Latest / Becker’s Healthcare Podcast / Leading Rural Healthcare Through Growth and Innovation with Matt Heywood
Transcript
- 0:02- There's a small circle of people who truly
- 0:04- understand what it takes to lead a health
- 0:05- system right now. The decisions are enormous.
- 0:08- The variables are constantly shifting, and the stakes
- 0:11- of getting a call wrong don't stay contained.
- 0:14- That's not a complaint. It's a structural reality.
- 0:17- And it's why the most effective c suite
- 0:19- leaders are deliberate about where they go to
- 0:21- pressure test their thinking.
- 0:22- Becker's fourteenth annual CEO and CFO roundtable
- 0:26- brings together more than 1,500
- 0:28- executive level attendees
- 0:30- and nearly 400 speakers for four days built
- 0:32- around growth, financial sustainability,
- 0:35- workforce strategy, and the leadership questions that don't
- 0:38- have easy answers.
- 0:39- Join us November second through the fifth in
- 0:41- Chicago.
- 0:42- For the agenda and event details,
- 0:45- visit beckershospitalreview.com
- 0:47- and click on the events tab in the
- 0:49- upper right.
- 0:50- This is Scott Becker
- 0:52- with the Becker's Health Care podcast.
- 0:55- We're thrilled today to be joined by a
- 0:57- brilliant leader, but we're joined today by Matt
- 1:00- Haywood.
- 1:01- Matt's the CEO and president at Aspirus Healthcare,
- 1:05- a a great health system in Wisconsin.
- 1:08- We're gonna talk to him about both trends
- 1:10- he's watching,
- 1:11- what he's most focused on,
- 1:13- what eFib is, and we'll get to that
- 1:15- later,
- 1:16- the University of Michigan, and a lot more.
- 1:19- Matt, let me ask you to introduce yourself.
- 1:21- You've had this brilliant career.
- 1:24- Talk about your career and about Aspirus Healthcare.
- 1:28- My name is Matt Haven. I'm president and
- 1:30- CEO of Aspirus Health. Thanks for having me,
- 1:32- Scott.
- 1:33- I have been actually here at Aspirus Health
- 1:36- for thirteen years. I'm going on my fourteenth
- 1:38- year, starting in early July.
- 1:41- When I got here, Spires Health was about
- 1:44- a $600,000,000,
- 1:46- net revenue health care system, mainly one hospital
- 1:48- with a few a few affiliated hospitals.
- 1:51- And we were in the Midwestern
- 1:53- part of the Upper part of Wisconsin.
- 1:57- And,
- 1:58- for the last about thirteen years,
- 2:01- we have been working to grow and integrate
- 2:04- ourselves, and we've now achieved $3,300,000,000
- 2:07- in net revenue. We cover
- 2:09- upper parts of Minnesota, Wisconsin, and Michigan now.
- 2:13- We have,
- 2:15- 18 hospitals and a 130
- 2:17- clinics.
- 2:18- And I think what we're most proud of
- 2:20- that many people may not know about Aspirus
- 2:23- Health is that we really when you look
- 2:26- over a five year time horizon
- 2:28- and look at a lot of the public
- 2:29- metrics, we are a top 15 health care
- 2:32- our top 15% health care system in the
- 2:34- country. When you look at our inpatient quality,
- 2:36- our outpatient quality,
- 2:38- our service metrics,
- 2:40- our growth and our financial metrics, and when
- 2:42- we try to look at some of our
- 2:44- people metrics, they're not as public. But we,
- 2:47- from what we can gain,
- 2:48- some knowledge on, we have some very strong
- 2:50- people metrics as well. So our organization has
- 2:53- had a phenomenal year recently,
- 2:55- on a continuation of a number of great
- 2:58- years, and we just ended with a 5%
- 3:00- operating margin and met many of our goals
- 3:02- in our five pillars I just described.
- 3:06- So so simply remarkable.
- 3:08- And talk a little about your career path.
- 3:11- I know you were a Dartmouth undergraduate,
- 3:13- then went to the University of Michigan, which
- 3:16- we try try never to allow anybody to
- 3:18- talk about, but a great institution.
