Latest / A Train of Thought with Matt Harrington / Roger Jansen, PhD – CEO, Exponential Health
Transcript
- 0:00Matt Harrington: Hello, everyone.
- 0:00Matt Harrington: My name is Matt Harrington with the A Train of Thought Podcast.
- 0:04Matt Harrington: Today's guest is Roger Jansen, PhD CEO and Board of Exponential Health, a licensed clinician and healthcare executive with deep experience in the strategy, innovation, behavioral health, and organizational growth.
- 0:16Matt Harrington: He's also founded two technology startups and previously served as chief strategy officer and CHRO for one of the nation's largest health systems.
- 0:25Matt Harrington: Roger, thank you so much for being here.
- 0:28Roger Jansen: I'm glad you do it.
- 0:28Roger Jansen: Thanks for having me, Matt.
- 0:29Matt Harrington: So I'd love to kind of hop right into the background.
- 0:32Matt Harrington: I'm curious what pulled you from clinical psychology into healthcare leadership and eventually entrepreneurship.
- 0:39Roger Jansen: Wow, that could take the whole podcast to answer that one.
- 0:42Roger Jansen: So when I began, I was really focused on MD PhD programs, kind of what could I do?
- 0:48Roger Jansen: And do I want to be a clinician?
- 0:50Roger Jansen: Do I want to be a researcher?
- 0:51Roger Jansen: Ended up by actually wanted to be a researcher and really enjoyed asking questions and setting up and doing design and analyses to figure out, you know, how to use this question.
- 1:01Roger Jansen: While doing that, I had to do clinical work.
- 1:04Roger Jansen: And so it was a requirement to see patients.
- 1:06Roger Jansen: And um, I really got pulled into the neuroside, much more of the traditional clinical side.
- 1:11Roger Jansen: And I began to ask questions like, why do we do these things?
- 1:15Roger Jansen: And some humans behave this way and some humans behave that way, and nature versus nurture, and where does the brain play a role?
- 1:22Roger Jansen: So I got very interested in kind of neurotransmitters and neuroanatomy and how those different functions drive behavior.
- 1:27Roger Jansen: And I ended up leaving the clinical side altogether for two big reasons.
- 1:33Roger Jansen: One, it was, and I give a lot of our clinicians incredible credit.
- 1:38Roger Jansen: It's very taxing, it's very difficult work.
- 1:41Roger Jansen: You become very engaged with it at a level that until you do it, you may not appreciate.
- 1:46Roger Jansen: And two, uh, on the research side, I found myself sitting in a hospital writing a grant one night, looking outside in the cold winter about five o'clock in the afternoon, saying, I don't think I can continue to write grants for a living either.
- 1:59Roger Jansen: And so came from a family-owned business and was always kind of in great games with the business side.
- 2:04Roger Jansen: But it was really at a departmental meeting where I was figuring out how broken the U.S.
- 2:08Roger Jansen: healthcare system is, and that we're really set up to build CPT codes versus take care of people the right way.
- 2:14Roger Jansen: And when you're really treating people based upon what insurance dictates versus what you know what's right for the patient, it's frustrating.
- 2:22Roger Jansen: And I was not the right person to continue to work in that type of system.
- 2:25Roger Jansen: So I said if we can't change the system from a clinical side, can I get involved in the leadership aspects of healthcare and begin to make a difference?
- 2:33Roger Jansen: And that's really what moved me out of the clinical slash research side into the administrative leadership side.
- 2:38Matt Harrington: It's interesting when you step into leadership roles from clinical side or from clinical and research side.
- 2:45Matt Harrington: Do you think that changed the way you lead today?
- 2:48Matt Harrington: And have you met other operators who you wish had more clinical and research experience?
- 2:53Roger Jansen: Yes and no.
- 2:54Roger Jansen: I think it certainly gives you perspective and how you look at the problems in front of you.
- 2:58Roger Jansen: And, you know, every department, whether that's a neurology or it's uh oncology or cardiology or nephrology or whatever department is, that's the most important thing to them at that point in time.
- 3:09Roger Jansen: And what you begin to quickly realize is that every issue is relevant and every issue is important to somebody, and it's the most important thing to someone.
- 3:16Roger Jansen: What I think you begin to appreciate is that the system itself is not designed to answer those problems.
- 3:23Roger Jansen: The system is designed for complexity and for accumulation of revenue, not necessarily best treatment of patient.
- 3:31Roger Jansen: And I think we lose sight of that in this country.
