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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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Summer Klavanowalli,

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chief executive officer at Harborview Medical Center, part

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of UW Medicine. Summer, it's a pleasure to

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have you on the podcast today.

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Thank you for inviting me. Now I'm really

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excited for our discussion because I know there's

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been so much happening in health care, and

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particularly,

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Harborview Medical Center has been doing some really

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unique things as of late. And so I'm

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looking forward to hearing more about them. But

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before we dive in, can you tell us

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a little bit more about Harborview Medical Center?

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What makes it unique?

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So Harborview Medical Center is part of the

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UW Medicine System, which is part of the

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University of Washington

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here in Seattle, Washington.

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We are about a 500 bed hospital,

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that well, Harborview is about a 500 bed

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hospital, and we are a pretty complex combination

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of a very large safety net.

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At the same time, we also are a

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very quaternary level,

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facility,

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and we are the only level 1 adult

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and pediatric

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trauma center

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in a four state radius.

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So we have a pretty unique combination

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of

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a mission that is focused on those that

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are the most in need, those are the

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that are the most marginalized, very heavily focused

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on access and equity and care.

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While at the same time, we are equipped

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and,

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very much focused on providing the highest level

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of care for those that are the most,

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critically ill.

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In addition to that, we are also one

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of the largest,

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behavioral health inpatient

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providers in the state

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of Washington, and we have the only,

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psychiatric

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emergency,

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department. We have a a division within our

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emergency department that is for psychiatrically

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ill individuals

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that is staffed 247

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by psychiatrists.

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So we're pretty,

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diverse,

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hospital. No. That's great to hear, you know,

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and definitely a very, very needed resource for

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the community.

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So looking back on the last 12 months

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or so, what accomplishment are you most proud

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of?

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Yeah. So,

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you know, I would have to say we

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have done a lot of amazing things coming

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out of this,

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you know, out of the last several years

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with, pandemic and then with financial,

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you know, kind of disastrous financial results.

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And we've done a lot of really, you

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know, great improvements in our our quality and

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safety and patient experience, all the things that

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everybody needed to,

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get back to. But I would say that

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my my biggest achievement over the last year

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or even 18 months

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really was the financial stability of the organization.

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One of the things that Harborview

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was unique in is that even though we

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are a county hospital

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so we're owned by the,

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by King

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County, which is a large county in the

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state of Washington,

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in Seattle.

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We are operated by the University of Washington

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or UW Medicine, and we were unique in

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that up until

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or up until

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January 1 this year,

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we are the only county hospital that I've

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been able to find that did not have,

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county

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support

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for dollars

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for operations

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or maintenance or infrastructure.

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We only had money from taxpayers

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that would come about every 20 years for

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some type of a large,

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like, building expansion or something like that. But

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on a on a day to day, year

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to year

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level, we did not have operational support. So

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we were in a position where we were

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as even as a large safety net, we

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were competing with all the other,

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health systems in the area from a strictly

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patient revenue perspective alone.

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So that that has made that has put

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us into a pretty complex position over many,

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many years and put us at a very

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big disadvantage,

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particularly after the financial,

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complications that happened in in health care after

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the pandemic.

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So over the last,

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year, we were able to work with our

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state legislative,

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partners

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and then eventually with our King County Council

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members

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to, pass a councilmanic,

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tax

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that

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is the first time that a county hospital

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will receive

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operational

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maintenance and infrastructure support. So that tax will

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go into place,

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January 1 this coming year.

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And although it doesn't necessarily fix our you

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know, it's not a magic pill for all

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of our financial problems, it is a huge

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precedent

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that for the first time in all of

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its, all of its many years, Harborview has

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a

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source of income

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that is consistent

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and that is based outside

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of,

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revenue dollars or federal pull down dollars or

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things like that. So

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many, many different, leaders tried it, and, we

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were able to in the past, and we

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were able to pull it through over the

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last year in, you know, in in partnership

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with, our government relation official our government relation

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director,

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our elected official partners, and in particular, our,

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labor union partners who helped us, SEIU 1199.

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So really thrilled.

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Well, that's amazing to hear. Congratulations. And, you

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know, what a a great and unique accomplishment

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setting yourself up for success next year. I

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know as you mentioned, you know, others have

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tried it and not been able to achieve,

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achieve it. So, you know, what do you

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think gave you the edge? Was it just

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the strong partnership you you have with,

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your elected officials, labor union in in in

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your team, or were there other things too

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that really contributed to your ability, to actually

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make this come to fruition?

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Yeah. I think it was a magic combination

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of a very strong government relations director who

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did a an incredible amount of work

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to to educate

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the elected officials both at the state level

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and at the county level along with myself

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and chief administrative officer really getting out there

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and and

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getting to a point where we were able

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to show the burning platform of, you know,

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here's the financial status of Harborview. Here is

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how we are different because of the mission

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that we are here to provide,

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and and here is how it is

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really hard to compete in a in a

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competitive health system environment when you are committed

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to doing over 60 to 70 percent,

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of your work in a federal

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governmental, you know, whether it's federal or state

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money,

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or state payers. Right? So Medicare, Medicaid as

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opposed to commercial.

