Latest / Becker’s Healthcare Podcast / Leo Spector, MD, Orthopedic Spine Surgeon and CEO of OrthoCarolina
Transcript
- 0:00Hi, everyone, and welcome to the Becker's Healthcare
- 0:03podcast.
- 0:04I am Sophie Ades,
- 0:06orthopedic reporter with Becker's Healthcare.
- 0:09Today, I'm very excited to be joined by
- 0:12doctor Leo Spector,
- 0:14CEO of OrthoCarolina
- 0:16and a practicing orthopedic
- 0:18spine surgeon.
- 0:20Doctor Spector has spent more than seventeen years,
- 0:24with OrthoCarolina
- 0:26serving in a range of leadership roles, including
- 0:28chief quality officer
- 0:30and executive committee member. He now leads one
- 0:33of the nation's largest independent orthopedic practices with
- 0:37a strategic focus
- 0:39on clinical excellence, value based care,
- 0:41innovation, and expanding access
- 0:44through ambulatory
- 0:46surgical centers.
- 0:47In addition to his leadership work, doctor Spector
- 0:50continues
- 0:51to care for patients and remains deeply involved
- 0:54in advancing spine care through research and professional
- 0:58societies.
- 0:59In this episode, we'll explore the key trends
- 1:02shaping
- 1:02musculoskeletal
- 1:04care today,
- 1:05how OrthoCarolina
- 1:06is responding, and doctor Spector's
- 1:09perspective on what it takes to lead through
- 1:11a rapidly evolving health care landscape.
- 1:15So to start off, I know I I
- 1:17started with a big intro there. But, doctor
- 1:19Spector, if you could just introduce yourself and
- 1:22and share a little bit about your current
- 1:24role, that would be great.
- 1:26Sure. Sure. Thanks, Sofia. I'm not sure I
- 1:28could do much better. That was that was
- 1:29a great intro.
- 1:31Yeah. So currently serve as the as the
- 1:34CEO of OrthoCarolina,
- 1:36into my third year now, in that role.
- 1:40And as you as you mentioned, I do
- 1:41continue to maintain a clinical practice, seeing patients
- 1:44one day a week and operating
- 1:46one day a week as well as as
- 1:47taking, call with my, spine colleagues. I've been
- 1:51with the organization now, getting on close to
- 1:53twenty years, actually, so that makes me feel
- 1:55even older than just 17.
- 1:57And, as you mentioned,
- 1:59have had various roles in the organization
- 2:01both from,
- 2:02physician leadership roles to administrative roles, including chief
- 2:06quality officer where I had the privilege of
- 2:08of overseeing our value based care team as
- 2:10we started developing our value based care program,
- 2:13you know, some fifteen years ago. And so
- 2:16it's really great to,
- 2:18see the culmination of all that work coming
- 2:20together and having the opportunity now to,
- 2:23you know, kinda
- 2:24be, at the helm here of of the
- 2:26ship. So
- 2:28Yes. Yes. You have a very, very impressive
- 2:30background.
- 2:32So we're thrilled to have you and just
- 2:34talking through some of just the biggest
- 2:36trends you're you're sort of seeing today.
- 2:39So I guess my first question for you,
- 2:41if we're gonna dive right in, when you
- 2:43step back and look at the industry right
- 2:46now,
- 2:47what feels like the biggest
- 2:49shift happening in musculoskeletal
- 2:52care?
- 2:53Care? I think the biggest shift that's occurring
- 2:56in musculoskeletal
- 2:57care is the shift from,
- 3:01inpatient
- 3:02hospital based surgery
- 3:04to outpatient,
- 3:06ambulatory
- 3:06or office based surgery.
- 3:08I I think that's probably the biggest
- 3:11shift.