- 3:34Roger Jansen: It reminds me a little bit of what somebody said.
- 3:35Roger Jansen: My mom used to be the president of our school board when I was growing up, and boy, you hear a lot then.
- 3:40Roger Jansen: And one of the things I remember a patient or a patient, a member of the community saying is, we love our teacher, but we hate our school.
- 3:48Roger Jansen: And I was like, wow, it's really interesting.
- 3:49Roger Jansen: And it's kind of like I love my doc, but I hate the healthcare system.
- 3:52Roger Jansen: And the system really is not set up for patients.
- 3:55Roger Jansen: And it's not easy to navigate.
- 3:56Roger Jansen: You can't understand it.
- 3:58Roger Jansen: Employers can't figure it out.
- 3:59Roger Jansen: We put employers in the industry of being healthcare experts when they're making widgets or designing websites, and now they suddenly have to also be healthcare experts.
- 4:10Roger Jansen: It just doesn't make any sense.
- 4:11Roger Jansen: So I guess my empathy for both sides is increased, but I can't say that one side has it figured out and the other one doesn't.
- 4:20Roger Jansen: I think we all have to come together to solve this problem.
- 4:22Matt Harrington: Aaron Powell What factors do you think led to the system looking the way it does?
- 4:27Matt Harrington: You know, especially from the business perspective, talking about billing CPD codes, maximizing revenue.
- 4:33Matt Harrington: What led to that?
- 4:35Roger Jansen: I mean, there's a lot of history on it.
- 4:37Roger Jansen: Um, if you go back to the 1980s, some of these changes started taking place with Centers for Medicaid and Medicare Services.
- 4:42Roger Jansen: We started seeing more uh derivatives of different insurance products and types that can be put into the market.
- 4:48Roger Jansen: And we began to allow doctors not to be able to own and operate hospitals, but we allowed others to own and operate hospitals, people who don't actually understand how to actually deliver care.
- 4:59Roger Jansen: And I think we've missed some of the foundations as we've gone along.
- 5:03Roger Jansen: I've told people time and again, healthcare is simple.
- 5:07Roger Jansen: We have intentionally made it complex.
- 5:09Roger Jansen: Why do we need a PBM involved in figuring out what drugs should cost?
- 5:15Roger Jansen: Why no other industry does that?
- 5:17Roger Jansen: You don't go to Best Buy in Dallas and pay a different price for your computer than you do for a computer in Grand Rapids, Michigan.
- 5:24Roger Jansen: It's the same price.
- 5:25Roger Jansen: Um yet I won't get the same price with a youth care facility.
- 5:29Roger Jansen: And we do that because of facility codes and DRG codes and CPT codes, and we do that because we have complexity that we don't understand cost accounting in healthcare.
- 5:39Roger Jansen: So I think what's made it more complex, uh, and I want to be careful how I say this, is we've designed it to be corporate medicine, and we're treating healthcare system executives like they're Fortune 500 CEOs, when they should be treated very similarly, I think, to the respectful positions of superintendents in the community or a government official, um, a mayor of a community.
- 6:04Roger Jansen: But to be treated and paid like Fortune 500 CEOs when they don't do anything to actually grow revenue, people are as long as your community and population is growing, you're going to get more sick people, more babies, and more injured people.
- 6:16Roger Jansen: You have to do absolutely nothing to require more health care.
- 6:19Roger Jansen: And then in the state of Michigan, for example, there's something called a certificate of need.
- 6:22Roger Jansen: Those CONs, essentially, what they do is they drive competition outside of the market.
- 6:28Roger Jansen: So if you want to open an imaging center, for example, you have to get state approval to do that versus allowing those with the best outcomes and the best prices to win, which is exactly what you find in any other industry.
- 6:38Roger Jansen: So you actually take consumerism and the formations, the foundational principles of capitalism, completely out of healthcare.
- 6:45Roger Jansen: And to me, that's where I think we've gotten off track and we've rewarded these groups like they're doing something magical when many of them aren't even around.
- 6:52Roger Jansen: They're on outside communities and on national committees and international committees.
- 6:55Roger Jansen: They're not even taking care of multiple communities that they live in.
- 6:59Matt Harrington: So then how does the alternative method of exponential health come into the equation?
- 7:04Matt Harrington: Because especially talking about complexity, your website's very straightforward with the type of care you offer.
- 7:10Roger Jansen: Yeah.
- 7:10Roger Jansen: So what we did is we looked at what do most people need working ages 18 to 65.
