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The Becker's team is excited to announce the

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launch of our new CFO and Revenue Cycle

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podcast.

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Tune in for conversations with finance experts from

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the top hospitals and health systems. We'll discuss

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key trends and ideas to drive meaningful change

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in the industry. Look for Becker's CFO and

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revenue cycle podcast wherever you listen to episodes.

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This is Laura Dierdahl with the Becker's Healthcare

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podcast.

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I'm thrilled today to be joined by Richard

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Clark, senior vice president and chief analytics officer

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at Highmark Health. Richard, it's a pleasure to

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have you on the podcast today.

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Yeah, Laurel. Thanks so much for having me.

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Now I'm excited to hear more about some

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of the cool things you're doing at Highmark

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Health. I know, you're in such a a

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unique position and unique market as well there

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at Pittsburgh. But before we dive in, I'm

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wondering, can you tell us just a little

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bit more about Highmark Health and what makes

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it unique?

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Yeah. I'd be, more than happy to. You

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know, Highmark Health is a integrated,

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health services company, and, you know, I think

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one of the things that makes us unique

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is with, the the different assets that we

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have. Right? So we have Allian Health Network,

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which is a network of 14 hospitals, ambulatory

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surgery centers, health and wellness pavilions, and employed

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physician organization,

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many other assets. We have, of course, our

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blue branded health plan,

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with over 5,000,000 members, and we have a

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number of diversified businesses. Our, national dental business

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stop loss, our,

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technology company engine, and, really, that just leads

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to so many,

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opportunities

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to,

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serve members, to improve health, to investigate and

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understand,

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how different interventions lead to positive outcomes, to

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experiment,

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and, really, overall to, you know, achieve the

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goals of living health, our strategy, which is

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really creating more health and creating more affordable

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care.

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Well, that's amazing to hear. I know there's

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so much, to be done in in that

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space and finding the best quality as well

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as being cost efficient. Now in looking in

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the last year or so, what accomplishment are

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you most proud of?

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Well, I'm gonna I'm gonna cheat a little

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bit and give you, give you two. So,

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you know, one really gets at that intersection

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of payer and provider and, you know, Allegheny

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Health Network in kind of the context of

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Highmark Health is really our living laboratory for

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our strategy. And, you know, we're doing a

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ton of work to just investigate how payer

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and providers can collaborate together to kind of

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do exactly like you just said. Right? Really

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meet that quintuple aim,

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aim, and deliver,

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you know, care that is high quality, more

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affordable, equitable,

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etcetera. And, you know, one of the things

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in that vein that we're really proud of

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is we implemented a,

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quality and shared risk program between our health

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plan and LA health network.

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Last year, it's, you know, one of the

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larger ones that we're aware of. It's, you

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know, serves over 350,000,

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members across every segment,

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a commercial ASO, fully insured Medicare,

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ACA, etcetera. We've just been learning so much

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around the integrated economics, how to use that

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blended data,

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across payer and provider to lead to more

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actual information,

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earlier interventions, and ultimately,

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achieve just a better outcome for our patients.

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So that's been one that has been a

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real journey,

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in terms of learning and,

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you know,

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really excited about what that,

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means, not only for the,

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payer and provider,

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Highmark and Alligator Health Network, but how we

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can also then take that out to other,

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provider partners,

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of ours. And then the second is really

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all about generative AI and the work that

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we've,

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been doing there, particularly around

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the broad adoption,

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of AI across our enterprise. You know, we,

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we have

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a AI center of excellence here that we're

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really focused on making kind of, AI the

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easy button,

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within our our company. And, there's lots of

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exciting things going on from large scale solutions,

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like the ambient listening technology that we've been

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rolling out across Allegheny Health Network to improve,

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you know, the clinicians,

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day to day work and kind of bring

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a lot of joy back to practice,

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but also,

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the rollout of our at scale,

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secure generative AI solution we call Sidekick,

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for every single one of our 50,000 employees,

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and that's just been amazing. We have,

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over 10,000

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active users on our internal platform. We just

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surpassed

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the 1,000,000,

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prompt,

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submitted,

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threshold. And, you know, we've been out training

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thousands of our employees

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on prompt engineering,

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how to use these tools,

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every single director and up, we spent time

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with. And just as as my time at

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the company, I've I've never had so many

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people stop me in the elevator or stop

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me in the hall and tell me some

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new cool way, that they're using this technology

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to to create efficiencies to better serve our

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patients and members, and it's just been

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just such an exciting time.

