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Today's episode is brought to you by Abridge.

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to learn more today.

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This is Laura Dierda with the Becker's Healthcare

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podcast. I'm thrilled today to be joined by

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doctor Zafar Choudhry, senior vice president as well

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as chief digital, chief AI, and chief information

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officer at CLL Children's. Doctor Choudhry, it's a

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pleasure to have you on the podcast today.

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Thank you for having me, Laura.

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Now I'm excited for our conversation because I

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know you've had a lot of experience in

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the technology as well as, of course, health

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care space and, a really unique perspective that

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you bring to us. You've been on the

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podcast several times before, and and so it's

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always great to have you back.

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And I'm curious to dig into some of

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the cool things you're doing at Seattle Children's

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as well as how you're thinking about the

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future, especially given some of the

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uncertainties,

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within the health care as well as just

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broader,

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you know, US ecosystem here. But before we

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dive in, I'm wondering, could you tell us

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a little bit more about Seattle Children's and

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what makes it unique?

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Yeah. So Seattle Children's, it's a pediatric health

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system. We're in the Pacific Northwest.

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We serve

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Washington, Alaska, Montana, and Idaho,

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and we have 47

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sites.

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Amongst, those four states, we're about 13,000

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people.

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500 of those work in IT,

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generating about 4,000,000,000 in revenue.

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And in the IT arena, we do everything

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from infrastructure

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all the way through to digital health.

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Oh, that's great to hear. And, you know,

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when you think back to the last year

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or so, what accomplishment are you most proud

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of?

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So we've done some interesting and cool things.

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We've

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certainly

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implemented a new ERP.

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So we are through phase one of our

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ERP implementation.

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We migrated from,

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InfoLawson

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to Workday and launched

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the human capital management modules as well as

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payroll. And

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good news is we've been able to pay

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people correctly on time for many months now

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using that new system.

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The other thing that we have done is

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we moved

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all of our analytics and data platforms

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from

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IBM Netezza, which we had used for five

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years,

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to a full

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partnership with Google Cloud. So everything now runs

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within that space. And we managed to do

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that in a very short period of time,

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migrating many, many

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billions lines of code as well as

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hundreds and hundreds of databases.

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That's amazing to hear. And, you know, I

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I know that's a huge undertaking,

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technical

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as well as just the manpower it takes

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to do,

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something like that and and make the transition.

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I'm curious,

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you know, when you're,

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bringing together all that data in in the

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code and and trying to,

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set the foundation for what you need to

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be successful in the future, how do you

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do that successfully with your team? What kind

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of,

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expertise and talent do you need? And then,

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you know, looking at the the change management

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to bring you into,

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the transformation,

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on the people and culture side.

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How do you bring that all together? What

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advice would you have for leaders who are

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going through the same thing currently?

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Yes. Of all of these programs,

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you know, we are a technology group serving

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a health care system. So we really are

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in the patient business,

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not the technology business. And most of the

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programs

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we run

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are really transformation

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programs

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that require a lot of change management. So

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anytime we do a major project like a

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new system implementation

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or a migration from one tool to another,

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we are heavily involving our people and culture

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teams, and they usually provide,

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resources to help in that change management process.

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We also wanna make sure that anything we

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build

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is operationally led and technology enabled. So

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you don't do these things well without a

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multidisciplinary

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team of people

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who help you get there. So we are

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facilitators

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to a greater extent

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and

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trainers, but at the same time,

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doing the people and process component

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requires

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partnership.

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And if you bring the right partners to

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the table,

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you're going to have success.

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And implementing systems is actually the easy part.

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The sustaining of those systems

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is where you have to put a lot

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more effort. So getting to a go live

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on something,

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it's great. You celebrate it. It may be

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a long journey. You may have spent many

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years on it, but then making sure that

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that system is actually

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used the way it should be

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so that you're driving

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all the benefits of the investment you've made

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is where you still need to continue to

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focus your change

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energies within the health system.

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Got it. That's helpful to know and understand.

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And, you know, really, I appreciate you digging

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a little bit deeper there. Now looking ahead,

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what are some of the big organizational goals

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that you're setting for 2025?

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So we've got to continue to do

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the second phase

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of our Workday implementation.

