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April 21, 2025 14 mins

In this episode, Janice Polo, EVP and CFO of BayCare Health System, shares insights into her her 35-year journey at BayCare, key strategies in workforce optimization, leveraging AI for efficiency, and how the organization maintains financial strength amid industry headwinds.

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Episode Transcript

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(00:00):
This is Alan Condon with the Becker's CFO
and revenue cycle podcast. And today I'm delighted
to sit down with Janice Polo,
Executive Vice President and CFO
at BayCare health system, which is a nonprofit
integrated system with 16 hospitals
in Florida. Janice, delighted to have you on

(00:20):
the podcast with us today. Do you mind
taking a moment to give us a little
bit more insight into your role and your
background at BayCare?
Yeah. I would love to. But first of
all, thank you for just giving me this
opportunity to speak to you today.
So, my history here, I've been with BayCare
for almost thirty five years, and, you know,
the way my journey kinda led to me

(00:41):
here to BayCare is that while I was
in college,
I always enjoyed health care, and I thought
I was gonna be a nurse, and I
ended up changing to accounting. But so I
worked in the patient financial services department at
one of our hospitals, Saint Joseph's Hospital,
while I was in college to really help
pay for my education.
And just the culture there at St. Joseph's,

(01:01):
I knew that's where I always wanted to
kinda lay in my career. And so I've
been able to do that and have really
the privilege of just growing within BayCare,
given so many opportunities to just expand my
career. And over the past seven years, I
have served as a chief financial officer.
So as you kind of highlighted, BayCare does
have 16 hospitals.
We're about a $6,000,000,000

(01:22):
regional health system serving the West Central Florida
area with over 33,000
team members.
In addition to our hospitals, we also have
over 370
other access points through our our ambulatory services,
which includes a large employee physician group, out
patient imaging, urgent care, and then we do
have a large home care,

(01:43):
services company that expands even beyond
kind of the West Central area.
And I again, what I love working here
at BayCare is it's we're just really we're
committed to our team members, but really about
committed to the community to provide high quality,
compassionate care.
Absolutely. Thank you so much for the brief
intro and breakdown there. I think fantastic. You've
been sitting in that CFO seat now for

(02:04):
about seven years. As you said, $16,000,000,000
regional nonprofit system at about 33,000
team members. A fantastic nonprofit system in Florida.
Janice,
so much going on at health care at
any one time, but if you could narrow
it down, what are the two or three
kind of key trends

(02:24):
that you're most paying close attention to as
CFO today and why?
Alright. So there's I'll kinda go over three,
but really kinda drill down on two of
them. The first one is really just
physician engagement. I think we all recognize that
patients tend to follow those positions. So, really,
we're focused on really making sure we have
strong relationship with our physicians.

(02:45):
You know, here in the Tampa Bay area,
it's not a % employed, so that relationship
with your independent physicians is super important.
The other area that we're focused on, us
plus many others across the country, really is
around labor and workforce efficiency.
Over the past year, we did work a
lot on, I call, the blocking and tackling,

(03:05):
which is, you know, productivity premium labor.
But I think what we're really now focused
on, making sure that our team members stay
and not to make it really a great
place to work. So really giving our managers
and our supervisors the tools that they need
and the time that they need to spend
with our team members to, keep them engaged.
And then we're also focused on really leveraging

(03:25):
technology and AI to help,
improve and enhance efficiency with really making sure
we don't compromise really quality of care or
the quality of work.
In the clinical space, we are piloting
several AI power tools to help with voice
techs with our nurses to help with documentation.
I think the benefit of that is that
their heads are not down looking at their

(03:47):
wow stations or their computers or documenting, but
then can actually speak
and look at the patients, you know, from
in their eyes right as they're talking. Again,
their heads are not down as well as
kinda help with from an efficiency.
We've had a lot of technology that we've
used in the back out office functions both
within our patient financial services team and our

(04:07):
supply chain, but, But, again, continue to look
at different robots that we can add.
We've just recently added some robots at our
central distribution center to help with, picking.
Our team members used to walk up and
down the aisles to have to pick supplies.
Now the robots come to them, and they
just kinda work within a station. So, again,
just trying to look at different innovations to

(04:29):
help with that efficiency.
Mhmm. I'm curious about so, really, on the
last in terms of the labor and workforce
standpoint, you said kind of you had been
blocking and tackling productivity and premium labor,
now more so focused on engaging employees,
focusing on the culture and whatnot.
I'm curious because there are still quite a