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That's amazing to hear. You know? And what

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a a really cool way that you are

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able to, weave generative AI into the things

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you're doing every day to make life easier

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for the clinicians.

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And it it seems like as well, the

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patient journey is more efficient. And I'm curious,

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when you look at, you know, that,

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unique position you have as you were talking

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about that intersection of being a payer and

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provider,

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in in going more towards that,

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quality based shared risk programs.

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Is there something that you can share with

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us that you've really learned over the last

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few years,

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that could, you know, really,

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has helped you find that the right note

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or or strike the right path, in terms

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of, you know, how you're thinking about care

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delivery and the type of data that you're

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collecting and

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ways that,

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you are bridging that into the patient care

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that our clinicians are delivering on a daily

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basis?

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Yeah. Yeah. I mean, well, we could have

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a really long conversation on that because I'll

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tell you there's a lot there. But I

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I would just offer two things. Right? You

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know,

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first is,

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you know, payers and providers, frankly, they just

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speak different languages. Right? And so we've been

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spending a lot of time just educating

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kind of both sides of that, but also

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making sure that the data can sync. And,

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you know, conceptually, it sounds easy,

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but really understanding

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how some of that faster moving clinical data

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inside of the EMR

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then relates to what ultimately,

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we see in terms of the cost of

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care inside of these value based programs is

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not as easy as you think. It's actually

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really hard,

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but it's also really worthwhile because ultimately

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what we want to get to,

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as, you know, our kind of head of,

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Alligator Health Network tells me all the time,

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which I totally understand is, you know, we

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want the fast moving clinical data to inform

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the actions that we want to take, and

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then we want the

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claims data to ultimately confirm

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that those actions are leading to that goal

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of more, higher quality, lower,

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you know, cost care. And, you know, that's

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been a journey. We've learned a lot, you

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know, for sure. And then the second thing

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is, you know, it at the end of

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day, it's all about workflow.

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Right? And it's like, how do you get

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into that workflow in the most seamless and

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easiest way possible

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so that we can drive adoption frontline. And,

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and we're just not in a position nor

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should we be to add any

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administrative burden. In fact, we have to take

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it off of the providers, but we have

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to do so in a way that also

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allows us to give them the insights they

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need inside of these, quality,

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you know, and risk programs so that they

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can achieve those better outcomes.

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That's amazing to hear. You know? And it

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really, really fascinating to think about,

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you know, aligning the different elements and size

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of the provider, the payer, bringing them together,

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and then, coming to that kind of,

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space where you're able to work together to

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align in a a meaningful way. Now looking

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ahead, where do you see some of the

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big growth opportunities

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for your team in the next twelve months

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or so?

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Yeah. You know, there there there's a lot.

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I'll I'll just highlight a couple that I'm

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really excited about. You know, first is,

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you know, I I'm

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excited to see just really the huge value

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realization from the scaled use of generative AI.

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You know, we've seen it in a lot

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of early areas of adoption. We've seen it

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in a lot of the pilots,

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and we're seeing it in,

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starting to to be at scale. And it's

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gonna happen. It's gonna happen for our clinicians,

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certainly in the area of software developers and

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certainly in the area of our contact centers,

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really that kind of, you know, scaled impact.

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You know, I think the second is,

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you know, really how it kinda continues to

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streamline our hospital operations leading to more efficient

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care and really allowing clinicians to work at

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the top of their license. We're liberating,

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you know, many hours,

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for our clinical staff by taking away some

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of that,

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administrative burden, and I'm excited

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to see that,

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you know, continue. And then I think the

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next wave of innovation is, of course, what

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everyone is talking about, agentic workflow.

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And, you know, we're excited about that. We've

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launched our first kinda single use agent.

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We're really exploring,

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you know, not only the technical aspects of

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what has to be true to have a

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broader ecosystem agents that are orchestrated against tasks,

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but also the people aspects of that.

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Not only, you know, building them within

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the AI center of excellence, but really enabling

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a broad swath of our, enterprise

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to be reimagining

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processes,

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and workflows,

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using AI as, you know, another piece of

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the workforce. And that's gonna be the next,

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you know, big step forward,

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that, again, is gonna be a a real

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source of growth and impact for us.

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Fascinating

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to hear. I think it's just,

272
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seems so critical to find that right technology.

