Latest / Becker’s Healthcare Podcast / Creating Sustainable Growth in Community Healthcare with Kurt Barwis
Transcript
- 0:02- The strategic agenda facing hospital and health system
- 0:04- leaders right now is not a short list.
- 0:07- Growth in a consolidating market, sustainable margins in
- 0:09- a reimbursement environment that rarely moves in your
- 0:12- favor,
- 0:12- a tech investment cycle that demands both urgency
- 0:15- and discipline,
- 0:16- and a workforce story that is still being
- 0:19- written.
- 0:20- Eker's fourteenth annual CEO CFO roundtable brings together
- 0:23- more than 1,500 executive level attendees and nearly
- 0:27- 400 speakers across four days of sessions that
- 0:30- are designed to help c suite leaders benchmark,
- 0:32- pressure test, and sharpen their priorities.
- 0:35- Not in the abstract, but against the real
- 0:37- decisions they'll face heading into the next year.
- 0:39- It's the kind of event you leave with
- 0:41- a clear sense of where you stand and
- 0:42- what comes next.
- 0:44- So join us November second through the fifth
- 0:46- at the Hyatt Regency in Chicago, and come
- 0:49- ready to do the hard thinking.
- 0:50- Register on our events page at beckershospitalreview.com
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- 0:56- upper right.
- 0:58- This is Laura Dierda with the Becker's Healthcare
- 1:00- podcast.
- 1:01- I'm thrilled today to be joined by Kurt
- 1:03- Barwiss, president, CEO, and CFO of Bristol Health.
- 1:06- Kurt, it's a pleasure to have you on
- 1:07- the podcast today. Sure. I am thrilled to
- 1:09- be here with you today.
- 1:11- Fantastic. Well, I'm excited for our conversation. I
- 1:13- know we're gonna talk a lot about how
- 1:14- things are going at Bristol Health, some of
- 1:16- the cool things you're doing there as well
- 1:18- as your perspective on the future. But before
- 1:20- we dig in, can you tell us a
- 1:21- little bit more about yourself and your background?
- 1:24- So I've been at Personal Health now for,
- 1:27- twenty years.
- 1:28- And,
- 1:29- prior to that, I,
- 1:31- was in Southern Maryland at a hospital, and
- 1:33- then Northern Maryland, I've been on all sides
- 1:35- of this. I started out, at a small
- 1:37- hospital in Philly, Paul James Hospital,
- 1:40- and, went into public accounting
- 1:42- and,
- 1:44- went into,
- 1:45- medical device sales and distribution
- 1:47- for a little while,
- 1:48- manufacturing,
- 1:49- health care, medical device manufacturing, and then I
- 1:52- did a start up.
- 1:53- So I've been I've been on all sides
- 1:55- of this,
- 1:56- this environment. It's actually pretty interesting to have
- 1:58- that kind of perspective.
- 2:00- Yeah. Absolutely. I can imagine you draw on
- 2:02- all those different experiences as you're going through
- 2:04- all your day and and decision making too,
- 2:06- which is fascinating.
- 2:08- So give us a quick state of the
- 2:10- union at Bristol Health. What's going well this
- 2:12- year, and what are you focused on for
- 2:13- the rest of 2026?
- 2:15- Well, that's that's an interesting question because,
- 2:18- hopefully, by the end of twenty six,
- 2:21- we will have gone through a transaction with
- 2:23- UConn Health,
- 2:24- here in Connecticut, and we will be a
- 2:26- member of the UConn Health, network community network.
- 2:30- So a lot of a lot of our
- 2:32- time and energy and focus right now is
- 2:34- on the due diligence and and closing the
- 2:36- transaction,
- 2:38- along with, you know, making sure we get
- 2:40- across the finish line. So,
- 2:42- focusing on our financial,
- 2:44- health,
- 2:45- revenue cycle. Recruiting physicians, you know, is a
- 2:48- big part. We had some primary care losses
- 2:50- last year, which affected our our bottom line,
- 2:53- and, we've had a really successful recruitment cycle.
- 2:56- But the the number one thing is to
- 2:59- really sustain and secure our mission for for
- 3:02- a long, long time by becoming part of
- 3:04- a larger organization.
