind them. So we have a medical director, Council and a lab director Council. And those councils have a representative from each one of our clinics. And more as we brought in this year, we brought on another few practices this year. And what we do is we talk about in the lab, for example, we talk about making sure embryologist are using same techniques and protocols, the media that we're using in the lab are the same, that the equipment that we're using are the same. And really just starting to compare the outcomes and talking about what people are doing. So we actually have lab directors that are going from one lab to the other, to look at what others are doing and then sharing that in in a forum under which they're making decisions about how to reduce that variation and improve the outcome. And I don't know that we see that in a lot of other clinics, I think there's a lot of talk about it. But we've done a lot of that and, and the other piece that we've had to do is come out of the lab director councils, the fact that as we continue to expand, some of the problems that we're facing in the lab have to do with just what you can fit through the lab from a volume perspective. And there just aren't enough embryologist. And so our lab director console, for example, started our own embryology school. We're looking now at a certification for the students in terms of how they become certified which doesn't really exist outside of ASHRAE. And really trying to get a lot more embryologist out into the marketplace. So we can they started the school, we do it in two places. One in Arizona, one in Ohio. We have four students at any one time, we get them trained in about 100 days. And we can train about 30 embryologists a year. And so we're really dedicated to one being able to have more embryologists available for the industry, and also specifically about making sure that we are teaching them the kinds of processes that we think lead to the best outcomes, and to ensure that in fact, we see that across our network.

Griffin Jones  08:18

Are you doing the same thing on the clinic side with a council of medical directors or practice directors?

Andrew Mintz  08:26

We are so we do have a medical director console as well. They making decisions in terms of you know, what kinds of genetic testing are we doing? Where do we send it? Who do we do it on? What kind of Mosaic embryos are we going to transfer? Which ones are we not? They're looking at safety protocols. They're looking at recruitment and retention issues. So there's a whole set of initiatives that our medical directors looking at as well, including clinical stimulation. So, you know, what are we doing to, you know, really reduce that variation, make sure that, in fact, we're doing the right thing for the patients and being able to maximize the, you know, their outcomes. And so there's a lot of sort of deep dive data that we pull and start sharing and discussing in those consults about the ways under which we're going to be practicing medicine within within pinnacle.

Griffin Jones  09:25

Is each practice represented by one medical director in the council?

Andrew Mintz  09:31

Yes. So we have one medical director regardless of size, so we brought on Seattle reproductive medicine just a few weeks ago. They have 14 rei physicians, but they only have one representative on the council, and then we've got Dominion fertility, which only has two physicians. And so they have one representative as well. It's a little bit like the Senate having two representative from each state. But But yeah, I mean, because the reality is, is that regardless of whether they're just talking to one other doctor or 12, they really need to make sure that that information is brought forward. It's discussed locally, and they are able to provide feedback in terms of what those what those protocols are.

Griffin Jones  10:12

Do they offer an equal vote and how the protocol comes to be?

Andrew Mintz  10:16

Yeah, so I think it's more of, you know, I think it's more of a discussion. And they come to consensus as opposed to voting things up or down. So you know, everyone recognizes that you can adopt a guideline that you think is going to be best for the organization, and then look at those outcomes. And if those outcomes aren't what you want, then you need to adapt your, your guidelines. So I'm not sure that we've actually taken a vote as much as there's been conversation and debate about the right thing to do. And, but everyone is dedicated to following the guidelines as they're created within the organization. So I don't think it's a majority rules type of, of atmosphere.

Griffin Jones  10:59

So that's my second question is, is how is the council governed, then, who makes the final decision who who releases the document, who drafts the document after, after the consensus is reached?

Andrew Mintz  11:16

Yeah, so we have the head of our medical director Council is Richard Mars, out of CFP. And he's the one that helps set the agenda. Um, he's collecting information from the clinics, and then coming up with recommendations to be discussed at the meetings. And so he is really kind of the driving force behind helping us prioritize what's important to the outcome, and the kinds of things that we're going to be addressing first, and how we're going to get there. So that's really how that's kind of organized, it's, it's a very, it's a free flowing set of conversation. So there's not a it's not a I wouldn't call it real formal, but they do come to decisions. And they do decide, you know which direction they want to go to. And we're just starting to scratch the surface. I mean, we're a new organizations, so they're addressing a handful of items, and they've got a handful or a long list of items that they really want to address going forward as well. You are

