How nicely your group truly operates.
Stewart Gandolf sits down with Roy Bejarano of SCALE Healthcare to discover why scaling healthcare organizations is way extra advanced than merely including areas or buying practices.
From income cycle administration (RCM) to affected person acquisition, Bejarano shares a candid, operator-level view of what it actually takes to develop—and why many organizations battle once they scale too shortly with out the precise basis.
Observe: The next AI-generated transcript is supplied as a further useful resource for individuals who want to not hearken to the podcast recording. It has been flippantly edited and reviewed for readability and accuracy.
Stewart Gandolf (Healthcare Success): Welcome once more to the Healthcare Success Podcast, our particular version at McGuireWoods Personal Fairness in Healthcare Convention. Once more, this one is in cooperation with McGuireWoods and our mates over at Levin Associates. We had been simply speaking about how we love their publication. So they have been mates, they’re content material companions.
So this episode we’re speaking to Roy Bejarano, right? from Scale Healthcare, and I’ve seen what you are promoting on the market for some time, however we have by no means met earlier than.
Roy Bejarano (SCALE Healthcare): It is good to satisfy you, Stewart.
Stewart Gandolf (Healthcare Success): Yeah, so for the individuals who aren’t acquainted, assist us perceive what Scale, we’ll get into the questions in a second, however simply to present you, discuss what you are doing.
Roy Bejarano (SCALE Healthcare): Scale is absolutely two issues at this time. We’re primarily a billing enterprise, RCM, income cycle administration targeted, and in at this time’s world, which means heavy deal with AI. in addition to our offshore captive BPO.
We goal the MSO house. We now have a big portfolio of main MSOs as billing companions, billing shoppers. And we’re creating extra AI merchandise which are possibly extra entrance workplace centered. That can come over time. However for now, our portfolio of AI merchandise is absolutely targeted solely on RCM on the again workplace.
We’re secondarily a group of MSO leaders, me being a former chief myself. I based my very own MSO with 150 physicians, single specialty focus, bought to non-public fairness. So I went by that journey after which merged my asset into the nationwide chief in my specialty. We ended up with 600 doctor companions throughout 70 areas, 17 states. So I actually lower my enamel on… what it means to have a 300 plus company workplace, a 300 FTE, all of the totally different departments, full follow administration, many surgical procedure facilities, simply lived and breathed what that advanced enterprise mannequin actually is like.
And scale is narrowly targeted on income cycle administration, but in addition broadly targeted on this govt group that we have constructed over time, 1,500 members, over 700 CEOs,15 nationwide occasions per yr, in-person occasions, a big nationwide convention, and a wealthy velocity of interplay between totally different MSO leaders. And I am stunned with our overlap. We have not knownbeach different sooner.
Stewart Gandolf (Healthcare Success): Yeah, nicely, at this time’s a historic day. Sure, it is a huge day. So, sure, and as you understand, we talked about a bit bit offline. We work with multi-location suppliers on a regular basis, and I really like occasions.
So let’s speak extra about your occasion once we end up right here. However I suppose the very first thing is, in your billing enterprise, are you sometimes introduced in originally when it has been newly acquired? Is {that a} huge lever? I’d assume it’s. With a few of your relationships, or is it from the administration? Like, how does the enterprise evolve?
Roy Bejarano (SCALE Healthcare): There’s a few of that, investments that include non-public fairness teams which have a really clear urgency and pathway in direction of worth creation with income cycle administration being one of many core areas of focus they usually need to really feel very snug that the day the transaction closes they’ll herald teams similar to ours to right away begin producing worth value financial savings and KPI enhancements They know what they’re shopping for.
They are not glad with it. They usually need to transfer now, now, now. I’d say extra sometimes on the acquisition facet as a catalyst, traditionally, we did numerous consulting to the MSO house. And we had been considerably of a generalist within the MSO consulting world. This was kind of a spinoff of our former days as operators. We had over 100 consultants. We had a number of hundred 1099 consultants. And we had been working with… 600, 700 plus MSOs, over 120 totally different non-public fairness companies.