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So that's still got about five or six

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months left on

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it. That will be the financial module as

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well as

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our supply chain. So that will involve, once

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again,

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operational changes to to lead to the transfer

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transformation that we're looking for. We have heavily

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invested

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in our AI program, and this wouldn't be

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a conversation if I didn't mention AI. But

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we've heavily invested in that in our partnership

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with Google. So we are a Gemini

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AI site,

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and we're currently working on some generative AI

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use cases

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in their final stages before they will be

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released to

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our clinical population. And a lot of the

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focus has been on

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clinical use cases that more than anything else.

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The other thing that we actually have just

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completed

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as we speak

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is we have we have done

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and

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put into play a strategic partnership

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with Rackspace.

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So moving forwards

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in a ten year agreement, Rackspace will be

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our core provider for all of our infrastructure

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in the Rackspace cloud

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as well as all of our networking.

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And that will mean that the 1,600 applications

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we have

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will run-in

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the Rackspace cloud, and that's been a big

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program of works that we just

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completed a few weeks ago. So those are

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some of the key things. The other thing

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that we are planning to do is build

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a new campus

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in Renton, Washington,

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and that site will be a fully fledged

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hospital and all ancillary

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systems to support that. That's gonna be a

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seven year program, and we actually kicked that

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off in the last few weeks. So the

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first phase is to do the actual

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design of the building and the design of

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the technology that goes into that

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building.

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So we've had a heavy focus

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on that project as well.

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That's great to hear. And I I know,

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on all of those fronts, a lot of,

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teamwork and effort and resources go into it.

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But, certainly, it sounds like,

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bringing everything together to make the organization and

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the system more efficient, effective, and able to

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treat patients better, which is, of course, the

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ultimate goal. So,

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that's really cool to hear. I know a

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lot of opportunities to continue to grow, develop,

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and use technology,

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to your advantage, but I can imagine that

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there are challenges as well. What are some

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of those headwinds that you're anticipating for the

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next year or two?

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So I think the first headwind, I think,

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is going to continue to be workforce

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shortages,

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especially in the clinical space.

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Increasing labor costs, there's burnout

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That's

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impacting health care organizations

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and retention as well.

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The other thing is financial pressures. So there's

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a rising cost of care delivery,

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including

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inflation in medical supplies, labor expenses,

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and now

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tariffs, which is straining

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health care organization

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budgets.

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We're also seeing reimbursement challenges from payers,

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including potential cuts and increased denials

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that will add to financial difficulty.

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And,

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you know, we are sort of midsized, but

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we sort of have to stay

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as good financial stewards moving forwards.

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The other thing we're seeing is regulatory changes

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and uncertainty,

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evolving regulatory requirements,

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some of the executive orders,

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including changes to privacy mandates,

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creating some challenges.

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So so it's a moving

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target

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going forwards because there's also

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changes in health care policy due to political

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shifts that could create uncertainty.

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As I said, we're seeing a rising cost

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of delivering that care, and that's gonna be

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a combination of what we buy, what we

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pay in labor, and what the tariffs bring

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around medications

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and,

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medical supplies as well as hardware and software.

284
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We're seeing a focus and headwinds around

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more integration

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in tech the technology space. How do we

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integrate new technologies into existing health care systems?

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And that can be complex and expensive.

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Let's not forget cybersecurity

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threats.

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That is on an all time high, and

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that is going to create some challenges for

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us. The other thing is how do we

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maintain

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equitable access to health care for all populations

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and address any disparities,

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with some continued priority.

298
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So I think when you sort of take

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all those different things,

300
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these headwinds create a complex and challenging environment.

301
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So we've gotta have

302
00:11:04,164 --> 00:11:04,904
an adaptability

303
00:11:06,085 --> 00:11:08,024
focus on innovation and efficiency

304
00:11:08,565 --> 00:11:10,745
so that we can navigate these challenges.

305
00:11:12,164 --> 00:11:13,924
Absolutely. I I think that makes a lot

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of sense. And it seems like, you know,

307
00:11:16,179 --> 00:11:18,500
as you mentioned, having that flexibility and being

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nimble,

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no matter what you wake up to, whether

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executive orders or,

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00:11:23,860 --> 00:11:24,519
some other,

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things that are happening that you can't control,

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the ability to manage that, in the day

314
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to day basis while also looking ahead with

315
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that strategic growth plan.

316
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You know, it seems like that would just

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00:11:36,745 --> 00:11:38,745
be a challenge on a continuous basis, but

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00:11:38,745 --> 00:11:40,665
it sounds like you've got a a strong

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00:11:40,665 --> 00:11:42,504
way of managing that and trying to keep

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that balance.