- 7:15Roger Jansen: And we went and we looked at a bunch of historical data from the last 10 years.
- 7:19Roger Jansen: And it came down to, and I'm not going to get them in the exact order, but it came down to about seven professions.
- 7:23Roger Jansen: Primary care accounts for most office visits.
- 7:26Roger Jansen: But here's the problem with primary care in the United States.
- 7:28Roger Jansen: Each doc has a panel of 2,500 to 3,500 patients.
- 7:31Roger Jansen: You cannot take care of people with 2,500 and 3,500 patients.
- 7:35Roger Jansen: And as a result of that, primary care, instead of becoming a treatment or preventative solution, has become a triage solution where we have to move it on to the specialist or the image or to take off the skin tag or remove the mole or do the joint injection.
- 7:47Roger Jansen: Instead of doing that, the office.
- 7:49Roger Jansen: And so we don't even focus on prevention.
- 7:51Roger Jansen: The second set is mental health.
- 7:52Roger Jansen: We have a huge mental health crisis in the country.
- 7:54Roger Jansen: Yet we prescribe more SSRIs, SNNIs, and NDRIs and others, any other in organized, I said competitive organizational entity like Italy, Spain, France, so on and so forth do.
- 8:07Roger Jansen: Yet we have the worst mental health outcomes.
- 8:09Roger Jansen: Then you get into optometry, you get into gynecology, urology, musculoskeletal orthopedics.
- 8:15Roger Jansen: And what we said is let's bring all those in-house and let's treat most of what people need, but let's do it to it at a contract-based price that doesn't require people to guess what they're going to get charged somewhere down the low down the line.
- 8:28Roger Jansen: So we have become a direct contracting to employers and to self-paying individuals.
- 8:33Roger Jansen: One price, that's it.
- 8:35Roger Jansen: Never build again.
- 8:36Roger Jansen: No surprise billing.
- 8:37Roger Jansen: You know what you're paying up front.
- 8:39Roger Jansen: And it's at about 125% of Medicare rates.
- 8:42Roger Jansen: And so if you can't afford quote unquote the treatment, we're about 125% of Medicare versus traditional insurance is somewhere between 270 and 320% of Medicare rates.
- 8:53Matt Harrington: So how does that let people shift the focus from triaging to prevention with their own healthcare?
- 8:59Roger Jansen: Because our physicians only see 600, 300 to 600 patients apiece.
- 9:04Roger Jansen: And so their panel sizes are much less.
- 9:06Roger Jansen: So they're, you know, their visits are 45 to 60 minutes each time.
- 9:10Roger Jansen: So you're not only, you know, saying somebody, but we also kind of say we're like the wealth planners for your health.
- 9:17Roger Jansen: So we're the health planners.
- 9:18Roger Jansen: And what we mean by that is when you sit down with somebody in your 40s, their question if they're a good wealth management planner is what do you want to be doing in your 60s and your 70s?
- 9:26Roger Jansen: We do the exact same thing with someone's health.
- 9:28Roger Jansen: You're in your 30s, what do you want your 50s and 60s to look like?
- 9:31Roger Jansen: You're in your 50s, how do you want to be behaving in your 70s and 80s?
- 9:34Roger Jansen: Because you can't take action in your 70s and 80s.
- 9:37Roger Jansen: You need to take actions in your 50s or 60s.
- 9:39Roger Jansen: And so we're really doing that advanced management and wellness and health actual treatment.
- 9:45Roger Jansen: And I make a distinction.
- 9:46Roger Jansen: We are a healthcare company, whereas hospitals are medical companies.
- 9:50Roger Jansen: There's a very big difference between being a health company and being a medical company.
- 9:54Roger Jansen: We're focused on health and wellness.
- 9:56Roger Jansen: And if we need to treat you medically, we're licensed and capable of doing that.
- 10:00Roger Jansen: But our real goal is to keep you healthy and well for as long as possible.
- 10:03Roger Jansen: And let's remember what year we're in.
- 10:04Roger Jansen: We're in the year 2026.
- 10:06Roger Jansen: 2026.
- 10:08Roger Jansen: Many are practicing medicine and CPT codes from the 1980s because that's what they get reimbursed to do.
- 10:14Roger Jansen: It does not mean they're getting treated with the best outcomes or the latest and greatest ability that we have right now to take care of them.
- 10:20Roger Jansen: And that's that's an indictment on the U.S.
- 10:22Roger Jansen: healthcare system.
- 10:23Matt Harrington: Do you see general healthcare shifting closer to your model over time, or at least a model closer to preventative medicine?