- 3:07- Got it. Absolutely. Wow. I I think that's
- 3:09- really helpful to understand and being in that
- 3:11- position.
- 3:12- And and I can imagine, you know, with
- 3:13- all the uncertainties in healthcare right now,
- 3:16- becoming a part of UConn is helpful, but
- 3:18- at the same time, I know it's a
- 3:19- lot of work too. So, what's that process
- 3:21- been like, and and how have you been
- 3:23- navigating through the different things that come up
- 3:25- when when you're trying to become part of
- 3:27- a larger system?
- 3:30- So great question. You know, it's really,
- 3:33- a matter of focus. Like,
- 3:35- you know, because, obviously,
- 3:37- in in that this kind of a situation,
- 3:40- you've got the board, the medical staff, the
- 3:42- community. You've got all these constituent bases that,
- 3:45- wanna know what's going on and be informed.
- 3:47- So you you have a balancing act. You
- 3:49- know?
- 3:50- It it's people wanna know as soon as
- 3:52- they can know. So I I honestly, I
- 3:54- think the biggest thing is as soon as
- 3:56- something material, like, we sign an LOI,
- 3:58- when that happens,
- 3:59- boom, communication goes out and and make sure
- 4:02- that people are are aware of what what
- 4:04- what's going on in the process.
- 4:07- And and it's also managing the team, leading
- 4:09- the team, making sure that the people that
- 4:12- need to be engaged, the due diligence responses
- 4:14- that need to happen
- 4:16- happen. And then,
- 4:17- lastly, working with legal counsel,
- 4:20- through document,
- 4:21- drafts and terms of documents to make sure
- 4:24- that, there's a cadence and the process keeps
- 4:26- moving.
- 4:27- And, and here in Connecticut, we have a
- 4:29- certificate of need process. So so getting everything
- 4:32- done, ready, prepared, and filed
- 4:35- just starts a hundred and twenty day process.
- 4:39- So at this point,
- 4:41- you know, we I'm hopefully on track to
- 4:43- close this thing out by, December,
- 4:46- last week in December, first week in January.
- 4:48- We all know that's holiday season,
- 4:50- so probably likely first week in January.
- 4:53- Oh, that's great to hear.
- 4:55- Fantastic. And, you know, as you're going through
- 4:58- this process,
- 4:59- what are some of those big headwinds that
- 5:01- you're keeping an eye on and preparing for?
- 5:04- Yeah. So, obviously, the headwinds are very strong
- 5:07- right now. I mean, you know, you look
- 5:08- at all the changes that are that are
- 5:10- hitting us HR one,
- 5:12- the, outpatient proposed,
- 5:14- rules that that hit us, the first of
- 5:17- of January of twenty twenty seven,
- 5:19- changes to you know, it it seems like
- 5:22- we've got all these different directional things hitting
- 5:24- us, on three forty b. You've got you've
- 5:27- got potential,
- 5:29- congressional,
- 5:30- legislation,
- 5:31- coming out that could clarify some things that
- 5:34- people have been asking about for a long
- 5:35- time,
- 5:37- and interpreting
- 5:38- maybe, you know, lots of different ways. And
- 5:40- then you've got, you know, the outpatient rule,
- 5:42- which essentially,
- 5:44- cuts the amount that Medicare is gonna pay
- 5:46- for three forty b drugs.
- 5:49- And and then you've got the rebate program.
- 5:51- So we are you know, we rely on
- 5:53- the three forty b program. We are, we
- 5:56- are a disproportionate share hospital, so it's a
- 5:58- very important thing. So my eye is very
- 6:00- much on that. We actually spent a lot
- 6:01- of time responding to the inquiry that had
- 6:04- to do with the rebate program.
- 6:06- We we submitted a full,
- 6:08- response to CMS for that. So so, you
- 6:12- know, changes in the environment, changes around us.
- 6:14- And then I think the other thing that's
- 6:16- really important is constantly paying attention to, you
- 6:19- know, how can we
- 6:21- address affordability for our communities? How can we
- 6:23- address and what's our part and role in
- 6:25- that,
- 6:26- in terms of, you know, making health care
- 6:29- accessible, making it more affordable?
