Allen Karp

Thank you, David.

Yes, and that's a great question, David.

I will focus on two that I think drive the fact that our productivity in healthcare is not as great as some other industries.

One is the economic model historically has been a fee-for-service system.

based model where incentives are not aligned between payers and providers.

And there are significant administrative processes that are in play today as a payer interacts with a provider, and that causes inefficiencies.

The other area would be within a health system, for example, the administrative and operational processes are cumbersome.

and inefficient.

If you look at the healthcare industry, it is a very labor-intensive industry, which of course drives the cost up and creates some of this inefficiency.

There was a study done by Johns Hopkins where they were looking at two areas of focus.

One was the way they assigned beds to patients who came into the hospital, and the second was how quickly they can assign

beds to those who came through the emergency room.

Utilizing AI and machine learning, they were able to reduce the amount of time it took to assign beds by 30%.

And they were able to cut the wait time for those members who came in through the emergency room, or those patients, I should say, through the emergency room by 20%.

So that one example of using technology

to focus on those areas that are cumbersome and improve inefficient processes.

There are still barriers that exist today.

However, I have seen significant change, which I believe will improve productivity significantly as we move forward.

As we change the economic model and we align the incentives with hospitals and physicians, the administrative processes that we have in place today, such as pre-authorization or concurrent review,

are either reduced or they go away.