Transcript
Evan Martin (00:00) hey, how are you?
Jack Schell (00:04) Doing all right. Had quite the morning.
Evan Martin (00:07) Surviving, did you get any medicine?
Jack Schell (00:10) No, they didn’t give me anything. It’s it was, it’s something that hopefully just has to pass.
Evan Martin (00:19) Okay, good. Jesus.
Jack Schell (00:20) Yeah, yeah, might have to break up with my boyfriend since his mom poisoned me… an Easter to remember literally. Okay. Evan just popped in. I’ll let him in. Sounds good?
Evan Martin (00:54) Can you guys hear me?
Jack Schell (00:56) Hey, Evan. Yeah, we can hear you okay?
Evan Martin (00:57) Perfect. I can never toggling… between earbuds. Don’t like to play nice. So, thanks for meeting with me. So I don’t have financial approval for this at all. The, sbar that Mike and sales team helped write up had an Roi where it ended up being net neutral or a net gain and how it calculates out.
Evan Martin (01:26) Now it’s a 50,000 dollar expense with no break even point on it. So I have to know what my other options are because while we’re going to continue to grow, I either need to basically what’s being told is it has to break even Evan, that was the intent of moving to medallion and leveraging your guys’ services. If not, then I need to know how do we get out of the contract? And I need to go back and contract with mdstaff. So, and roster generation is one of them my legal team also reviewed. We understand it’s a different SKU, however… they’ve gone through all of our meeting notes and everything as well. I know you guys would like them, but they have asked us not to send them in case we need to go to have to pull in it. So, it’s all been now marked as client attorney for their review, why they’re doing their review of our contract terms and everything. So, what I’ve been told is figure out the solution. Carrie’s now on a maternity leave. She had the baby yesterday. And now you guys get to deal with me because I’m going to pull Claire out of the mix until we have a solution moving forward, which means Evan’s generating rosters himself because the team doesn’t have the bandwidth. So… C suite is not happy at peacehealth or at zoomcare, that a VP is now having to do roster generation themselves. So I need a solution. And if that means like can we build out the templates ourselves? And then the teams can leverage those going forward. The annual maintenance for making three modifications is also the price point where they’re like this is ridiculous when health plans don’t make major roster changes that frequently.
Evan Martin (03:27) And we’re the fact that the template stays the same, year over year with very minimal modification. But the price point of that, and there’s no additional creation work on the side if the system’s really doing it kind of says to us it’s not a full… it’s that would be a full FT reduction to make it break even, which means I go from a team of three to a team of two. So, I just like, I need to know what, where you guys are sitting on your side of the fence and then I need to figure out like, do I need to go back to mdstaff and rescind our termination letter?
Jack Schell (04:11) Understood. And we definitely hear the frustration and understand the process you went through with the sales team to land on an agreeable proposal that unfortunately left this SKU out in order to proceed with the services. Of course, we need to get the SKU added to the contract. We definitely want to work toward making it, right? And to offer the roster generation services to you. All… I understand that the feedback is because you’ve done an analysis now where there’s not going to be net savings. I am curious, is there as we go back to our team, a figure that we could propose? That does make sense? I.
Evan Martin (04:57) Mean, I have to get the 50,000 out of somewhere out of the budget to maintain the cost to collect that I have to be at by July first. So, me putting that 50,000 in means I’m letting like I said before, I will like, my only option is to let somebody go or work with you guys at figuring out how we’re not over the three year period of time having this 50,000 dollar additional expense.
Jack Schell (05:24) Yeah.
Evan Martin (05:25) And that’s what I’m talking about like it’s the price point of the three years of the contract that’s not breaking even.
Jack Schell (05:31) Right. And so, another thing that I go to that I think of is you’re in a three year agreement, you have 1,314 rosters today. Does it make sense to look at a proposal where we ramp up the volume of rosters over the three years rather than start at the 21 rosters which you technically wouldn’t be utilizing right away and should.
Evan Martin (05:57) I mean, I’m fine. If you guys do it at a price point, a model in the skew that says like for one to 15, it’s this for 16 to 25. It’s this for 25, 26 to 30. Is this that’s fine? I mean, when I look at the 13 today, most of the reason we have that is because all of the major health plans won’t allow one roster they want. They want it per 10. So, okay.
Jack Schell (06:26) They, do, they do have that requirement most?
Evan Martin (06:29) Of them do have that requirement?
Jack Schell (06:31) Okay. All right. Because when we consulted with our team on that, we were given feedback that we could potentially submit one roster for multiple.
Evan Martin (06:38) Teams? Yeah, no, we’ve heard from, we’ve heard from both regions of Oregon and Washington.
Evan Martin (06:43) They require two tens, united requires two, one per each 10. Aetna does the same and Signa, those are our top four payers. And then I throw in providence and pacific source and everybody else on it and they’re and they usually follow our lining with the others. The only one where we have some wiggle room is kaiser and moda, and that’s because we have a stronger agreement with them because they’re depend, they’re either our processor or they’re dependent upon us for the level of care that we’re providing their members and their smaller communities. Okay?
