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If you are looking for the
quintessential modern Norman
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Rockwell town, McRae, Georgia,
would be a prime candidate.
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Picturesque tree-lined streets,
a beautiful town square,
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and the still-operating
Coca-Cola bottling company
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give McRae its small-town charm.
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Behind the facade, the
reality is not so pleasant.
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The county is the
poorest in the state,
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and the Husqvarna plant,
the town's largest employer,
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is closing.
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McRae is on its
economic deathbed,
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and the beginning
of its decline can
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be traced back to the closing
of the town's hospital, which
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employed more than 150
people, served three counties,
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and offered services ranging
from primary care to pediatrics.
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Now, 1,200 jobs for the
people of McRae are gone.
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To quote Lauren Weber, who
wrote the groundbreaking article
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on the rural health crisis,
"If you want to watch a rural
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community die,
kill its hospital."
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We're in the midst of a
national rural health crisis.
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There are 1,345 rural hospitals
designated critical access
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hospitals, and they average
only four patients a day.
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Think about it.
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Four patients a day.
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And a third of those are
in danger of closing.
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In Georgia, which is ground zero
for the rural health crisis,
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the average rural hospital
only has three days of cash
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on hand, not enough
to cover payroll
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if Medicare is slow
with reimbursement,
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which is their primary
source of revenue.
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How did it get to be so bad?
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With medicine
advancing so quickly,
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rural hospitals were
never equipped to do
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complex, sophisticated
surgery like heart surgery,
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knee or hip replacements, or
cutting-edge robotic surgery,
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which makes sense.
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They were never
designed to do that.
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They were designed to provide
critical general health
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care for the
communities they serve,
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to set the arm of a kid
who fell from a tree,
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to take care of a grandmother
who catches pneumonia,
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or to help a farmer who has
had an accident in the field.
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So the broader
health care system
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evolved where if you needed
complicated, significant
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surgery, you traveled to a
large hospital in a big town,
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and then after you, after
a few days of recovery,
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you come back to your
local rural hospital,
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where they can
focus on your rehab.
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You can be surrounded by
your family and friends.
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And by the way, your
stay generates revenue,
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keeping that hospital open.
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Sounds logical and seems like
commonsense and pretty simple.
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But if you understand
anything about health,
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nothing is ever as
simple as it should be.
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Somewhere along the way,
in this complex system
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of just misguided focuses and
resources stretched too thin,
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the system broke down,
leaving rural hospitals
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desperate to keep
their doors open,
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while urban hospitals remain
overcrowded and just can't
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handle this excess demand.
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But what does that
have to do with those
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of us who live in big cities?
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We've got hospitals
every few miles
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and access to specialist care
pretty much whenever we need it.
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Well, if you've been
to an emergency room
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lately or tried to schedule
non-urgent surgery,
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you've likely been affected
by the rural health crisis
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more than you know.
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Overcrowding in
the emergency room,
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long waits to
schedule surgeries,
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and the massive hospital bills
most of us have experienced
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are all exacerbated by
the rural health crisis.
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To give you an example,
let's talk about somebody
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we're going to call
Great-uncle Bob.
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Bob lives in Alma,
Georgia, and he
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needs knee replacement surgery.
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So he has to travel
two hours to Savannah
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to have the procedure done
because his local hospital can't
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provide it.
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Once Bob is medically stable,
he should go to rehab.
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However, due to a
complex system overloaded
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with a giant game of telephone,
fax machines, and way too
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much paperwork, Bob will
likely spend a few extra days
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in that urban hospital
bed, where he's not
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getting optimal treatment, since
that hospital doesn't specialize
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in rehab, and where
he may be at a higher
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risk of a hospital-acquired
infection.
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Furthermore, Bob's extended
stay in that hospital
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prevents that hospital from
caring from another patient.
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Maybe it's you who
needs knee surgery,
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or a coworker needs a
procedure on her heart.
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Or your neighbor needs
a hip replacement
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and he needs that bed.
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So Bob isn't getting the care
he needs the optimal location.
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The rural hospital
is missing out
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on a desperately needed
revenue, and the urban hospital
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stays overcrowded,
with a bed shortage,
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which affects all their patient
care and their bottom line.
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But there is another way.
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Four years ago, a college
friend of mine who's a doctor
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called me while I was
in Thomasville, Georgia.
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He knew about my background
working with and turning
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around distressed companies
like Regal Cinemas and US Steel.
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He explained the dire
situation of rural health care
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and suggested we
work on the problem.
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I like a challenge.
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So around three years
ago, I moved to Augusta,
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and we began working
with the Medical
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College of Georgia's
rural office
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to try and find a solution.
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We found one-- redesign
health care in rural hospitals
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to focus on rehabilitation.
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We're working with
rural hospitals
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to develop specialist
rehabilitation
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programs and the technology
to get them there.
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So now, after Bob has
three days in the hospital,
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he can then transfer back
home to his local hospital,
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providing revenue for
that local hospital.
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We call the rural
hospital and tell them
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we have a patient who
meets their criteria.
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After we handle everything,
Bob can be transferred back
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to his home hospital,
where he can
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stay as long as his medically
necessary, giving him the chance
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to recover so he
doesn't have to readmit.
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Because nobody wants to go
back into the hospital right
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after you've just been in one,
no matter how old you are.
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This new model of
rural health care
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has been embraced by innovative
leaders within Georgia.
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Here within Georgia,
specific hospitals
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have come up with specific
methods of care to handle this.
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If you go to Grady Hospital
in downtown Atlanta
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with a respiratory emergency
and you need a ventilator, now,
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once you're
medically stable, you
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can be transferred to Clinch
Memorial Hospital, which has
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introduced ventilator therapy.
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This allows you to get
better and get home.
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It's also taking Clinch's
census from two patients a day
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to 12 in just nine months.
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Not bad for a struggling
25-bed rural hospital,
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and they continue to improve.
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Geriatric psych patients
are getting treatment
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at one of seven rural
hospitals who were focused
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on their specific condition.
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If you need
orthopedic rehab, you
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can go to the rural hospital in
Hazlehurst, which just unveiled
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a renovated therapy center.
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There are 60 rural
hospitals in Georgia,
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each with the ability to
develop specific-care cases.
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Those who do that are able to
provide higher-quality care
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for the patient, lower overall
costs for the health care
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system, and clear up
beds in urban hospitals.
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Medical center of Peach County,
a rural hospital in Fort Valley,
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Georgia, was losing a million
dollars a month and losing
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employees because they couldn't
schedule full 40-hour weeks.
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Since they started focusing on
rehabilitation three years ago,
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they've gone from three
patients a day to 20
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and are now generating a
million dollars a month
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and able to keep 180 employees
on a full-time schedule.
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If we're able to increase
by even one patient a rural
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hospital census, we can impact
their annual revenue by up
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to $750,000.
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What does this mean for you?
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This means lower health care
costs and improved state tax
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base and shorter waiting
times at the urban hospitals.
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For this model to
work everywhere,
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we need large health
systems to come on board.
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With their support, this model
can help more people like Bob.
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And for every Bob and
families like his,
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this means shorter waiting
times and recovery periods,
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meaning they can get back
to enjoying their life.
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And ultimately, isn't that what
health is supposed to provide?
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Thank you.
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[APPLAUSE]
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