EPISODE 412: Redirecting Healthcare to Compete in Today's Marketplace

Hey, chiropractors. We're ready for another Modern Chiropractic Marketing Show with Dr. Kevin Christie, where we discuss the latest in marketing strategies, contact marketing, direct response marketing, and business development with some of the leading experts in the industry. 

Dr. Kevin Christie: [00:00:00] Hey docs, welcome to another episode of Modern Chiropractic Mastery. Today, I've got a guest, Dr. David Berg is a chiropractor, but more of an entrepreneur at this point. And I had the pleasure of having him on my original podcast that you may not have heard about. I started my podcasting world, uh, with the Modern Desk Jockey.

And that was in, um, about, you know, mid, mid, uh, year 2016, we started with that. And that was, um, Uh, 82 or 83 episodes, but he was on that early on. And I know Dave from. Uh, strategic coach and he's got quite a company he has built called redirect health and he is going to dive into what that is and what that means to you and I think you're going to get a lot out of it, whether it's for your practice in the sense of, um, you know, having patients that have redirect health, the idea of it.

Um, things you could even offer for your employees, but also just thinking outside the box and thinking big and taking advantage of opportunities as [00:01:00] you see that. And David does a great job of kind of telling his story of how he got to where he is now. And, um, he is still part of strategic coach and we run into each other.

Every so often, but, uh, definitely a big thinker. And, uh, I encourage that for you as well, before we dive into that episode, uh, we are offering the 30 K a month course. Again, this is actually going to be. Uh, more of an evergreen. Um, you know, when we launched the first time we had, uh, it was a six week course that had zoom calls and a bunch of other things.

Um, so the, the evergreen course of this, you're not going to have the zoom calls with me. Uh, like, like they did, uh, but you're going to get the lessons and the material, and it's going to be on a good platform that will drip to you and you'll get the same material. Um, and so check that out. Just go to our website, modern chiropractic marketing.

com. And you can see that we will put the direct link in the show notes. Uh, as I record this, we don't have it yet, but it is on the website, [00:02:00] www. modernchiropracticmarketing. com. And so you could take this course whenever. And, um, Get, get a lot of the information out of that. It just won't have a lot of the Slack channel we had with the first group and, and the zoom call Q and a, and some other aspects of it, but you'll still have plenty of value.

So check that out. All right. So without further ado, uh, this is my interview with Dr. David Berg.

All right. Excited to have Dr. David Berg on the, on the line here. I've actually had you on my, my modern desk chalky podcast back in 2016 when I first started podcasting. And we had, we did meet a couple of times, uh, at strategic coach. I've been a member there for a while and I know you have as well. And so it's been exciting to, uh, see what you've done with redirect health.

But before we dive into that, uh, just give us a little bit of an overview of yourself. Yeah, sure. And strategic coach, um, has been part of my life for about 25 years now with Dan Sullivan for 23 of it. So it's, uh, [00:03:00] it's embedded in me as I'm sure it is you. Um, a lot of the principles that Dan Sullivan talks about.

There's not a strategic thinking coach for entrepreneurs that is better than Dan that I can think of. He's the best. I've been there 11 years, so I'm catching up. Yeah, see, you got it. You got it. Um, so my story. So I moved to Phoenix, Arizona with my wife, uh, uh, in 1995 from Canada. And, uh, so I was used to the Canadian healthcare system, which is not very robust, but it does have this.

It has a lot of peace of mind. People are not worried about the Canadian healthcare system. Um, and even in places where they should be worried because the wait lines are too long, et cetera. People just don't generally go about their day being worried about it. Um, and the they, uh, uh, but they are in the United States.

We have great healthcare here. But the worry and the lack of peace of mind around it, or especially around the affordability of it is incredible. Um, so my wife, who's a family doctor and, and I'm a chiropractor, um, [00:04:00] uh, we moved to Phoenix in 1995 and, uh, it was quite a culture shock for us. Just to see just how great the health care was here, but how worried people were about accessing it like Worried like no peace of mind over the most basic stuff that was formed to us So, we were trying to figure out how to make money in the American system and there are a lot of things just didn't make sense to us.