- 6:31- Because each one of us, every hospital, every,
- 6:33- you know, organization out there can can can
- 6:36- really
- 6:37- do make a difference in their communities. So,
- 6:39- you know, how do we lean out the
- 6:41- organization? How do we make good decisions?
- 6:43- We've gone through a lot of analytics on
- 6:45- service lines.
- 6:46- And,
- 6:47- and to the to the most extent possible,
- 6:50- how can we reconstruct those things so that
- 6:53- we don't have to eliminate those things?
- 6:56- Absolutely. I think that makes a lot of
- 6:58- sense. And, you know, it's a really smart
- 7:00- way as a leader to think about all
- 7:02- the different headwinds, all the different policy changes
- 7:04- and challenges I know that affect the financial
- 7:06- health and stability
- 7:08- of of hospitals and and systems like yours.
- 7:10- And so, I think especially hearing, you know,
- 7:13- kind of the challenges with primary care too
- 7:15- on your side or the changes there.
- 7:17- What does it look like, you know, to
- 7:18- kind of prepare for these things going down
- 7:20- the pipe? Are you,
- 7:22- thinking through different ways to bring revenue into
- 7:25- the system, or or how do you really
- 7:26- prepare for so many different potential financial hits
- 7:29- in the next twelve to twenty four months?
- 7:32- Yeah. You know, in the old days, we
- 7:33- used to say we had to really try
- 7:34- to grow over them.
- 7:36- So,
- 7:37- growth is is the is the thing that
- 7:39- matters, and it's the right kind of growth.
- 7:41- So we are certainly doing that. We are
- 7:43- constantly paying attention. We just finished the medical
- 7:45- staff development plan. We've got a recruitment plan.
- 7:48- We are a,
- 7:49- a HPSA health pressure shortage area, so we
- 7:52- recruit extensively through the j one waiver program.
- 7:55- We're attractive in Connecticut, you know, even though
- 7:56- we're a lot of the state. It's attractive.
- 7:59- So a lot of a lot of the
- 8:01- growth and issues around recruiting the specialist and
- 8:04- those things that our community needs access to.
- 8:06- So just earlier today, we were talking about
- 8:08- ENT,
- 8:10- which we not had for years, but now
- 8:11- we have a chance because somebody who graduated
- 8:13- from high school right right down the street
- 8:16- is now coming potentially back as an ENT
- 8:18- surgeon in the community that she grew up
- 8:20- in. So,
- 8:21- those are the things that, you know, you
- 8:23- you look at. And at the very same
- 8:25- time,
- 8:27- you know, we've implemented staffing productivity measures that
- 8:29- that, when I wake up in the morning,
- 8:31- I can know exactly
- 8:33- for every four hour block of time where
- 8:35- we, you know, where we staffed appropriately, where
- 8:38- we overstaffed, where there are shortages in staffing.
- 8:40- I get a full report for the last
- 8:42- twenty four hours,
- 8:44- and there's accountability around that. So people are
- 8:46- taking actions. We get reports on overtime,
- 8:49- premium pay, all of those things. And then
- 8:52- most importantly,
- 8:54- every Friday,
- 8:55- we meet for a couple hours, and we
- 8:57- go through all the revenue cycles for all
- 8:59- of our entities and really kind of look
- 9:01- at what are the opportunities, how do we
- 9:03- improve, how do we address denials and bad
- 9:06- deaths. I I just saw this morning,
- 9:08- we had our medical group,
- 9:10- finance committee meeting, which is well attended by
- 9:13- physicians. It was really pretty cool to hear
- 9:15- the physicians interact.
- 9:16- And and for the last month, they or
- 9:18- last I think it was last month, they
- 9:20- collected,
- 9:22- 87%
- 9:23- of the co pays and deductibles at the
- 9:25- point of service.
- 9:26- That's huge. I mean, you know, because because
- 9:28- if you don't collect those things, all of
- 9:31- a sudden, you may not collect those things.
- 9:33- So,
- 9:33- so I I just spread it around a
- 9:36- little bit, but really kind of pay attention
- 9:38- to all the areas of opportunity,
- 9:40- making sure that things are really, you know,
- 9:43- happening. The patient is always the center of
- 9:45- the universe.