- 3:12Obviously, there's the adoption of robotics
- 3:15and and the introduction of AI as a
- 3:17tool
- 3:18in health care and and, you know, things
- 3:21like that. But I think truly shifts,
- 3:23I really look at that change because
- 3:26I'm old enough now to remember, you know,
- 3:28being a resident
- 3:30and admitting patients on the day of their
- 3:32hip or joint surgery and keeping them in
- 3:34the hospital for at least three days
- 3:37before they went off to rehab for, you
- 3:39know, weeks or up to a month.
- 3:41And now
- 3:42we're seeing my hip and knee colleagues do
- 3:44those as same day procedures,
- 3:47not just at the hospital, but now in
- 3:49freestanding ambulatory
- 3:51surgery centers. You know, to me, that is
- 3:53a tremendous
- 3:55shift,
- 3:56from how our our surgical technique is, how
- 4:00we deliver the care around that procedure,
- 4:04culturally for the surgeon, for the patient expectations
- 4:07of what their expectation is going in.
- 4:11So I think that is just a monumental
- 4:13shift. And at the end of the day,
- 4:15I I think it's a great shift because
- 4:16it's it's lowering the total cost of care.
- 4:19And, you know, I I do think,
- 4:21getting patients into an outpatient setting where they're,
- 4:24for the most part, when appropriate, which for
- 4:26most most patients it is,
- 4:28you know, the hospital is filled with a
- 4:30lot of sick people, and rightly so. You
- 4:32know, that's that's that's an acute place.
- 4:35You know, when you're having elective, auscule, skeletal,
- 4:37orthopedic procedures, it's great to be in an
- 4:40environment that's different than that. And an ASC
- 4:42is an environment that is strictly focused on
- 4:44outpatient
- 4:47musculoskeletal
- 4:47procedures or outpatient procedures. And so I think
- 4:50that's a huge shift in the industry. I
- 4:51think it's a great shift. I think it's
- 4:53going to continue to lower the total cost
- 4:55of care. I think it's gonna continue to
- 4:57improve outcomes,
- 4:58which really is the the goal of all
- 5:00this.
- 5:01Absolutely. And I think you hit the nail
- 5:04on the head there.
- 5:06You know, thinking about just the shift to
- 5:09to outpatient care,
- 5:11ASCs,
- 5:12all that
- 5:13exciting stuff, How are you thinking about positioning
- 5:16OrthoCarolina
- 5:17to sort of stay ahead
- 5:19of the curve? I know you guys are
- 5:20already, you know, pushing forward and
- 5:23have made a lot of great accomplishments thus
- 5:26far, but I'm just curious about, you know,
- 5:29yeah, how you're how you're gonna continue staying
- 5:31ahead.
- 5:33Yeah. Yeah. And and I don't know if
- 5:34we're always, you know, ahead per se. You
- 5:36know? We're but we certainly wanna keep up.
- 5:38You know, you wanna be careful. You don't
- 5:40wanna get too far ahead, you know, of
- 5:41the way that you want crashing on your
- 5:43head. Right?
- 5:44But, you know, I think each each practice,
- 5:46each geography, each state are are are unique.
- 5:50A lot of it from ASC perspective does
- 5:52depend on whether it's a certificate of need
- 5:54state or not. North Carolina traditionally has been
- 5:57a certificate of need state. And for those
- 5:59that that don't, you know, know or understand
- 6:01what that is, it means that that resource
- 6:02is is controlled by the state. And in
- 6:05the past, it meant that if we're gonna
- 6:06open up an ambulatory surgery center, it needed
- 6:08to be in a joint venture partnership with
- 6:10a hospital.
- 6:11North Carolina
- 6:13has gone through CON reform. And as of
- 6:16late last year, you know, essentially the beginning
- 6:18of this year,
- 6:19CON has been reformed, gotten gotten rid of
- 6:22in North Carolina for ambulatory surgery centers. So
- 6:25that creates an opportunity for us to kinda
- 6:27rethink our ASD strategy.