- 3:21- But but talk about your career path from
- 3:23- you sort of a bachelor's in government studies
- 3:25- in
- 3:26- college,
- 3:27- obviously, a great student.
- 3:29- Talk a bit about your career path and
- 3:31- how you you ended up in the health
- 3:33- care area. Did you always wanna be in
- 3:35- health care? You know, what was the evolution
- 3:37- of your career?
- 3:39- I think the first thing,
- 3:41- that I reflected on as a younger person
- 3:44- was,
- 3:45- kinda what was my strengths? What did I
- 3:48- see that I like to do?
- 3:50- And when you're about 18, 19 years old,
- 3:54- you aren't sure exactly, but I at least
- 3:56- formulated that I wanted to be in business,
- 3:59- and I wanted to learn
- 4:02- how people thought and how things worked. So
- 4:05- I went to Dartmouth,
- 4:06- as an undergrad to really just learn how
- 4:09- to solve problems
- 4:10- and think. And, my government major
- 4:13- was, I think, a foundation for me to
- 4:16- see how,
- 4:17- things worked and how our government worked and
- 4:19- how other governments worked. And it was really
- 4:22- helpful for me to get that foundation,
- 4:24- but I realized it wasn't gonna be the
- 4:26- full foundation I needed for a business background
- 4:29- that I was interested in. And I wasn't
- 4:31- sure exactly where I wanted to have that
- 4:32- business background, but I know I needed
- 4:34- to build out my business skills. So I
- 4:36- went into banking for four years in Michigan,
- 4:39- where I met my lovely wife.
- 4:41- Her sister introduced us. She worked at the
- 4:43- bank I was at.
- 4:44- And I then ended up at University of
- 4:47- Michigan because I knew I wanted to build
- 4:49- out my education on business,
- 4:53- University of Michigan for two years for MBA.
- 4:55- And then at that point, I started to
- 4:57- say, now where do I wanna do that
- 4:59- business? Where do I want to take the
- 5:01- skills that I'm building and use them? And
- 5:03- I realized health care was one of the
- 5:05- best opportunities for me in the country
- 5:07- in, I think, a couple different ways. One
- 5:10- is I can see the impact I'm making.
- 5:12- I can see the work I do every
- 5:14- day.
- 5:15- I can see the outcomes,
- 5:17- in a very honest and true way, and
- 5:19- that's not something you can do in a
- 5:21- lot of businesses.
- 5:22- I think the second thing is you could
- 5:24- do it in a lot of places in
- 5:25- this country. You aren't bound by geography.
- 5:28- We have health care throughout this country. And
- 5:31- then finally,
- 5:32- I think health care way back when I
- 5:35- first joined in early nineties,
- 5:37- 1990,
- 5:38- I don't think health care has been always
- 5:40- the most progressive.
- 5:41- So I saw this as an opportunity
- 5:44- with my desire to make an impact for
- 5:46- me to be able to get in an
- 5:48- industry where,
- 5:49- maybe hasn't been as progressive as it needed
- 5:51- to be, and I could hopefully influence it
- 5:53- and make a difference at a scale and
- 5:57- a rate of change that, maybe couldn't do
- 5:59- in some other industries.
- 6:01- No. So so it'll be fantastic. I'm gonna
- 6:04- ask you one question there, and then I
- 6:06- wanna I wanna ask you about,
- 6:08- let's say, three things that you're particularly proud
- 6:11- of with respect to Aspirus. And and I've
- 6:13- been up to Aspirus back in the day.
- 6:15- Great system. Love it. I've spent a lot
- 6:17- of time in Wisconsin being an Illinois native
- 6:20- and and actually love the state even though
- 6:22- they don't necessarily return that love all the
- 6:24- time. But but talk about for a second.
- 6:27- First, any advice you would give to young
- 6:29- leaders or young people
- 6:31- trying to figure out the career destination and
- 6:33- what to do with themselves? And then second,
- 6:36- maybe three things you're really proud of with
- 6:38- respect to this virus.
- 6:39- Okay. First, from the, perspective of leaders today,
- 6:44- I'm finding that when I got into healthcare
- 6:47- in my early part of my career, it
- 6:49- was almost in this order that people
- 6:52- learn to become leaders in healthcare. One is
- 6:55- how to manage your constituent base. Healthcare has
- 6:57- got one of the most complex
- 6:59- and
- 7:00- somewhat conflictual,
- 7:03- bases that you need for constituencies
- 7:05- to manage, I think, in many industries that
- 7:08- I've I've, had the privilege of getting to
- 7:10- know.