So I can inform you way more used to seeing integration work in billing and efficiency analysis work in billing related to MA. The entire let’s decide a billing companion to exchange what we at present have or enhance on what we at present have is considerably extra of an elongated timeline, extra measured, possibly an RFP. possibly incremental, and so the entire wham-bam, I simply closed one thing, I simply acquired one thing, go, go, go, is much less related possibly with that, discovering a billing companion, and extra related to performing some billing consulting work and performing some integration work. That is smart, completely. It is similar to our enterprise, it is the identical factor.
Yeah, so I do not truly view it as an M&A cyclical enterprise, the work that we do at this time.
Stewart Gandolf (Healthcare Success): So this podcast is all about natural progress as a result of definitely there’s numerous progress by M&A, however for the natural facet, and so that you’re principally income cycle administration, however what are the levers that you simply see that actually affect natural progress, income cycle administration particularly or extra broadly?
Roy Bejarano (SCALE Healthcare): Yeah, extra broadly as a result of we have performed all of it. We have had groups in compliance, we have had groups in advertising, we have had groups in finance and accounting, workplace of the CFO. So we have coated a large terrain each as entrepreneurs, as consultants and now really as billers the place we have turn out to be much more slender and we definitely keep a really broad lens in scale group.
So what drives natural progress is firstly an appreciation that it exists versus a bias in direction of exterior progress or acquisition based mostly progress. After which secondarily… the willingness to spend the assets to judge the place you might be at this time, to dig for outdoor assets which are actually going to be complementary, the time essential to make the funding, the dedication to construct the talent set, the muscle, so to talk.
So if we use an instance, affected person acquisition, the talent set in digital advertising, the talent set in integrating all of your totally different affected person interactions, whether or not it is your CRM or whether or not it is your… EMR or whether or not it is your billing group or whether or not it is your entrance workplace group or whether or not it is your affected person follow-up group are all these totally different groups coordinating and utilizing the very best instruments attainable whether or not they’re know-how based mostly or human capital based mostly to maximise efficiency and the extent of oversight that that is that’s required in that so excited about how a lot funding wants to enter each one in every of your departments to actually get the very best out of them is considerably daunting and considerably overwhelming but in addition very very thrilling There’s many alternatives to realize Six Sigma in a healthcare MSO. And what we frequently discover is the velocity of change in MSOs, follow acquisitions, new state entry growth, payer disputes, adjustments in reimbursements, regulatory, all these totally different distractions, you kind of lose the power to deal with what excellence truly means in each single one in every of your departments.
Excellent instance, you understand, simply the distinction between buying your means right into a footprint and constructing your means right into a footprint. Properly, constructing practices is a talent set, proper?
Coping with nurse recruiting, you understand, whenever you’re recruiting a group of nurses for the very first time. I imply, that could be a daunting factor to do. So, you understand, MSOs are actually hotbeds of mental capital. It is simply an amalgamation of various pockets of mental capital unfold throughout all of your totally different departments. And recognizing that that is an enormous a part of the job requirement is to construct these swimming pools of capital, spend money on these swimming pools of capital.
I feel it is the funnest a part of the job. I feel the rinse and repeat of roll up, however let’s not combine an excessive amount of as a result of that may gradual us down is a part of the cycle that we undergo that I am not an enormous fan of.
Stewart Gandolf (Healthcare Success): So that you even have written about that, getting the muse proper earlier than increasing. Increase upon that a bit bit. Or elaborate, I ought to say.
Roy Bejarano (SCALE Healthcare): I feel that sentence says all of it. Get the muse proper earlier than increasing. And I feel it is within the identify of our enterprise, which is SCALE Healthcare. And what’s not mentioned in that identify, as a result of it is simply two phrases, is you’ll be able to scale nicely and you’ll scale poorly. However the phrase scale in itself does not essentially inform you that you simply’re doing job. And you discover out in hindsight whether or not you scale nicely. Good indicators, indications that you simply’re scaling nicely.
