1
00:00:00,000 --> 00:00:02,005
- Welcome to the Becker's
Healthcare Podcast.

2
00:00:02,745 --> 00:00:04,165
We at Becker's are excited

3
00:00:04,185 --> 00:00:07,845
to welcome more than 2,500
healthcare executives

4
00:00:07,845 --> 00:00:10,405
to Chicago next April
for our annual meeting.

5
00:00:11,075 --> 00:00:12,285
Over the four day event,

6
00:00:12,545 --> 00:00:15,085
you'll hear more than 450 elite hospital

7
00:00:15,085 --> 00:00:17,405
and health system executives
share the big ideas

8
00:00:17,465 --> 00:00:19,965
and best strategies
driving healthcare forward.

9
00:00:20,495 --> 00:00:23,285
Visit conferences dot
becker's hospital review.com

10
00:00:23,285 --> 00:00:26,845
to register or email agenda
team at becker's healthcare.com.

11
00:00:27,315 --> 00:00:29,285
This event is closed to non-providers.

12
00:00:29,285 --> 00:00:31,005
Unless coming through a sponsorship

13
00:00:31,025 --> 00:00:33,805
or exhibit, reach out
soon to sponsor the event.

14
00:00:33,975 --> 00:00:35,685
We'll be sold out by the end of the year.

15
00:00:36,195 --> 00:00:39,205
Without further ado, here
is your daily news briefing

16
00:00:39,225 --> 00:00:40,685
for today, January 10th.

17
00:00:41,535 --> 00:00:43,445
First, C-V-S-C-E-O.

18
00:00:43,455 --> 00:00:45,205
Karen Lynch told CNBC

19
00:00:45,395 --> 00:00:47,885
that primary care is a fundamental aspect

20
00:00:47,885 --> 00:00:49,405
of the company's offerings.

21
00:00:49,865 --> 00:00:52,005
She said, quote, think about primary care

22
00:00:52,145 --> 00:00:53,805
as a quarterback to your healthcare.

23
00:00:54,145 --> 00:00:56,845
Adding that at-Home Care
can be especially helpful

24
00:00:57,025 --> 00:01:00,765
for parent patients stating,
when we're in the home, we get

25
00:01:00,765 --> 00:01:03,205
to open up the refrigerator
and see if you're eating well.

26
00:01:03,425 --> 00:01:04,965
We get to look and see if there's

27
00:01:04,995 --> 00:01:06,205
rugs that you might trip on.

28
00:01:07,475 --> 00:01:10,525
This comes as CVS has been
working to expand into a broader

29
00:01:10,545 --> 00:01:12,205
and more diverse healthcare company.

30
00:01:12,905 --> 00:01:16,565
In March, the company completed
its $8 billion acquisition

31
00:01:16,565 --> 00:01:19,245
of Signify Health, adding more than 10,000

32
00:01:19,245 --> 00:01:20,405
clinicians to its network.

33
00:01:21,105 --> 00:01:24,565
In May, CVS acquired primary
care company Oak Street Health

34
00:01:24,585 --> 00:01:25,925
for 10.6 billion.

35
00:01:26,785 --> 00:01:30,125
The push for primary care
comes as CVS looks to close 900

36
00:01:30,145 --> 00:01:32,485
of its stores and removes
self-checkout from

37
00:01:32,485 --> 00:01:33,805
several locations.

38
00:01:34,505 --> 00:01:37,125
Ms. Lynch said quote, we
really looked at density

39
00:01:37,385 --> 00:01:39,885
and we said sometimes there
was a store on one corner

40
00:01:39,945 --> 00:01:41,205
and a store on another corner.

41
00:01:41,705 --> 00:01:43,925
We continue to evaluate
our store closures,

42
00:01:44,065 --> 00:01:46,325
but we still have total access to care.

43
00:01:46,545 --> 00:01:50,005
85% of Americans are
within a 10 mile radius

44
00:01:50,005 --> 00:01:52,005
of a CVS end quote.

45
00:01:53,025 --> 00:01:57,645
Second Fitch ratings upheld
the long-term issuer default

46
00:01:57,645 --> 00:02:00,685
rating and unsecured
debt of Oracle at BBB.

47
00:02:01,195 --> 00:02:02,405
According to Fitch,

48
00:02:02,535 --> 00:02:05,325
after acquiring EHR
vendors Cerner in June,

49
00:02:05,465 --> 00:02:08,685
Oracle has constrained
additional debt in Shsu

50
00:02:09,025 --> 00:02:10,245
and share buybacks

51
00:02:10,245 --> 00:02:13,125
and is focusing instead
on repaying maturities

52
00:02:13,125 --> 00:02:14,605
through physical 2024

53
00:02:15,355 --> 00:02:18,365
with a projected
E-B-I-T-D-A leverage staying

54
00:02:18,495 --> 00:02:19,885
below 3.5 times.

55
00:02:20,415 --> 00:02:23,365
Fitch said it anticipates
that physical 2025,

56
00:02:23,505 --> 00:02:26,245
the company will resume activities
such as debt refinancing

57
00:02:26,425 --> 00:02:28,885
and share buybacks, all while ensuring

58
00:02:28,885 --> 00:02:33,045
that E-B-I-T-D-A leverage
remains below 3.5 times

59
00:02:33,995 --> 00:02:37,445
following a temporary dip
in E-B-I-T-D-A margins.