It was too. It was very complicated compared to the Canadian system. And there's a lot of what we eventually discovered that the confusion that was out there. It was very beneficial for a lot of people, a lot of parties, stakeholders, in order to make money. The more confusing it was, the easier it was for the system to make money.

And there were a lot of hidden costs, hidden transactions, hidden fees. It could be hidden costs of time, even, or hidden costs of frustration. But money, obviously, too. So we had to figure this thing out in order to make money. Um, in our business, and, uh, we were one of the, I think we were the, the first, uh, chiropractic family practice, [00:05:00] um, joint practice back in 1995.

There might have been one other chiropractor working with an orthopedic surgeon at the time, so it wasn't very common. Um, but we had to figure it out for our own business, but then we had also After about 10 years, I recognized I still wasn't able to figure out how to make health care work and affordable for my hourly employees And 10 years later, I knew how to make money in the system, but I didn't know how to make it affordable for Uh me to provide it to my employees and my employees to be able to afford it It was just too much time wasted time wasted money Uh in uncertainty, so I created a new system that was just common sense in a lot of ways But it was designed to reproduce that peace of mind that we experienced in canada But to experience it here with my own employees.

I had no intention neither my wife to ever Commercialize it sell it help other businesses and uh when the recession happened, and, um, I really started about 2006, but 2008 is when I launched it. And then, um, we had, I had a [00:06:00] bunch of friends in the, uh, business world, um, through Strategic Coach or Young Entrepreneurs Organization.

Um, Vern Harnish of Entrepreneurs Organization is a huge, is a great friend of mine. Um, so I've been part of those two organizations now for 25 plus years. And so I knew a lot of business owners and they were struggling with health care, but I had solved it from my own business. So I just started helping friends and I probably had about 15 of them that I was helping them with their business.

And we'd lower their costs by 30 percent when the insurance company was trying to raise them 20, 30%. We just lower them 30. And it would help them, uh, compete for labor, um, help them retain employees, . And, and for some of my friends who had a lot of injuries at work, or they had exposure to that, it would, the byproduct was injuries at work.

The work comp costs went down tremendously. That was just the byproduct. We didn't even design it for that. But it gave my friends businesses huge competitive advantages for hiring and retaining and workers comp for the [00:07:00] construction, uh, friends of mine. And a matter of fact, uh, two of the friends of mine, the brothers, uh, one was a former, former mayor of Phoenix, still is the former mayor of Phoenix, if he's not there, uh, and his brother, home building and drywall.

And, uh, the Paul Johnson is the former mayor of Phoenix. He is, uh, now my business partner also. Oh, wow. But we just saw just huge benefits by controlling health care costs by doing some common sense things and . But what happened is it started spreading around Phoenix in a freeway and then, uh, meaning we didn't charge for it.

And then Paul said, Hey, what are you doing? Like you're helping my business so much, my brother's business, and he's a dozen other businesses. You got to start charging for this. And then in 2013, we started Redirect Health with no intention ever to, like, do anything but start charge entrepreneurs and our friends in Arizona.

And then by 2018, it grew to, uh, small businesses all over the country. We're in all 50 states now, and hundreds of brokers [00:08:00] are, uh, pitching our stuff, selling our stuff and our solution. But in a, in a nutshell, Uh, we're, we're, we're a platform with technology logistics platform that helps make any health plan work better just by applying common sense principles, mainly around primary care and routine interventions that chiropractic would be part of, but so would labs and so would routine x rays.

And so would primary care. So would urgent care. It's that routine stuff that we use 90 percent of the time for 90 percent of our conditions. Um, yeah. That it just by helping that part of healthcare work better in, uh, in a more streamlined way, uh, it just helps eliminate a lot of the unnecessary activity and spending in the more expensive hospital systems, health systems.