- 6:29Our ASC strategy in the past has always
- 6:31had to be a joint venture of the
- 6:33hospital system,
- 6:34and or one of the, you know, large,
- 6:37management companies.
- 6:39This gives us the ability to rethink that.
- 6:40You know? And doesn't mean that we don't
- 6:43wanna continue joint venturing with good hospital partners
- 6:46or with with good management companies,
- 6:49but it does
- 6:50really change
- 6:52the dynamic of what are those partners bringing
- 6:54a value to that relationship.
- 6:56In the past, what they were bringing was
- 6:58the COM because we couldn't get that. We
- 7:00were bringing the surgery
- 7:02and the patients, and the management company was
- 7:05bringing that expertise. And so I think in
- 7:07the past, that kind of relationship between the
- 7:10the medical practice, North Carolina,
- 7:11the hospital partner, and the management company made
- 7:14sense.
- 7:15Post CON,
- 7:16we now have two ASCs that we wholly
- 7:19own,
- 7:20and we manage ourselves.
- 7:21And so we can do all three of
- 7:23those things. Now the question in the future
- 7:26as we go to scale that is, should
- 7:28we do that on our own,
- 7:30or should we look for partnerships? But it
- 7:32changes the nature of that partnership.
- 7:34And so for me, when I look at
- 7:36that partnership on go forward basis, I have
- 7:38to look at first and foremost and say,
- 7:40how is that partnership gonna benefit our patients?
- 7:42Right? Number one. How is it gonna benefit
- 7:45our teammates that are working at that surgery
- 7:47center? And then how is it gonna benefit
- 7:50the practitioners?
- 7:51So it just it's just changing that. And
- 7:53so for us,
- 7:55strategically, we're looking at growing our ambulatory surgery
- 7:58center footprint.
- 7:59We want them to be single specialty orthopedic
- 8:02centers because that's what we know that's what
- 8:04we do.
- 8:06And we're reevaluating the relationships, the existing ones
- 8:09we have, and on a go forward basis,
- 8:11you know, how that will look.
- 8:13Mhmm.
- 8:14Yes. And I love that you mentioned the
- 8:16part
- 8:17patient first. Right? Because I think that there's
- 8:20so,
- 8:21you know, much
- 8:22business,
- 8:23you know, around health care right now, and
- 8:25I think that things get very complicated. And
- 8:28sometimes, you know, the patients can get sort
- 8:30of lost in the mix of that.
- 8:33So I appreciate, you know, you bringing that
- 8:35up first,
- 8:37especially when looking at your partnerships because that's
- 8:39huge.
- 8:42We were talking about this a little bit
- 8:44earlier,
- 8:46in our chat before, but
- 8:48when you think about value in orthopedic care
- 8:51today,
- 8:52can you explain a little bit just for
- 8:54you what that actually means in practice?
- 9:00Sure. You know, I think people talk about
- 9:02value based care, and in some ways, you
- 9:04know, it may be an an an overused
- 9:06term. People talk about the value equation,
- 9:10you know, being,
- 9:11you know, related to the the cost and
- 9:14the outcomes. And and, obviously,
- 9:16you know, you wanna lower that cost and
- 9:18and improve the outcome.
- 9:20At the end of the day, you know,
- 9:21for me, when you think about, you know,
- 9:24value care, it it really should start with
- 9:26what's valuable to the
- 9:27patient. Right? Because, you know, you hate to
- 9:30say it, but
- 9:32you are a consumer of a good. Right?
- 9:34You are patient. You need care. You're you're
- 9:37consuming a resource consuming good. So what's valuable,
- 9:40you know, to Sophie when she goes to
- 9:42get care? And,
- 9:44obviously, it's gonna be very individual. But I
- 9:47think the things that that really
- 9:49resonate are, you know, access.
- 9:53Patients and people don't wanna be seen just
- 9:55from nine to 3PM. You know? People want
- 9:58to be seen, you know, eight to eight.