- 7:11- Then they learn how to manage some operations,
- 7:14- but very few had to learn how to
- 7:17- be more of a founder, a builder, and
- 7:18- an architect.
- 7:20- And what I'm finding in today's world is
- 7:23- that it's inverting
- 7:25- very rapidly.
- 7:26- So post COVID,
- 7:27- you have to be more of a builder,
- 7:29- a founder, and an architect
- 7:30- mindset with operational rigor while you manage your
- 7:34- constituents. And it's almost an inverse to that
- 7:37- model, and I'm finding that a lot of
- 7:40- executives haven't been trained that way. And a
- 7:42- lot of executives are having a struggle to
- 7:45- make that flip. And,
- 7:47- what I've learned and what I think has
- 7:49- helped me make that flip
- 7:50- is you gotta have a diverse background,
- 7:53- diverse experiences, be it outside of health care,
- 7:56- inside of health care. You have it to
- 7:58- have an inquisitive mind, and you can't count
- 8:02- on,
- 8:03- always being
- 8:05- brought in to the same company, being a
- 8:07- fellow, getting developed. You have to develop yourself.
- 8:10- And you have to, make sure you have
- 8:12- a career plan,
- 8:13- reflect on your career plan, and go and
- 8:16- say, well, maybe I'm gonna take a parallel
- 8:17- job, but I'm gonna go to that specific
- 8:19- company or a specific job that's gonna give
- 8:22- me this developmental skill I need. I don't
- 8:25- see
- 8:26- that happening enough right now, and I see
- 8:28- as we recruit that that is a big
- 8:30- challenge for our industry. If the changes that
- 8:32- we're gonna maybe talk about today continue like
- 8:35- they are, we're gonna need to have leaders
- 8:37- who can make those changes
- 8:39- and and kind of invert their mindset a
- 8:41- little bit. Your point is is so well
- 8:44- taken.
- 8:45- This concept that sometimes you got it it's
- 8:49- much more important
- 8:51- to get that growth in development and opportunities
- 8:55- than another dollar in salary. And, of course,
- 8:58- that's particularly true if you're making enough money
- 9:00- to support your family.
- 9:02- But when I see people
- 9:03- chase in many of these professions
- 9:05- an extra 10,000
- 9:07- versus a better institution to be at or
- 9:09- the better learning experience. I think they're making
- 9:11- a very bad move, far better off to
- 9:14- learn, to grow, to develop, to be with
- 9:16- great people where you could thrive than they
- 9:18- make a few extra dollars. And, again, that's
- 9:21- obviously an easier point at, let's say, more
- 9:23- than 100,000 a year in income, a harder
- 9:25- point if you're barely trying to take care
- 9:27- of your family. But I agree with that
- 9:30- so strongly. I cannot even tell you. And
- 9:32- we see so much that, particularly young professionals,
- 9:35- some that are so good about focusing themselves
- 9:37- on where will I grow and learn and
- 9:39- stay enough years to learn and grow, and
- 9:41- others that are looking for that last dollar.
- 9:43- And there's some combination of the two that's
- 9:45- the right balance, but I I do think
- 9:47- what you're saying is so right on.
- 9:50- Okay. And then,
- 9:52- I think to your next question
- 9:55- about what I'm most proud of is,
- 9:58- I would say,
- 10:00- I've had a very privileged
- 10:03- opportunity,
- 10:04- and I've asked,
- 10:06- for this opportunity,
- 10:08- from God a long time ago and said,
- 10:10- if I ever get a chance, I really
- 10:12- wanna get an organization where I could help
- 10:15- make a change and a difference. And I
- 10:17- was given the opportunity when I first got
- 10:19- here with Aspirus
- 10:20- because it was a $600,000,000
- 10:23- single hospital with a few few affiliates,
- 10:26- and it was considered the the second or
- 10:29- third place within our market.
