Reopening Americas healthcare system
What we just ten minutes to get smarter on the business politics sponsored by Bridge Bank be safe venture wisely. I'm Deborah Mac. Today show restaurants. Ask for more time and what. Disney just lost to tick tock the first reopening America's healthcare system. So okay. I get that title. Might be a little bit confusing given that we have spent the past two months talking about hospitals being surge capacity and parking lots becoming makeshift testing facilities but overall American healthcare service rates have fallen through the floor. Or maybe even through the foundation remember. Lots of hospitals stopped all elective procedures in order to preserve bedspace for covert nineteen patients which led to massive drops and things like joint replacement surgeries and lots of other medical facilities like clinics and specialty practices have either closed or severely limited their offerings including in such areas as pediatrics ophthalmology and dermatology and none of that even includes all the paused clinical trials for non. Cova drugs many of which require regular patient visits and monitoring why it matters for patients of course is that they haven't gotten treatment which could lead to increased troubles and costs down the road why it matters for healthcare as a whole is that elective procedures are. Greece's it's wheels which is why we had this bizarre dichotomy of overworked frontline workers on one hand and scores of laid off healthcare workers on the other more specifically the most recent monthly jobs report showed a one point four million losses in the healthcare sector including around two hundred and fifty thousand physicians. The bottom line things are beginning to open up including medical and dental facilities. But there are questions as to how fast that can happen. And what might have been lost for good in twenty seconds will go deeper with healthcare reporter? Bob Herman but I. This Bridge Bank knows the INS and outs of business. Ups and downs and remains dedicated to providing financial solutions to sponsor backed emerging technology and growth companies for nearly two decades through its national network of banking teams and offices in tech hubs across the country including San Francisco Seattle Denver Chicago and Boston Visit Bridge Bank Dot Com to learn more bridge. Bank is a division of Western Alliance Bank Bridge Bank. Be Safe Venture wisely. We're joined now by axios healthcare reporter Bob Herman so Bob let's start here with this decrease in elective procedures of how universal it's been so for example if I'm someone who's been trying to get a knee replacement surgery over the last couple months. Have I been able to? Is it a question of where I live or question of money? So if you're trying to get an Easter since the pandemic started it's very likely it got pound hostels basically all but stopped them. And what's so interesting about healthcare? Is we always figured? It was recession proof but it turns out that it probably is little recession proof but is not pandemic proof because hospitals head to basically stop all these things to prepare for the corona virus and as you mentioned the knee replacements is the most extreme example. But it's really across the board. You look at pretty much. Every service line cardiology spine ophthalmology. There's no service that has been spared here. The original argument for wildlife procedures. Were stopped was capacity right. You know you don't WanNa take a bed for somebody who is convalescing from a knee replacement when you might need that bed for Corona Virus Patient. That said as things begin to open up. Is there an expectation that all of these kind of backed up procedures? These people are just going to flock back in or is there serious concern? The folks will still stay away because these often are facilities that either already have corona virus patients or just general concerns about the lack of social distance that occurs when there's a surgery or when there is a face to face physician meeting for hospitals. At least they are kind of hoping and praying that the demand surges back because a lot of these procedures that have stopped or their big moneymakers like orthopedic procedures or spine or hearts so while they're hoping that there's this surge now that's the current events at least from hospitalization point appears to have crested at least in some states is actually less clear from people. I spoke with. There's still a fear among patients especially if it's something that they don't need immediately if there's some kind of carpal tunnel surgery that they've been meaning to get to but still don't really WanNa do they still might hold off until there's some kind of clear evidence that this is truly under control so while there's a hope that this will come back for hospitals. It's far from guaranteed and it certainly seems like at least some of the demand certainly won't come back this year. You talked about the hospital capacity. You had a great piece over the weekend about ten following hospitalization rates including some of the hardest hit states hospitalization rates from Cova. I'm wondering though there's obviously a pretty persistent fear that estate start to open up peaches and parks in retail and possibly even restaurants that you could start to get at least select outbreaks in various places given that are hospitals comfortable. Basically reducing that surge capacity given the concern. They might need it again. They're kind of a catch twenty two right because they WANNA be prepared if there is another surge of Toronto Virus Cases. That was the whole point of this but at the same time. They're just not getting revenue right now especially the smaller hospitals Hostels at treats traditionally poorer patients. They are on the bleeding edge right now. So they're at this catchweight. Were they want to be able to be prepared but they need money to come in the doors? They want to keep their staff around so I spoke with a CEO of a hospital Vermont. Vermont hasn't been terribly hard hit. They've been very aggressive with social distancing up there and he told me like we're prepared but we really kind of need to start scheduling some of these electric disease again because they're not getting as much funding from the federal government has other hospitals so they kinda need some of these patients