Ep 26 – Changing the World through a Full-Risk Value-Based Care Model, with Dr. Gordon Chen

What this episode covers

ChenMed was created with a mission to provide care in such a way that it could alleviate suffering for those seniors in the poorest of communities, recognizing that full-risk primary care can truly be transformative in providing superior health outcomes. This strong sense of purpose is what guides the physicians at ChenMed and serves as a moral compass in caring for patients. It is born out of an idea that ChenMed is a ministry that allows those in the organization to glorify God by spreading more love and promoting better health to those they serve. ChenMed is a family-owned, primary-care physician run organization that serves a challenging population: 75% have five or more chronic diseases, 70% are racial minorities, the average age of patients is 73 years old, 95% of patients within 300% of the Federal Poverty Level. But the success speaks volumes: patients use hospital emergency rooms at a rate 34% below the national average,  have 50% fewer admissions than the average primary care practice, and have close to 30% lower cost. ChenMed’s scalable and successful approach has already reached 60 practices, and it is no wonder that they are poised to grow 4 times larger over the next 3 years. Dr. Gordon Chen, CMO, along with his brother Christopher Chen, CEO, and other great leaders throughout the organization are proving that full-risk primary care is a solid and necessary foundation for winning the race to value! Episode Bookmarks: 4:45 ChenMed named to Fortune Magazine’s “2020 Change the World List” for measurable social impact, business results, innovation, and corporate integration 5:30 Dr. Chen discusses the spiritual underpinnings of his family-run organization and the Chen family’s suffering during his father’s cancer misdiagnosis 10:13 The ChenMed ministry in glorifying God, spreading love, and promoting health in underserved communities that are suffering 11:20 A scalable approach that has resulted in 50% fewer hospitals admissions, a 75% reduction in ED visits, and 28% lower per-member costs 13:35 “The traditional, fee-for-service primary care model handcuffs PCPs to see more and more patient volume without being able to optimize outcomes.” 14:14 A Medicare Advantage full-risk business model allows ChenMed to see shrink the PCP panel size so they can focus on cultivating trusting relationships with deeper connectedness 15:50 How a full-risk model enables Primary Care Physician empowerment 16:55 The shift from a reactive approach (e.g. ER and preventable hospitalizations) to a more proactive, preventative model that supports health value 17:45 Having “Stockholm Syndrome” for a broken fee-for-service model that has held PCPs captive from practicing medicine in the way they thought they would when dreaming of becoming a doctor 18:05 COVID-19 as a tipping point for full-risk primary care models, struggling primary care, and PCP moral injury 20:40 Consistency of revenue within a capitated model 21:16 “Fee-for-service primary care is going to end. It is too challenging to make it work, and PCPs don’t like a purely transactional model that doesn’t value relationships.” 22:45 Dr. Chen discusses the fulfilling purpose of full-risk primary care and how it makes a deep impact in communities 24:55 Supporting high-risk patients through high touch telephonic “love calls” and telehealth 26:11 How ChenMed adjusted its care delivery model during the COVID pandemic (“flipping to 90% virtual in less than a week”) 29:05 Realizing the need for the ChenMed model is far greater than could have ever been imagined during a period of pandemic uncertainty and civil unrest 29:50 Finding the right balance between in-person and virtual visits during t...