- 10:32- And,
- 10:33- we've been able to
- 10:35- take some of my learnings over my twenty
- 10:37- plus years before I came here, some of
- 10:39- my theories, some of the things I've always
- 10:41- wanted to do, some things that I saw
- 10:43- bosses do that I wanted to do,
- 10:45- and do better, and some things
- 10:48- that
- 10:49- I saw bosses do that I didn't think
- 10:51- were,
- 10:52- that great. And some things that were I
- 10:53- was, well, I gotta follow-up on what they
- 10:56- did and do the same thing. I got
- 10:57- a chance to put all that together and
- 11:00- use it to help make Aspirus what it
- 11:02- is today. And so to go from those
- 11:03- humble beginnings of 600,000,000
- 11:06- and be able to get our organization to
- 11:08- where it is, and not just be bigger,
- 11:10- but to be better for our communities, more
- 11:12- integrated,
- 11:13- to be
- 11:14- a a a top 15%
- 11:16- company in health care across this country, I
- 11:18- think is a is one of my best,
- 11:21- and most proud moments for us as an
- 11:23- organization and my ability to contribute to that.
- 11:25- Just to stop you on that for a
- 11:27- second. How nice is that? And you've had
- 11:29- the energy to persevere with these choices and
- 11:31- things you've tried and I'm sure, recognize
- 11:34- what's going great, what's not. But how nice
- 11:36- is that to have that opportunity over a
- 11:38- long period of time with a supportive community
- 11:41- and, obviously, you and your team have delivered
- 11:43- great results so you get the you get
- 11:45- the flexibility
- 11:46- to keep doing things and trying this. How
- 11:48- great an opportunity is that? Just comment on
- 11:50- the greatness of that chance to have that
- 11:52- chance to do that.
- 11:54- I would say
- 11:55- it's almost
- 11:56- something you can't even imagine how great it
- 11:59- is because
- 12:00- it makes your job act to what you
- 12:02- said. It's a job is,
- 12:04- about getting paid. I'm not gonna deny pay
- 12:06- is important to us all, but it's about
- 12:08- doing something more in this world than just
- 12:11- collecting a check. But it's not just for
- 12:13- me. It's for me
- 12:15- seeing,
- 12:16- working with our team to instill that same
- 12:18- thought process into our organization,
- 12:20- that same belief that it's the right thing
- 12:22- to do to become better than,
- 12:25- what anybody thought we could be. And I
- 12:28- I think people
- 12:30- underestimate the value
- 12:32- that that brings
- 12:34- to self fulfillment,
- 12:36- both, I think, for me personally and I
- 12:37- think for many of the our organization and
- 12:40- team members. Now it's not everybody, but you
- 12:42- have 14,000 people across 48,000 square miles. It's
- 12:45- hard for them all to feel that way,
- 12:46- but I think they all at least feel
- 12:49- part of it. They feel some of it
- 12:50- because it trickles down throughout the organization.
- 12:54- Simply amazing.
- 12:56- Talk about for a second this this concept
- 13:00- of of self actualization and what one does.
- 13:03- Like, we always think about not busy is
- 13:06- bad for me, busy is better for me,
- 13:08- busy with purpose is closer to self actualization.
- 13:11- Yeah. How do you think about self actualization?
- 13:14- It it it with you both yourself, but
- 13:16- as important with your leadership team and everybody
- 13:18- throughout the organization.
- 13:20- And, again, it's not always gonna be there,
- 13:22- but but it it seems like you're students
- 13:24- of that thinking.
- 13:26- Any thoughts to share with us? Then we'll
- 13:27- get back to a couple of things you're
- 13:28- most proud of. Oh, yeah. That's fine.
- 13:31- I would say
- 13:33- I thought about that question,
- 13:35- and here's what I would say
- 13:38- has kind of come to my mind as
- 13:40- I self reflected over these last thirteen years
- 13:43- and as we're going into some of these
- 13:45- challenges that we see coming,
- 13:47- is how did we get here and how
- 13:49- can we continue to make sure we maintain
- 13:51- it, And how do we take pride in
- 13:53- it? And what we've realized is that we
- 13:56- have five values and one of them is
- 13:58- foresight. And foresight for us has been important,
- 14:02- but it's never been more important than in
- 14:03- these last five years. But with foresight, we've
- 14:07- learned as an organization
- 14:09- that it's very hard to do anything if
- 14:11- you see a goal that you want or
- 14:14- an issue that you have to deal with
- 14:15- in a world that is different than other
- 14:18- people see. If you can't take that foresight
- 14:21- and say, you know what? Let's be flexible.