Griffin Jones  12:15

just scratching the surface, because now you've got a couple you your congratulations on that SRM acquisition, by the way, now you have a couple of dozen doctors across the, the the group thus far across the organization. Now, and, and, and people can come to consensus, but inevitably, people do not come to consensus every time in any organization. And we work with five Doctor clinics, and Dr. Nixon and I, I hear them not on the same page as each other. And very often, one doctor will be practicing a protocol in in office a and Dr. B is practicing a different protocol in office B. And and so when you inevitably run into, okay, there isn't a there isn't a complete consensus, maybe 70 or 80% are really on board and really feel strongly inevitably there's going to be a couple of people that feel strongly the other way. What do you do when you have established that protocol based on what the majority of the council sees it as best given the evidence? But there are a couple of people involved that don't want to practice that way.

Andrew Mintz  13:27

Yeah, so I mean, the first step is to create the protocol, the second step is to measure who's following it and who's not. And that's what we're in the process. So one of the things that we've also done is we've converted everybody to the same electronic record. So it makes it easier for us to be able to set things up within the system and for us to measure whether people are following the process as it's been decided. And so, you know, those are conversations, doctor to doctor, look, it's not a matter of whether they follow the protocol 100% of the time, there's no such thing as someone following the protocol 100% of the time, the issue is, are they documenting why they are not following the protocol, and there's going to be good reasons for it. So if there's a specific way under which we want to be stimulating a patient with a certain condition, and a doctor does not follow that protocol and does something else, if they're documenting why they're doing it, that allows us to be looking at that to understand how we need to expand our protocols to take care of different variables. So, again, being new, we have not yet I mean, we've created a handful of protocols and working on more. But really, these are long term studies for us to really determine whether in fact, they're giving us the outcomes we need, and who's following them. But we're really at the first step here of just making sure we create those protocols and and then we're going to start looking at who's following them and who's not and why.

Griffin Jones  14:50

And he talked about getting that measuring that as part of the EMR. You got everyone on the same EMR which is also not easy to do, which EMR did you choose? Did you make your own

Andrew Mintz  15:00

No, I mean, we don't start from scratch. So I mean, you know, there are, you know, everyone talks about using evidence based medicine. But the reality is that there's more than one protocol that's considered evidence based medicine. So I think there's not a lot of variation to begin with. And so I think

Griffin Jones  15:17

we're now referring to the protocol referring to the EMR that you chose your own proprietary, did you create your own proprietary EMR you chose another,

Andrew Mintz  15:26

we did not know, we, we moved to an assistant called Enable. And so we put everyone on enable, which we felt was has, right now the best capabilities to help us really connected with other technologies. So we've been really working hard on trying to use all the components of that system, to allow us to automate processes, and to really enhance the patient experience. So I've been talking a lot about, you know, creating and improving the clinical outcome. But the other piece of this is that we also really need to focus on the patient experience. And I think by having everyone on that same system and using technology to help us and the patient get through the process, I think that we're going to we're laser focused on that piece as well. So we need to make sure that patients are able to communicate to us effectively on time, we can be responsive to them, and there are the right people available to them. And the technologies are there to be able to interact with them appropriately get the information together and be able to present that to the patient, as well as recommendations and next steps. So we have not, at this point create our own electronic health record.

Griffin Jones  16:45

Well, let's talk about that shopping process. Because I think it'll be interesting to people. I'm not plugging one EMR over another. I am not I'm not qualified to do that we our clients use a number of them some of our clients use enable. But I think some people will be interested in to how you made that decision. I imagine there was a bit of a shopping or vetting process.

Andrew Mintz  17:06

Talk to us about that. Yeah, so we did that through all the IVF specific EHR systems out there. So we eliminated the ones that are more general electronic health records are used in the healthcare industry. And so there's a handful of ones in there. And we've actually done a review last year, and we recently did another one and just felt like it would meet our needs the best, especially in the way again, that it can integrate with technology, how some of the security issues that are, I think, available to it. And so really, we have a specific operational model that we have been employing in our practices. And we felt that this was just the best fit for that. And it's so far, it's, you know, it's worked for us because we're able to really collect the data. So at the end of the day, it's about how you use the electronic record system, as opposed to necessarily which ones you pick, this had features that we liked better that we think worked for us. And so that's how we made that decision. And that's what we're have moved are moving everyone onto that platform, what were those features that you liked? Oh, again, it was, you know, they have like two way texting with patients that gets embedded in the medical record and interfaces with the phone system, certainly in the way that it is built for the cloud. So it's not a server based system that was put in the cloud. It's a true cloud based system. So it has, we think some good security pieces in there. We felt that it was able to interface with vendors and and equipment more easily, giving us some good information, allowing us to bring it in and present it to the patient or want to, we'd like the patient portal, and the way that we could communicate to the patient. So there's just a bunch of things in there that sort of check the boxes for us. And, again, for the kind of operational model we use, I think that it just was a better fit. And so you know, the other ones have their I'm sure it have their advantages. We just felt like all the ability to use technology, all the think all of the capabilities that are built into the system that we are trying to take advantage of. We're just, you know, slightly ahead of, of where I think the other sports are there.