to come back if they want to at least not start laying off or furloughing staff. Let's leave the hospitals aside for second or step away from them and talking about the specialist clinics a lot of people who go to the doctor even for outpatient procedures. Don't go to a hospital per se they go to a smaller sort of facility. Is the expectation that does including small. Urgent cares is the expectation that those will start to open up more and more and is there reason to believe people will be more comfortable going to those. It's interesting so outpatient care. It's probably even more at risk. And the volumes that have gone down are even more severe. If you look at family doctors pediatricians from what I'm hearing. Some of those volumes have declined almost by ninety percents year over year. They're essentially just treading water with no revenue coming in and it's still the same dynamic right like if you are sick do go in. Maybe do you go in for your cardiac checkup in an office? Maybe but maybe you just via telehealth telehealth granted you. Don't get the money off of procedures like you know K. G. at least the appointment revenue. Correct correct you do and with telehealth. It's not always being paid at the same level as an in person visit some insurers are trying to level it out again any kind of telehealth revenue is not going to be made up from what they would have gotten from an in person visit but one other piece of this which is dental and we don't think necessarily have dental all the time we have healthcare but when you look at the jobs numbers from April I think there was like half a million of the job losses were in the dental sector. Are Dentists offices going to reopen and from your perspective today suffer potentially suffer from the same issues that the pediatrician's offices in those smaller outpatient specialist providers suffer from outside of again emergency dental procedures? Did it seems like it's the same dynamic. It's funny. I just got an alert from my dentist kind of pleading with me to come back sometime in October. I'm not totally sure I want to do that. And if you think about the most elective of elective you probably don't need to get your teeth cleaned at your six month mark when it comes everything else. It's not the most urgent so dentist's office have absolute taking the brunt of this. Because it's just not totally necessary in light of the pandemic and for those offices interesting layoffs as you mentioned and even wonder if and I wrote about this as well. If they're the type of practice that will have to consider selling well in one area that has been very interested in dental is private equity. So you kind of wonder if that trend will accelerate bob just very quickly because we're almost out of time in a separate topic. But since I have you here Madeira. Which is the drug company that got a Cova vaccine into clinic? I yesterday released fairly encouraging albeit not completely complete phase. One clinical trial data. It helped the stock. Market's go nuts your initial reaction when you saw what. Madera now released in some ways. This was kind of expected right. This is a phase one trial. This is the very first trial mostly focused on just testing whether the vaccine is safe and by those measures. It certainly encouraging. Nobody's dying. There's no life threatening adverse events associated with it yet on the other hand. It's a very early interpretation of the data we're talking about really a subset of patients that were looked at. It's kind of insane that the stock market went wild as it did. Considering this kind of expected in there's still so long to go the pivotal phase. Three trial is going to start sometime over the summer. That's where it's GonNa matter most so the stock market reaction is totally wild. Bob Herman who you can follow at Bob Jay on twitter. Thanks for joining us. Thanks for having me Dan. My final two. Right after this with offices in check-ups throughout the country including San Francisco Denver Chicago and Boston Bridge Bank supports the innovation ecosystem wherever it thrives in helps breakthrough ideas actually break through and through. Its teams focused on technology and life sciences companies and the equity investors fuel. Them Bridge Bank delivers a responsive. High Touch Client Experience Bridge Bank. A DIVISION OF WESTERN ALLIANCE BANK BRIDGE BANK BE SAFE venture wisely. Now it's time for my final two and I up as America's beleaguered and largely shuttered restaurant sector a big group of restaurant owners and CEOS yesterday met at the White House and over and over asked for just one thing and extension of the so-called covered period for paycheck protection program loans from eight weeks to twenty four weeks. Their basic argument was that in many cases there be forced to use or lose the loans before all of the restaurants can fully open which helps defeat the purpose to be clear. They weren't asking for more money just for more time. What was remarkable about meeting also was how the restaurant tours? Whether trump house are not kept redirecting the conversation back to this covered period issue even when trump himself tried to pivot to things like meal deductability or payroll tax cuts policies. That one restaurant. Ceo likened to useful additions to a house but only after the actual scaffolding is. I erected. Don't be surprised to see this issue emerged today. When Treasury Secretary Steve Mnuchin testified in front of the Senate Banking Committee and Finally Tick Tock yesterday. Stunned the tech and entertainment world's poaching Kevin Meyer to be its new. Ceo Mired spent the last twenty seven years at Disney including overseeing the launch of its Disney plus streaming unit had been at one time viewed as the likely successor to CEO. Bob Eiger why it matters is that I. This is a very big name. Higher for a social media upstart now has hundreds of millions of users but perhaps more importantly Meyer is a known you ask tech n media commodity at a time when Tick Tock is trying to prove its independence from Beijing. At least when it comes to privacy despite its ownership by Chinese tech giant bite dance where Meyer will also now serve as C. O. And we're done big. Thanks for listening to my producers Tim Chauffeur's Naomi Shaven have a great national devil's Food Cake Day. And we'll be back tomorrow with another pro rata podcast.