273
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And interesting that you mentioned the agentic workforce

274
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is something,

275
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honestly, I've just been starting to write about

276
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on the,

277
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the the digital side as well, and it

278
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it seems like so many opportunities, some really,

279
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really cool things that you're able to do

280
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once you have the technology and learn how

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to harness it in the right way.

282
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How do you make sure you're making the

283
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right investments,

284
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especially with so many different technologies and companies

285
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coming out with applications,

286
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that,

287
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you know, promise big things? How do you

288
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know that it's gonna have the right return

289
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for the type of investment that you need?

290
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Investment that you need?

291
00:10:36,315 --> 00:10:37,835
Yeah. You know, it's a great question. I

292
00:10:37,835 --> 00:10:39,774
think ROI is becoming an increasing,

293
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you know, topic of conversation, you know, for

294
00:10:43,195 --> 00:10:43,695
sure.

295
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In some ways, I feel like, you know,

296
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we've been lucky. We we,

297
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invested in our secure Google Cloud platform in

298
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late twenty twenty with a strategic partnership with

299
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them. So that enabled us to really move

300
00:10:56,049 --> 00:10:56,549
quickly

301
00:10:57,009 --> 00:10:58,389
in terms of feeling confident

302
00:10:58,929 --> 00:11:00,629
that we could turn on,

303
00:11:01,490 --> 00:11:03,570
you know, some of these, you know, generative

304
00:11:03,570 --> 00:11:05,024
AI solutions and connect them

305
00:11:05,425 --> 00:11:06,785
safely and securely to our data. So we've

306
00:11:06,785 --> 00:11:07,825
been doing a lot of that. And in

307
00:11:07,825 --> 00:11:10,384
those spaces, I guess, I'm in some ways

308
00:11:10,384 --> 00:11:13,264
less worried about whether or not this particular

309
00:11:13,264 --> 00:11:15,524
use is the absolute highest ROI

310
00:11:15,985 --> 00:11:17,904
use case. You know? We we see huge

311
00:11:17,904 --> 00:11:20,529
strategic value in, you know, a broad swath

312
00:11:20,529 --> 00:11:22,610
of our workforce, learning how to talk to

313
00:11:22,610 --> 00:11:25,730
machines, getting very used to prompting, getting very

314
00:11:25,730 --> 00:11:28,210
used to incorporating an AI assistant into their

315
00:11:28,210 --> 00:11:30,769
work. I think when when it comes to,

316
00:11:30,769 --> 00:11:32,230
you know, selecting additional,

317
00:11:32,745 --> 00:11:34,524
you know, fit for purpose,

318
00:11:35,065 --> 00:11:37,065
partners for some of those solutions, we're being

319
00:11:37,065 --> 00:11:39,304
very intentional. You know, I mentioned the ambient

320
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listening

321
00:11:40,345 --> 00:11:42,904
component for our, you know, clinicians. We have

322
00:11:42,904 --> 00:11:45,065
a we've been running a pilot with, you

323
00:11:45,065 --> 00:11:47,964
know, nearly 500 clinicians with several different,

324
00:11:49,050 --> 00:11:49,550
potential

325
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Ambient partners in all sorts of different settings,

326
00:11:52,250 --> 00:11:55,850
right, inpatient and ambulatory, etcetera, to make sure

327
00:11:55,850 --> 00:11:56,670
that we are

328
00:11:57,129 --> 00:11:58,889
selecting. But then I would also say at

329
00:11:58,889 --> 00:12:00,490
the end of the day, making sure that

330
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we are

331
00:12:01,924 --> 00:12:04,904
working hard on our ecosystem to allow for,

332
00:12:05,764 --> 00:12:09,225
onboarding of new options, integration of new solutions,

333
00:12:09,524 --> 00:12:11,764
building, making sure the build by decision isn't

334
00:12:11,764 --> 00:12:13,684
like a binary one that can never be

335
00:12:13,684 --> 00:12:16,345
revisited because everything is changing so quickly

336
00:12:16,725 --> 00:12:18,710
that to think that you can, like, pick

337
00:12:18,710 --> 00:12:21,029
today and be perfect is is a fool's

338
00:12:21,029 --> 00:12:22,629
errand. Right? I think you just have to

339
00:12:22,629 --> 00:12:25,509
acknowledge that, you know, innovation is moving so

340
00:12:25,509 --> 00:12:27,830
quickly. And so being able to have a

341
00:12:27,830 --> 00:12:28,666
eco innovation ecosystem that allows for experimentation, rapidly

342
00:12:28,666 --> 00:12:29,769
moving, you know, solutions in

343
00:12:34,245 --> 00:12:36,424
you know, solutions in and out of the,

344
00:12:37,204 --> 00:12:39,605
of the ecosystem, not only technologically, but also

345
00:12:39,605 --> 00:12:42,164
in terms of the contracting that has to

346
00:12:42,164 --> 00:12:44,004
come with that, etcetera, is is just really

347
00:12:44,004 --> 00:12:44,504
important.