Everyone knows what they’re, proper? You might have a full grasp over the efficiency of what you are promoting on a real-time foundation. Pockets of black field. I do not truly know what is going on on in that division. I’ve to attend one month, three months. I am by no means glad with the precise analytics round that division. An indication that you have not scaled very nicely. You do not have the folks and you do not have the programs to really communicate a language that you would be able to comply with to be able to make optimum selections.
And we see that point and time once more, proper? And it is not common. There are MSOs which have spent the time to pick out what they’re constructing, what they’re buying, who they’re hiring in such a technique to maximize data circulate. Their knowledge is centralized and unified, and it is actual time, it is present. And so the distinction between those who scale nicely and those who do not, I feel, is likely one of the most attention-grabbing issues about our enterprise, our business. For certain. And one of many issues that is…
Quintessential theme at this time is this concept of the totally different levers. You talked about the enter course of, the RCM, the advertising. Clearly, it issues to us, however so does the affected person expertise and the communication and the way it all matches collectively.
Stewart Gandolf (Healthcare Success): Let’s discuss with RCM. By the best way, scale by itself usually used because the primary indication of efficient, well-organized infrastructure. “I am giant. I am the most important in my house. Subsequently, I should have constructed nice infrastructure.” And I can inform you from expertise, it’s not at all times the case.
, it is humorous. We frequently say that about with multi-location suppliers, you’ll assume the larger they’re, the higher they’re, the extra subtle they’re at advertising. That is not at all times the case in any respect. Some will be extremely subtle. Some are delegating advertising, if there’s something, to their buddy. or any individual, you understand, they know. And so, for certain, to each lover. With RCM, that is one thing we’re not as a lot concerned as you might be. Like, what are the limiting elements? The place are the areas of alternative? The place are you able to create worth? I do know it is a broad query,
Roy Bejarano (SCALE Healthcare): No, I really like as a result of the limiting elements are in all places. Okay. We see, look, totally different specialties are extra delicate to totally different components of RCM. A DSO may be much less delicate to denials, pure denials within the again workplace as soon as the declare is definitely submitted, to sensitivity like bodily remedy and dental, very targeted on authorizations, profit verification. So shift in bias, relying on which specialty you are speaking about, when it comes to what the most important points are, who the payers are, and the place the inefficiencies are likely to reside. However for essentially the most half…
Operationally in billing, we see poor efficiency in each single side of billing. I consider billing as 12 to 16 totally different departments, operational departments, beginning with possibly all the best way credentialing, after which from credentialing, authorization, from authorization, profit verification, after which from profit verification, you get the precise declare, the declare must be coded. And then you definitely go from coding. You have to truly submit a declare. After which it’s worthwhile to comply with up. After which it’s worthwhile to put up the precise cost of the declare. And it simply retains going.
After which lastly, lastly, you get into AR. And possibly affected person steadiness as nicely exhibits up at totally different departments. So you have got all these totally different companies that comprise what we name income cycle administration. And what we discover is, firstly, they’re extremely interdependent or codependent on one another, which creates complexity.
You might have you understand 12 totally different departments which are all depending on one another creates a large variance of of formulae and you have folks embedded in each single one in every of them they’re all specialists proper your credentialing group may be very totally different than your coding group which may be very totally different to your AR group you have got many situations of EMRs as these platforms get very giant so they’re they particularly it is on prime of specialists proper you may need a ModMed EMR specialist, PMS specialist, working with an Athena specialist, all beneath the identical MSO, and even inside the identical EMR, you have got totally different situations and you’ve got totally different workflows.
