Latest / Becker’s Healthcare Podcast / Reducing Waste and Improving Musculoskeletal Care with Dr. Steve Schutzer
Transcript
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- 0:50- This is Scott Becker with the Beckers Health
- 0:53- Care Podcast.
- 0:54- We're thrilled today to be joined by a
- 0:56- brilliant
- 0:57- physician, orthopedic surgeon who's also an entrepreneur.
- 1:01- We're joined today by doctor Steven Schutzer.
- 1:04- Doctor Schutzer is a University of Virginia graduate.
- 1:06- He's the cofounder
- 1:08- of Upswing Health,
- 1:10- in the orthopedic
- 1:11- MSK space,
- 1:13- with doctor Jay Kimmel,
- 1:15- two brilliant physicians that happen to be really
- 1:17- good people.
- 1:19- Doctor Schuster, can you take a moment before
- 1:21- we get started just to introduce yourself,
- 1:24- tell us about your background,
- 1:26- and then we'll talk about sort of musculoskeletal
- 1:28- care and what you're seeing and also what
- 1:30- you folks do with Upswing Health.
- 1:32- Yeah. Thank you very much, Scott. It... It's
- 1:34- a pleasure to join you this morning. And
- 1:36- quite honestly, your introduction was better than I
- 1:38- can do. So thank you very much. I
- 1:40- am an orthopedic surgeon. And for thirty six
- 1:42- years,
- 1:44- my focus was on joint replacement surgery. And,
- 1:47- for about twenty... Sixteen years, I was the
- 1:50- physician executive overseeing a very large orthopedic,
- 1:53- service line, which included sports and joints and
- 1:57- spine
- 1:58- and trauma.
- 1:59- But then my my dear friend and colleague
- 2:02- and cofounder, Jay Kim, and I realized that
- 2:04- while we had, I wanna say solved, but
- 2:07- substantially
- 2:08- improved the surgical aspect of orthopedics,
- 2:11- We came to realize, Scott, that
- 2:13- we had seen over the extent of our
- 2:15- career so many patients
- 2:17- start their MSK, their orthopedic journey,
- 2:20- on the wrong foot,
- 2:22- with the wrong resources, leading to the wrong
- 2:24- outcomes and waste
- 2:26- and so forth. And we set out to
- 2:27- build a company quite honestly to give everybody
- 2:30- Steve and Jay in their back pocket. I
- 2:32- mean, that's not a snapshot what our intent
- 2:34- was.
- 2:35- And let's talk a little bit about musculoskeletal
- 2:38- care today.
- 2:40- But right now, where are employers
- 2:43- overspending
- 2:44- on musculoskeletal
- 2:45- care,
- 2:46- and where is your unnecessary
- 2:48- unnecessary
- 2:49- utilization driving cost?
- 2:52- And then let's talk back to, like, sort
- 2:54- of talk about patients getting started in the
- 2:56- wrong foot.
- 2:57- Give us an example of that as well.
- 2:59- I'd I'd love to hear a little bit
- 3:01- of that from where you and doctor Kimball
- 3:03- came from in this
- 3:04- with so many patients going in multiple different
- 3:07- wrong directions before they get what they really
- 3:08- need. Yeah. No. That's
- 3:10- that's that's really a crux of the issue.
- 3:12- Yeah. In in terms of what employers are
- 3:14- overspending,
- 3:15- we did a two year study here. We've
- 3:17- been managing the state of Connecticut health plans,
- 3:20- MSK,
- 3:21- for probably four or five years now. So
- 3:22- we did a two year study. And, Scott,
- 3:24- in every category of MSK spend,
- 3:28- imaging,
- 3:28- ER visits,
- 3:30- cortisone injections, surgeries,
- 3:32- physical therapy, in every category of spend, we
- 3:35- found employer... Our employer, this particular client was
- 3:38- was overspending.
- 3:40- And we looked in the aggregate. We reduced
- 3:42- that utilization
- 3:43- by, by 38%.
- 3:46- And and it's not rocket science, Scott. And
- 3:48- and regardless if it's we're talking about the
- 3:51- orthopedic service line or cardiometabolic, whatever it may
- 3:53- be, it's about getting the patient. You know,
- 3:56- we call them members. We call them patients
- 3:58- to the right resource, like, when they need
- 4:01- it and get them on the right track
- 4:04- and and navigate them through this morass that
- 4:06- we call health care on the most efficient
- 4:08- pathway. Because if not, you get
- 4:11- these... Not just the waste, and we talk
- 4:13- about the 40%
- 4:15- waste. And when you talk about
- 4:17- unnecessary surgery, I I think it's a little
- 4:19- disrespectful
- 4:20- to say just a wasted,
- 4:22- spinal surgery. This is somebody's life. I'll tell
- 4:25- you a a quick case of mine. It
- 4:28- was particularly egregious. This is a gentleman. He's
- 4:30- a construction worker.