So take me back to your, you know, go back to 2005 or so it's your business. You were doing this for your employees only. What, what exactly were you doing for them to? To corral this [00:09:00] healthcare system. Yeah. So in, in 2005, I wasn't doing anything different for my employees than everybody else was. I was having, like my HR person manager work with a broker to mm-hmm

Go figure out whether Blue Cross at a better price or Humana at a better price, united at a better price. And I'd shift, I'd switch every year or every two years when I got less of an increase. And when I got too much of an increase, I just raised deductibles back then. It's from $250 a year to $500 a year.

That irritated everybody when I did it. Um, now we're at 6,000, $7,000 deductibles all day long and then double that for families, but back then it wasn't. So I would do the normal things in 2005 and I'd do the normal things in 2006, and then when I got to about 2006, my deductibles were a thousand dollars.

And the big corporations in my neighborhood, say like Honeywell, American Express, Discover Card, the hospital systems, the insurance companies, the banks, they all had [00:10:00] deductibles that were still at 250 or 500. So when I'm at 1, 000, I can't be competitive. And I found that my very best employees, um, they could get jobs anywhere.

Because I would teach them how to do the customer service and everything a chiropractor has to have. nailed in order to have a successful business, the customer service, the empathy for the customer at all stages from finding a parking spot to receiving a bill and everything in between. Um, and the phones, right?

We understood what customer service look like. Well, what that meant was that any of my people could get a job paying a little more money at a big corporation with way better health benefits. So there are many of my employees. When I say many, it might have been 10%, but it's always the best ones. They would peel off when they wanted to start families.

Or they were getting married or they're, you know, that kind of thing. And I wasn't able to compete with the Honeywell across the corner, literally across the corner, uh, with their health benefits. So me figuring out how to compete with Honeywell and [00:11:00] American Express, these big corporations in order to retain my employees and be able to hire the best employees for what I, the customer experience I wanted to see in our practice.

It's what stimulated me to say, okay, I've got to figure out a better way. And that better way was to, uh, um, just help people get things taken care of over the phone so they didn't have to miss work. Help them take, get, get, uh, things taken care of, the routine things taken care of, without the nickel and diming of a 5 copay, a 10 copay.

That kind of thing. So once I figured that part out, um, I just created a plan that I then offered to my employees that met their needs exactly. And then I went re insured, I self insured and then I re insured if the cost got bigger than I thought. But what I realized is the cost never got bigger than I thought, um, if we did really good routine care.

All the things I included, it's not just primary care. It's not just [00:12:00] chiropractic, not just labs, not just x rays. It's not just physicals, not just mammograms, not just colonoscopies, but all those things, the routine things that we need. Um, if we did those things, well, um, we didn't waste money. in the bigger health systems, um, in the emergency rooms, in the urgent cares, and, and, uh, we started noticing some, um, huge price differentials between everything.

I mean, a baby in one hospital, um, could be 3, 000 back then. The same baby, same doctor, same mom in the hospital two miles away is now 17, 000. Now, so that doesn't even make sense to a, you know, a Canadian coming down here. It doesn't make sense. When I buy a TV or a pair of shoes, the price differential isn't that big.

Um, and we, but we started seeing that, um, there were tricks of the trade, billing tricks and coding tricks in the hospital systems that we never even imagined existed. So if we could do really good routine care And then help [00:13:00] people avoid or eliminate that, those coding tricks or the, the, um, complication tricks or the, the charting tricks.

Um, I call them tricks because two hospitals could do them differently and two doctors could do them differently. It's not usually in the doctors, it's the billing office that's coding the notes, the chart notes. It's not even the doctor coding them. So we started learning those price differentials. Um, it, we started seeing patterns and I started creating a logistics technology platform around those patterns because it's, and I initially I thought I could just teach people healthcare consumerism.

I learned after about two years that it was way cheaper, less expensive for me, probably a tenth of the cost. If I just did it for them, then try to teach somebody else how to do it. A tenth of the cost to do it myself than to teach you how to do it. Um, but there's everything we did. Any one part, anyone could do it.

It's common sense. However, if you've got 10, 000 of these things, and you're experiencing it for the [00:14:00] first time, it's very difficult. But if you've got 10, 000 of these things, and you're experiencing it for the 100th time, or the 1, 000th time, or you've got technology, and now you've got AI all over it, um, it's powerful.

