Latest / Bloomberg Intelligence / Cleveland Clinic's Cosgrove on Medical Innovation Impact(Audio)

Transcript

Cleveland Clinic's Cosgrove on Medical Innovation Impact(Audio) · Bloomberg Intelligence

• 0:04
  Speaker 1: Broadcasting live to New York, Bloomberg eleven Rio to Washington,
• 0:08
  Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco,
• 0:13
  Speaker 1: Bloomberg to the country. See is Exam General one nine
• 0:17
  Speaker 1: team and around the globe the Bloomberg Radio Plus athen
• 0:21
  Speaker 1: Bloomberg dot com. This is taking Stock. I'm Kathleen Hayes,
• 0:27
  Speaker 1: a very special show today. We're broadcasting live from the
• 0:30
  Speaker 1: Federal Reserve Bank of Cleveland. Coming up will very exclusive
• 0:33
  Speaker 1: interview with Cleveland Fed President Loretta Mester. How did that?
• 0:37
  Speaker 1: We're looking at the Cleveland economy. Coming up Dr Toby
• 0:41
  Speaker 1: gos Cosgrove, CEO of the Cleveland Clinic. Their model is
• 0:45
  Speaker 1: known across the country. We're going to find out more
• 0:48
  Speaker 1: about their work and how medical innovation is driving the
• 0:52
  Speaker 1: regional economy. Now, let's get back to our own Katherine Cowdery,
• 0:56
  Speaker 1: She's back at Bloomberg World Headquarters with a Bloomberg Business Flash, Ky, Kathleen,
• 1:00
  Speaker 1: or a stock market starting off the fourth quarter with
• 1:03
  Speaker 1: a retreat. Utilities and real estate companies are down the most.
• 1:06
  Speaker 1: Nine of the eleven sectors in the S and P
• 1:08
  Speaker 1: five hundred are lower. A report on manufacturing is fueling
• 1:11
  Speaker 1: speculation that the Federal Reserve will raise interest rates. Is here.
• 1:14
  Speaker 1: Manufacturing expanded at AM not as space in September after
• 1:17
  Speaker 1: unexpectedly shrinking a month earlier. The report from the Institute
• 1:21
  Speaker 1: for Supply Management underscores a limited progress for the battered sector.
• 1:25
  Speaker 1: Michael Faroli chief he was economist at JP Morgan Securities,
• 1:28
  Speaker 1: on that manufacturing report. The August I s M was
• 1:32
  Speaker 1: a bit of a disappointment. I think what we saw
• 1:34
  Speaker 1: today was a lot of that being sort of repaired.
• 1:36
  Speaker 1: So we're back kind of to where we were in
• 1:38
  Speaker 1: June July, which is not, you know, very expansive levels,
• 1:41
  Speaker 1: but it is at least above fifties, so uh so
• 1:44
  Speaker 1: it's a positive development. I think manufacturing is slowly getting
• 1:47
  Speaker 1: back on its feet, but it's uh I wouldn't call
• 1:49
  Speaker 1: the robust manufacturing sector that we're looking at. We check
• 1:53
  Speaker 1: in markets every fifteen minutes throughout the trading day down
• 1:55
  Speaker 1: Industrial leverages down fifty eight point a third of a percent,
• 1:58
  Speaker 1: trading at eighteen thousand, two hundred five d SMP five
• 2:01
  Speaker 1: foundered down eight points four tents of a percent nine
• 2:04
  Speaker 1: and as Jack is down seventeen points a third of
• 2:07
  Speaker 1: a percent, trading at less Texas Intermedia. Crude oil up
• 2:11
  Speaker 1: forty seven cents a barrel, again of one percent at
• 2:13
  Speaker 1: forty eight seventy one, spickled down three dollar sixty cents
• 2:16
  Speaker 1: agounce at thirteen thirteen fifty, and the Tenure Treasury down
• 2:19
  Speaker 1: seven thirty seconds with the yield of one point six
• 2:22
  Speaker 1: two percent. Among today's top business stories, auto sales came
• 2:26
  Speaker 1: in stronger than analysts anticipated in September, fueled by record incentives.