- 4:32- Scott, I took care of him thirty years
- 4:34- ago when he fell off a scaffold, and
- 4:35- I was doing trauma.
- 4:37- And he went to his primary care physician.
- 4:38- Again, it's not pointing fingers. It's just a
- 4:41- system problem. But he went to his PCP
- 4:43- complaining of pain in both of his thighs.
- 4:46- PCP said, have you had any,
- 4:49- back pain? He's been doing construction work for
- 4:52- forty years. The answer was yes, and the
- 4:54- thought was it sounds like a spinal problem.
- 4:57- So he got an MRI of his spine
- 4:59- and, of course, he had something called spinal
- 5:01- stenosis and was referred to a neurosurgeon. Long
- 5:04- story short, ended up having
- 5:06- a massive front and back
- 5:08- spine procedure. It's called the three sixty.
- 5:10- Had some complications, a bowel
- 5:13- up complication, a colostomy, all those horrible things.
- 5:16- And all that was tragic. Right? Stop loss
- 5:18- claim.
- 5:19- But the real travesty, Scott, is when I
- 5:21- saw him three months after this procedure,
- 5:24- he no sooner walked into my office, and
- 5:26- I knew his problem had nothing to do
- 5:27- with his spine. Both of his hips were
- 5:29- shut, Scott. He needed bilateral hip arthroplasty and
- 5:33- never needed the spine procedure
- 5:35- at the first place. So that's just a
- 5:36- particularly
- 5:37- egregious of many, many, many cases like this.
- 5:40- Patients having the wrong procedure,
- 5:43- hernia repairs, spine procedures,
- 5:45- and so forth just because they got off
- 5:47- on the wrong pathway from the start.
- 5:50- Thank you. So much of that actually
- 5:53- where you see... I know my mother at
- 5:54- one point had a knee surgery, and it
- 5:56- turned out she really needed a hip surgery.
- 5:59- And so I ended up going back, you
- 6:00- know, to the same institution, and they did
- 6:02- a great job. And she probably could've used
- 6:03- the knee surgery, the knee replacement anyways, but
- 6:06- it turned out that the real problem was
- 6:07- in her hip. And so they went back
- 6:09- and did a hip replacement, and it seems
- 6:11- fairly common.
- 6:12- Talk a little bit about
- 6:14- where are employers overspending on m s a...
- 6:17- MSK card, musculoskeletal
- 6:19- care. I can't even say MSK, but musculoskeletal.
- 6:22- And
- 6:23- why is virtual care... And I I get
- 6:25- this, but why is virtual care have its
- 6:27- limitations? Talk a little bit about those two
- 6:29- things. Yeah. So, you know, listen. I had
- 6:31- a great career, wonderful career, doing surgery. I
- 6:35- loved every patient I operate on.
- 6:37- But in reality,
- 6:38- orthopedics is largely nonsurgical.
- 6:41- Most people with orthopedic conditions, and that, by
- 6:44- the way, is half of Americans each year
- 6:47- will have some sort of an orthopedic ache
- 6:49- or a pain, but most of them are
- 6:51- what we call itises and apathies,
- 6:54- tendinitis or tendinopathies.
- 6:55- Or, you know, I rolled my ankle playing,
- 6:58- you know, some soccer this weekend. It's a
- 7:00- little puffy. Should I go to the ER?
- 7:02- Or I lifted up my grandson who gained
- 7:04- a little bit of weight. My back went
- 7:06- out or my computer working eight hours a
- 7:08- day, my elbow hurt. All of that stuff
- 7:11- consumes
- 7:12- an enormous piece of a,
- 7:14- of a health care spend.
- 7:16- And and, again, it comes down to what
- 7:19- do you do and, and what... What's the
- 7:22- most efficient pathway? And that's
- 7:24- what we felt we built. So here we
- 7:26- are, two senior orthopedic surgeons seven years ago
- 7:29- who said to... And this is before JED
- 7:30- or the AI, Scott. We said, we should
- 7:33- be able to resolve
- 7:34- low acuity MSK with technology.