Um, I'm gonna give you one example, really drive home that price differential and that common sense thing. If somebody has high blood pressure, really high, high blood pressure, you've got to get it down or they're at risk of a stroke. We have to. Um, to manage the high blood pressure, in the best case, it's about 21 a year of medication.

21 a year. Now, here's how you get that, though. You go to a grocery store and you get a tablet of a generic. Now, here's what surprises a lot of people. That same generic medication At a corner, big brand, big box pharmacy that's in a capsule format is now 3, 500 a year, 295 [00:15:00] a month versus 1. 71 a month. It doesn't even make sense.

All we did is change the form from a tablet to a capsule and from the grocery store to the retail pharmacy. We didn't even go to the brand name. You go to the brand name, you could be 10, 000. Right, so let's see if you can take the brand generic out of the place. So a lot of people didn't know that. I don't, I didn't know that.

And now when you, we've got, there's like, the coding, they're called ADC codes, there's like, I think it's 80, 000 codes. So, And there is probably hundreds of thousands of pharmacies. So in order to have the pricing for 80, 000 codes times 100, 000 pharmacies or whatever it is, it's insurmountable. So number one, you need the knowledge, you need to know the principles in place and where the tricks are and where the patterns are.

But then you need the technology to have the database that changes. It could change every quarter. It could change every day, really, but it changes every quarter, meaning one form of medication at one location is 1. 71 this month, but it's 4 next month. [00:16:00] And there's patterns that it's always 290 at this store in a capsule form.

So we, we, I just gave you one example of, of one condition, high blood pressure, where we can eliminate tremendous amount of costs just by understanding the logistical considerations. of the healthcare that's required. Um, chiropractors don't experience this a whole lot. But they do, in that if they could avoid the orthopedic surgeon, or the post surgical rehab, and the expensive D& D that happens afterwards, Chiropractors could be a big part at the front end, and they are in our system.

So, like, essentially, the example you gave with the tablet versus the capsule, that's you educating the consumer on their options with that high blood pressure, just like what you compared to with a chiropractor. Yeah, like, we talk about it a lot, obviously. It's like, that person goes with shoulder pain, and they go to the orthopedist, they go for the MRI, [00:17:00] they find something that Maybe it wasn't even related to the pain they're having in the shoulder and recommend surgery.

They end up with surgery and, and not, and not. Well, first of all, Kevin, where I'm going to, I used to think exactly what you said, that I could just teach the consumer. What I've learned is I can't, they don't believe it. It's too egregious. Like, what do you mean? 21 a year versus 35. You're, you're, you're wrong.

It's no way that could be true. It took me 10 years to believe that was true. Yeah, I just I couldn't believe it because I didn't experience that in Canada. Um, so I we just do it for them We tell them hey the price is twenty one dollars if I can lock in your brain The like anchor twenty one dollars is the cost.

That's what I have to do I have to anchor twenty one dollars because that way when you experience fifty dollars, you're a little upset and you come back But so there's a lot of anchoring of the right price in our members minds so they can help us

I think it's safe to say there are very few scenarios where it will ever make sense from the patient's perspective for a [00:18:00] chiropractor to send somebody to the orthopedic surgeon without doing the MRI first. Here's why. Many of the orthopedic surgeons either own their own MRI centers or they work for hospital systems that own their own MRI centers.

MRIs at a hospital system can charge out at 9, 000, 10, 000. That same MRI across the street can usually be done for 250, 300, definitely under 500. So the cash price of an MRI outside of a hospital system is always under 500 everywhere in the United States. If I'm a chiropractor and I send to my friend, the orthopedic surgeon, who happens to be at a hospital system, that orthopedic surgeon now is removed from the charging of the MRI.

They just send to their MRI center that's very convenient, owned by their employer, basically, or their partner, um, or who they're renting space from. And now that MRI price, [00:19:00] they wash their hands with it. Yeah, they charge whatever they want to. But that charge is In a hospital system, we're going to be 3, 000 to, I've seen up to 12, 000.