Griffin Jones  19:41

You mentioned wanting to improve the patient experience at a process level. What are some of the points in the process that you see is in need of fundamental repair?

Andrew Mintz  19:57

So there's there's a A fair amount, I think one is, you know, a number one has access. So, you know, being able to get patients in and get them through a IVF cycle that's efficient, that can make it efficient for the providers as well as the staff, I think is, is keep. So the biggest, I think hurdle in this industry for any practice is the fact that we still have a significant greater demand for services and supply of physicians and other providers to provide those services to them. And I believe that there is a room for innovation within practices that can allow for us to be able to service more patients in a very friendly way to get them through the system. And we can really sort of maximize the ability for patients to get in. So we still have clinics that have appointment, wait times that are three and four months out. It's too long, it's really unacceptable. And we need to solve that problem. So we think that the system will help us with automating processes and communicating to patients in a way that will make them more efficient. And so that's the first thing that I think needs to happen. The second thing is, is that I think we also need to meet the patients to where they are. So, you know, obviously, since COVID, you know, telemedicine has really caught on and it's here to stay. And I think patients like the convenience, I think a lot of them like the convenience, I think that they want to be communicated in a way other than a phone call, especially for the patients that we serve and the age group they're in. And so having the technologist that's allowed that we can text them to weigh that we can make sure that they're getting the information they need, we can embed the, the the videos that we have the educational materials that we have, and make sure they're getting through the process without someone having to call them and check in and we can sort of look at electronically will also help with that. So a lot of patients get lost through the process, they get lost at the beginning, because it's so overwhelming. And then they get lost through the process. And so to the extent that we can create processes, and have technologies that support getting these patients to understand what they're entering, and to help them get through the system efficiently, without being confused without being you know, without anyone falling through the cracks without missing something. Those are the things that I think are really key. And there's you know, story after story that I have seen where you know, patients, they get, you know, they get lost in this and they end up dropping out when they really need to continue through their IVF process or whatever fertility process. And

Griffin Jones  22:59

I have to say that I have to disclose that they're a sponsor before I ask the question, so it doesn't sound like a shameless plug, what are you using EngagedMD and all of your centers?

Andrew Mintz  23:10

Yeah. So I mean, we are rolling all these out and all of our practices. So they will all B have, they will have similar ways under which they are going to be processing patients. Obviously, there are differences from clinic to clinic, but we will be you know, we are continuing to roll out and refine our processes to make this efficient.

Griffin Jones  23:35

For those clients that are there, excuse me, those clinics that are three, four month out booking waitlist, and it's usually it's a couple physicians that are booking, it's often not the whole clinic unless it's a really small clinic in a really busy place. But for those that are booking out 12 plus weeks, is making that process more efficient include bringing some some of the testing that normally would happen after the first visit, and between the first visit and the follow up before the first visit.

Andrew Mintz  24:08

Yeah, so we are looking at the total process of care. And some of that is also, you know, some of the testing that we maybe can do in house to make that efficient as well. But we are looking at, you know, what's involved in a new patient visit what's involved in a follow up consult. And what information do they get between the first and the second and then before they start their cycle? What information do they get? And when do they get their medications and, and on and on. So we are looking at the whole process of care. We have mapped this out. And so we have a sort of a very specific philosophy about what should be happening at each step through the process. And the more consistent we can make that the better job we're going to do, of making sure that the patients aren't getting caught in the middle, you know, or Last,

Griffin Jones  25:00

can that also include some places the nurse does the follow up visit and the Ri does the initial visit, sometimes the REI does both. But some places the nurse does the first visit. And and so is that also part of this solution is a we? Well, maybe we used to do testing after the first visit. But now with this, with with booking this far out, that would mean that people can't get into the care system until that point. So we can we can do our testing before they come in for their visit we can we we can maybe have them meet with a nurse earlier so that that 12 week isn't isn't the first time they're seen. But it's the follow up with the RBI does does having either a nurse or an AP do the first visit is that in the playbook?