- 7:37- Not everything. And we built our own diagnostic
- 7:40- tool, we call it a symptom assessment tool,
- 7:43- to answer, and we built
- 7:45- it with our 10 subspecialty orthopedic geniuses. And...
- 7:48- But we use decision tree logic, which is
- 7:51- how physicians think.
- 7:53- And we... The member points to where it
- 7:55- hurts and ask some ask some questions, and
- 7:58- it comes up with a differential
- 8:00- list of potential conditions. And you know what?
- 8:02- About fifteen percent of our patients, that's all
- 8:05- they wanna know. It isn't broken because I
- 8:07- can jump up and down on it. I
- 8:08- don't need to go to the ER and
- 8:10- spend $2,500.
- 8:12- And and so we have that as a
- 8:13- tool. But we're not a technology company. We're
- 8:15- a health care company. And this was Jay's
- 8:18- great idea because we we debated who should
- 8:20- be the frontline
- 8:22- caregiver
- 8:23- of Upswing Health. I cost $10 a minute.
- 8:26- I'm a senior orthopedic surgeon. Ridiculously expensive.
- 8:30- And we went down the lineage of potential
- 8:32- caregivers
- 8:33- in MSK and Orthopedics. And Jay, having spent
- 8:36- his career as a sports
- 8:37- surgeon, said, why don't we bring in a
- 8:39- national... Or build a national cadre
- 8:42- of athletic trainers?
- 8:44- And that's what we've done, Scott. And the
- 8:46- beautiful thing is our ATs
- 8:48- are available within fifteen minutes. That magic time
- 8:51- when people are thinking,
- 8:53- maybe I need to go to urgent care
- 8:54- or go to the ER, they're available within
- 8:57- fifteen minutes,
- 8:58- twelve hours a day, seven days a week.
- 9:00- And they do that... This is what they're
- 9:02- trained to do, Scott. They do that triage
- 9:04- and manage
- 9:05- what they can manage
- 9:07- and escalate what they can't manage to our
- 9:10- national network of orthopedic
- 9:12- physicians. So that's the three legged stool, technology,
- 9:15- athletic trainers, and orthopedic docs.
- 9:18- Frank, I'm gonna ask you one question. I
- 9:20- gotta make sure you're ready for this question.
- 9:22- Yeah.
- 9:23- Is your chief operating officer
- 9:26- as talented as you would expect him to
- 9:28- be?
- 9:30- Yes.
- 9:31- And is that still a Michael Schuster?
- 9:34- Yes. Yes. Okay. He is... He's done a
- 9:36- fabulous job. Yes.
- 9:38- That's the most important question of the day.
- 9:41- Yeah.
- 9:42- Well, yeah, you know, I wanna come back
- 9:43- to... I I didn't answer your last question.
- 9:45- I was off on a tangent here, but
- 9:46- what are the limits of virtual MSK? And
- 9:49- let me address that two ways. It's not
- 9:51- as limited as you think. I mean, we
- 9:53- learned in medical school two hundred years ago
- 9:55- that eighty percent of a diagnosis
- 9:58- is taking a good history. We have largely,
- 10:01- or many of us, because of the time
- 10:03- constraints, forgotten that. We say, hey. Let's get
- 10:06- an MRI scan. Right? But when you're doing
- 10:08- a telehealth visit, Scott, if I were to
- 10:10- see you for a problem, we'd spend thirty
- 10:13- minutes on that call. I would know without
- 10:15- an X-ray or an MRI
- 10:17- most likely what your problem is. Right? So
- 10:19- we avoid that initial tendency to to go
- 10:22- for, advanced imaging, but we do have limits.
- 10:26- Obviously, some of these, Scott, are self selecting.
- 10:29- Long bone fractures,
- 10:31- open wounds, concussions,
- 10:33- they kinda self select. Right? And they go
- 10:35- right to an emergency room environment.
- 10:38- But other than that, even orthopedic problems
- 10:41- that do need surgery. And I wanna make
- 10:43- it clear to your listeners, there are patients
- 10:45- that don't need physical therapy, don't need injections.
- 10:48- They need repair.
- 10:49- So if we get somebody who was playing
- 10:52- basketball, goes for a layup, and feels a
- 10:54- pop in their heel, we're gonna talk to
- 10:56- them because they most likely have an Achilles
- 10:59- tendon tear, and we will get them an
- 11:01- orthopedic
- 11:02- surgeon within forty eight hours. Don't want to
- 11:04- go to the ER. Don't want to go
- 11:05- to urgent care and get sent to see
- 11:07- an orthopedic surgeon. Maybe you can get in
- 11:09- and maybe you can't. So even those who
- 11:12- do need surgery,
- 11:13- we can then accelerate that intervention appropriately.