60
00:02:37,445 --> 00:02:39,125
Following the acquisition of Cerner,

61
00:02:39,495 --> 00:02:42,285
Orkel has seen a rebound in
profitability the past few

62
00:02:42,285 --> 00:02:44,845
quarters nearing level seen
before the acquisition.

63
00:02:44,845 --> 00:02:45,845
According to Fitch,

64
00:02:46,415 --> 00:02:50,845
Fitch anticipates H trajectory
towards 50% E-B-I-T-D-A

65
00:02:50,845 --> 00:02:52,485
margins in the intermediate term.

66
00:02:52,905 --> 00:02:55,125
As Cerner becomes fully integrated

67
00:02:55,345 --> 00:02:58,445
and Oracle sustained growth in
cloud products is expected to

68
00:02:58,725 --> 00:03:01,525
- Mitigate a decline on
in on-premise products.

69
00:03:02,455 --> 00:03:05,485
Third, Mayo Clinic unveiled partnerships

70
00:03:05,485 --> 00:03:09,005
with two AI driven companies
January 8th, with plans

71
00:03:09,025 --> 00:03:11,085
to accelerate personalized medicine

72
00:03:11,085 --> 00:03:12,645
capabilities and offerings.

73
00:03:13,185 --> 00:03:16,005
The health system sign an
agreement with C oss, a team

74
00:03:16,005 --> 00:03:18,885
of AI experts, and
expanded its relationship

75
00:03:18,885 --> 00:03:21,925
with Tech Psych, an AI based
digital pathology company.

76
00:03:22,835 --> 00:03:24,485
Mayo Clinic selected Sea Brass

77
00:03:24,485 --> 00:03:26,245
as its first gen AI collaborator

78
00:03:26,345 --> 00:03:28,965
for large scale domain
specific AI capabilities

79
00:03:29,345 --> 00:03:31,925
for more personalized
diagnosis and treatment plans.

80
00:03:32,545 --> 00:03:34,885
The Silicon Valley startup
is working with Mayo

81
00:03:34,885 --> 00:03:36,605
to develop models that we'll be able

82
00:03:36,605 --> 00:03:38,365
to summarize medical recordings,

83
00:03:38,965 --> 00:03:40,445
identify patterns in medical images,

84
00:03:40,825 --> 00:03:42,765
and analyze genome dam data.

85
00:03:42,765 --> 00:03:46,725
According to Reuters, Andrew Feldman, CEO,

86
00:03:46,745 --> 00:03:49,765
and co-founder of the
company, said it's an honor

87
00:03:49,765 --> 00:03:51,045
to collaborate with Mayo Clinic,

88
00:03:51,245 --> 00:03:52,805
a top ranked hospital in the nation.

89
00:03:53,115 --> 00:03:55,525
With his recognized leadership
in delivering medical

90
00:03:55,925 --> 00:03:57,525
outcomes, we are uniquely positioned

91
00:03:57,525 --> 00:03:59,045
to combine AI in medicine.

92
00:03:59,945 --> 00:04:03,125
Mr. Feldman told Reuters his
company signed a multimillion

93
00:04:03,125 --> 00:04:05,125
dollar agreement with
Mayo for a partnership

94
00:04:05,125 --> 00:04:06,325
that will last several years,

95
00:04:06,785 --> 00:04:09,485
and CBRA will provide the
health system with hardware

96
00:04:09,485 --> 00:04:10,885
and software development services.

97
00:04:11,915 --> 00:04:13,005
Mayo Clinic platform,

98
00:04:13,345 --> 00:04:15,445
the health systems innovation ecosystem

99
00:04:15,955 --> 00:04:18,165
also announced a new
partnership with Tech Psych.

100
00:04:18,545 --> 00:04:21,125
The partners aim to create
a digital pathology platform

101
00:04:21,125 --> 00:04:23,445
with open end-to-end AI driven solutions.

102
00:04:23,505 --> 00:04:24,845
For more accurate treatment,

103
00:04:25,135 --> 00:04:26,925
healthcare organizations will be able

104
00:04:26,925 --> 00:04:28,885
to use the AI workflow solutions developed

105
00:04:28,885 --> 00:04:29,925
through the collaboration

106
00:04:30,185 --> 00:04:32,845
to digitize their pathology practices.

107
00:04:34,265 --> 00:04:36,845
Are you interested in engaging
in dynamic conversations

108
00:04:36,845 --> 00:04:39,285
with hundreds of top
health system executives

109
00:04:39,465 --> 00:04:41,445
and gaining valuable
insight for your business?

110
00:04:41,915 --> 00:04:43,485
Join the 300 plus sponsors

111
00:04:43,485 --> 00:04:46,245
and exhibitors at the Becker's
14th annual meeting April 8th

112
00:04:46,245 --> 00:04:47,405
through the 11th in Chicago.

113
00:04:48,175 --> 00:04:51,245
Email Jessica Cole at
jCole@beckershealthcare.com

114
00:04:51,245 --> 00:04:52,525
to reserve your spot today.