I've seen 9, 000 a couple of times now. I didn't see that two years ago, by the way, two years ago, my record was 8, 000. Now I've, we've blown by that in the last two years. Well, you can eliminate that unnecessary spending. Yeah, that's where you're the name of your, yeah, the name of your company redirect health is you're kind of redirecting the decision making and the knowledge and obviously the choices of their health care.

Is that correct? Yeah, it was, it was really on the concept of the logistical. Um, angle on rethinking, like just pausing and go, let's think through the thing through this. Let's make this make sense. What's the common sense here? 21 3500 9, 000 MRI, 300 MRI. Are they that much better? Maybe you can make an argument [00:20:00] that the one MRI is better than the other.

But it's not 20 times better. Yeah, it's just not and so the sense doesn't make sense But then we we wanted the spin of the logistics what we discovered is the thing that drives health care costs in america Not in Canada, so that was different. So maybe that's why I saw it a little differently and it was more obvious to me.

So I didn't see this in Canada ever. I just didn't notice it might be there. I didn't notice it. But logistical considerations could drive the cost of health care by hundreds of times. Like whether it's a tablet or capsule, that's the logistics to me. That's not healthcare. It's the same chemical compounds, the same disease, same person, same doctor, same everything.

But logistical considerations of the form of a medication. Or the, whether it's a grocery store or a big brand. I'm trying not to say the name because I don't want to get sued. I get it. I get it. Right? But they're, uh, that's logistics to me. Like, where do I go is logistics. So what [00:21:00] we discovered is logistics controls cost.

Healthcare does not, the need for healthcare does not even close to, um, match the impact of managing logistics on cost. And if we believe that the, as we do, that the problem with American healthcare, the thing that's stopping people and robbing their peace is cost, and the cost is getting in the way of their belief of access, in access.

Then we have to address costs. If we don't address address costs, we're not doing anything to solve the problem. If we're not using data to address costs, what good are we? If we're not using ai, the new technologies to to control costs, what good is it? I tell you right now, the system today is using data and they're using AI to figure out how to increase costs.

That is what's happening. And now it's also figuring out how to create a marketing message a brand message that says we're not If you put a [00:22:00] billion dollars on a message um Any message that message is going to stick if you put a billion dollars on it You might be a great dog. You might love dogs and hate cats, but you give me a billion bucks I'll convince you to love cats exactly If the system right now is using the new technology To do what it should do meaning what it's you should expect it to do their producers to their shareholders to increase revenue increase profits Increase reach to figure out how to sell more.

That's what their job is. That's our producer. They're all publicly traded companies so So, using AI, using data, using, uh, technology to, um, eliminate unnecessary activity and spending by addressing logistical considerations to deliver the healthcare people need, that's our focus. So, redirect. Health, uh, redirect was about just to remind us that we were focused on logistics as well as health.

I love that. And then let's say I'm [00:23:00] an employee and I've got a redirect health plan. Do I also need to have a regular insurance plan for the emergencies and that type of stuff? And how is that? If that's the case, what's the marriage between having a redirect health plan and a traditional health plan?

Yeah, so Redirect Health, in its essence, is a logistics platform. So it'll make any health plan work better. It's the starting place. It's all virtual. It's the technology. It's the AI. It's the data. It's the common sense built into it. It's the price differentials, knowing them on the spot, having teams of people that can help navigate through the, uh, you know, the last inches of the healthcare system where it's needed.

That's the platform. And the platform probably takes care of by itself, I'm going to make an estimate, contextually, 50 percent of what people need. But there's still other stuff that they need to, um, so other health plans can be added. It should be added in order to take care of the next 20%, the next 30%.

[00:24:00] The real expensive part is that last 2%, right? That I have to go to Mayo to get that special proton thing for my brain cancer. That's in the 1 10th of 1%. That part, that's where it drives up the healthcare costs is that those last percentages. Our platform. We'll take care of all the stuff in front of that and make it easier to access and less expensive.

And so we have, uh, clients that just have our platform and then they have their fully insured Blue Cross United Aetna Cigna plans and then our platform makes those plans less expensive. Because we'll help the uh, their employees make an insurance versus cash decision, right? If if I can get your blood pressure medication for 1.

