Ann and Eric Fishman, with EHR TV, speaking with Raul Villar, President of ADP Advanced MD.
Dr. Eric Fishman: This is Dr. Eric Fishman with EHRTV along with Ann Fishman and today we have the pleasure of speaking with Raul Villar, the President of ADP AdvancedMD.
And so we’ll be speaking with you about a lot of subject but let’s start, you have been ADP for 22 years. Tell us about ADP and your experience there.
Raul Villar: ADP is a AAA rated company, one of the four left in the United States. We are a little over 10 billion dollars in revenues. We have primarily grown up as a company in the payroll human resources segments and most recently we decided to cast our net into healthcare. We did the acquisition of AdvancedMD in March.
Dr. Eric Fishman: AdvancedMD was headquartered out of Utah and you purchased them just a little while go. Obviously, you saw a lot of potential with them. Tell us about where they were and where you see you’re taking them.
Raul Villar: Great question. So, AdvancedMD is primarily focused on the small practice physician space what we classify as 1 to 9 doctor and most companies want to work with big hospitals and large health systems but ADP grew itself, its core business, on small businesses. And we feel like we have the right appetite for small business sales distribution and servicing the small business segment and we felt that this was a perfect fit for us for a couple of reasons – 1) it was small, it was about a 40 million dollar company, cloud-based technology which has no legacy products, right? So, we have a great cloud-based product, both practice management, electronic health record and revenue collection and we felt it was a good place for us to start and grow the business.
Dr. Eric Fishman: Ann has been particularly interested in cloud-based businesses. Ann?
Ann Fishman: What are your security protocols? I understand you are one of the largest in the world.
Raul Villar: Yeah, ADP does have the largest cloud-based presence for business in the world for payroll and human resource technology. So, for us, buying AdvancedMD was a great opportunity because it’s cloud based as well. And when you think about the cloud, you think about bank-level security and that’s what we offer with full disaster recovery, data protection services and when you start reading the headlines in newspapers today, most of the problems that the medical profession is facing personnel taking files, lost servers, data integrity, HIPAA breaches and we feel the data is much safer in the cloud and it gives the doctor access from anywhere and we believe that’s a big benefit as their lifestyles change and they want to work from all over.
Ann Fishman: How did a young guy like you get to be president of such a big company?
Raul Villar: Ah, sometimes it’s better to be lucky than good but in all candor, I spent the last two decades at ADP on the sales and marketing side of the business and when we acquired AdvancedMD, I think we look at the potential in the small doc space as enormous and we really believe we have an advantage on the distribution side. We have 5000 face-to-face sales reps across the US for ADP that can help us. We already have 15,000 doctor’s practices that use ADP for payroll. So, we are already a trusted adviser. And I think it was a great opportunity for ADP to demonstrate that we really want to grow this business fast. It’s a 40 million dollar business today. We believe that it can be a half a billion dollar business within 10 years, if not sooner. Just organically we think we can get to half a billion dollars in 10 years and we will be at a hundred million dollars probably by the next time we talk.
Dr. Eric Fishman: What do you feel is one of the most important differentiating factors for your product as opposed to some of the others that are out there. Yes, you have got a great sales team and that helps but it’s nice to have a great product as well.
Raul Villar: Our revenue collection side, we do 98% first pass claims and that’s the biggest differentiator. Now, we are putting money into the pockets of the physicians and clearly, especially with all the regulations going on and what’s impacting their income, that’s the biggest advantage we have as a business. Our practice management system for a small doc practice is the best in class.
Dr. Eric Fishman: And for use I’ve thought of AdvancedMD as a revenue cycle management product. Tell me about your documentation ability. Tell me about how you are expanding into allowing physicians to prove meaningful use.
Raul Villar: Yes. So, a little over 18 months ago we bought an electronic health record firm, Practice One, in Washington State. It was an excellent product. We fully integrated it into our platform. So, today, we offer all physicians an opportunity to achieve meaningful use with our EHR PM system together. We got certified in May and we are excited. I think the next step though is not just certification in meaningful use. It’s really redesigning the workflow for the doctor because the doctors that we talk to every day, while the tool works and the money is nice, it’s really not as efficient as they would like. So, what we are spending our time is how can we make the product simple, easy, intuitive and follow the workflow of the doctor.
