On this episode of Enabling Health Value, we welcome Rob Slattery, CEO of State of Franklin Healthcare Associates (SOFHA), the largest employee-owned multispecialty practice in the country. Under Rob’s leadership, SOFHA is transforming healthcare in Northeast Tennessee, and it has become nationally recognized as an exemplar in physician-led, employee-owned value-based care transformation.
In this compelling episode, Rob shares his vision for employee empowerment in healthcare. He outlines the groundbreaking strategies behind SOFHA’s physician-led, employee-owned, and patient-focused care model. We go in great depth on SOFHA’s innovative Employee Stock Ownership Plan (ESOP) and how it empowers its 1,300+ team members to create unmatched value in care delivery. From vertical integration to strategic technology adoption, Rob reveals the keys to SOFHA’s leadership in the marketplace and how their partnership with Lumeris is driving speed-to-value.
Is an employee-owner mindset the key to unlocking a new dimension in healthcare transformation? Rob provides a strong case for why a culture of ownership is pivotal for achieving sustainable success!
Podcast Bookmarks
01:15 Introduction to Robert S. Slattery and SOFHA.
01:45 The recently announced partnership between SOFHA and Lumeris (see Press Release).
02:45 How can employee ownership drive health value transformation?
04:00 “To win in the marketplace you must first win in the workplace!”
05:15 Rob’s recent whitepaper – Quintus Aim and ESOP-driven employee empowerment.
07:30 How the ESOP strategy was borne out of a mission-aligned commitment to value-based care.
08:30 Can an employee stock ownership plan really work in healthcare?
09:30 Employee engagement as a value-added component to drive VBC success.
10:30 Getting buy-in from physician owners on the transition to an ESOP model.
12:00 Liberating employees to have an owner mindset (the fifth dimension of the value equation!)
13:00 SOFHA as an exemplar for “physician-led, employee-owned value-based care transformation.”
14:45 Putting future success into “the hands of the many” (1,300+ employees).
15:45 Connecting the ESOP to the “why” of people serving people to delivery high quality care.
16:00 “Quality begins by being accessible, and that resonates at every level of the organization.”
17:00 Communicating (and living) the values — being compassionate, result-oriented, and patient-focused.
18:00 Optimizing governance for a new organizational structure.
23:30 Balancing workforce empowerment with organizational goals – “It begins with the Board.”
25:00 Executing a strategic plan for CQI and patient-centered care outcomes.
26:30 Taking on financial risk through debt related to the acquisition of physician equity.
27:30 Retained earnings in an employee-owned business is not subject to federal income tax.
28:30 Generating additional value that is then shared with each team member.
29:00 In other healthcare organizations, the value that is generated isn’t reinvested back into patient care.
30:30 SOFHA reaching a milestone in achieving its first ESOP distribution!
33:45 Retaining Physician Independence (despite opportunities to align with a health system or PE-backed aggregator).
36:30 Staying independent came down to how senior physicians approached their legacy.
38:00 An ESOP model doesn’t have the same Stark Law limitations as a 100% physician-owned practice.
39:30 How SOFHA’s physician leadership adopted clinical best practices.
41:00 The ESOP integrates all business functions in value creation.
43:00 As a multispecialty practice, how is SOFHA integrating specialty care into VBC?
47:45 Vertical integration that is driven by a physician-led, employee-owned VBC strategy.
50:30 Have a True North — Doing the “right” things when executing on a sustainable, outcomes-focused strategy.
52:30 A deep dive into SOFHA’s technology strategy to deliver patient-centered care.
55:40 How Lumeris is enabling “speed to value” for SOFHA in patient-centered care delivery innovation!
61:45 The Future of Value — Functional medicine that addresses overall physical health and wellbeing.