- 10:32Roger Jansen: I think it comes down to what is going to happen from who pays.
- 10:36Roger Jansen: Right.
- 10:37Roger Jansen: And so if you look at who is the payer, the reality is right now, people don't appreciate that employers before the employee deduction are paying about $2,700 a month per employee for health insurance for a family of four.
- 10:51Roger Jansen: That's $30,000 a year that you're not seeing in your quote unquote take-home pay.
- 10:56Roger Jansen: I think what you're going to see employers do is move to defined contribution versus defined benefit.
- 11:02Roger Jansen: And so they're going to give you, make it up, $2,000 a month, and you go out and figure out what your own health care looks like.
- 11:08Roger Jansen: I'm going to get out of the healthcare business.
- 11:09Roger Jansen: Once you see that, I think you'll see a movement towards people making more disciplined and informed decisions about how and when they receive their health care and how they stay healthy and well before they get ill and injured in advance.
- 11:22Roger Jansen: So I think it's going to take a shift before we see that happening.
- 11:26Roger Jansen: I don't think it's going to happen organically, unless I think it already would have.
- 11:29Roger Jansen: Now the good news is, it's good news and bad news, is I think healthcare has become so unaffordable that there's more people being proactive.
- 11:36Roger Jansen: I think healthcare has become so unaffordable.
- 11:39Roger Jansen: Employers are starting to say, okay, you want me to go to your galas and spend money and give you dollars and donate time when you're putting up billions of dollars in infrastructure annually, but you're not lowering our healthcare costs, improving our access or improving our outcomes, we're done.
- 11:55Roger Jansen: So I think you're going to see a reaction from the business community because I think we've hit that breaking point where enough is enough.
- 12:01Roger Jansen: And organizations like ours are starting to thrive because we're actually doing something about that gap.
- 12:07Roger Jansen: And we're actually treating them based upon a budget and treating them based upon desired outcomes and making sure we don't have to treat, we can prevent before they ever have to spend those high dollars.
- 12:16Matt Harrington: Can you talk about the it's interesting?
- 12:18Matt Harrington: We were talking about the financials.
- 12:20Matt Harrington: Can you talk about maybe the convenience aspect of the different types of medicine as well?
- 12:24Matt Harrington: Because as a busy dad of three with, you know, a bunch of activities at night, it a lot of times it comes down to effort.
- 12:31Matt Harrington: How easily can I get to the dentist?
- 12:33Roger Jansen: Yeah.
- 12:34Roger Jansen: So, you know, all of our people that are members of our company or patients, if you will, of our company, we guarantee same day or next day access, right?
- 12:43Roger Jansen: And why do we do that?
- 12:45Roger Jansen: Because I'm sick today.
- 12:46Roger Jansen: You know, we have in and when we can't take care of them personally, we've created our own network of about 51 independent physicians' groups.
- 12:53Roger Jansen: And this is everything from imaging in labs to surgery, um, to neurology to you know, neurosurgery even.
- 13:01Roger Jansen: And the reason we do that is so we can help them get access to those services sooner than later.
- 13:07Roger Jansen: I had a patient I was working with who we suspected multiple sclerosis.
- 13:12Roger Jansen: We had to get some imaging done and some other testing done.
- 13:15Roger Jansen: They had called to go through a traditional health system in our community, and this is not an exaggeration.
- 13:20Roger Jansen: It was a 148-day wait before they could get in.
- 13:23Roger Jansen: Okay.
- 13:24Roger Jansen: We got them in literally the next day and had results in the evening, 12 hours post their their imaging.
- 13:30Roger Jansen: That's a big deal.
- 13:32Roger Jansen: And so I think the convenience factor, healthcare isn't just about when it's good for the system.
- 13:39Roger Jansen: Healthcare should be about when it is needed by the patient.
- 13:43Roger Jansen: And that's really what we're trying to get back to.
- 13:45Matt Harrington: Shifting a little bit into the business side of the equation, uh it's a pretty competitive space, healthcare, behavioral health, the whole gambit.
- 13:54Matt Harrington: What is working right now in terms of getting new clients, getting new docs, you know, building the business in that way?
- 14:01Roger Jansen: Our business has grown about 5x in the last 16 months.
- 14:04Roger Jansen: So we're growing at a very, very rapid rate.
- 14:07Roger Jansen: Our biggest issue right now is recruiting.
- 14:09Roger Jansen: It's it's hard to get people on and get the right people on.