Dr. Eric Fishman: Workflow is one of my personal interests particularly as it relates to input methodology, speech recognition. So, do you have any preferred advice for the physician users as to how they should get the narrative and the history for instance?
Raul Villar: Yeah, we don’t have a speech recognition product yet. We haven’t found the right one to integrate into the platform. We are hoping to find one here.
Ann Fishman: What will be the impact of ICD-10 and what would your company be doing in terms of playing a role to maybe alleviate the burden?
Raul Villar: Yeah. When you take a step back and think about the regulation that’s in the industry today, we just got past meaningful use, phase 1. We have 5010 that’s going on right now for January and then we have ICD-10 coming up a year from now. When you take a step back and think about what’s required for a physician and their team to get that done, I mean, it’s kind of mindboggling and I think the great thing for AdvancedMD is we have the power of ADP behind us and our clients are confident that we will be able to invest in the technology to do that because going from 1500 billing codes to 180,000 billing codes is amazing and it’s going to really change the dynamics for the physician. So, I think the folks that are using cloud, it’s going to be simpler, easier and we will be able to deploy our solution in real time to all of the physicians’ offices. If you are using old technology, client-server technology, you’re going to have a lot more challenges with all these different regulations because every time one comes out and they put a patch in their software, they have to get you the update and you are responsible for upgrading it versus if you can get to Google, you can get to AdvancedMD and you will be able to meet ICD-10 regulations.
Dr. Eric Fishman: As I’ve heard said, it’s so yesterday that other technology.
Raul Villar: Yeah.
Dr. Eric Fishman: Here at MGMA we have been doing something, playing the acronym game. So, if you don’t mind, let me say an acronym and tell me the first thing that comes to your mind.
Raul Villar: Well, I mean, I think ACOs is really going to be the wave of the future. Whether it’s an ACO or an HIE or whatever the acronym is, ultimately all of the payers, providers and technology companies like AdvancedMD are going to all have to play in the same sandbox, right? It’s about portability of data, interoperability of our solutions. So, a critical component for us as a provider for small physicians is to make sure our products are interoperable. So, if they decide to become part of a hospital group, they will be able to take our data and submit it in and not have to go with one of the large expensive applications that the hospital is going to want them to use which is not user friendly for the small doc practice. So, I think ACOs in their current format yet to be defined. I think we just recently had some good changes in regulations but I think it will still be defined but over time, it’s just about the ability to move data more efficiently so doctors can get the patient record and make the right decisions and improve patient care.
Dr. Eric Fishman: Very good. Now let’s try one more – RCM.
Raul Villar: Yeah, revenue collection is a critical component. Again, when you think about what’s going on in healthcare and the cost of healthcare across the country, obviously there’s payers and there’s providers and ultimately the providers appear to be the ones that are giving up the most revenue in the equation to make healthcare more affordable. So, I believe the ability to provide tools for providers to be able to make sure that they get paid appropriately from the payers is critical. So, we are excited because we know that we help providers maximize their income and make sure that they get what they deserve for the patient care that is delivered.
Ann Fishman: Is adoption as widespread as you would have thought at this point? Are we on target?
Raul Villar: Yeah, I think at the upper end of the marketplace, so call it your mid-sized practices and your hospital and health systems, adoption of electronic health records is really high, 70%-80%. I think at the low end of marketplace it’s still growing, it’s probably 30%-35% but every day that goes by, those late adopters are moving on to the technology and I think within 12 months you will see 50%-60% adoption of an electronic health record on the small end of the marketplace.
Ann Fishman: So, we will meet the red targets?
Raul Villar: Well, I hope so. We are trying to help.
Dr. Eric Fishman: So, Raul, thank you very much.
Raul Villar: Thank you.
Dr. Eric Fishman: This is Dr. Eric Fishman and Ann Fishman from EHRTV. We have been speaking with Raul Villar, President of ADP AdvancedMD.
Raul, thank you.