71 At the grocery store, why would you want to pay your 20 copay with an insurance company? So we'll help with those decisions. So our platform makes that insurance plan work better for the people We have clients that are self insured and [00:25:00] so now the Employers are paying the claims. So now the employer Um, we help make their risk layer less or less expensive.

We take away the employer's risk so their self insured plan works better. We have some stop loss carriers that appreciate our platform so much that they waive huge, huge chunks, like 40, 000 per person in, um, in deductible that the employer would normally take on as risk. The stop loss carriers will waive.

A big portion, if not sometimes almost all of it, um, if our platforms in place, you know, that's, we got to prove ourselves that our platform is going to save money for the employer and for the stop loss carriers and for the people, um, because they, and I like that world because now we have actuaries who are looking at the data.

And quite often we get to, I get to have a conversation with them and say, I don't understand this data. It's too low. The costs are too low. And the part [00:26:00] that I've come to really appreciate from the actuaries is there are lots of things that we get to zero by not letting them happen in the first place that the actuaries are not used to ever getting to zero.

An example, a 9, 000 MRI in a hospital system. They're looking at our data and goes, there's no hospital MRIs. Why is that? Oh, good. Because we, our goal is to have none. Or if there are, if one sneaks out, no big deal. If it's 1%. But if it's You know, 20 percent, it creates incredible costs. So, I love working with the actuaries, with the health plans.

Your question was, do they need to have other insurance? Our platform by itself works really well for, um, for what it is. But people should have health insurance for the more expensive things. We'll help people pay the cash pay rates. for the routine things. I don't, personally, don't think anyone should have insurance for the routine [00:27:00] things.

That's like, to me, it's like having my car insurance pay for a flat tire, or my car insurance pay for windshield wiper fluids, or, or, uh, yeah, fluid or the wipers. Um, it just doesn't make sense. It drives up the cost of the insurance. I would rather the insurance was just there for the high dollar unexpected things.

Yeah. The ACL, the ACL tear plan, recreational soccer, things of that nature where you need surgery. So, um, we'll give an example as well. Like, uh, let's say I have a regular insurance plan. Now does that person that has the redirect health also, do they tend to then get cheaper insurance plans with higher deductibles because they're not going to use it too often because they're not just every time they go to the.

primary care or, you know, get this, that, and the other thing, an x ray, they have to go towards the deductible and it costs them a lot more. Is, is that accurate? Well, they should expect that they're going to spend less money out of [00:28:00] pocket. They should, I used to think that if they didn't, if they were really good healthcare consumers, that their, uh, healthcare, health insurance rates would not, would go down next year.

I used to think that. No, never happened. Um, and I also thought that it would stay level. Next year. Nope, never happened. Um, the best I've seen is instead of a 23 percent increase, you might get a 15 percent increase, but usually you're going to need a really good broker. He's got a lot of other business. It seems rather arbitrary to me.

Um, the system is designed to raise rates every year. And so by putting our platform in front of a regular insurance plan, it doesn't help the insurance company long term or even next year because they want to sell more insurance. And if we eliminate a lot of the big, the cost, they have less reason, you don't need as much insurance.

And so our platform is not going to be well received by, it's going to [00:29:00] be ignored for the most part, but I wouldn't, I wouldn't tell anyone to expect their insurance rates to go down next year. Unless they're self insured and they're an employer, right? If now, the employer is paying the claims costs, I'd expect the claims costs to go down.

Therefore, you're buying less insurance to start with. Because you're buying less insurance, just catastrophic. Maybe over 40, 000, maybe over 100, 000, right? That's what self insured companies do. So, everything under the, that's called the specific deductible. Everything under the specific deductible, the employer has to pay.

The insurance company pays only if it gets above 40, 000 or 100, 000, those two situations. So in our world, we rarely hit those specific deductibles because of the work that we're doing, which means the employer, uh, their risk layer is smaller, goes down, their claims costs go down. And it also means that the stop loss carrier doesn't have the same ammunition to increase their rates next year.