Jack Schell (07:19) All right. So there is a requirement for 13, you just signed kaiser though too, so that would bring it up to 14, right? Yeah. Okay. Jen, let me know if you think this is the wrong direction. But as we look at this proposal with year one, we could start at 14 rosters, determine, what value or incentive we could potentially propose to our finance team to get that to an agreeable place, ramp up the quantity over year two and year three. You have skew flexibility within your contract which will allow you to essentially grow this year above the 14 rosters to draw down elsewhere. But we will need to build in an essentially right size future years for what your anticipated needs are that could lower the initial cost for year one potentially. And then obviously, we would work toward that total three year cost which is currently proposed at 161. Yeah. I’m looking at this, so let me just share my screen here. So you see what I’m looking at?
Evan Martin (08:34) I’m not trying to be a hard ball. I’m just.
Jack Schell (08:37) we don’t think you are, okay. We don’t think you are.
Evan Martin (08:40) I really am trying to partner. I’m just in the sense of like I gotta figure it out, cuz I can’t be generating rosters on weekends, so.
Jack Schell (08:48) Yeah. We don’t think you are, and we understand the frustration. Jen and I’s role and especially Jen is to like is to represent your needs to our team so that we can get approval for something that will work. So what I’m talking about is essentially bringing this quantity down. Yeah. And obviously, the service period we would adjust now since we’re well past March 20 fifth, adjust this quantity down and then ramp up in year two and year three based on what your projections are. What I’m hearing you say is that this overall total is what’s causing the, yeah, that’s the congestion.
Evan Martin (09:25) Yeah, it’s 50,000 exactly. Let me pull it. Cuz that was the, where did I put this? Sorry, I had a former employee. They dumped their email into mine. So, I’m, still trying to reorganize everything cuz it re, triggered all of my old emails to move too. So, let.
Jack Schell (09:48) me there it is.
Evan Martin (09:55) When I did the math, it is.
Evan Martin (10:06) It’s 51,854 dollars and 79 cents above the break even. Okay?
Jack Schell (10:16) Is that with consideration of the credit? Yeah.
Evan Martin (10:20) That’s taking in the 21,000 dollar credit that’s where I already reduced two FT’s over the three year period, which is a 390,000 dollar savings.
Jack Schell (10:32) Okay. So what I’m hearing is with the 21,000 dollar credit and then the approximately 50 K over that’s telling me that this proposal is currently about 70 K over budget. Yeah. Okay. So, is it correct to state that if we were able to get an agreement in place where the overall total here is just shy of 100 K, we might be able to get that through.
Evan Martin (10:59) Yeah, I can get it through. Okay. So.
Jack Schell (11:02) The total of this proposal needs to be less than 100 K over three years. Yeah.
Evan Martin (11:07) Okay. I.
Jack Schell (11:08) think that’s the direction that we were looking for. Jen. Do you have any additional thoughts here? Obviously, we’re going to represent that. Ask, we have significantly discounted already and we understand the perception of the service. We’re happy to provide more detail about the service and why it’s cost, why it’s priced where it is. But Jen, any additional thoughts from you?
Genevieve Seney (11:33) No, not at this stage. I think like it sounds like we understand, obviously, we over understand, where you’re coming from and agree this is super manual and I don’t want you guys to go down a road where you’re trying to manually pull the data from the platform. It’s not pretty. So I get it. And I want to sort of make this right? I think like it sounds like we do have flexibility in terms of maybe how we structure it and in terms of like what we present back to you so long as it’s maybe within that price range. Does that sound right? Yeah.
Evan Martin (12:03) Yeah. I mean, I think that if we can get it down to where it’s the 100, it’s taking care of us for this year plus a little bit of a growth, but I have about five new payers, on track, that’s not across both tens that’s but there’s a mix between the two. So that just to give you guys some like growth context of, where we’re looking. Once that, with that in mind, that’s kind of where Carrie and I were settling at like, okay, we’re looking at like the 21 to 25 rosters, knowing that I have a very diligent contract manager who gives, that makes she won’t even present me a contract until they have agreed to do delegation. So.
Genevieve Seney (12:48) Right. Okay. And that’s awesome. I mean.
Evan Martin (12:51) It’s the right, it’s the right move, right? Like it’s what everybody wants, but at the same time, it’s like, okay, but I got to have the tool to be able to grow with that with what she’s wanting to do. So. Yeah.
Genevieve Seney (13:01) Absolutely. Okay. This has been, I have no other questions. This has been really helpful for us. So I do appreciate it, Evan, and appreciate the partnership working together on it. Yeah.