• 2:30
  Speaker 1: It suggests that there may still be some steam left
• 2:33
  Speaker 1: in the auto industry six year growth spurt. Nissan's US
• 2:36
  Speaker 1: sales rose at four point nine percent compared to last year.
• 2:39
  Speaker 1: And now let's get an update of some of the
• 2:41
  Speaker 1: other stories were following at Bloomberg Radio today. Thank you
• 2:45
  Speaker 1: Katherine from the Bloomberg Newsroom. I'm Matt Miller. The Washington
• 2:49
  Speaker 1: Redskins lost a bid to go straight to the Supreme
• 2:51
  Speaker 1: Court to reinstate the team's US government trademark. Federal protection
• 2:55
  Speaker 1: of the brand was officially revoked for being offensive to
• 2:58
  Speaker 1: American Indians, but Bloomberg's Bob Moon reports the team could
• 3:02
  Speaker 1: still find some support for its case. What does a
• 3:05
  Speaker 1: football team name the Redskins have to do with an
• 3:08
  Speaker 1: Asian American band named the Slants. Both insist their names
• 3:11
  Speaker 1: aren't disparaging and contend they have a right to protect
• 3:13
  Speaker 1: their trademarks. While the Supreme Court won't act on the
• 3:16
  Speaker 1: Redskins appeal, it'll hear the band's argument that it has
• 3:18
  Speaker 1: a free speech right to turn a slur into a
• 3:20
  Speaker 1: name of pride. The football team owners have made a
• 3:23
  Speaker 1: similar argument in their public relations campaign. The Washington Redskins
• 3:27
  Speaker 1: stand for strength, courage, and respect. What the High Court
• 3:29
  Speaker 1: decides about the rock bands controversial name could thus affect
• 3:32
  Speaker 1: the Redskins lawsuit. The Supreme Court ruling is due by
• 3:35
  Speaker 1: next June. Bob Moon Bloomberg Radio Hurricane Matthew is expected
• 3:39
  Speaker 1: to bring a seven foot storm surge and as much
• 3:41
  Speaker 1: as forty inches of rain to some parts of Haiti.
• 3:44
  Speaker 1: Hurricane specialist John Canjelosi at the National Hurricane Center says
• 3:49
  Speaker 1: the storm shows no signs of weakening, for we think
• 3:53
  Speaker 1: hurricane force winds are expected across the island beginning leader
• 3:56
  Speaker 1: today and tonight, uh similar conditions for winds in Jamaica.
• 4:01
  Speaker 1: Matthew is packing winds near one hundred thirty miles per hour,
• 4:05
  Speaker 1: and the engineer of a commuter train that crashed in Hoboken,
• 4:09
  Speaker 1: New Jersey, killing one person and injuring more than a
• 4:12
  Speaker 1: hundred told investigators he has no memory of the crash.
• 4:16
  Speaker 1: One recovered data recorder wasn't functioning. Investigators are still looking
• 4:20
  Speaker 1: for a second. Globen is twenty four hours a day,
• 4:22
  Speaker 1: powered by over twenty hundred journalists and analysts and more
• 4:25
  Speaker 1: than one of the twenty countries. I'm Matt Miller. This
• 4:28
  Speaker 1: is Bloomberg, Catherine, thank you, and coming up the Bloomberg
• 4:33
  Speaker 1: Healthcare segment, brought to you by Triton Benefits and HR Solutions,
• 4:36
  Speaker 1: one of the countries leading benefits providers. Visit Triton Benefits
• 4:39
  Speaker 1: dot com. That's t r I t O N Benefits
• 4:43
  Speaker 1: dot com or call eight five five, okay Triton. Here's
• 4:47
  Speaker 1: an update of the benchmark. Stow Industrial lverages down fifty
• 4:50
  Speaker 1: two points at eighteen thousand, two hundred fifty six, SMP
• 4:52
  Speaker 1: five foundered down eight points at sixty, and the nastack
• 4:55
  Speaker 1: is down sixteen points at fifty two ninety six. And
• 4:58
  Speaker 1: that's a Bloomberg business five. This is taking stock with
• 5:04
  Speaker 1: bim box at Kathleen As on bloom Bird Radio. We
• 5:09
  Speaker 1: are broadcasting line today Cleveland, the Federal Reserve Bank of Cleveland.