321
00:11:44,360 --> 00:11:47,419
Yeah. We are trying. It's it's always difficult

322
00:11:47,879 --> 00:11:50,620
to interpret new things and then figure out

323
00:11:50,919 --> 00:11:53,639
what those actually mean, and then you're moving

324
00:11:53,639 --> 00:11:55,980
at a very high pace, which is unusual

325
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for health care.

326
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So we're trying to keep up, you know,

327
00:11:59,345 --> 00:12:01,105
trying to take a deep breath and keep

328
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moving forwards. Because in reality,

329
00:12:03,824 --> 00:12:04,884
change is inevitable.

330
00:12:05,264 --> 00:12:07,424
Right? And so you have to just be

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00:12:07,424 --> 00:12:07,924
prepared

332
00:12:08,865 --> 00:12:11,824
and try your best to lead people through

333
00:12:11,824 --> 00:12:12,564
those changes.

334
00:12:13,399 --> 00:12:15,799
Not everybody will be happy. It's not that

335
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I agree with everything that's happening, but I

336
00:12:18,200 --> 00:12:20,200
sort of use the eighty twenty rule. If

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we can do 80%

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of the things well, we can keep moving

339
00:12:23,799 --> 00:12:26,120
forwards, and we can keep taking care of

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kids in the Pacific Northwest.

341
00:12:29,404 --> 00:12:31,404
Absolutely. That that, you know, makes a lot

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00:12:31,404 --> 00:12:32,845
of sense and is a great way of

343
00:12:32,845 --> 00:12:35,164
looking at it. I'm also curious. You know,

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00:12:35,164 --> 00:12:36,524
you talked a little bit about some of

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00:12:36,524 --> 00:12:39,725
the financial challenges, especially as, you know,

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00:12:40,284 --> 00:12:40,784
with

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00:12:41,370 --> 00:12:44,410
medical supplies and devices continuing to increase as

348
00:12:44,410 --> 00:12:46,350
well as workforce shortages

349
00:12:46,730 --> 00:12:47,929
in in some of those,

350
00:12:48,410 --> 00:12:50,570
challenges as well. And when you look at

351
00:12:50,570 --> 00:12:53,129
what you're doing on the technology side, how

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much of,

353
00:12:54,570 --> 00:12:55,230
you know,

354
00:12:55,845 --> 00:12:58,004
what you're able to, I guess, bring into

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the system,

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you think of as a solution to some

357
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of these problems or assisting in some of

358
00:13:02,644 --> 00:13:05,704
these problems versus, you know, exacerbating them?

359
00:13:06,804 --> 00:13:07,625
Yeah. So

360
00:13:08,485 --> 00:13:08,985
automation

361
00:13:09,605 --> 00:13:10,504
and AI

362
00:13:11,580 --> 00:13:14,779
are additional tools that you put on your

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00:13:14,779 --> 00:13:18,160
tool belt to help address some of the

364
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tasks that you're doing in the back office

365
00:13:21,100 --> 00:13:22,480
as an as an example

366
00:13:23,019 --> 00:13:25,519
so that you can focus people on

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the important work versus

368
00:13:28,345 --> 00:13:30,504
the day to day lights on doors open

369
00:13:30,504 --> 00:13:32,125
work. So I do think that

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00:13:32,664 --> 00:13:34,044
using AI technologies

371
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and

372
00:13:35,544 --> 00:13:37,004
automating some processes

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will help us build some capacity,

374
00:13:41,049 --> 00:13:43,470
and it'll also take the pressure off work

375
00:13:44,490 --> 00:13:46,990
that people honestly don't like doing

376
00:13:47,769 --> 00:13:49,769
but have to do. And maybe if we

377
00:13:49,769 --> 00:13:53,790
can automate that, we'll see some significant operational

378
00:13:54,090 --> 00:13:54,590
improvements

379
00:13:55,315 --> 00:13:57,335
as a as part of that process.

380
00:13:57,875 --> 00:13:59,894
So I think we can't ignore,

381
00:14:00,915 --> 00:14:02,915
and we have to adapt to the new

382
00:14:02,915 --> 00:14:03,975
technology changes

383
00:14:04,514 --> 00:14:07,154
and rapidly try to integrate some of those

384
00:14:07,154 --> 00:14:07,654
tools

385
00:14:08,100 --> 00:14:09,959
so that we take pressure off people,

386
00:14:10,500 --> 00:14:11,559
reduce burnout.