- 14:12Roger Jansen: Um, I think the way that we're growing is twofold.
- 14:16Roger Jansen: And I don't mean this to sound silly, but we don't have to be that great.
- 14:20Roger Jansen: And maybe we're not.
- 14:22Roger Jansen: And maybe we have a long way to go.
- 14:24Roger Jansen: But I know we're better than the options that are currently being utilized.
- 14:28Roger Jansen: And so, you know, our food may not be the best restaurant in the state, but it's better than the one that are currently in town.
- 14:35Roger Jansen: And people are like, I think I'm gonna go there instead.
- 14:37Roger Jansen: So we have a long way to go.
- 14:39Roger Jansen: And so I think we're the best organization we can be.
- 14:41Roger Jansen: And, you know, I don't think you're ever done with that journey, so we'll probably never attain it.
- 14:44Roger Jansen: Um, so I think that's one thing.
- 14:46Roger Jansen: And the second thing is I think healthcare brokers are tired of presenting two solutions.
- 14:50Roger Jansen: In our state, it tends to be the Blue Cross Blue Shield solution and party health.
- 14:54Roger Jansen: And they're looking for other solutions that employers are saying enough of the 10, 11, 12, 15% increases annually.
- 14:59Roger Jansen: Can you bring me something different that's gonna actually keep my people healthy and well and improve the health outcomes and lower my total cost of care?
- 15:05Roger Jansen: And that exp and that's exponential health.
- 15:08Matt Harrington: Very interesting.
- 15:08Matt Harrington: So you said recruitment was one of the barriers.
- 15:12Matt Harrington: Is that because you have trouble getting docs to this new style of care, or is it even getting in front of them to begin with?
- 15:19Roger Jansen: No, it's because healthcare systems have put non-competes in place.
- 15:22Roger Jansen: And so we have a laundry list of doctors who want to join us, but they're all in non-competes, and so our ability to actually get them and the pace at which we can get them is impeded by that legality, of which let's remind ourselves.
- 15:35Roger Jansen: Let's remind ourselves, lawyers are the only group that do not allow themselves to have non-competes, but they write them for everyone else.
- 15:42Roger Jansen: So the legal profession is also complicit and implicitly, you know, causing the problems in healthcare as well.
- 15:49Matt Harrington: I did not know about that, about uh the legal stuff.
- 15:52Roger Jansen: That's the entire system is set up for lawyers to bill more, right?
- 15:55Roger Jansen: I mean, that's what they enjoy, that's what they do.
- 15:57Roger Jansen: And unfortunately, the United States, I believe, accounts for 94% of all lawsuits globally.
- 16:02Roger Jansen: Yet only 6% are filed outside of that.
- 16:06Roger Jansen: Because there's no standard for filing a lawsuit in the United States.
- 16:08Roger Jansen: Anyone can sue anyone over anything and say anything they want.
- 16:12Roger Jansen: And so we we really, really have to get back to uh some sanity here.
- 16:16Roger Jansen: But all the lawyers are the ones who run for public office and they all protect their profession.
- 16:20Roger Jansen: So it's an inside job.
- 16:22Matt Harrington: Giving taking a couple of steps back into when you were in the in the midst of scaling, maybe early on in the process in the swamp of it.
- 16:30Matt Harrington: What's uh what's a piece of advice you would give a healthcare operator who is feeling overwhelmed but trying to scale?
- 16:37Roger Jansen: I wish somebody would told me this at the time, but it's it's gonna sound really silly, but it's okay to not know what you're doing all the time.
- 16:46Roger Jansen: And and what I mean by that is listen to the patients.
- 16:50Roger Jansen: You don't have to have all the answers.
- 16:52Roger Jansen: Seek advice from others to give you those answers and what they're looking for.
- 16:56Roger Jansen: And we've been really good.
- 16:57Roger Jansen: Actually, we just had a patient meeting today and we asked the patients what do they want?
- 17:01Roger Jansen: You know, why do we have to consistently come up with the answers?
- 17:04Roger Jansen: Like, let's ask the patients what they're looking for and let's really spend time building what they want.
- 17:09Roger Jansen: And so we're co creating a vision versus taking our vision and forcing it down people's throats.
- 17:15Roger Jansen: We're building it with our patients.
- 17:17Matt Harrington: I love it.
- 17:17Matt Harrington: I think it's a great place to end it.
- 17:19Matt Harrington: Thank you so much, Roger.
- 17:21Roger Jansen: Yeah, glad to be here.
- 17:22Roger Jansen: Thank you.