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So, you know, kinda setting that platform. And

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then I think probably more than anything, it

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was really strong partnerships

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with elected officials, but then in particular

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with our labor unions. That's a very strong

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message, particularly in the state of Washington,

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to have

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management

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and labor standing together to say this is

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absolutely what we need for this facility to

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continue to deliver on its mission. And we

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did that. And that was quite a message

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to everyone that we were absolutely aligned.

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That's amazing to hear. I know that alignment,

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doesn't exist in very many places when you

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think about the labor and management. So, really

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cool to to see that type of relationship,

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especially coming to something so important as in

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this. Now from your perspective, looking into 2025,

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what are some of the big organizational goals

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that you're focused on? Yeah.

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Achieving the ability to receive tax money was

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part of a,

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multifaceted

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financial turnaround plan.

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So other pieces of that financial turnaround plan

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are really focusing on, you know, operational efficiencies,

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revenue growth,

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and philanthropy.

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The revenue growth is highly focused on capital

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expansion. And so we are in the midst

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of,

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moving into

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a

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a period of time where we were we

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are going to be putting out a RFP

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to,

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expand a into a brand new tower to

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basically, to build a brand new tower.

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And so 2025

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is going to be filled with a lot

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of planning with

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architects,

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designers, frontline staff, physicians,

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really to kinda start looking at what

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what this new tower will look like, how

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it will help, us achieve our mission,

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how we

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design it and build it in a way

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that is very,

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patient facing, patient focused, and then provider and

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staff experience focused.

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We have a current campus that is very,

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very old. It is not, we do not

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have enough space for our patients. We still

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have many, many patients boarding,

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you know, not only in double triple rooms,

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but in hallways and conference rooms, etcetera, here

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at Harborview. So

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we are incredibly excited to design this, and

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really are are looking to, dig in in

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2025 to kick that off.

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I love that. I I think it's, you

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know, really such, an important way, as you

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mentioned, to show growth, provide the expanded access

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to care, and really make sure patients are

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able to, receive the treatment that they need

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in a timely

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fashion. So,

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it seems like a huge project and something

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that, will be really beneficial as well.

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So lots of opportunity, it sounds like, ahead,

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but I'm also wondering what are some of

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the headwinds that you're anticipating for the next

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year or 2?

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Yeah. So,

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you know, headwinds are

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going to be continued

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financial, you know, struggles as we figure out

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how to,

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increase our capacity, our space while we're waiting

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for that tower to go up to get

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creative in order to continue to enhance our

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revenue

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to, you know, be able to

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not only move ourselves into the black, but

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also,

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start to to, have enough cash to have

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a little bit of,

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have a little bit of money to reinvest

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in people and in our people and our

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programs.

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But most I I would say the biggest

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headwind we are facing is our incredible worry

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about,

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new administration at the federal level

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and what that will mean for Medicaid

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in particular in the state of Washington. We

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are a huge Medicaid expansion state,

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and we are also very dependent on our

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directed payment systems from our, from our federally

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directed payment programs.

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And so any changes

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to that type of funding those types of

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funding sources that would

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limit

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access and limit ability to, get reimbursed for

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those for that Medicaid population, which is one

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of our, you know, really our the core

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of our mission

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is incredibly,

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concerning and and and would be quite devastating

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for a facility like Harborview.

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Absolutely. I can imagine just the uncertainty of

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exactly what will happen and and how, you

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know, the the next few years unfold. Certainly,

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it's unnerving, especially given,

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how reliant folks are on, you know, the

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Medicaid and being able to provide care to

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that population is so critical.

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Yeah. When you're working with your team through

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this and and knowing, you know, the possibilities

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that

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could occur over the next few years in

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Medicaid, is there anything that you're doing to

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try to

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just protect yourself against the the that potential?

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Or or Right. Right.

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Navigating some of those waters, I guess. Yeah.

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I think I mean, first of all, we're

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just trying to understand,

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you know, and anticipate what could be coming.

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Right? Just trying to follow really closely with

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our with our federal government relations,

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individuals

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back in DC and just trying to understand,

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the lay of the land as it as

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it will evolve.

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But I think, you know, from our perspective

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right now, we're really trying to that that

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is why it's so important for us to,

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figure out additional sources of revenue that it's

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not just,

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those those Medicaid federal dollars. We're also you

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know, the tax was so important.

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However, I also think it's really a time

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for for us in health care

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in large safety nets like Harborview to really

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think about what the how we can how

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we can partner a little bit differently

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with our states around,

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how we manage our Medicaid populations and how

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we can think differently about,

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partnerships with managed Medicaid plans, trying to have

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a much more population health focus even though,

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you know,

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patients that are on Medicaid plans can be

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can have a lot of complications that make

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it difficult for population health to be successful.