387
00:14:12,100 --> 00:14:14,419
And then if you reduce burnout, you also

388
00:14:14,419 --> 00:14:15,720
improve in retention,

389
00:14:16,419 --> 00:14:19,000
take away some of the day to day

390
00:14:20,100 --> 00:14:23,139
standard tasks that, let's be truthful, everybody hates

391
00:14:23,139 --> 00:14:24,394
but has to do.

392
00:14:24,855 --> 00:14:26,935
And then we can get our people focused

393
00:14:26,935 --> 00:14:27,435
on

394
00:14:27,815 --> 00:14:30,475
what they really came to work at Seattle

395
00:14:30,535 --> 00:14:33,115
Children's for was focused on patients,

396
00:14:33,575 --> 00:14:34,715
patient outcomes,

397
00:14:35,495 --> 00:14:36,634
and addressing,

398
00:14:37,815 --> 00:14:38,634
any disparities.

399
00:14:40,179 --> 00:14:42,259
That's helpful context, and and thank you so

400
00:14:42,259 --> 00:14:44,419
much for digging in deeply there. Now before

401
00:14:44,419 --> 00:14:46,740
we wrap up our conversation, I'm wondering how

402
00:14:46,740 --> 00:14:49,159
are you evolving as a leader, especially given

403
00:14:49,299 --> 00:14:51,379
the market dynamics we've talked about and as

404
00:14:51,379 --> 00:14:53,534
well as the rapid pace of change for

405
00:14:53,774 --> 00:14:55,794
technology and AI in the health care space?

406
00:14:56,735 --> 00:14:58,995
So truth truth be told, I'm

407
00:14:59,774 --> 00:15:01,475
one of the OAIPs.

408
00:15:02,334 --> 00:15:03,954
So I'm an old aged

409
00:15:04,334 --> 00:15:05,235
IT professional,

410
00:15:05,934 --> 00:15:08,274
and I struggle at times to keep up

411
00:15:08,540 --> 00:15:09,920
with the pace of technological

412
00:15:10,300 --> 00:15:10,800
change.

413
00:15:11,420 --> 00:15:13,500
But it is my job, and I have

414
00:15:13,500 --> 00:15:16,139
to do that. So we've been looking at

415
00:15:16,139 --> 00:15:18,639
how we transform with these technologies,

416
00:15:19,019 --> 00:15:20,160
how we engage

417
00:15:20,940 --> 00:15:21,440
multidisciplinary

418
00:15:21,980 --> 00:15:23,279
teams to help us

419
00:15:23,945 --> 00:15:25,565
evaluate these new technologies

420
00:15:26,184 --> 00:15:26,845
and also

421
00:15:27,865 --> 00:15:30,424
get them and encourage them to volunteer to

422
00:15:30,424 --> 00:15:31,565
try new things.

423
00:15:32,264 --> 00:15:32,924
I think

424
00:15:33,705 --> 00:15:35,705
all of this will have changed, so we

425
00:15:35,705 --> 00:15:37,884
focus, and I'm trying to adapt to

426
00:15:38,360 --> 00:15:41,799
leading on change, being a better and clear

427
00:15:41,799 --> 00:15:42,299
communicator,

428
00:15:43,079 --> 00:15:45,579
and trying to do as much stakeholder engagement

429
00:15:46,039 --> 00:15:48,279
as I can. The other thing I've been

430
00:15:48,279 --> 00:15:50,839
trying to do is understand the workforce of

431
00:15:50,839 --> 00:15:52,794
the future. So So one of the things

432
00:15:52,794 --> 00:15:54,095
I find really confusing

433
00:15:54,714 --> 00:15:56,334
is the gen z population.

434
00:15:57,034 --> 00:15:58,975
It's a very interesting group.

435
00:15:59,434 --> 00:16:01,534
They don't focus for many

436
00:16:02,074 --> 00:16:04,315
for for for long on anything, and they

437
00:16:04,315 --> 00:16:06,014
always want the next challenge.

