NeuroFlow CEO Chris Molaro interviews Dr. Stephen Klasko in the Bridging the Gap interview series
Welcome to Bridging the Gap, a new interview series that brings together thought leaders in healthcare to discuss innovations impacting behavioral health. In this episode, NeuroFlow CEO Chris Molaro sat down with Dr. Stephen Klasko, Former President and CEO of Jefferson Health. Currently Dr. Klasko is an Executive in Residence at a venture capital firm General Catalyst. He and Chris discuss how to drive healthcare innovation, and in particular, the challenges of moving toward value-based care.
Tune in below, and check out some of the top soundbites from this episode.
On driving healthcare [10:16 – 11:17]:
Dr. Klasko: I think that we’ve been able to survive with that risk averse mentality, just doing the same thing, being more inefficient, being more lethargic, and then going to the insurers and say, “We need an extra 4% case we’re more inefficient.” That’s obviously all gone, which is why we’re stuck in this. . . The payors now have a lot more of the ability to manage things and we don’t have a playbook.
You’re an athlete. The key to almost any game is what happens in the second half, right? Whatever they said at halftime, we gotta do differently. The traditional healthcare ecosystem is not good at that. If you look at the Blues in this country, they have a playbook, and if that doesn’t work, they don’t have they don’t have a second play.
That was the thing that I’m really proud of that our team did. We have to bring in people to do this, but we had a plan B, a plan C. We had a playbook, and when something didn’t work or when somebody was angry about something we did, we had the next step, and that’s my advice to healthcare leaders.
On launching successful value-based care within The Villages [20:02 – 22:20]:
Dr. Klasko: The reason it works, Chris, is it’s the exact opposite of the traditional healthcare system. The traditional health care system is generally run by sub specialists. It’s the neurosurgeons, it’s the cardiovascular, because that’s where the revenue is coming into hospitals. Family medicine is often off to the side. . .
So the Villages did that. They basically said, “Look, we’re gonna bring in 50 primary care doctors, and they are going to run the system. They’re going to run, basically, the whole Villages Health, and we’re not going to have any hospitals. We’re not gonna necessarily have any specialists, but we’ll pick our specialists. And if somebody’s ordering three nuclear scans, you know, that’s not where they’re gonna go. And we’re gonna partner with United and Humana and Florida Blue basically really do value-based care.”
And so the Villages have a Medical Loss Ratio of 60 which is, best in breed. And then I think they have a risk-adjusted factor like 1.62 or something. So there’s just nobody like that.
Chris Molaro: But can you replicate that elsewhere?
You can. I think the place to start, and this would be good advice for anybody that’s starting a company around value-based care, is to look where there’s total payor-provider alignment. So it’s easy in places like UPMC, or Geisinger would be a great example.
Check out the full discussion in the video below!