They still do, but they don't, they might [00:30:00] increase it 2 percent or 4%. They don't increase it double digits. Like we're used to all business. Yeah, no, that makes sense. And now let's talk about the small business world. Let's say a lot of our audience are small business owners. Uh, and I wanted to have this for my employees.

Uh, what, what does that look like? How, how does that work? Uh, so the best easiest thing to do is go to our website and, uh, just. Sign up and we'll have somebody call you and somebody who's going to ask about your business. See what you're trying to accomplish Every business a little bit different, but there's a lot of similarities, right?

So I always want to know like what are your business objectives and what are the constraints if your constraints are? I'll give an example if you're a law firm and your constraint is hiring the best legal assistants and lawyers I'm gonna say don't like just go buy a like the Cadillac plan And then put our stuff in front of it if you want, but that's not even that necessary Um, go [00:31:00] pi concierge primary care DPC for all your lawyer all your people.

It's a better way to manage your health care of that very high paid workforce if you're a construction company and you've got 10 managers or executives or managers and you've got 50 hourly workers That can drive up costs because of work injuries. Oh my gosh, let's go put it on them. And, and right, that's what, and you want to recruit those people.

Let's make sure that we've, we're doing the employer contribution. So our job ads can say free health care to recruit those people. So I can recruit over my competitor. Um, and if I really want to get, um, I mean, one of the best ones I heard was, uh, we had a maid company, a franchise, and, uh, they discovered that, um, Uh, when their, their franchises that had an average age, I think it was 26, uh, did better than average age, uh, [00:32:00] than the others that were like 21, 22.

And, um, so what they decided to do is put our stuff in place and pay for, uh, moms and children, 100%. So then their job as they put free health care, you and your children. Well, what happened is they attracted an older maid 26 years old who had children and that was their thing if they if they Got the older maid they tend to have children if they got them young that when they had children they would leave They would wouldn't be a maid anymore.

So they wanted to find people who want to be mates more as a career Um, so they need them a little bit older. And so they, they strategically said free health care, you and your children. So I'm giving you this example because we want to understand what the strategic need for health care is for the business.

And the only way to really know that is to have a phone call, a conversation. We do it over the phone. And then we've created some reusable building blocks that we put on top of our platform. Everybody goes on the same [00:33:00] platform. Nobody gets nobody's if you don't need our platform it you don't need redirect health And then we add different levels of coverage on top of it Depending on your workforce and then we also advise on different Employer contribution for different groups your company in a non discriminatory way there are laws around it We got to make sure that we abide by so that our health plan Cost the employer the least amount for the best result.

Now, sometimes you want to pay more, but you want to get a much better result if you pay more. So if you, does the, um, the employer get to pick and choose different providers that they would be able to cover? Uh, like I'll give you an example. If I'm a chiropractic practice owner, I probably wouldn't need a.

chiropractor to send to, you know, my employees too, because they could just get it chiropractic work done in my office. But maybe I just have a primary care doctor that's they're able to use for redirect health. Is that accurate? Yeah. So people [00:34:00] can go see pretty much anyone they want to see. We use a, we start with a really broad network.

It's called P H C S multi plants, like 700, 000 practitioners. Yeah, it doesn't really matter because when we do the enrollment our technology our platform We ask people what conditions they have what medications they take ones What doctors are they seeing all that stuff? We're asking it because we want to do a whole population health um blitz on that company to make sure that we're getting ahead of Um, the clinical need people might have the financial exposure, they might be, you know, probably going to walk into high probability of walking into or even we'll start to pick up where people are afraid of things and the fear is a is an incredible driver of bad decisions in health care that are very expensive.

So we, we will reach out to people and find out what their needs are in a prioritized way. And then if their doctor's not, we don't have a relationship with the doctor, um, [00:35:00] or they're not on the PHCS network, we'll just call them. We have a whole system for doing this and, and we've never talked to the doctor.