Andrew Mintz  25:50

Yeah. So I mean, we are invoking a type of license model. So we do not want physicians doing things that really only physicians can do we want advanced practice nurses to be able to do the things that they can do, we want RNs to do the things that they can do. And so we do have a general, a core set of services that we want each level to be to be doing. It depends on each mark, and, you know, each clinic. So in some clinics, we employ OB GYN who are doing some of that work as well. Some are have a really used nurse practitioners a lot others less so. But we do have a, a top a license philosophy. And so as we continue to integrate the practices, we will continue to be working on making sure that, you know, we're able to get doctors to do what doctors can do, which will help with the access issue. So if they're doing for example, you know, every single ultrasound, you know, that's not necessarily the most efficient use of physicians time.

Griffin Jones  26:57

I want to ask about the the inherent financing models of private equity, I'll let you know, Andrew, that I've been chewed out more than once by each side of being accused of being shill for private equity, that, you know, I'm in bed with these new private equity companies coming in and just using them to help buy clinics, which I'm not. And I've also been accused of being anti private equity and that, you know, I'm anti network and which I'm also not, I just I'm not qualified to evaluate the business models at that level, yet, I'm not strong enough in the finance piece of business in order to be able to say that maybe 510 plus years from now we'll be but right now, I'm very strong in the sales and marketing side. And I still feel like I have some pieces to shore up on that. And I and we are as a firm and so that's what I feel comfortable evaluating people on and I just ask people questions and I try to get them to respond to the counterpoints and, and so but I do hear a lot of the the model is inherently flawed, partly because of the debt that they have to service. And partly because I was stacked in favor of retiring doctors, and one of these folks that that mentioned, these boys is Dr. Ben White, he's a radiologist. And he's not in in Rei, but he writes about this a lot. And he says that the only doctors who can reliably benefit in private equity, are those senior partners close to retirement who can take their money and retire. So I'd like you to respond to that point.

Andrew Mintz  28:36

Yeah, I mean, to toe the truth grip, and I think it depends on who the private equity sponsor is, and what they are, you know, what are they trying to achieve? And what are they allowing the company to do? And so, so on one hand, I think there's two pieces to this one is, you know, and we see the stories is private equity, you know, destroying healthcare. And I can say that, in my experience working with Webster, which is the private equity, that company that controls, Pinnacle, is that they are very supportive of the strategies that that have been created. And that have been, you know, rolled out to the practices. And so we find a very, we have a board that is really pushing towards the successes of clinical outcomes, and patient experience, and caught and trying to find cost efficiencies for the patient. And I think that it creates a company that is sustainable strategy that's sustainable, that goes beyond who the private equity firm is. And so depending upon who it is, and I've worked with some that I think are very geared towards what's my return And I've quickly come to get it. And there are some that are really geared towards how can we build a great company? And what is it that we need to do to make that happen? I think we're gonna see more advances in healthcare is in fertility, particular, because of the investments being made. So I actually am very much in favor of allowing for investment in the industry, which I think it needs, when it comes to who does it benefit. I think it depends on how you define the benefit. But if you're talking about creating a company with with longevity, that is going to be competitive in the marketplace that has, you know, the latest technologies and equipment and provide the best outcome to the patient, I think that's a benefit to all physicians, whether they are near retirement age or not. And, in fact, those people who are younger will benefit from the investments that are being made now, that others may not in terms of the buyout that's going it goes out, you know, the buy up those towards the partners who own the clinic at the time. And so there is a one time, you know, financial gain to those positions. But I think if it's structured, right, you ensure that there, everyone's incentives are aligned. And that really, everyone's going to benefit from that. So we give, for example, we give equity to physicians that are, that did not own the practice, at the time of the sale, who have either we're either employed at the time or even employed after the transaction, we actually grant equity towards those associates. So they're tied into the whole value and, and the strategy, because the more successful the company, we want them to benefit from that as well. So

Griffin Jones  31:49

I think Woody in the private industry, me equity in the practice, or in the parent company, the parent company, for every associate or just for some associates that look like those are the ones that you want to stay on,