- 10:00They wanna be able to see seven days
- 10:01a week.
- 10:03They want the ability to make appointments online.
- 10:05They want the ability to get some virtual
- 10:07care. Right? So I think I think access
- 10:09is a big part of that value.
- 10:12Obviously, we know the cost of of care
- 10:14in United States continues to rise. It's expensive.
- 10:18It it creates a tremendous financial burden, and
- 10:21so we look at ways that we can
- 10:23lower that cost of care. And so how
- 10:25can we lower the cost of care?
- 10:27But when you lower the cost of care,
- 10:28like you and I were talking about earlier,
- 10:30Sophie, less expensive doesn't mean less better. Right?
- 10:33Less expensive can actually be a better product.
- 10:36And that's the key because while you're lowering
- 10:38the cost of care, you need to be
- 10:39improving the outcomes.
- 10:42Because, ultimately,
- 10:43if you don't improve the outcomes, then it
- 10:45ends up costing society and and that that
- 10:47individual more. And so to me,
- 10:51value based care is all about expanding access,
- 10:54finding ways that we can lower the cost,
- 10:57having repeatable and reproducible and better outcomes that
- 11:00benefit our our patients. And that may be,
- 11:03you know, a young athlete getting back on
- 11:05the playing field. It may be, you know,
- 11:07a grandparent being able to, you know, bend
- 11:10down and and play with their grandkids.
- 11:12You know, it it just may be, you
- 11:14know, you and I get back to work
- 11:15or or whatever it may be. And so
- 11:17for everybody, that's that's different. And so you
- 11:19do have to also figure out what's what's
- 11:21important to the patient because like we're talking
- 11:23before, right, the patient is at the center
- 11:25of this whole journey. We we forget that
- 11:27sometimes in in health care. Yes. Like you
- 11:29said, it's a big business. We have to
- 11:30remember it's a business
- 11:32about caring for people.
- 11:34Right. And that you kinda led me to
- 11:36my follow-up question there was, what does, you
- 11:39know, value look like to
- 11:41a patient on a real episode of care?
- 11:44Where are you actually,
- 11:45you know, lowering costs or improving outcomes?
- 11:50Yeah. And I think there there are a
- 11:51number of ways that we do that. You
- 11:54know, one way and and one relationship that
- 11:56we spoke about a little bit earlier is
- 11:58in the direct to employer space. Right? And
- 12:00so just one specific example
- 12:02is our relationship with the North Carolina State
- 12:05Health Plan through,
- 12:07Lambton, who's a direct to employer. And so
- 12:09in that value based relationship, we have been
- 12:11able to offer bundle payments for not just
- 12:14total hips and total knees, but all orthopedic,
- 12:18procedures.
- 12:19And for for a patient, what that means
- 12:22is they're getting access to high quality physicians
- 12:25that have been vetted,
- 12:27with good outcomes, and it's a zero out
- 12:29of pocket. And nowadays, deductibles, you know, are
- 12:33are they earn thousands of dollars often. Right?
- 12:36So, you know, it's very expensive,
- 12:38to get care
- 12:39just directly out of pocket, let alone, you
- 12:41know, your your monthly
- 12:43premiums that you're paying. And so that's a
- 12:45very specific, you know, way that that we're
- 12:47doing value.
- 12:48Other ways are, you know, our hand partners
- 12:51are really pioneer in our office based,
- 12:55surgeries. You know, they're
- 12:57taking carpal tunnel surgeries, which used to be
- 12:59done in the hospital, which would, you know,
- 13:01obviously have a pretty significant facility fee associated.
- 13:04They've moved it to the ambulatory surgery center,
- 13:07which, again, a lower cost facility, but still
- 13:09had a facility fee. They're now doing it
- 13:11in our office,
- 13:12which has no facility fee.