We talked to the staff and we just basically, it's a two page agreement. We call it a usual customer and reasonable agreement where they agree to usual customer reasonable billing and we agree to pay them within a week. They seem to like that. Yeah. No, I, I had experience with that. We had, uh, uh, one of your, uh, friends, sons, it was Indian and it worked out really good.

We got paid well and we got paid quickly. I guess a question on that would be is, um, all right. So the employee, the employer is paying redirect health for this plan for their employees. The employee goes in, sees that primary care doctor. Um, and, and let's say it's a, uh, It's a 210 bill for whatever the whole thing is.

Uh, redirect health is sending that check to that, that primary care doctor for that. Um, now does [00:36:00] the employee like say me have to pay the 210 or is that just part of the premium I'm paying to redirect health? Yeah. So, so for primary care, there's zero copay. We just don't want to manage the administration of like who owes that last 10 like that.

That it cost you 50 bucks, just figure out who owes the copay. Mm-hmm . And to, for everyone to collect it. So we've made that zero copay and that tremendously decreases the administrative costs. Which to everybody? Yeah. Uh, to us, to your, to the doctor, to the member. Like nobody likes opening these EOBs, this mail that says, this is not a bill, but it sure looks like one.

Um, right. And, and then you get a collection notice later because you thought it wasn't a bill. It's just nobody likes it. So for the routine things. We make it all zero copay, the routine labs, the chiropractic, the, um, the primary care, the urgent care, zero copay. And what happens, plan A is there's, we have a payer ID number, electronic payer ID number.

So the vast majority, say 90 percent of the [00:37:00] doctors, um, know how to use it. And they'll send us a claim and then we'll reprice it according to the usual customer reasonable. And we'll send them a check for a hundred percent. They don't have to collect anything from the patient. They love it. You've, you've got that 10 percent that want to be outside the system and don't want to use computers still.

And, uh, so there's always a chance that they'll just mail us a paper bill and then we'll do the same thing. There's always, that's plan B. Plan C is they might go, I don't want to do this, you just got to pay me patient. And the patient will pay. But now we're talking about probably 2 percent of our membership.

And then we have a way on our app to snap a picture of the receipt and everything. And then we reimburse them. Uh, usual customer and reasonable, which is almost always, almost always, um, um, exactly what they paid because they're usually paying the self pay rate. Um, so plan A is they send us the claim electronically.

Plan B is they mail it to us. [00:38:00] Uh, plan C is they make the patient pay and they. sent to us and then we have a whole system for reimbursing them in four days. I love it. No, it's been great. I had a good experience with it as well. And, um, I'm excited to dive into it more. So I, I really appreciate your, your time today.

What, how can they find out more information? Uh, recorrecthealth. com is the easiest way. Perfect. And I'll put that in the show notes. This is great. . Do they have any other special questions? I've got a, I've got a great team and, uh, I'm happy to help where I can and also to bring somebody else in if, uh, uh, if the, if the question or the, the need is a little greater than what I can provide.

It's cool seeing a chiropractor do big things. I appreciate all the efforts doing that and I know for a lot of chiropractors We are trying to compete and getting good talent and this could be one of those things to help you do that So yeah, and chiropractors are very important part of our system And that's why we make it free is because I don't want people to have to make the decision do I pay a 50 copay see a chiropractor or a 50 copay to see a physical [00:39:00] therapist or a Or a orthopedic surgeon, we know that if we can, we know chiropractors, we make our money before surgery, physical therapists and orthopedic surgeons, they make their money because of surgery, right?

So we know that and I'm not saying they're doing anything wrong with that, but I just, that's the basics and logistics matter. So if I can get you to a chiropractor first. Some percentage, significant percentage, will then not need the orthopedic surgeon and the post surgical physical therapy. Right? Some percentage will not.

Every chiropractor will tell you story after story how they've prevented. Uh, back surgery or knee surgery or shoulder surgery or neck surgery. Um, it's what we do. And, uh, so I, I, I appreciate having make it really easy logistically than a zero dollar copay as a way to get people to chiropractors so that they only need to see orthopedic surgeons and physical therapists when the surgery has to happen.

Absolutely. Have a good one, [00:40:00] doc. All right.