Andrew Mintz  32:02

for every Rei. So we give it to every REI has, is either been granted or is in the process of being granted equity in the parent company. And so they will own, you know, shares in the company, as does the private equity firm, as does the physicians who, you know, who bought who sold, you know, we're partnered with Pinnacle on that. So we find that an important aspect of tying everyone in. And for us, I think it helps with some of the some of the issues with turnover. So you know, the last thing that clinics can stand in this industry is to have physicians who are coming and going, it's disruptive, they're hard to find, access is already at a premium. So the better you can tie them into the success of the company, I think, the better chance you have of them staying and, and if you also create processes, and given technologies that make it easy for them to do their job, and they enjoy that and you create a culture of collaboration. And then they get to create a peer network of other physicians within pinnacle in this in this instance, I think it creates a winning strategy for doctors,

Griffin Jones  33:19

the investments that you talked about making it even if they all work, at the end of the day, it's about those investments are in service of getting our eyes to see more patients to be able to do more procedures. How much is there left to squeeze? Do you suppose before you're actually just squeezing?

Andrew Mintz  33:45

Yeah, it's not necessarily about the doctors working harder. Remember, we really want to move to a top a license model. So we really want them doing things that only physicians can do. So if they're working a 10 hour day, and, you know, they're doing, you know, consults for a few hours and and ultrasounds for another couple hours and then procedures for another couple of hours. The question is, what's the best use of their day? And how can that work? As opposed to how can we make you work harder, so that our support systems, more staff, more nurse practitioners, they may be able to assist and alleviate the work that are done by the doctors. And so the problem is still this imbalance between supply and demand. So the more that we can get people through the system, and the smarter we can work, the better we're going to be servicing the patient population.

Griffin Jones  34:41

I know a lot of doctors are seeing by 30 new patients a month it depends on how many partners they have and what kind of systems they have. But if we weren't to add hours into their week, and we were to do it with efficient processes, investment what What do you do? What do we suspect that that number is? Is it 50 new patients per month? Is it 60 new patients per month that we can, that we can get them to with pure efficiency and not hitting them with a, with a stick and dangling a carrot in front of their face?

Andrew Mintz  35:17

Yeah. First of all, I think that differs by doctor. So you know, they each process, you know, differently. I think we also need to be thinking about, you know, other ways to bring patients into the system. So, we talk about top of license, but the question is, can we train OBGYN is to do things that we aren't allowing OBGYN to generally do? Can we train nurse practitioners to do things like new patient intake, or to handle patients for cryopreservation, or for egg banking or some of those other things? So, again, I think we need to continue to innovate to make sure that people who want the service that they need can get it. But I'm not sure that that necessarily means that doctors have to see more patients in their day in order for us to significantly increase the ability for people to access and get through the process.

Griffin Jones  36:13

I want to shift gears for a second. Because I've had two different guests on with with different views on this. And I think it was back in episode 100. I had Mark Segal asked about he was asking about my opinion on what do I think about a network brand or partnership brand versus individual practice brands? And then I also had Gina bar tz on from kind body to talk about her brand, the global brand, that kind bodies building? In my opinion, Andrew is that I think that you all meaning that groups that have different brands from the parents organization and individual markets SRM in Seattle, or, or I'm in, in Portland. And I think that that I think that you all are at a disadvantage. It's like the IGA true value model where it's hard to scale brand to become a consumer brand. That is the pretty green lady from Starbucks that I think kind body has that advantage. Some people disagree with me, they think that it's better to have the local identity. Ultimately, I don't I don't think so in the in the longer run, I think you still have local reputation. Reputation is different from brand. But the whole point of brand is, is to be able to scale and identify. So you might think differently than I do. So I'd love to hear your side.

Andrew Mintz  37:44

Yeah, I mean, I think the branding strategy is to us not necessarily top of mind, in terms of some of the things that we're trying to accomplish. The reality is that these practices have local reputations, and the doctors themselves have local reputation. So there are some of our doctors who I think are known more so than for the name of the practice that they're in, let alone the national network that they're part of, I think that we will see over time that we'll be putting in some kind of tagline to our practices, such as, you know, a member of the pinnacle family, or something along those lines and create that, but I don't see the need for you know, the Starbucks of fertility, I just don't know that, that we need to create that kind of patient experience where they feel they can get the same thing when they go one to the other. If they're in Seattle, and they're going to go to LA and they want to go to Starbucks, they want they want to, they want to know that they're getting the same coffee made the same way. With the same process. I don't think that that's necessarily holds true in fertility, that what we do in Chicago, and what we do in Phoenix has to be exactly the same because we're not really servicing the same patient population, I think we will eliminate variations, but I'm not sure that that's going to be important to patients who are going to be accessing those services.