Evan Martin (13:11) I think the other big portion too Jack that you helped allude there too is I need more than what I got in the response of here’s. What this covers year over year. And I’ll tell you Carrie was a little taken back when she looked at it that it’s only three edits per roster that we can make. Yeah to her it’s like that’s. Outside of our control, right? Like health plans, make the modifications and tell us what they are. It doesn’t happen very frequently. But if all of a sudden united does a big one, you’re going to be updating everybody who’s on your platform for united because it’s standardized. So how does that standardization not get pushed to all of your clients? And that’s some of the questions that triggered is like, we know you’re working with the big payers, you built this out for those big payers. We understand that you’re customizing a little bit to us and our tin. But the requirements are the requirements and that push back. So that’s those are the questions that we’re getting asked by our stewardship team to say they work with others. They’re already doing this for others. There’s. It’s just populating our data into a set platform that’s already there. So.
Jack Schell (14:22) Yeah, we will work with our team to get additional detail and to make you feel more comfortable, more confident, we can put in an email or we can add the additional language on this order form. You know, assuming obviously our legal and finance approve us putting it in the order form which I’m sure in this instance won’t be an issue, but we’ll get more detail for you to share across the team. I think the initial hurdle to clear is how are we going to get creative with the proposal to land where you need it to be financially? And then you let us know if there’s additional, I guess clarity we can provide on.
Evan Martin (15:06) Yeah, because how we and I don’t know how much Mike walked you guys through the pricing, but how we got to it was reducing two ftes taking the savings from mdstaff and putting that over onto your guys’ platform.
Evan Martin (15:21) So while we could run the raw data out of yours and load it into mdstaff to generate ours, then that’s another 17 to 20,000 dollars a year that we would be paying. So it’s kind of that’s how we ended up getting to the break even initially where we thought this was included, we actually were going to get a little bit of an Roi savings. So me putting this in even though it’s you know, 50,000 dollars over, I also had to back out that Roi that I had with the staffing reduction in the initial three year contract because our initial three year contract was just for three five. And by me eliminating those two, I already had a 90,000 dollar savings. Yeah, that was baked into this year’s, budget and future budgets going forward that I have to make a like, so they’re willing to let me break even on it. I just can’t go above the savings that I already had. So, yeah.
Jack Schell (16:22) Definitely appreciate the context. I think that Chad and I have what we need to get creative on our side.
Jack Schell (16:30) Transparently. I’m about to head out of office tomorrow, Thursday, Friday, Monday, can we get a meeting on the calendar for later next week to sync on this?
Evan Martin (16:40) Yeah… that, yeah, I can do Tuesday or Wednesday next week. Thursdays is our stewardship day. As I said, so if we have something for me to present, I can take it to stewardship next week. Okay?
Jack Schell (16:55) Let’s target getting you something before stewardship,
Jack Schell (17:04) I’m just pulling up our calendars.
Jack Schell (17:10) Okay. Yeah. You’re pacific because you’re in Oregon, how does?
Evan Martin (17:16) I can meet as a relationship?
Jack Schell (17:19) How’s a noon meeting? So three PM eastern, 12 PM pacific on Tuesday, the fourteenth?
Evan Martin (17:30) I can’t do noon on Tuesday. I could do, can you do one 30? Yes, I can make that work.
Jack Schell (17:41) That’ll give me time till then to day. And then when I get back from pto to make sure that Jen and I are aligned with our leadership to then present to you in the afternoon?
Evan Martin (17:52) Okay. Yeah.
Jack Schell (17:53) Okay. I’m gonna do one 30 on Tuesday, the fourteenth, Jen, that’s four 30 for you? Yeah, cool.
Evan Martin (17:59) I can meet in the, I can even meet early Wednesday morning too, if that’s like athena’s on the east coast. So I tend to end up having to hop on with their teams early. So.
Jack Schell (18:13) I think let’s move forward with four 30 and one 30 pacific on Tuesday the fourteenth. If something comes up, we can always pivot, but I think that we should have our ducks in a row and our leadership is aware of this scenario. We’ve escalated it. So folks are eager to help support you through this. So I think we should be okay.
Evan Martin (18:34) Yeah. And our legal team is just like, okay, how do we get out of the contract if we need to? That’s why she’s pulled every like all of a sudden, I saw the pull from my email and I was like, ooh Madeline, what are you doing? She’s like I’m just reviewing all of our documents that we had internally and the contract to see like, okay, what’s the pretense here? So if we need to come together, all leadership teams, we can do that as well. So, she’s just like I’m flagging it right now for this. Please don’t send anything. And I was like, well, I’m still going to have conversations. So let’s be clear because I need a solution.
Genevieve Seney (19:08) So, okay. Thank you.
Evan Martin (19:10) Guys for everything. I appreciate it. And Jack’s been doing a great job in our meetings too. So we’ve been Kerry’s been singing his praises on that side. We love everything. We just need this part that’s the thing totally.
Genevieve Seney (19:25) Get it. I hear you. We all have the goal in mind together. So I appreciate it, Evan. Thank you.
Evan Martin (19:32) Awesome. Okay. Have.
Jack Schell (19:33) A good day, you too. Yeah, you too. Thanks, Evan. Bye.