- 11:17- Thank you. And talk about when an employee
- 11:20- truly needs specialty care. When when they get
- 11:23- to that spot, you call it the 15%
- 11:25- problem when they actually need to have specialty
- 11:27- care or subspecialty care.
- 11:30- Yeah. Yeah. And so in in our book
- 11:32- of business, 18 of the
- 11:34- patients' members escalate out of Upswing. At that
- 11:37- point, Scott, we actually become a navigation company
- 11:40- because what we don't do... And we are...
- 11:42- Yeah. We're physicians first, Scott. What we don't
- 11:44- do is say, hey,
- 11:46- mister Becker, looks like you've got a torn
- 11:48- rotator cuff. Talk to your primary care doc
- 11:51- and get a referral. No.
- 11:53- There are two options at that point. Some
- 11:54- of our clients, like the state of Connecticut
- 11:57- and some others, have their own networks that
- 11:59- they have built. Their centers of excellence, their
- 12:01- preferred providers.
- 12:03- We then do a warm handoff
- 12:05- to their navigators. Alright? But many of our
- 12:08- clients in a smaller market don't.
- 12:10- So we spent quite a bit of time
- 12:13- building relationships
- 12:15- with two extremely good downstream
- 12:18- surgical groups. One is called the Ortho Value
- 12:21- Network. It's a spin off of the Ortho
- 12:23- Forum. These are my national orthopedic colleagues. And
- 12:26- the other one is a group called HealthMe.
- 12:28- And with both of those companies,
- 12:31- we now have an integration
- 12:33- where my patient care coordinator navigator can go
- 12:35- on to
- 12:37- their platform, put in the diagnosis, put in
- 12:39- the region,
- 12:41- and we will then get an expedited appointment
- 12:43- with a shoulder surgeon in Duluth, Minnesota
- 12:46- or New Mexico, wherever that may be, and
- 12:49- do that warm handoff. Now I mentioned eighteen
- 12:52- percent. Maybe fifteen percent need surgery. What about
- 12:55- the other three percent? There is a role,
- 12:58- albeit in our view, a small role for
- 13:00- regenerative medicine.
- 13:02- And we're absolutely
- 13:03- on board with with referrals to regen... We
- 13:06- have a a a a vendor partner of
- 13:08- ours that does regenerative medicine, but not everybody
- 13:11- with a sore back obviously needs stem cells
- 13:14- or PRP. So bottom line, answer your question,
- 13:16- is we then take it upon ourselves as
- 13:19- physicians
- 13:20- to manage the care through the full spectrum,
- 13:23- including those downstream referrals. And all we ask,
- 13:26- as you probably know, Scott, there are laws
- 13:28- against,
- 13:29- sharing, referral fees. All we ask for that
- 13:32- referral
- 13:33- is an expedited appointment and to know the
- 13:35- clinical outcome of that intervention.
- 13:39- Fantastic. And and talk about some of the...
- 13:41- One of the things that
- 13:43- front and center and moving quickly in some
- 13:45- areas, not in other areas,
- 13:47- is what I think of as price transparency
- 13:50- and consumerism.
- 13:52- Any thoughts there on what's evolving with price
- 13:54- transparency?
- 13:55- Where does it matter in
- 13:58- musculoskeletal
- 13:58- care? Where does it not,
- 14:01- and and consumerism?
- 14:02- Oh, man. Scott, we can go on for
- 14:04- two hours. That... You know, of all of
- 14:06- the bright spots that are fueling
- 14:09- the the transformation... And there are a bunch.
- 14:11- We can, again, we can talk about that
- 14:12- forever.
- 14:13- But the fundamental
- 14:16- bright spot is transparency.
- 14:17- It's really interesting that there's actually
- 14:20- two things that both political parties agree upon,
- 14:24- Internet scam and price transparency in health care.
- 14:27- Right? That's that's the attention it's gotten at
- 14:30- the national level.
- 14:32- Why is trans... Transparent... First of all, Scott,
- 14:35- when you go to buy a toaster oven,
- 14:37- you you know exactly what you're gonna buy
- 14:39- and how much it cost. Right? You know
- 14:41- how good it is. Right? Health care is
- 14:43- the only one that's been cloaked
- 14:45- in mystique. Right? There's an old saying, no
- 14:48- mystery, no margin. Right? So the fundamental
- 14:51- element to fuel this transformation is price transparency.