348
00:12:45,410 --> 00:12:46,930
Makes a lot of sense. I I appreciate

349
00:12:46,930 --> 00:12:48,610
the insights there and, you know, a lot

350
00:12:48,610 --> 00:12:51,450
of opportunities ahead. Really fascinating to see some

351
00:12:51,450 --> 00:12:52,930
of the cool things that are coming down

352
00:12:52,930 --> 00:12:55,090
the pipe, but I know there are headwinds

353
00:12:55,090 --> 00:12:56,450
as well. Some what are some of the

354
00:12:56,450 --> 00:12:58,610
big challenges that you're anticipating and starting to

355
00:12:58,610 --> 00:12:59,509
navigate through?

356
00:13:00,384 --> 00:13:02,884
Yeah. You know, with any large scale transformation,

357
00:13:02,944 --> 00:13:04,784
and that's exactly what this is. Right? This

358
00:13:04,784 --> 00:13:05,764
is kind of digital

359
00:13:06,065 --> 00:13:08,625
kind of AI transformation at scale. There's always

360
00:13:08,625 --> 00:13:09,764
a bunch of,

361
00:13:10,304 --> 00:13:11,444
you know, of challenges.

362
00:13:11,985 --> 00:13:13,904
Obviously, a lot of opportunity too, but but

363
00:13:13,904 --> 00:13:15,909
I would highlight two here. Right? One one

364
00:13:15,909 --> 00:13:18,089
is, you know, the kind

365
00:13:18,470 --> 00:13:21,029
of the challenge that is always present. And

366
00:13:21,029 --> 00:13:24,070
just because it's, generative AI now, it's really

367
00:13:24,070 --> 00:13:26,089
no different, and and that's behavior change.

368
00:13:26,389 --> 00:13:27,429
You know, at the end of the day,

369
00:13:27,429 --> 00:13:30,044
we're talking about people and at

370
00:13:30,924 --> 00:13:33,804
scale creating behavior change, both of our, staff

371
00:13:33,804 --> 00:13:35,644
internally that are working on this, but also

372
00:13:35,644 --> 00:13:38,044
then our members and patients to, to get

373
00:13:38,044 --> 00:13:39,725
to kind of more health. Right? And so

374
00:13:39,725 --> 00:13:41,964
that's hard, and that requires a lot of

375
00:13:41,964 --> 00:13:43,105
thought around incentives,

376
00:13:44,559 --> 00:13:45,460
around structures,

377
00:13:46,480 --> 00:13:47,620
you know, around,

378
00:13:48,080 --> 00:13:50,419
you know, how we frame and deliver information.

379
00:13:50,720 --> 00:13:53,620
So there's a huge change management comport component

380
00:13:54,000 --> 00:13:54,659
of this,

381
00:13:55,200 --> 00:13:56,715
that we think a lot about. In fact,

382
00:13:57,115 --> 00:13:57,855
you know, the

383
00:13:58,315 --> 00:14:00,875
my lead of our AI program, that's that's

384
00:14:00,875 --> 00:14:03,195
her background is really around change and around

385
00:14:03,195 --> 00:14:04,095
change management.

386
00:14:04,555 --> 00:14:06,154
And then the second, of course, is the

387
00:14:06,235 --> 00:14:08,715
just the business environment. Right? It is, there's

388
00:14:08,715 --> 00:14:09,535
a lot of,

389
00:14:10,075 --> 00:14:11,929
near terms pressures. There's a lot of headwinds.

390
00:14:12,149 --> 00:14:13,750
There are a lot of challenges in the

391
00:14:13,750 --> 00:14:16,629
environment right now. And so how we serve

392
00:14:16,629 --> 00:14:18,410
that dual mission of,

393
00:14:18,870 --> 00:14:19,929
you know, creating,

394
00:14:20,710 --> 00:14:23,110
near term business impact while still investing kinda,

395
00:14:23,110 --> 00:14:24,945
quote, unquote, through the cycle, if you will,

396
00:14:24,945 --> 00:14:26,304
to make sure that we can kinda get

397
00:14:26,304 --> 00:14:28,865
to those longer term, you know, strategies and

398
00:14:28,865 --> 00:14:30,245
successes is really important.