(04:50):
few health systems out there and hospitals who
are still
quite reliant on some of that premium labor.
I'm curious in terms of what has BayCare
found most effective,
from a strategic standpoint in terms of marching
down some of those high cost labors,
premium labor costs?
I think the big focus we've had is

(05:10):
creating our own internal
pool, like, our own internal contract labor.
So we've been able to, convert a lot
of that expensive contract labor over into our
internal, like, mobile pool type, but then also
getting those mobile pool team members to convert
to actually core team members. So I think
it's just really trying to meet the team

(05:31):
member where they're at or they nurse where
they're at. And, again, that's making sure we
have we're market competitive.
We're focused on helping them with technology, which
I just just shared. And then, again, just
trying to make it a good place to
work.
Mhmm. Absolutely. Yeah. I think we've heard so
many systems gonna take that that strategy in
terms of the internal pool and how effective
that's been in marching down some of those

(05:51):
costs, reengaging some of those ploy employees as
well.
Janice, I've heard so many CFOs over the
last couple weeks and months kind of just
to your point really talk about no secret
to you and very least as I'm sure
AI technology automation and kind of, what they're
working on, what they're most excited about.
I'm curious to hear maybe just a little

(06:12):
bit more,
from a financial or operational standpoint. Where do
you see kind of the biggest,
opportunities
for AI automation, whether that applies to revenue
cycle?
Where are you kinda most spending the most
of your time, I guess, at the moment?
Yeah. I would say,
pretty much all areas are open for a
discussion and that we're looking at. Our patient

(06:33):
financial services team has always used, I call,
bots more to help with some of that
automation.
But how do we use the AI? And
I think it's getting comfortable, right, with AI,
true AI, not just the bot.
I think there's a lot of opportunity
with bots within the finance area, but also
AI. We're talking a little bit about when

(06:54):
you try to take plan planning data
if you're looking at a market opportunity, and
then the financial data, how much time our
teams spend just analyzing the data, and is
there a way to use AI to help
synthesize that and bring it together
and be more efficient that way? So that's
just one of the examples that we've been
most recently talking about.

(07:14):
Yeah. Absolutely. And that's certainly an exciting area
and one that CFOs, the hospital leaders have
continued to monitor going forward.
But Janice, when you think about the the
future of health care, the future of BayCare
health system,
What are you most ex most excited about?
Yeah. So one of the other big areas
that we're focused here, within BayCare is really

(07:36):
around growth. And I know
that
Florida
is, again, has great population growth. So everybody
is moving to Florida
as well as that means that we have
new market entrants that are coming into our
market to provide care right to that community
as well as having really our existing competitors
be,

(07:56):
very, I guess, bold
of what they're doing. So I think what
we're really trying to figure out is really
with this change in the landscape,
we have a long range capital plan that's
solid, but we understand we have to be
agile. Right? We have to be able to
change
as the market changes. So just this past
year, we have always had a rolling operating

(08:18):
capital plan, so we don't have an annual
budget here at BayCare.
Haven't had it for many, many years. And
now we're just now mirroring that up with
our strategic plan
and then trying to make our strategic plan
be more on a rolling basis versus like,
you know, three years is your plan and
then you kind of stick to the plan
and then you do another three year cycle.
And I think that's gonna really help us

(08:39):
be more agile
as where we need to grow and be
okay to pivot, right, if we have to
pivot in our capital plan or in our
strategic plan. So I would say
that is one area that I think is
exciting because it's new. And then just with
the market competition, you you have stay on
your toes. You got to know what's going
on. And to me, that's exciting.

(08:59):
Yeah. It's it's such an interesting time. It's
such an interesting state. And I love I
just got back from Florida, Fort Lauderdale last
week. Absolutely loved it. But to your point,
population growth has been huge, quite a tax
lienian state, there's a lot of these new
market entrants coming down. Specifically, the last couple
of years, we saw
Hospital for Special Surgery
at Mount Sinai, Rothman Orthopaedics, a lot of

(09:22):
these independent big orthopaedic groups, no doubt it's
a very it's an aging,
high high elderly populations, a very active state,
a lot of high acuity
orthopaedic procedures being performed in Florida. Is that
something that comes into your equation when you
think about growth and kind of how you're
potentially addressing some of those needs for elderly
patients? Yeah. I think it's it's pretty much