- 13:15So they've they've tremendously lowered the cost of
- 13:17that procedure, which lowers the cost directly,
- 13:21for that patient. And for the patient, the
- 13:22experience is great. They walk into the office
- 13:24like they're being seen. They have the procedure
- 13:26done. They walk out. You know, there's no
- 13:28registering, you know, with with the hospital and
- 13:30going through all that rigmarole
- 13:32or even at the surgery center. So, again,
- 13:34I think, you know, it depends a little
- 13:35bit on on the patient, but I think
- 13:37Yeah. What most patient want is they want
- 13:40lower cost,
- 13:41repeatable outcomes, and that are convenient.
- 13:44And so a lot of different ways that
- 13:45we're doing that.
- 13:47Absolutely.
- 13:49Yeah. Thank you for for sharing all that,
- 13:52and, you gave those concrete examples, which I
- 13:55appreciate very much,
- 13:58and I think our audience will too.
- 14:01But,
- 14:02you know, the next thing I wanted to
- 14:04ask you is just as you're looking a
- 14:06few years out,
- 14:08what do you think will really separate the
- 14:11groups that win,
- 14:14from the ones that fall behind?
- 14:17Yeah. I mean, it's a challenging time in
- 14:18health care. I suppose it's always a challenging
- 14:21time in health care. Right?
- 14:23You know, reimbursement
- 14:25does continue to decline, you know, on on
- 14:27a on a per procedure or or per
- 14:31care basis. You know, the cost of delivering
- 14:33care continues to rise. So it is a
- 14:35it is a challenging industry. Again, it's it's
- 14:37a large industry. It consumes a lot of
- 14:39dollars. So,
- 14:40but it is it is challenging as a
- 14:42business owner.
- 14:44You know, I think those that are gonna
- 14:45be successful,
- 14:47I think you need economies of scale.
- 14:50I think you need to deliver a a
- 14:53superior product to the market, so to speak.
- 14:56And so, again, that's why at OrthoCarolina,
- 14:58we're focused on value, which we've just talked
- 15:01a lot about, about access, about making sure
- 15:03we can meet our our patients where they
- 15:05are,
- 15:06and caring for that whole community because you
- 15:08you need to be caring for the the
- 15:10whole community.
- 15:12I think we have got to be cognizant
- 15:14of of technology and changes. So whether it's
- 15:16like you talked about the big shifts from
- 15:18the hospital to the ASC, if that's the
- 15:20shift, then then we've gotta be certainly riding
- 15:23that that wave, if not trying to get
- 15:25a little bit on the front side of
- 15:26it. You know, AI is an incredible tool
- 15:30that is affecting and changing how all of
- 15:32us, you know, do things. And so we
- 15:34have to look at that and look at
- 15:35that sensibly.
- 15:37As my IT
- 15:39head of IT reminds me, AI is not
- 15:41a strategy.
- 15:42It is simply a tool to help enable
- 15:44us to succeed.
- 15:46But but, again, it is a tool, and
- 15:48you've got to adopt those tools. Right? So
- 15:50just as new technologies come, you have to
- 15:52be willing to adopt it. And that means
- 15:54if you're gonna adopt the technology, you gotta
- 15:56make sure you're training people to be able
- 15:58to use it. Right? So if we're not
- 16:00if we're not hiring teammates and educating teammates
- 16:03to use a tool again, if we're gonna
- 16:05stay with AI, which is one of many
- 16:07tools,
- 16:08then if they can't use that, then then
- 16:10they're not gonna be successful. We won't be
- 16:12successful as an organization.
- 16:15I think the biggest thing probably at at
- 16:17the end of the day is that
- 16:19people, companies,
- 16:21North Carolina have to realize that what got
- 16:24us here may not get us there, that
- 16:26old saying.
- 16:27And just because we've been successful
- 16:30doesn't mean that if we continue to do
- 16:32the same old, same old, we're gonna be
- 16:33successful in the future. And that's tough. It's
- 16:36hard to convince people of change, especially
- 16:40physicians, especially surgeons. They don't like change.