399
00:14:31,024 --> 00:14:32,725
And that comes down to just,

400
00:14:33,424 --> 00:14:34,804
you know, really good prioritization,

401
00:14:35,345 --> 00:14:36,804
really good thoughts around,

402
00:14:37,184 --> 00:14:38,565
again, balancing strategy

403
00:14:38,945 --> 00:14:40,410
and some of the near term execution,

404
00:14:41,509 --> 00:14:43,350
but certainly does make this a little harder

405
00:14:43,350 --> 00:14:45,110
than maybe trying to do it when there

406
00:14:45,110 --> 00:14:46,169
were fewer pressures.

407
00:14:47,269 --> 00:14:49,029
Absolutely. I think that makes a lot of

408
00:14:49,029 --> 00:14:51,910
sense, and and really helpful to think through

409
00:14:51,910 --> 00:14:54,009
that near versus long term strategies.

410
00:14:55,095 --> 00:14:56,615
How do you balance both of those with

411
00:14:56,615 --> 00:14:58,375
yourself as well as your teams in keeping,

412
00:14:58,375 --> 00:14:59,894
you know, the main thing the main thing,

413
00:14:59,894 --> 00:15:01,814
but not losing sight of where you're going

414
00:15:01,814 --> 00:15:02,475
as well?

415
00:15:03,414 --> 00:15:05,834
Yeah. You know, it it it's like communication,

416
00:15:05,975 --> 00:15:06,725
communication, communication.

417
00:15:08,709 --> 00:15:10,649
Right? You know, we really, you know, value,

418
00:15:11,110 --> 00:15:13,589
you know, the interactions and the ability to

419
00:15:13,589 --> 00:15:15,350
have that and, you know, doing our absolute

420
00:15:15,350 --> 00:15:16,970
best to create a flat organization,

421
00:15:17,990 --> 00:15:18,889
where we're bringing,

422
00:15:19,284 --> 00:15:21,365
you know, cross functional teams together. You know,

423
00:15:21,365 --> 00:15:23,284
there there is nothing that I've done in

424
00:15:23,284 --> 00:15:23,945
my career

425
00:15:24,404 --> 00:15:26,565
that is more cross functional than, you know,

426
00:15:26,565 --> 00:15:29,065
this AI work recently. It truly requires

427
00:15:29,845 --> 00:15:31,384
all aspects of the organization,

428
00:15:32,004 --> 00:15:32,504
operations,

429
00:15:33,365 --> 00:15:33,865
IT,

430
00:15:34,529 --> 00:15:37,669
the, you know, advanced analytics teams, legal, compliance,

431
00:15:38,929 --> 00:15:40,870
you know, you name it to come together

432
00:15:41,009 --> 00:15:42,949
to figure out how to make this work.

433
00:15:43,009 --> 00:15:43,509
And,

434
00:15:43,809 --> 00:15:45,649
you know, the good news on that is

435
00:15:45,649 --> 00:15:47,144
we're building all sorts of new,

436
00:15:47,705 --> 00:15:49,384
strong relationships because the best way to do

437
00:15:49,384 --> 00:15:51,304
that is, you know, do hard things together.

438
00:15:51,304 --> 00:15:53,404
You know? But it's also everyone learning,

439
00:15:54,264 --> 00:15:56,985
you know, different components of the organization that