• 5:13
  Speaker 1: Coming up our special interview with Loretta Mester, President of
• 5:16
  Speaker 1: Cleveland FED. We're serving the Cleveland economy. Ahead of that interview.
• 5:20
  Speaker 1: Very happy to welcome now one of the big drivers.
• 5:24
  Speaker 1: That's Dr Delas Cosgrove, known to just about everybody as Toby, President,
• 5:28
  Speaker 1: CEO and director at the Cleveland Clinic. Welcome to the show.
• 5:32
  Speaker 1: Thank you very much player to be here. Well, Toby
• 5:35
  Speaker 1: start by telling us our listeners about the Cleveland Clinic
• 5:38
  Speaker 1: and what it does. It does a lot. Well, Cleveland
• 5:40
  Speaker 1: Clinics started at different the way we're organized. We're a
• 5:43
  Speaker 1: group practice of about uh and we are all salry.
• 5:48
  Speaker 1: There's no financial incentives or bonuses for the doctors or
• 5:52
  Speaker 1: anybody else here. We all have one year contracts um
• 5:56
  Speaker 1: and we have an annual professional review. The reviews equality
• 6:00
  Speaker 1: of the physicians who participate, so that I think that's
• 6:03
  Speaker 1: a very major difference from almost any other organization the
• 6:06
  Speaker 1: United States. Well, one of the things that caught my
• 6:09
  Speaker 1: eye that you have been talking about is medical innovation
• 6:13
  Speaker 1: and the rebirth of cities. How is that happening. How
• 6:16
  Speaker 1: is it happening in Cleveland. Well, this has been a
• 6:19
  Speaker 1: very big project for us UH, and we have put
• 6:23
  Speaker 1: together away to begin to take the intellectual capital of
• 6:26
  Speaker 1: the Cleveland connect and the things that are thought up
• 6:28
  Speaker 1: here and begin to spin them out into the community.
• 6:33
  Speaker 1: So far we have in the last fifteen years have
• 6:36
  Speaker 1: about a thousand patents and the spun off over seventy
• 6:38
  Speaker 1: countries companies. Most recently UH company that we started to
• 6:44
  Speaker 1: hear was called Explorers, which collected the fifty million patient
• 6:49
  Speaker 1: records and was sold recently to IBM for their use
• 6:53
  Speaker 1: and their Watson Health h There's also so there's lots
• 6:58
  Speaker 1: of companies here. There's about seven UM medical UH companies
• 7:04
  Speaker 1: in Northeast Ohio at this time, which has really begin
• 7:07
  Speaker 1: to change the look of the economy of Northeast Ohio.
• 7:11
  Speaker 1: What does the what does the city have to have
• 7:13
  Speaker 1: to attract the talent, find the workers and make this
• 7:17
  Speaker 1: model grow. Well, I think the two things that come together.
• 7:21
  Speaker 1: First of all, you have to have a great healthcare
• 7:24
  Speaker 1: delivery system. And if you look at almost any city
• 7:26
  Speaker 1: in the country, the biggest employer in the city, UH
• 7:30
  Speaker 1: is the healthcare industry, which is also the biggest industry
• 7:35
  Speaker 1: in the United States now that is attracting a lot
• 7:38
  Speaker 1: of people with the great ideas and great intellectual capacity.
• 7:44
  Speaker 1: And the question really is how you harness that and
• 7:46
  Speaker 1: how do you encourage it? And we've incurred, we've tried
• 7:49
  Speaker 1: to encourage that every way we can here the Cleveland
• 7:52
  Speaker 1: connect to begin to drive that out into the the economy.