- 16:43They like to do the same thing, same
- 16:45way every time, which is good if you're
- 16:46having surgery performed on you. You want that
- 16:48kinda
- 16:49repeatable. But if you're running a business, you
- 16:51have to have a willingness to change and
- 16:52adapt. And sometimes the hardest time to change
- 16:54and adapt is when you're doing well because
- 16:56it feels kinda comfortable.
- 16:57But if you realize that things are changing,
- 17:00you've gotta change with it. So I think
- 17:02folks that are willing to do those things
- 17:03will be successful. I think folks that dig
- 17:06in and are unwilling to change,
- 17:07unwilling to adopt new tools and technologies,
- 17:11those that figure that what made them successful
- 17:13will continue on, make them successful.
- 17:15I think those folks, you know, unfortunately, will
- 17:18not. I always try
- 17:20to remind my partners of the fun story
- 17:21of Blockbuster and and Netflix
- 17:24and how that ultimately
- 17:26worked out at the end because I think,
- 17:27you know, it's the irony of all ironies,
- 17:30right, that
- 17:31Netflix went to Blockbuster and said, hey. You
- 17:33know, please invest in us. Blockbuster said, heck
- 17:35no. And now Netflix has a documentary on
- 17:38the very last Blockbuster still open. Right? I
- 17:40mean, it's a total
- 17:42role reversal because, you know, one company saw
- 17:44the future. Another company, which was incumbent, had
- 17:47the opportunity to change but chose not to,
- 17:49and it it didn't work out too well
- 17:50for them.
- 17:52What a great analogy that was. I mean,
- 17:56that was epic in my opinion.
- 18:00It was but it's a great way to
- 18:01explain it. I mean, it's just I think
- 18:03the key theme here is you just have
- 18:05to keep
- 18:06evolving. Right?
- 18:08Keep evolving with the new technologies,
- 18:10like you said, with AI
- 18:12huge right now. Right? Continuing to sort of
- 18:15use that as as a tool and integrating
- 18:18it into your practice.
- 18:19Not letting it replace you because it can't
- 18:22replace you if you integrate it.
- 18:25But, yeah, so great great points there, doctor
- 18:29Spector.
- 18:30Thank you so much.
- 18:32That is about all the questions I had
- 18:34for,
- 18:35this session. Is there anything else we didn't
- 18:39touch on? You wanted to make sure we
- 18:41did it at all?
- 18:43No. I think I think we had all
- 18:45the main messages, you know, like we talked
- 18:46about. I mean, at the end of the
- 18:47day, this is about caring for patients. You
- 18:49know, patients need to be the center of
- 18:52everything we do. And and, you know, our
- 18:54our strategy is is very simple, provide value
- 18:56to those patients, provide them access, and care
- 18:59for all of them in this community. And
- 19:00so we've been dedicated to that for twenty
- 19:02years. We're gonna continue to be dedicated to
- 19:04that. How we deliver that, obviously, is gonna
- 19:07have to adopt
- 19:08with the times and change.
- 19:11You know, I think health care is is
- 19:12a is a tough
- 19:14tough field, but it's a worthwhile field. And
- 19:16I think the future of health care is
- 19:18still exciting,
- 19:19despite the challenges that we do face today.
- 19:22Absolutely.
- 19:23Well, doctor Spector, thank you so much. This
- 19:26has been such a great conversation, and thank
- 19:28you for sharing your perspective and the work
- 19:31you're leading at OrthoCarolina.
- 19:34That is all for today's episode of Becker's
- 19:37Healthcare
- 19:38podcast. A big thank you to doctor Leo
- 19:40Spector
- 19:41for joining us and sharing his insights on
- 19:43the future
- 19:44of MSK care,
- 19:46value based innovation,
- 19:48and physician leadership.
- 19:50Thanks for listening, everyone, and we'll see you
- 19:53next time.