- 14:23- Let's think differently. And then if you can't
- 14:25- have the fortitude to make some of those
- 14:27- tougher calls, and as you just said, actualize
- 14:30- it,
- 14:31- and then follow through to ensure it happens,
- 14:33- that foresight and that ability to do something
- 14:36- with it becomes worthless.
- 14:39- And I think we have really started to
- 14:41- latch on in our organization to, we're gonna
- 14:45- have some different thoughts than other people. We're
- 14:47- going to be a little bit off the
- 14:49- beaten path on how we view the world.
- 14:51- But instead of looking at the rest of
- 14:53- the world and saying, well, you know what?
- 14:54- We think inflation is transitory.
- 14:57- Now we're gonna say, no, we don't think
- 14:58- it is. That means it's gonna be a
- 15:00- tough road to haul if inflation is 5%,
- 15:03- four percent, and we only get a 2%
- 15:05- raise. So then we're gonna have some tough
- 15:07- choices to make, and it's not gonna go
- 15:09- away, and we're gonna have these tough choices
- 15:10- every year. So when you tell an organization
- 15:13- that, and everybody's hearing inflation's transitory, you're gonna
- 15:16- have to get the organization to agree,
- 15:18- to understand,
- 15:20- to wanna do something about it, make those
- 15:22- tough calls, follow through. But when you do
- 15:25- it, and then the world turns out the
- 15:26- way you just thought it would be, the
- 15:28- organization feels pride, it feels success, and then
- 15:31- it builds on itself. So I think self
- 15:34- actualization
- 15:35- is the virtuous cycle of those four,
- 15:38- elements I just talked about. And if you
- 15:40- continue that self virtuous cycle, you find that
- 15:44- you could start building on that self actualization
- 15:46- and it gains momentum.
- 15:48- You could not agree. And and so important
- 15:50- to have those victories, those wins, people develop
- 15:53- momentum. You've gone for 600,000,000
- 15:55- as a system, 3,300,000,000.
- 15:57- And, obviously, those are just numbers that tell
- 15:59- a part of the story, But more and
- 16:01- more, you mentioned earlier, some of the patient
- 16:03- care and the staff satisfaction
- 16:05- reporting that's been improved over the last thirteen
- 16:08- years is remarkable.
- 16:10- Talk about a couple of the things that
- 16:11- you're very proud of with respect to this
- 16:12- virus.
- 16:14- I would say, first of all, I'm proud
- 16:16- of the fact that we've been able to
- 16:17- get to where we are, become that top
- 16:20- 50 in health care system,
- 16:21- and be able to use that foresight in
- 16:24- the way we just talked about and to
- 16:26- continuously
- 16:28- produce consistent performance
- 16:31- over these years. And we never lost money,
- 16:34- even with, the CARES money taken out, we
- 16:37- were able to always stay a couple years
- 16:39- ahead of that curve of of finding the
- 16:42- problems and solving them.
- 16:43- I I would say the thing I'm also
- 16:46- most proud of is
- 16:49- when you look at
- 16:51- culture.
- 16:52- Culture
- 16:54- has historically, pre 2020,
- 16:56- been
- 16:57- generic. We gotta make sure our culture's solid,
- 17:00- our people are behind us, we have good
- 17:02- engagement.
- 17:04- I'm finding
- 17:05- that culture is changing in today's environment. What
- 17:08- definition of culture means to us
- 17:11- is becoming harder to achieve.
- 17:13- But if it is working effectively, it improves
- 17:16- that flywheel we just talked about. And what
- 17:18- I'm most proud of is we've been able
- 17:20- to do that with our culture
- 17:22- and been able to make sure it helps
- 17:25- support that flywheel.