- 9:46- Quality, you know, how do we deliver and
- 9:48- how do we face the community and do
- 9:49- it in the right ways?
- 9:51- I love that. I think it makes so
- 9:53- much sense and, you know, I appreciate how
- 9:55- much work and effort it takes in order
- 9:57- to find that those growth paths and then
- 10:00- build a culture, build a a team that,
- 10:02- understands what the big goal is and is
- 10:05- able to, you know, really put all their
- 10:07- efforts, in moving in that direction. So, it's
- 10:10- cool to hear about the clinicians in the
- 10:11- finance meeting.
- 10:13- Oh, I'm really interested there. Yeah.
- 10:16- I could I could tell you having the,
- 10:19- you know, the, the
- 10:21- the managers of the practice, the practice managers
- 10:24- and directors involved
- 10:26- in the revenue cycle discussions
- 10:28- has exponentially
- 10:30- decreased
- 10:31- our denials and authorization timeliness,
- 10:35- and the co pay collections,
- 10:37- because they're there. You know? In many organizations,
- 10:39- all of that is separated into finance or,
- 10:42- you know, revenue cycle.
- 10:44- Blending them together, I think, is the secret
- 10:46- sauce. You know? Because once they realize
- 10:49- they can actually make a difference,
- 10:51- they actually have the power to get the
- 10:53- staff to do it real time. So it
- 10:55- works. It it very much works.
- 10:57- Awesome. Yeah. That's great to hear. And, you
- 10:59- know, to that point in the growth discussion,
- 11:02- where do you see the best opportunities over
- 11:03- the next two to three years, a bit
- 11:05- of a longer time horizon just to continue
- 11:07- to to grow and develop as a system?
- 11:09- Yeah. So great great question. I think a
- 11:12- difficult question to answer because as you think
- 11:14- about, like, you know, we've been all in
- 11:16- on March
- 11:17- and, you know, we opened up a clinic,
- 11:19- you know, so an MTM clinic,
- 11:21- and it's being extremely well received and the
- 11:24- and the growth and the opportunity there is
- 11:26- tremendous.
- 11:27- We have a retail pharmacy.
- 11:29- And then on the other side of the
- 11:30- equation, you've got all these headwinds that are
- 11:32- negative coming towards three forty b. And and
- 11:36- this morning, when we talked about it with
- 11:38- all the physicians,
- 11:39- you know, the patients
- 11:41- really are embracing,
- 11:44- that concept of having a pharmacist who's got
- 11:46- a contractual relationship with the primary care physician
- 11:49- or the specialist
- 11:50- who then becomes kind of the concierge persons
- 11:53- for those patients.
- 11:54- I see that as a huge growth opportunity.
- 11:57- I mean, around us, we've had some of
- 11:58- the big box pharmacies closed down. So pharmacy
- 12:02- to me is a is a is an
- 12:03- opportunity
- 12:04- despite the fact that we may end up
- 12:06- not getting the reimbursement that we used to
- 12:08- get. We'll still get the discounts, hopefully, that
- 12:10- we get from $3.40 b.
- 12:12- Specialty services, I think, you know, layering in
- 12:15- the services that we don't have that the
- 12:17- the community is still looking for,
- 12:20- and then redesigning things that we do.
- 12:23- So, really, we like a great example, we
- 12:25- just went through our cardiac and pulmonary rehab
- 12:27- services. Now it was staffed by some of
- 12:30- the most experienced nurses, but we didn't have
- 12:32- any exercise physiologists in there.
- 12:34- Exercise physiologists cost less money,
- 12:37- and so we changed out the staffing. So
- 12:39- it's critically thinking in every single area
- 12:41- and making sure that your construct is really
- 12:45- the one that that is gonna get you
- 12:46- the best, you know, best return,
- 12:49- the best experience for the patients, and be
- 12:51- the most economical.