• 7:57
  Speaker 1: The second part is that we need to have great
• 8:00
  Speaker 1: universities and bringing great intellectual capital to your city. And
• 8:05
  Speaker 1: so the medicine edds that go together are building a
• 8:07
  Speaker 1: lot of economies and cities where it used to be
• 8:10
  Speaker 1: steel and auto parts. Now, if you look at some
• 8:15
  Speaker 1: of the challenges facing healthcare, one of them, of course,
• 8:20
  Speaker 1: we're seeing, uh the exchanges closing down. A big question
• 8:25
  Speaker 1: marks now over the Affordable Care Act Obamacare. How is
• 8:29
  Speaker 1: that in any way affecting Cleveland, the region, even the
• 8:34
  Speaker 1: Cleveland Clinic. Well, I think it's affecting health care across
• 8:37
  Speaker 1: the country. And what we realize that we need to
• 8:39
  Speaker 1: do is just be more efficient in how we deliver care.
• 8:43
  Speaker 1: So we realize that we have to take a really
• 8:46
  Speaker 1: over a billion and a half dollars out of our costs,
• 8:49
  Speaker 1: and so far, we've taken about seven million dollars out
• 8:52
  Speaker 1: over the last couple of years of our costs, and
• 8:55
  Speaker 1: we will continue to work on that. We need to
• 8:58
  Speaker 1: have our be more accessible for our patients and to
• 9:04
  Speaker 1: deliver care in a different, more efficient sort of way.
• 9:08
  Speaker 1: The other part of that is, clearly, if we're going
• 9:10
  Speaker 1: to have an economy that pays less for its health care,
• 9:14
  Speaker 1: we have to put a major emphasis on keeping people well.
• 9:17
  Speaker 1: Um and happily we have been able to do that
• 9:21
  Speaker 1: in our eight thousand dependence here at the Cleveland Clinic.
• 9:25
  Speaker 1: We have seen our health insurance costs in fact, go
• 9:28
  Speaker 1: from inflating at seven a half percent a year to
• 9:31
  Speaker 1: actually hit it down now. Uh So that's been through
• 9:35
  Speaker 1: a lot of wellness and yeah so in terms in
• 9:39
  Speaker 1: terms of the costs. Though as a as a patient
• 9:42
  Speaker 1: who has a good health care insurance, I'm sometimes frustrated
• 9:45
  Speaker 1: by how difficult could be defile acclaim codes and all that.
• 9:48
  Speaker 1: I'm sure on your end, regulations and so much paperwork
• 9:52
  Speaker 1: people have to employ staff just to do that. Is
• 9:54
  Speaker 1: that too heavy handed by the government or by the
• 9:56
  Speaker 1: insurance companies? Well, we we are reporting now over a
• 10:00
  Speaker 1: hundred uh quality metrics to the federal government. In fact,
• 10:04
  Speaker 1: if you look at the Affordable Care Act, there's sixteen
• 10:07
  Speaker 1: thousand pages, which stacked up on top of each other,
• 10:10
  Speaker 1: come to seven feet tall um in the number of
• 10:14
  Speaker 1: regulations and that are have now been put upon us.
• 10:18
  Speaker 1: So this is a very big issue. Uh, there's no
• 10:22
  Speaker 1: uniformity of insurance companies having what their quality metrics are.
• 10:27
  Speaker 1: They're not the same as the governments and we really
• 10:30
  Speaker 1: need some relief from that, some standardization. Well, thank you
• 10:34
  Speaker 1: for taking time for us today. We really appreciate it.
• 10:37
  Speaker 1: Toby Costgrove Dr. Costgrow is president, CEO and director of
• 10:41
  Speaker 1: the Cleveland Clinic, one of the big drivers of the
• 10:45
  Speaker 1: Cleveland economy. Yet ready, she's coming up in the next hour.
• 10:50
  Speaker 1: Laretta mester Ore Exclusive interviews. She's president of the Cleveland Fed.
• 10:55
  Speaker 1: I'm Kathleen Hayes. This is Bloomberg. Bloomberg Taking Stock is
• 11:03
  Speaker 1: brought to you by Commonwealth Financial Network. When it's time
• 11:05
  Speaker 1: to change a conversation, talk with a broker dealer R
• 11:07
  Speaker 1: that's ready to listen, call eight six sixth or six
• 11:10
  Speaker 1: two three sixth three eight or visit Commonwealth dot com
• 11:12
  Speaker 1: to learn more.