(09:43):
all of the above, to be honest with
you. You have the specialty hospitals. You know,
there was one point in our market, the
PE firms were acquiring a lot of physician
practices. That's kinda, you know, shifting a little
bit. But you also have, you know, other
health systems, which, you know, I don't blame
them. I would do the same thing
that or maybe you're in a state that

(10:03):
doesn't have a lot of growth, and they're
looking at is there opportunities to maybe do
satellite facilities right down in Florida, given you
do have a lot of the, you know,
the winter type patients here,
within Florida, and then they're up, you know,
at their home state in the summertime. So
I think it's, you know, it's all of
the above.
That's obviously kinda one big area of growth

(10:23):
kinda statewide.
How are you looking at growth, I guess,
over the next twelve months? Is there one
or two kind of key areas that you're
really prioritising for 2025, Janice?
I wouldn't say it's re
looking at our you know, saying we're gonna
do something differently. I think it's more of
where do we expand. Right? And I we

(10:44):
have a large ambulatory
footprint today,
but I think it still can be even
more. Right? Trying to meet the patient where
they're at versus having them come to us.
So I think that's a big area that
we are continuing to look at from a
growth perspective.
As well as, you know, we're not we're
not losing focus above all our existing assets,
which is, you know, we're calling kinda if

(11:05):
we look at a different service lines or
we we're calling them here clinical institutes, just
how do we ensure that we improve that
patient journey
through care coordination, streamlining
services again, and providing that high quality care.
So I think there's really two avenues that
we're looking at from a growth perspective.
Yeah. Absolutely.
Janice, last question I wanted to pick your

(11:27):
brains on. I just kinda get a bit
more insight before I let you go. I
think Becker's
reported on the,
the BayCare paying around about $4,000,000,000 to buy
out Trinity
from that long standing joint operating agreement. I
believe a huge undertaking, but a fantastic achievement
for BayCare. Fantastic that they were able to
get that deal done. Can you kinda give

(11:48):
me a little bit of insight into, I
guess, the effects that had on the system?
Now I believe a % owners, a lot
of those hospitals, those facilities, and I guess
any next steps.
Yes. I think what the we're calling it
now BayCare two point o. So I was
fortunate to be here when BayCare was formed
back in '97
and which was formed under the joint operating

(12:10):
agreement. And then eventually, Trinity, you know, acquired
Catholic Health East, which is kinda how the
Trinity came into to play.
But I think what this really helped us
do is really setting us for the future.
So now we have a governance structure. Really,
it's a % community.
You know, it's not partially with Trinity on
the board, and I think it sets us
up really to be more I talked about

(12:32):
being nimble, being able to, adjust where we
need to adjust a little bit quicker. So
I think it sets up a good foundation
for the next fifty years.
Mhmm. And then and then I guess the
last I said last question, but I have
one more that springs to mind if you
don't mind humoring me. But I think the
timing of the transaction was so interesting. And
BayCare,

(12:52):
obviously,
due due to fantastic leadership, but on the
financial operational side was in a position
that it was able to kinda pay down
and and and the kind of pay down
that $4,000,000,000
by our Trinity.
What were the kind of keys, if you
don't mind expanding a little bit, how has
BayCare
emerged in a better financial position than a

(13:13):
lot more of other health systems out there
at a time when I believe 37% of
the hospital is still operating in the red?
What has BayCare really kinda done right to
to find itself in such a fantastic,
financially healthy place?
Yeah. I would say we have
real and, again, the the whole time I've
been here, really strong fiscal rigor.

(13:33):
You know, we truly
trying to make ourselves accountable, not just on
the quality side, but the fiscal side as
well. So I think that's helped succeed. And
then,
you know, Florida's
growing. Right? So it's hard for, I think,
some health systems or some hospitals
when they don't have the growth. And given
that we have the population growth, you know,
if you look at a lot of Florida

(13:54):
hospitals are doing well.
But I would just have to kinda go
back that in a good strong fiscal rigor.
We have good team member engagement,
and we just provide high quality care. So
I think it's I think we had all
the ingredients to be successful.
Absolutely. Janice, it's been an absolute pleasure. So
glad that, we're able to connect on this

(14:15):
podcast today. Fantastic to hear a little bit
more about your journey at BayCare, seven years
in that CFO,
but at the health system for for quite
a while.
Sorry you never started out as a nurse,
but it sounds like you landed in quite
a great space in terms of the
but, really, really appreciate your time. And, congratulations
to all the excellent work that you and
your team at BayCare are doing. We really

(14:37):
appreciate, you taking the time to speak with
us today. Alright. Thank
you very much.
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