Griffin Jones  39:03

That's a good point from the repeat, you know, from the the repeat visitor, the repeat patient or in other fields, repeat customer side, it's not as necessary, which is part of what you want in a brand. You want people to just know what they're going to expect next, and they and they keep coming back. But in some areas like social media, especially, lots of people have lots of friends and they follow people in different markets. So to just being able to say I went to this place in New York, it was great. I went to this place in Chicago, and oh, there is one by me here in LA that that is useful. But also I think one thing that's just tremendously underused on the clinic side in our field is influencer marketing. We've seen the tip of it, but part of the reason why we haven't seen more is because up until very recently, there hasn't been somebody with one name that justifies a there a big price tag or a big Campaign for, you know these influencers to say, Yeah, we use x company.

Andrew Mintz  40:08

I just think that if we can provide the patient with the best possible outcome better than our competitors, and we can provide them with a good experience, I don't think that name is going to make a difference. And I think we're just going to stay focused on really those two aspects of the business and worry about the branding as time goes on. But at the end of the day, I'm on a much more sort of focused in on, how can we improve our outcomes? How can we improve our live birth rates? How can we make sure that patients are feeling like they were cared for through the process? And if that feels the same from clinic to clinic over time? That's great. If they're not called the same thing? I it, frankly, not that important to us.

Griffin Jones  40:51

You're doing something right, because you move very quickly, you said October of 2021 is I think, is when you decided on the pinnacle name, and it was in the second half of the 2021 that you closed on? Is it six practices. And and some of those are are ones that all of the other groups would have loved to have closed down. And so talk to us about your courtship process. Why was it successful in that short amount of time?

Andrew Mintz  41:22

I think that they buy into our strategy and our value. So our core values that we have around, you know, putting the patient first collaboration, integrity. These are I think, what speak to them. So we have

Griffin Jones  41:38

nobody says we put the patient last Andrew and nobody says we're a bunch of dishonest dirtbags that are gonna stab you later. So how were you able to actually demonstrate that?

Andrew Mintz  41:47

Yeah, I think that when we talk about not just that we have values, but that we live our values. So the creation of our lab director Council, and our medical director Council, for example, is a tangible thing that they can see that we're actually living our values. And so I think that's important when we go and have conversations with them about, we have these values, and this is how we live them. Here's our strategy, here's specifically how we are achieving these goals that we set up for themselves in terms of outcomes in terms of, you know, patient care, in terms of, you know, the patient experience in terms of all kinds of things. So we have some very specific goals for ourself. And, and we tell them specifically how we're going to get there, and what their and what their role is. And I think they get excited about it. Frankly, there's a there's more than one several practices that we had conversations that either we didn't think that they would fit well into our strategy in terms of them really participating it or they didn't like our strategy. And so from our perspective, that's okay, too. In that we think that we are partnering with those that are really dedicated to making that happen. And they have to take actions to make that happen. So the fact that they are participating on these committees, that they're adopting our protocols that they are, you know, we announced a partnership with genomics for our, our PGT testing, and everyone's now going to be sending to a genomic so that we can get consistency in terms of results. I mean, these are things that we are doing tangibly to make sure that we're getting the best outcomes. And I think that they see in the early days, they saw the vision and they bought into the vision. In the more recent days, they're seeing that we're actually executing on our strategy. And I think that speaking to who are partners in?

Griffin Jones  43:41

Yeah, so how did you how did you paint the vision? Because you, you did it before you even had a company name in many cases? So did you did you like bring a handful of people with you? Did you have Did you have some kind of storyboard? How did you you're successful in bringing some pretty big groups in before you even had like a cohesive exterior identity. So how did you How were you able to articulate the vision without that,

Andrew Mintz  44:12

so we set our we set a strategy and our strategy has some very specific goals. And so we were able to bring that out with us in terms of what we were going to do and how we were going to get there. Some of it is definitely leap of faith. So they looked at this and maybe they just saw something different than what others were doing. I can't speak to what the other networks are doing or what their strategies are other than what they share on your podcast or or on LinkedIn or something else. But I think that they really liked the concept and you know, selling the, you know, the whole collaboration piece you're going to work with other clinics are going to have peers, you're going to be sharing information and you're going to be making changes and making improvements and those be Pull to recognize that, in fact, that needs to happen. Even though some of our clinics have some of the best outcomes, I think in the country, the reality is that they all know that they can do better. And so the those that are more entrepreneurial, and spirit, those that are really understanding that, you know, change is not going to be avoided, that they have to embrace it. I think those are the ones that are really sort of gravitated to our strategy and our and our values, our mission, in terms of, you know, the thing that the steps that we're going to do to take to make some change now, you know, some of that is also, you know, comes with changes in process and changes and in partnerships and those kinds of things. And everyone recognizes that all that has to be reevaluated. So I think the clinics that we've been able to partner with have that same mindset, and those that have decided that we're not the best partner, maybe just have a different view or, or buying into, you know, the, you know, the mission of, you know, a competing platform, which is fine, too, there's plenty of that to go.