- 17:26- And what that means in a high level
- 17:29- is your culture has to take all the
- 17:32- angst in the world out there, all the
- 17:34- noise,
- 17:35- all that hyper communication,
- 17:38- and somehow
- 17:39- have your employees turn it off when they
- 17:42- come in,
- 17:43- work as a team,
- 17:45- not lead the organization,
- 17:47- and go out there into that hyper polarized
- 17:49- world and go and say and do something
- 17:51- that then drags your brand and everything that
- 17:53- your organizations work to create. That is becoming
- 17:56- harder and harder
- 17:58- post COVID. And to me, that's been a
- 18:00- very strong success for us. And I knock
- 18:03- on wood that we can continue to maintain
- 18:05- it because it's a day by day effort.
- 18:07- Because when you have that working, then you
- 18:09- tie it to that flywheel
- 18:11- of foresight and the actions,
- 18:13- you don't have any side tracking or any
- 18:17- distractions
- 18:18- for you to be able to achieve your
- 18:19- success.
- 18:21- Thank you very, very much. And I'm gonna
- 18:22- ask you two other questions. And again, I
- 18:25- have a bias,
- 18:26- but but I've never understood
- 18:29- what the term fib means. Did you grow
- 18:31- up in Wisconsin, Matt? Are you a Wisconsin
- 18:33- native or no? No. I'm not a Wisconsin
- 18:35- native. So so you're probably not familiar
- 18:39- with the term fib that Wisconsinites
- 18:41- sometimes use to describe
- 18:43- Illinoisans,
- 18:43- or are you familiar?
- 18:45- Nope. I I I'm going to any
- 18:47- Wisconsin,
- 18:48- Illinois,
- 18:50- how would you say, back and forth. I'm
- 18:52- I'm neutral. I'm out of it even though
- 18:54- I've been here thirteen years.
- 18:56- There you go. I I've spent so much
- 18:58- time in Wisconsin,
- 18:59- worked a lot up in Green Bay and
- 19:02- other areas, and and love the state. There's
- 19:05- a phrase that they use for Illinois people.
- 19:07- If you're a native Wisconsinite,
- 19:10- which is the f word is the f
- 19:12- word to start with, and then Illinois is
- 19:15- Illinois, and and the b word is bastards.
- 19:18- You know? And and I find it very
- 19:20- offensive that Wisconsin will talk about Illinois people
- 19:23- like that. But but let me ask you
- 19:25- another question. Yeah. Do you remember
- 19:28- and and and, Matt, I'll, yeah, I'll see
- 19:30- if you're game for this. Do you remember
- 19:32- when the University of Michigan
- 19:34- was a great academic and athletic institution?
- 19:37- Yes. And if you're going down the recent,
- 19:40- football stuff?
- 19:42- You almost anything. We joke about the University
- 19:44- of Michigan because we grew up going to
- 19:46- University of Illinois. And if you went to
- 19:47- University of Illinois,
- 19:49- you you sort of, you you sort of
- 19:51- thought of Michigan as a rival,
- 19:53- and Michigan thought of you as irrelevant. So
- 19:55- so we joke about the University of Michigan,
- 19:58- but a great, great institution. It is what
- 20:00- it is. Yeah. Well, I I found,
- 20:03- when I was at Michigan,
- 20:05- there is and and sadly,
- 20:08- the decline of the rivalries,
- 20:10- I think, with the new way the playoffs
- 20:12- are going, it kinda taking some of that,
- 20:14- you know, Illinois wants to be considered a
- 20:17- rival. Michigan considers Ohio State a rival. Some
- 20:19- of those are starting to all ultimately die
- 20:21- off. Yeah. Yeah. Yeah. A 100%. But you're
- 20:24- you're in Wisconsin University of Madison. It's in
- 20:27- a remarkable, remarkable place.
- 20:29- Fantastic. And and, obviously, you're a Dartmouth
- 20:32- grad, a brilliant institution.
- 20:35- Matt,
- 20:36- amazing what Aspirus has done over the last
- 20:38- couple decades. I I think of it finally.
- 20:41- I've spent a lot of time up there
- 20:42- over the years and a huge fan. I
- 20:44- I wanna thank you for joining us today
- 20:46- on the Becker's Healthcare podcast. Truly a pleasure.
- 20:48- Thank you so much. Appreciate it as well,
- 20:50- Scott. Thank you for your time, and thank
- 20:52- you for the opportunity.