- 12:53- That makes a ton of sense. And, you
- 12:55- know, having that, kind of overall
- 12:58- mindset and and thinking through, like, the reimbursement
- 13:01- and looking at, you know, where, the specialties
- 13:03- are at any given time. I know it
- 13:05- can change quickly, but,
- 13:07- you know, having that value, that return, and
- 13:09- and and,
- 13:10- really, you know, cool to have some of
- 13:12- the concierge things coming through as well. So,
- 13:15- that makes a ton of sense. And are
- 13:17- there any other areas that you are really
- 13:19- looking at investing in in particular?
- 13:21- Well, there is something kind of controversial that
- 13:23- I'm Yeah. Doing. Sure. So it made me
- 13:26- think of it like,
- 13:28- you know, this whole concept of site of
- 13:29- service, which is under challenge. So there's some
- 13:32- proposed changes in the outpatient rule that go
- 13:34- after that.
- 13:35- I've actually looked at it, and and so
- 13:38- you take so we have a very
- 13:40- significant population of primary care physicians who work
- 13:42- for Optum,
- 13:44- and and they and they score
- 13:47- your specialists. Right? And they score your specialist
- 13:49- on total cost of care. So all of
- 13:52- my, say, for example, physical therapy locations or
- 13:55- hospital site of service. So that it costs.
- 13:58- When you go into that calculus, it increases,
- 14:01- the score. So if you're, say, a four,
- 14:04- their primary care physicians are not, you know
- 14:06- and I don't know the exact, so I'm
- 14:08- not sure if it's one to four or
- 14:09- whatever it is. But
- 14:11- your surgeons could be phenomenal, high quality, the
- 14:14- best of the best,
- 14:15- but when you get to that metric, they're
- 14:17- not gonna get the referrals.
- 14:19- So the controversial thing that that I'm looking
- 14:21- at is
- 14:22- giving up on-site of service. You know, moving
- 14:25- my ambulatory locations
- 14:27- into
- 14:28- a different construct, which is
- 14:31- ambulatory pricing, not hospital pricing.
- 14:33- Because what do I want more? I want
- 14:35- my patients to stick around. I want them
- 14:37- to get their services in the community,
- 14:39- and I wanna get the referrals. So we
- 14:41- were doing the math, and I think my
- 14:43- my finance team said you're gonna lose $200,000.
- 14:45- And I'm like, yeah. But think about all
- 14:47- the orthopedic surgery I'm gonna pick up that
- 14:49- I'm losing, and all the patients who once
- 14:51- they leave the community may not come back
- 14:53- for their services. So,
- 14:55- so I kinda look at it a little
- 14:56- bit differently, and I think the analytics
- 14:58- everybody's situation's different,
- 15:00- but I think you have to go through
- 15:02- the analytics
- 15:03- very carefully. Obviously, if you have a, you
- 15:05- know, a a cancer center,
- 15:07- which with cost structure is very different
- 15:09- or, ambulatory surgery or a surgery center that
- 15:12- does, you know,
- 15:14- after hours, something like that, maybe you wanna
- 15:16- keep it that way. You wanna keep it
- 15:17- as a hospital site service, but you gotta
- 15:19- do the analytics.
- 15:21- Right. Absolutely. Stay close to that data and
- 15:24- and really then you'll understand what what the
- 15:26- likely performance is, but that's fascinating. I think
- 15:29- something that more and more hospitals seems like
- 15:31- are bumping up against in terms of trying
- 15:33- to figure out the side of service and
- 15:35- what's actually gonna, you know, make the biggest
- 15:37- long term difference,
- 15:38- for care as well as the financial side.
- 15:41- Yeah. Yeah. Yeah. So it's a fascinating situation,
- 15:44- and it'll be interesting to see what happens
- 15:46- over the next couple of years.
- 15:48- Yep. Now before we wrap up, I'm curious,
- 15:51- could you tell me about a leader who
- 15:52- you admire really from any industry and why
- 15:54- you admire them?
- 15:56- That's that's kind of an easy one. I'm
- 15:58- on the board of the American Hospital Association,
- 16:00- and Rick Pollock is president and has been
- 16:02- for years. I've known him for a good
- 16:05- part of my year my career even before
- 16:07- he was the president of the American Hospital
- 16:08- Association. Rick is
- 16:10- stepping down this year, and,
- 16:12- you know, I could tell you in terms
- 16:15- of a leader,
- 16:16- someone who constructs an incredible team, someone who
- 16:19- engages with the communities. I can go back,
- 16:21- and I remember
- 16:23- when I was, you know,
- 16:25- I I don't wanna say nobody, but I
- 16:26- was not really anybody important at a hospital.