Griffin Jones  46:14

So you mentioned sometimes that it isn't a good fit, either. They don't think you're good for you don't think they're a good fit, what are some of the things that that tell you fairly early on or not even early on, at some point in the process, that it's not going to be a good fit.

Andrew Mintz  46:31

So two things are real red flags for us. One is, when they're only discussing money, then we know what the motivation is. And I'm not saying that money is not an important part of the conversation, but when they're fixated on the money and only the money, then then we know that they're really in it for the money. And that's not really the partner that we're looking for. The second thing is that we have a specific business model, you know, we when we ask them to roll equity, they roll it into the parent, not into the local. And so when they start when they start having conversations with you about changing the way and your philosophy about how you're approaching your partnership, then we recognize that maybe that's not there, too. And then, you know, we also do our own reviews of that as well. So, you know, we are looking at operations in the lab before we, you know, before we sign, you know, our definitive agreements, and we really need to make sure that, you know, they have a basis that we can build from, and not all clinics that we saw necessarily.

Griffin Jones  47:43

So they're getting equity in the new so part of you taking equity in their group is that they are doing that in exchange for equity, some partly, your cash is involved, too, but equity in the in the parent company, is that what you're

Andrew Mintz  47:59

talking about? Correct? That's correct.

Griffin Jones  48:03

What's the advantage of doing it that way?

Andrew Mintz  48:06

I think, you know, it allows them to buy into the full strategy of the organization. So if we are going to be building their own egg bank, for example, then they're going to be interested in figuring out how to make that as good as possible. And for them to be participating in the building and the use of an egg bank, as opposed to well, that's a separate financial, it doesn't really hit me. And therefore I'm sort of less invested in the outcome of how some of these, you know ventures are doing. So from our perspective, we like them to be supporting the strategy as a whole and them to be, again, part of that collaboration is that for all on the same page, so if it's good for, you know, if it's good for the organization, it's good for them, as well, as opposed to maybe advantage, one group over another for whatever reason. And, you know, we certainly don't want there to be competition within the organization, regarding who's getting more profits, we really want that ball to come into pinnacle. And for them to be incentivized to the pinnacle level.

Griffin Jones  49:19

I can see the upside of that. And sometimes there's a downside if people don't buy into the parent organization, and then it's just, it's just flipping the current. It's just flipping that the current practice, it's like, well, how much efficiency was really added and how much did we miss out on by not being a part of the network? So I can see the advantage of that does that put them at more of a risk for an Integra mat situation if my equity is here in this parent company now and then this parent company just took? Yeah, just bit the dust and, and now I don't have anything over there.

Andrew Mintz  49:53

Well, I think there's a lot of learnings from Integra med that I think everyone has taken with them Whether they were part of that network or not work, I mean, I think that because we have so many physicians involved at so many levels in the organization. So it's not just the medical director and the lab director concept, but we got someone who, you know, one of our physicians acts as a part time cmo for us. One of our physicians is leading a, our, our efforts on research and clinical trials, we have a physician who's leading our efforts on international marketing and other kinds of activities that sort of get them engaged and how it's going to work for the network as a whole, the more they participate in that, the more excited they are for it, and the more they're sort of willing to, to make it work. You know, I can see on the downside, which is, you know, what I do individually doesn't have as big of an impact to the whole organization as if it was just my clinic, but really don't have people thinking that way, at this time, at least. And so for us, it's been nothing but exciting to see the growth and the engagement that we're getting from our physicians and our practices to help Pinnacle be successful. And, and there were, they're starting to refer themselves as Pinnacle clinics, you know, over the name of their local brand. And, and, you know, internally, I mean, we don't clinical is not a patient facing brand, but it certainly is speaking to them in terms of what we're trying to do. So we're just loving the engagement that we're getting. And we're finding new ways to engage more and more physicians in the process.