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But I think that we have to start

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to get much more creative in the space

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of,

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of how we deliver health care to those

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that are the most in need.

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And because there is a a real world

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in which we will continue to be squeezed

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and limited in in money that will be

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given,

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in order to deliver these types of services.

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So we have to think differently just like

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we are, you know, at the at the

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federal level with Medicare with making care primary

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and and things like that. Those types of

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pilots need to move to what can you

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learn about

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managing the most complicated of our individuals, the

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most sick, the most, socially and behaviorally complex,

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and how we better our how we're better

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stewards of the resources we are given.

367
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That makes a lot of sense. Thank you

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so much for digging a bit deeper there

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with me. Now before we wrap up, I

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wanted to,

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talk for just a moment on leadership. How

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are you evolving as a leader, especially given

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some of the opportunities ahead, but but also

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clear challenges?

375
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Yeah.

376
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Boy, have I learned you know, I I

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came into the CEO position in December of

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2020 after after being at Harborview for a

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very long time in a in a very,

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you know, various operations roles. I I would

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say I'm evolving

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very quickly in well, I don't know 4

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years as quickly, so that was probably way

384
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too much credit for me. But I am

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evolving

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in my ability to better understand

387
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how I'm going to have to navigate this

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facility and set it up for the future.

389
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I think when I first came into this

390
00:14:26,304 --> 00:14:29,044
position, I was very much focused on

391
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a, you know, worldwide pandemic, keeping patients safe,

392
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you know, kind of in the moment

393
00:14:36,700 --> 00:14:38,080
type crisis management

394
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where the last couple years I've had to

395
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pivot more to a traditional CEO role,

396
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and really start to think about, you know,

397
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this is a

398
00:14:48,634 --> 00:14:49,294
complex institution

399
00:14:50,475 --> 00:14:52,095
that has not had

400
00:14:52,715 --> 00:14:55,434
a good way to ensure its viability into

401
00:14:55,434 --> 00:14:57,115
the future. And so a lot of what

402
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I'm doing as a leader is thinking about,

403
00:14:59,595 --> 00:15:01,514
okay. When I'm gone, what is the legacy

404
00:15:01,514 --> 00:15:03,169
I wanna I wanna leave here? Here? What

405
00:15:03,169 --> 00:15:04,690
do what do I want the leader, the

406
00:15:04,690 --> 00:15:07,169
person sitting in this seat 20 years from

407
00:15:07,169 --> 00:15:07,990
now to say

408
00:15:08,529 --> 00:15:10,370
about the time I spent as CEO? And

409
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I want them to be able to say,

410
00:15:11,569 --> 00:15:12,069
well,

411
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that that particular CEO set us up for,

412
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for the future. She ensured we had, you

413
00:15:18,370 --> 00:15:21,785
know, sufficient buildings built and sufficient space built

414
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to

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to accommodate

416
00:15:24,105 --> 00:15:26,904
growth, both organic and strategic, up, you know,

417
00:15:26,904 --> 00:15:27,644
well into

418
00:15:28,105 --> 00:15:30,825
the 20 forties, 20 fifties, not just, you

419
00:15:30,825 --> 00:15:32,205
know, what we need right now.

420
00:15:32,610 --> 00:15:34,929
She looked at creative ways to ensure we

421
00:15:34,929 --> 00:15:36,870
had revenue coming in for Harborview.

422
00:15:37,569 --> 00:15:38,789
You know, just

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really look at how I set up the

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future of this place. Harborview has been such

425
00:15:43,730 --> 00:15:46,549
an iconic institution in the state of Washington

426
00:15:47,425 --> 00:15:49,205
for for so long, and

427
00:15:49,985 --> 00:15:51,205
things were so precarious,

428
00:15:51,985 --> 00:15:54,225
during COVID that I really set my mind

429
00:15:54,225 --> 00:15:56,865
to my job as a CEO or as

430
00:15:56,865 --> 00:15:58,565
a CEO during this time frame

431
00:15:58,865 --> 00:16:01,540
is to ensure Harborview is here, you know,

432
00:16:01,540 --> 00:16:04,100
20, 30, 40, 50, 60, 70 years from

433
00:16:04,100 --> 00:16:07,059
now and being able to deliver the same

434
00:16:07,059 --> 00:16:08,920
exact mission we deliver right now.

435
00:16:10,660 --> 00:16:12,580
That's amazing to hear. Summer, thank you so

436
00:16:12,580 --> 00:16:14,179
much for joining us on the podcast today.

437
00:16:14,179 --> 00:16:16,075
This has been such a fun and inspiring

438
00:16:16,075 --> 00:16:17,674
conversation, and I look forward to connecting with

439
00:16:17,674 --> 00:16:18,575
you again soon.

440
00:16:19,115 --> 00:16:21,195
Thank you so much, Lauren. I really enjoyed

441
00:16:21,195 --> 00:16:22,735
myself. Thanks for having me.