![]() ![]() This is a very complex and important industry so there is a real need to really dig deep and get into the trenches - that is where the problems get solved. I can’t quite stand when oversimplify healthcare with a punchline, politically or otherwise. The biggest black hole in our biggest industry is this problem.” Driving change in healthcare means digging deep There are gatekeepers and information behind that gate that people don’t trust, so it’s never used. I tell them all the same thing: Don’t ever make a decision based on cost…But, you would never fly to New York without checking, right? And that is what’s happening today. And I’ll say this just to be clear, because we spend a tremendous amount of time with CFOs. So if they don’t know what A versus B is, then how do they know if the flight that they’re taking from Chicago to New York is $100 or $10,000? That kind of variation is happening everywhere, on everything, every day. “75 percent of the healthcare spend is coming through the decisions of physicians and their decisions providers. Making that data liquid is the only way to really bend the cost curve if they’re the ones who control the cost. ![]() When you ask them, ‘Do you know the cost of X?’ 99 percent of the time they say no - they just don’t have any of that data available. “ people is that this is a $4 trillion industry with $2.5 trillion going through hospitals and health systems. But what’s happening in reality is that everybody needs to reduce cost, right? You pay them X, have them here for X of time, they leave their recommendations behind and then you go at it. “If you’re going to drive major savings within the healthcare delivery system, the default option has been calling consultants. And, ‘Boy, wait a minute, this is a $4 trillion industry and maybe the biggest socioeconomic issue of our time, and yet the people who are closest to it have no clue what things actually cost.’ That’s what actually got me into the door.” To bend the cost curve, focus on sharing cost data “Any market opportunity is defined by the market problem. My core question was, ‘Do you understand what things cost?’ And when I asked people that question, the answer that came back was actually about price, or charges or reimbursements - not the actual cost. So I went around talking to a bunch of people who I knew in the industry asking them questions about it. “When I looked at the business of, I didn’t really understand it. But having spent my entire career on the clinical side, when Strata came along, it was on the financial side and I didn’t know a lot about it - that’s what intrigued me. Along with many other people at the time, we grew the company from about 50 people to about 6,000 and to more than 1 billion dollars revenue. “I eventually cold called Allscripts and that call later ended up turning into a job and career of helping to build up that company. “We have a saying we use that’s, ‘What flows through our software is not bits and bytes but human lives,’ and I truly believe in that.” We have a saying we use that’s, ‘What flows through our software is not bits and bytes but human lives,’ and I truly believe in that. “The embedded experience of wanting to do work that matters and touch people’s lives always resonated with me. always going to be problems to solve - which is where I want to be. “Then I got to healthcare - the biggest industry in our economy and maybe the most messed up industry in our economy, so there are always going to be jobs. After a year, I didn’t like where it was heading… I interviewing industries. “When I graduated from school, like a lot of people, I took a job - not necessarily knowing where it would go. The journey through the healthcare pinball machine Responses have been edited slightly for length and clarity. healthcare flows through Strata and it has the largest data set of cost information in the country.ĭuring the event, Dan talked about the most pivotal moments in his career and shared his thoughts on culture, hiring and maintaining a work/life balance. Over the last eight years, Dan has helped transform Strata into one of the most critical platform companies in healthcare. When Dan joined Strata in 2012, it was a similar situation: a 50 person company with the potential for exponential growth. Dan was an integral part of the leadership team that grew Allscripts from a $50 million company with 50 employees into a $1.2 billion company with more than 6,000 employees. “Not bits and bytes but human lives”: Strata Decision Technology CEO Dan Michelson on healing healthcareĪt our February Tales from the Trenches™, Dan Michelson joined us to share insights from his 20-year healthcare career and journey as CEO of Strata Decision Technology.īefore joining Strata Decision Technology, Dan spent 12 years at Allscripts as the Chief Marketing and Strategy Officer. ![]()
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