- 16:29- And and Rick was in the,
- 16:31- advocacy area of the American Hospital Association. He
- 16:33- called me, you know, routinely, like, once a
- 16:35- year. What's going on? How are you feeling?
- 16:37- What do you think is is is important?
- 16:40- He's that kind of a person.
- 16:42- And and and having the chance to be
- 16:44- on the board member with a full room
- 16:46- of people that I admire and and respect,
- 16:49- having
- 16:50- Rick, you know, help me, you know, even
- 16:52- to the point where I was doing something
- 16:54- where I had to give an award at
- 16:56- one of the annual meetings,
- 16:58- and Rick is in there with me teaching
- 17:00- me how to use the teleprompter.
- 17:02- That's who he is. Like, he's he's a
- 17:04- person who
- 17:05- who gets to know people, who really does
- 17:08- bold things. And I could tell you right
- 17:10- now, I'm gonna miss him so much, as
- 17:13- he goes on to this next important part
- 17:15- of his his life. And I also wanna
- 17:17- put in a, you know, a major plug
- 17:19- for, you know, Steve Welsh, who's now gonna
- 17:21- take over the reins of the American Hospital
- 17:23- Association. He was the hospital association exec for
- 17:26- Massachusetts for years. I got to know him
- 17:28- on my regional policy board, which I chair
- 17:30- for the And even before that, what an
- 17:33- incredible transition. What an incredible leader,
- 17:36- leadership change. And the way it was done
- 17:38- was just done,
- 17:39- with with absolute perfection and,
- 17:43- really exciting things to think about in the
- 17:45- future. Very positive.
- 17:47- Despite all the turmoil and headwinds,
- 17:49- I think there is a pathway forward personally,
- 17:51- and I believe that the
- 17:53- has got a leader that also feels the
- 17:55- same way.
- 17:57- Absolutely. No. It makes a ton of sense,
- 17:58- and it's so helpful to have that type
- 18:00- of leadership, especially in DC and thinking about
- 18:03- policies and and everything else that impact hospitals
- 18:06- and health systems every single day.
- 18:08- Yeah. It does. There's no question.
- 18:11- I I feel like I'm blessed to have
- 18:13- gotten to know so many incredible leaders. I've
- 18:16- learned so much,
- 18:18- from them,
- 18:19- and,
- 18:21- it's just it's I feel like we're a
- 18:23- small community,
- 18:24- and that is one of the most important
- 18:27- things
- 18:27- about health care, this health care environment that
- 18:30- we're in. And that together,
- 18:32- despite all these headwinds,
- 18:34- we're gonna figure it out because that's what
- 18:36- we do. We're very passionate. We're very caring,
- 18:39- empathetic,
- 18:41- and we do what we do for the
- 18:42- communities that we serve. And the patient is
- 18:44- always at the center.
- 18:46- So they're relying on us to figure it
- 18:47- out. So I'm very optimistic.
- 18:50- That's amazing. Kurt, thank you so much for
- 18:52- joining us on the podcast today. This has
- 18:54- been such a fun conversation. I learned a
- 18:56- ton,
- 18:57- from you. It seems like you've got a
- 19:00- really,
- 19:01- great situation there and obviously continue to grow
- 19:03- and pivot with some of the challenges ahead.
- 19:05- But looking forward to seeing you as well
- 19:07- in person at our CEO CFO roundtable. I
- 19:09- know you'll be speaking on a panel, so
- 19:10- we'll dig deeper into some of these issues
- 19:13- and themes, and then we'll have more questions
- 19:15- for you at that point as well. So
- 19:16- looking forward to it. Thank you, Laura. I
- 19:19- am too. And thank you to Becker's. I
- 19:21- mean, you guys do a great job of
- 19:22- of really bringing a lot of information out
- 19:25- to us, and I look forward to reading
- 19:26- it
- 19:27- almost every day. Just literally,
- 19:30- it's a great source of information for me.
- 19:32- So thank you.