- 14:55- That's the underpinning
- 14:57- of every other bright spot. Why?
- 15:00- Because it's the basis of a functional
- 15:02- marketplace, a functional market. We don't have a
- 15:05- health system. As you know, we have a
- 15:07- sick care system.
- 15:09- What do you need for a functional marketplace
- 15:11- like any other marketplace for toaster ovens or
- 15:14- cars? You need transparency
- 15:16- and pricing. You need an informed buyer and
- 15:19- a willing seller where the buyer can walk
- 15:22- away.
- 15:23- Right?
- 15:24- Of all of those bright spots, you've got
- 15:26- transparency fueling
- 15:28- all of them.
- 15:29- And the ones that I'm most ambitious about
- 15:32- are direct contracting
- 15:34- around the major carriers
- 15:36- and and cash pay. That doesn't mean people
- 15:39- carry a backpack of cash. It just means
- 15:41- that there's a transparent price for an office
- 15:44- visit, cortisone injection, MRI scan, whatever it may
- 15:49- be.
- 15:50- And the beautiful thing about both of those,
- 15:52- direct contracting and cash pay, is that those
- 15:55- numbers
- 15:56- are closer to the true cost of delivering
- 15:59- that service than the fictitious price points we
- 16:02- have now from our insurance companies. Right? They're
- 16:05- just pulled out of a hat.
- 16:07- Yeah. 100%. And there and there's no question
- 16:09- that once we get into the spot
- 16:11- of using, you know, we call in business
- 16:14- other people's money for anything,
- 16:16- the cost accelerate, the spend is less careful,
- 16:20- and and there's less getting to a true
- 16:22- market price. And we set up so much
- 16:24- of health care
- 16:26- around using other people's money versus consumer money
- 16:29- to pay for stuff. So we've ended up
- 16:31- with
- 16:32- one of the causes of rampant health care
- 16:34- inflation.
- 16:35- Doctor Schuchter,
- 16:37- one more question.
- 16:38- What are you most focused on and excited
- 16:40- about as we go into 2027,
- 16:43- end of this year 2027?
- 16:45- Where are you most focused and excited?
- 16:47- Yeah. As my my
- 16:48- my dear friend and partner, doctor Kim,
- 16:52- I have a condition called EO,
- 16:54- eternal optimism, and, sometimes it gets me into
- 16:57- trouble. But I do feel, and and many
- 17:00- of my colleagues,
- 17:01- would agree,
- 17:02- that there are some tailwinds
- 17:04- for the transformation, and it's coming from all
- 17:07- sorts of macro trends. We've covered a few
- 17:09- of them here. But going to 2027,
- 17:11- I think we're finally seeing
- 17:14- an awakening
- 17:15- of the self funded employer space. Right? I
- 17:18- think we're starting to move the employers from
- 17:21- the back seat of the car to the
- 17:23- driver's seat where they belong. They pay 60%
- 17:25- of the health care cost across this country.
- 17:28- And, you know, under the influence of the
- 17:30- CAA, the Consolidated Appropriation Act of 2021,
- 17:34- updated in 2026,
- 17:36- a number of the
- 17:37- lawsuits there are now pending in front of
- 17:39- the courts.
- 17:40- I think employer... Employers are finally saying, hey.
- 17:43- You know, we are the fiduciary here just
- 17:45- like a four zero one k plan. I've
- 17:47- gotta look at my data, not only look
- 17:49- at it, analyze it, and make
- 17:52- health care decisions that are prudent and in
- 17:54- the best interest of my members. That's what's
- 17:57- really exciting me. Listen.
- 17:59- The bad news is the premiums are going
- 18:01- up. I've heard as much as 20%
- 18:04- in 2027.
- 18:05- Shocking.
- 18:06- And you talk about non sustain... Or nonsustainable.
- 18:09- 20% increase in premiums.
- 18:12- Right? I think we're at the crossroads.
- 18:14- The watershed moment is gonna be in 2027,
- 18:17- and I'm optimistic.
- 18:20- Doctor Schuster, I I wanna thank you so
- 18:22- much for joining us today on the Becker's
- 18:23- HealthCare podcast. We really appreciate you joining us.
- 18:26- It's always interesting.
- 18:28- The best to you and doctor Kimbell, two
- 18:30- of the best out there. Thank you so
- 18:31- much for joining us. Yeah. Scott, thanks for
- 18:33- the opportunity. Have a great weekend.