So everybody’s turning into an professional of their respective workflow. All of them communicate that language, and so you have got 15 totally different languages flowing by your present enterprise. And also you get vast variance, and that doesn’t correlate nicely to a really snug scaling operation. It creates numerous distinctive pockets of mental capital that do not scale that nicely. And so what we’re requested to do is to attempt to create efficiency enchancment inside that ecosystem. It is so advanced, proper? I imply, there’s totally different EMRs, totally different billing, totally different insurance coverage firms.
Stewart Gandolf (Healthcare Success): Individuals do not know that are not within the enterprise how advanced that is.
Roy Bejarano (SCALE Healthcare): Yeah, you’ll be able to spend a lifetime simply on one piece, simply affected person balances. You’ll be able to construct a whole ecosystem of consultants. who’re six sigma deep when it comes to understanding the complexities of affected person balances. So are there any patterns that you simply search for that you simply see which are simply at all times smoking weapons of areas of alternative? Or is it simply every specialty, every tech stack has its personal distinctive challenges? Properly, smoking gun for me is present me a healthcare supply firm, and that is a smoking gun. As a result of if
they’re within the enterprise of offering care… They’re within the enterprise of income cycle administration, and that is a chance. I’ll say the teams that we’re much less targeted on at this time are pure cash-based as a result of we have not essentially targeted our efforts on the affected person steadiness element.
I feel we’ll get there, and I feel the extra entrance workplace we turn out to be over time, coping with name facilities, coping with scheduling, coping with referrals, the extra we find yourself migrating into the pure cash-based element of our business as nicely. However yeah, the smoking gun is anybody that’s concerned in truly supply of care and any sort of reimbursement might be candidate for us.
Stewart Gandolf (Healthcare Success): So one factor I am noticing now could be, and I am, once more, not professional at this facet of it. That is what you do. However QMD just lately got here up with AI for claims administration for denials. And so numerous issues that was bulled on have gotten built-in. After which additionally they… created or began doing bots to reply telephone calls. So lastly, it feels just like the software program is starting to have the entire package deal versus a bunch of bolt-ons. The place do you see…
Roy Bejarano (SCALE Healthcare): If you say bolt-on, you imply a mess of point-of-sale options?
Stewart Gandolf (Healthcare Success): No, a mess of various, you understand, for instance, in our world, it is like, yeah, totally different distributors that must piece in, piecemeal in. Is {that a} pattern? Proper now, I am assuming AI is one thing you discuss. virtually each minute when it comes to income cycle administration. What are the traits? What issues ought to we be searching for?
Roy Bejarano (SCALE Healthcare): It is a great thesis that is being performed out earlier than our eyes. And it is a kind of age-old questions that by no means will get answered.
The entry level into AI options by income cycle administration is a superb place to begin as a result of income cycle administration touches so many various departments. Observe-taking within a process room is related to income cycle administration.
Affected person consumption type and affected person prep is related to income cycle administration. All the things that results in a declare is related to income cycle administration. So it is a great entry level. There are different good entry factors. Name middle is an effective, respectable entry level. I do know of friends who’re creating good AI instruments, entrance workplace, possibly some again workplace, that began with human capital name middle options based mostly in Colombia.
Stewart Gandolf (Healthcare Success): How related is that to AI scribe?
Roy Bejarano (SCALE Healthcare): I do not know, however there is a continuum that teams like SCALE comply with once they begin offering these options.
Stewart Gandolf (Heatlhcare Success): Okay, superb. Then I suppose the final query is, How ought to folks get in contact with SCALE? Like if it is income cycle administration or whether or not it is a few of your content material? Share no matter you want.
Roy Bejarano (SCALE Healthcare): They will discover us on scale-healthcare.com. They will discover us on scale-community.com. They will comply with us on LinkedIn. They will name me straight. They’re going to in all probability discover my e-mail someplace. We’re simple to seek out.
Stewart Gandolf (Healthcare Success): All proper, nice. Hey, Roy, nice assembly you.