438
00:16:06,649 --> 00:16:08,990
And so I've tried to surround myself with

439
00:16:09,529 --> 00:16:11,450
this group of individuals so that I can

440
00:16:11,450 --> 00:16:14,570
educate myself on how I need to adapt

441
00:16:14,570 --> 00:16:16,649
my style and the kind of work that

442
00:16:16,649 --> 00:16:19,710
we give the group so that they remain

443
00:16:20,090 --> 00:16:20,590
engaged.

444
00:16:21,365 --> 00:16:23,845
The other thing we're looking at is my

445
00:16:23,845 --> 00:16:25,384
role has evolved into

446
00:16:25,924 --> 00:16:27,144
spending more time

447
00:16:27,684 --> 00:16:30,804
focusing on patient care and making sure that

448
00:16:30,804 --> 00:16:32,985
the tools that we're bringing to the party

449
00:16:33,605 --> 00:16:35,544
are tools that actually impact

450
00:16:36,009 --> 00:16:38,009
the front line. So you see a lot

451
00:16:38,009 --> 00:16:38,909
more of this

452
00:16:39,449 --> 00:16:40,509
virtual nursing

453
00:16:40,809 --> 00:16:41,309
and

454
00:16:41,929 --> 00:16:44,829
use of AI to predict things like

455
00:16:45,209 --> 00:16:47,069
patients falling from a bed, etcetera.

456
00:16:47,449 --> 00:16:50,054
So sort of that to improve the quality

457
00:16:50,054 --> 00:16:52,134
and efficiency of the care delivery that we

458
00:16:52,134 --> 00:16:52,634
have.

459
00:16:53,014 --> 00:16:55,095
And then, of course, we also have to

460
00:16:55,095 --> 00:16:55,595
build

461
00:16:55,975 --> 00:16:58,554
pipelines of new staff coming into the organization.

462
00:16:58,774 --> 00:16:59,274
So

463
00:16:59,654 --> 00:17:02,610
I've had I've put some focus on mentoring

464
00:17:02,830 --> 00:17:03,330
programs

465
00:17:03,710 --> 00:17:04,849
as well as

466
00:17:05,309 --> 00:17:07,009
how do we get high school students

467
00:17:07,309 --> 00:17:07,809
through

468
00:17:08,349 --> 00:17:09,490
associate degrees.

469
00:17:09,950 --> 00:17:12,589
It has a pipeline into our organization, and

470
00:17:12,589 --> 00:17:13,329
we sponsored

471
00:17:13,950 --> 00:17:16,609
programs with the local college to

472
00:17:17,085 --> 00:17:19,744
create those programs and provide scholarships

473
00:17:20,365 --> 00:17:22,605
to make that happen. So I've tried to

474
00:17:22,605 --> 00:17:23,105
stay

475
00:17:24,525 --> 00:17:26,224
thinking one step ahead

476
00:17:26,765 --> 00:17:29,265
whilst never losing the focus on

477
00:17:29,789 --> 00:17:30,850
patient well-being

478
00:17:31,950 --> 00:17:32,610
and understanding

479
00:17:32,990 --> 00:17:33,490
that

480
00:17:33,869 --> 00:17:34,850
change is inevitable.

481
00:17:35,710 --> 00:17:36,930
And if organizations

482
00:17:37,549 --> 00:17:38,610
don't transform,

483
00:17:39,390 --> 00:17:40,369
they will fail.

484
00:17:41,724 --> 00:17:44,684
That's fascinating. And certainly, you wanna be, not

485
00:17:44,684 --> 00:17:46,684
in that group, but but in organizations that

486
00:17:46,684 --> 00:17:48,284
are thriving and growing. And,

487
00:17:48,605 --> 00:17:50,365
doctor Chowdhury, thank you so much for joining

488
00:17:50,365 --> 00:17:52,125
us on the podcast today. I I really

489
00:17:52,125 --> 00:17:54,204
appreciate your perspective on a great many things,

490
00:17:54,204 --> 00:17:56,409
and we look forward to talking with you

491
00:17:56,409 --> 00:17:58,329
again soon as well as seeing you at

492
00:17:58,329 --> 00:18:00,509
our health IT event. I know you'll be,

493
00:18:00,970 --> 00:18:03,049
speaking on one of our panels, and truly

494
00:18:03,049 --> 00:18:04,809
will be excited to see you there in

495
00:18:04,809 --> 00:18:05,309
person.

496
00:18:06,215 --> 00:18:08,556
Thank you, Laura, and I look forward to

497
00:18:08,695 --> 00:18:11,115
the conference that's coming ahead for backers.