440
00:15:56,985 --> 00:15:58,585
maybe they didn't see as much before. So

441
00:15:58,585 --> 00:15:59,725
I think that's a big,

442
00:16:00,504 --> 00:16:02,279
piece of it. And then it is just,

443
00:16:02,440 --> 00:16:04,620
you know, a lot of grit and frankly

444
00:16:04,920 --> 00:16:07,399
continued focus because it's also hard and you

445
00:16:07,399 --> 00:16:08,379
can't get distracted

446
00:16:08,680 --> 00:16:11,000
just because maybe it didn't work in the

447
00:16:11,000 --> 00:16:13,340
second or in this moment. Right. And just

448
00:16:13,399 --> 00:16:15,480
the determination to say no, but we do

449
00:16:15,480 --> 00:16:15,622
think the future direction is clear. And, you

450
00:16:15,622 --> 00:16:16,934
know, as the

451
00:16:18,134 --> 00:16:20,534
And, you know, as, David Holmberg, our CEO,

452
00:16:20,534 --> 00:16:21,894
says all the time, the strategy is a

453
00:16:21,894 --> 00:16:23,514
series of s curves, and we're certainly

454
00:16:23,894 --> 00:16:26,215
navigating one of those s curves, you know,

455
00:16:26,215 --> 00:16:27,894
right now, but we have to keep our

456
00:16:27,894 --> 00:16:29,654
eyes towards that, you know, that end goal

457
00:16:29,654 --> 00:16:30,394
of delivering,

458
00:16:30,774 --> 00:16:33,009
you know, more health and more affordability for

459
00:16:33,009 --> 00:16:34,230
the communities we serve.

460
00:16:35,170 --> 00:16:37,570
Really, really helpful advice. Thank you again so

461
00:16:37,570 --> 00:16:37,970
much,

462
00:16:38,529 --> 00:16:40,610
Richard. This has been amazing. Before we wrap

463
00:16:40,610 --> 00:16:42,610
up here, I'm wondering, what is the number

464
00:16:42,610 --> 00:16:44,129
one thing that you're doing right now to

465
00:16:44,129 --> 00:16:46,529
set yourself up for success in the long

466
00:16:46,529 --> 00:16:47,029
term?

467
00:16:48,034 --> 00:16:49,554
Yeah. It's a great question. I mean, I'm

468
00:16:49,554 --> 00:16:51,714
sure everyone has many of the things I've

469
00:16:51,714 --> 00:16:54,274
talked about on their strategic plans. Right? So

470
00:16:54,274 --> 00:16:55,254
I don't think we're,

471
00:16:56,115 --> 00:16:56,855
you know,

472
00:16:57,634 --> 00:16:59,315
you know, we're we're not we don't fool

473
00:16:59,315 --> 00:17:01,379
ourselves and think that we somehow are, you

474
00:17:01,379 --> 00:17:04,359
know, thinking about things that are necessarily different,

475
00:17:04,659 --> 00:17:06,419
than everyone else. I think what we really

476
00:17:06,419 --> 00:17:08,819
just focus on is, you know, how we're

477
00:17:08,819 --> 00:17:10,980
creating a culture of execution, a culture of

478
00:17:10,980 --> 00:17:14,179
continuous learning, and really building with people so

479
00:17:14,179 --> 00:17:14,565
that,

480
00:17:15,044 --> 00:17:18,004
it is a resilient organization that can can

481
00:17:18,004 --> 00:17:21,204
continue to react to change, continue to embrace

482
00:17:21,204 --> 00:17:23,924
change, to create, better outcomes. In the moment,

483
00:17:23,924 --> 00:17:25,365
we're doing that with a bunch of things

484
00:17:25,365 --> 00:17:26,904
we talked about here today.

485
00:17:27,579 --> 00:17:29,099
You know, but really for us, it's all

486
00:17:29,099 --> 00:17:30,000
about the model

487
00:17:30,379 --> 00:17:31,039
that we're,

488
00:17:31,500 --> 00:17:34,059
we're creating that hopefully will allow us to

489
00:17:34,059 --> 00:17:35,039
continue to

490
00:17:35,579 --> 00:17:38,139
embrace innovation, embrace change, and and,

491
00:17:38,859 --> 00:17:41,535
translate that to to more impact. Again,

492
00:17:42,075 --> 00:17:44,634
keeping the the customer at the center and

493
00:17:44,634 --> 00:17:46,955
saying, how can we create more more health,

494
00:17:46,955 --> 00:17:49,434
more affordability, more impact for that member? You

495
00:17:49,434 --> 00:17:51,434
know, I think that ultimately will will set

496
00:17:51,434 --> 00:17:52,095
us apart.

497
00:17:53,039 --> 00:17:54,799
That's amazing to hear. Richard, thank you so

498
00:17:54,799 --> 00:17:56,480
much for joining us on the podcast today.

499
00:17:56,480 --> 00:17:58,720
This has been a fun discussion to have,

500
00:17:58,720 --> 00:18:00,000
and I look forward to connecting with you

501
00:18:00,000 --> 00:18:02,480
again soon. Yeah. Absolutely. Thank you so much.

502
00:18:02,480 --> 00:18:04,179
This has been great. Really appreciate it.