Griffin Jones  51:45

For the audience that doesn't know Al Ries and Jack trout were two of the the like marketing thinkers of probably 80s, early 90s. I think Donny Deutsch, David Ogilvy, nowadays, Gary Vaynerchuk, they have that many books, they have a book called The 22 Immutable Laws of marketing, which I don't think is as relevant, I don't, I don't think they're I no longer think they're immutable, or at least many of them. I think some of them are mutable, but one of the rules that they have is the law of the category. And, and in that if you can't be the leader of a category, you create a new category of think of, well, you know, I'm not going to be the top personal injury attorney in my marketplace, but I can be the top personal injury attorney maybe for workplace accidents, and I'm going to own that category. And so, as long as we're speaking of just IVF centers, Fertility Centers is one category that hasn't fragmented in that way. Another one of their laws is that every in the end, every category becomes a two horse race. There's no RC Cola anymore. It's Coke and Pepsi. And, and I think there's, I don't know that that's true in every category. But do is that what we're going to see in the fertility field, is it so we've got pinnacle, we've got inception, Prelude we have. We've got us fertility, we've got the fertility partners, we've got IV somebody's gonna be really pissed at me for forgetting, you know, first facility, Boston, IVF, you know, somebody's gonna be mad at me. I'm going to forget somebody. But we have, you know, 678 network groups now. And is it inevitable that there's two of them and a number of years?

Andrew Mintz  53:33

Yeah, I mean, I think we'll see that we saw that with EDR. Ma. Right. So that was there an international play, and more so than, than local, but I would think that over time. The network's you know, there's only there's only 450 Some clinics in the United States. And, you know, some of them just are, you know, maybe investable. And so I think at some time, there will be conversations, if they're not already happening among the platforms to be combining their efforts into, you know, a single play, it would really, really have to show the advantages to making that happen. And I think that there, there is an could be. And so I would expect over the next few years, we may see that we may see platforms starting to come together. So if that's

Griffin Jones  54:25

the case, then it seems to me like some platforms would be incentivized to get gobbled up rather quickly. They they acquire a number of clinics, all of a sudden they are a company with a healthy balance sheets, they can get a multiple of the multiple that they purchased on which returns what their obligation to their limited partners. And so I could see some companies that may be where they were in business as a network partnership for a year or two. Become acquired by another one and And if that's the case, our practice owners not missing out on something because it's like, well, should, I should I could have just tried to build that multiple, that we ended up selling for more by myself.

Andrew Mintz  55:18

Welcoming, hindsight. 2020 So the reality is though, the woulda, coulda conversations I'm sure people have with themselves all the time, I think that we are going to see that. I think that in this industry, what we're going to find is that strategy, and and I think culture are going to win out. You know, we're, we're working in a very niche healthcare environment, right. And so certain, there are certain things that we don't see in fertility that you see in many other areas like, like burnout. Burnout is not nearly as prevalent in fertility as it is, let's say, an OB GYN. And so I think that we're going to find that people will continue to engage and stay engaged. And I think that these as these platforms come together, you'll find that you'll find a lot of interest from the partners to make it that much more successful. So if they have rolled equity or granted equity, I think that they will continue to want to have a stake in the game, and make sure that the kinds of collaboration and strategic initiatives that need to happen will happen. And I think we're going to continue to see that, at least in my lifetime.

Griffin Jones  56:46

I've, I've grilled Jaya, and you've been a great sport and and showed people what what they can consider with Pinnacle the our audiences, almost all practice owners, fertility execs, peers of yours, how would you want to younger Doc's? How would you want to conclude with them? Andrew?

Andrew Mintz  57:06

Well, I think what we really want is we want physicians to step up. So we are plagued infertility with a whole set of physicians that are called in or close to retirement. And what we need is we need future leaders. And I think the time is better now than ever. And so being able to go into a platform, such as pinnacle, or any of the others that you mentioned, and and be able to create opportunity for themselves in terms of leadership is never been stronger. And so I would really encourage physicians who are already in or about to enter the rd by field to really think about how to make it better. What can they do that their predecessors haven't? Haven't done? What kinds of ways can they take advantage of new technologies and investment that can take it to a whole different level, and I'm eager to see what some of these new strategies and some of these new adopters are going to come forward with and, and then see what happens. So I'm excited for the future and I can't wait for you know, seeing what's next, what new competitor comes in and what our existing competitors are doing to raise the bar.

Griffin Jones  58:33

We will link to Pentacles website in the show notes and as well to your LinkedIn profile for those that want to get in touch with you. Andrew Mintz, CEO of Pinnacle fertility, thank you very much for coming on inside reproductive health.

Andrew Mintz  58:48

Thank you, Griffin. Appreciate it.

58:50

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