WEBVTT - Northwell Health CEO Prepared for Second Wave

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<v Speaker 1>This is Bloomberg Business Week with Carol Masser and Jason

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<v Speaker 1>Kelly on Bloomberg Radio. I do have to say that

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<v Speaker 1>reaching out to members of the medical community, Jason, have

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<v Speaker 1>really been so helpful for us, right given us very

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<v Speaker 1>direct and transparent views of the impact of this crisis. Absolutely.

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<v Speaker 1>So let's turn to someone who has been at the

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<v Speaker 1>four of this and literally runs the health system that

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<v Speaker 1>has treated more COVID night teen patients than any other

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<v Speaker 1>system in the country. I'm sure he would say it's

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<v Speaker 1>a dubious distinction, but they have been working so hard

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<v Speaker 1>right here at the episode we're talking about Michael Dowling.

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<v Speaker 1>He's the president and CEO of north Well Health. He

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<v Speaker 1>joins us on the phone from late Success, New York.

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<v Speaker 1>I have to say I live within a mile of

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<v Speaker 1>one of their hospitals, the Phelps Hospital here in Westchester,

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<v Speaker 1>so very familiar with this system. Michael. Really good to

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<v Speaker 1>have you here with Carolin myself. Now, I'm I did

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<v Speaker 1>thank you so much for having me, appreciate it very much.

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<v Speaker 1>So I guess I would start by asking you and

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<v Speaker 1>knowing everything you do, where are we in fighting this

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<v Speaker 1>disease from a clinical perspective and from what you've seen

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<v Speaker 1>and the trends that you're seeing across the system right now,

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<v Speaker 1>on the trends look good. We have reduced admissions each

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<v Speaker 1>day and have had those reductions each day for the

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<v Speaker 1>past dozen days. We only have about half the number

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<v Speaker 1>of patients in the hospital today with COVID that we

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<v Speaker 1>had about two and a half weeks ago. So we're

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<v Speaker 1>und the downslope of this. But I have to caution

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<v Speaker 1>that it doesn't necessarily mean you're out of the world

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<v Speaker 1>is because if the public doesn't continue to practice social

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<v Speaker 1>distancing and prevention, then you could have an uptick in

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<v Speaker 1>cases and that's not what you want to do. I

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<v Speaker 1>also believe too your question that we're learning how to

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<v Speaker 1>treat the patients better now than we did at the beginning.

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<v Speaker 1>Because of very beginning, this was a completely unknown and uh,

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<v Speaker 1>we now know a lot more about the patients. It

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<v Speaker 1>doesn't mean we don't have a cure, but I think

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<v Speaker 1>we're learning a little bit more about how to delay

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<v Speaker 1>putting a person on event. Uh, we understand better I

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<v Speaker 1>think the aphacare that is needed. So we're learning a

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<v Speaker 1>lot more and we are doing a lot of treatment

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<v Speaker 1>styles on sept and drugs. But we're a long ways

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<v Speaker 1>from having a vaccine, as you know, or from having

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<v Speaker 1>a drug. The window actually really works on a large basis,

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<v Speaker 1>On a large basis, we're in a very good position, uh.

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<v Speaker 1>And I believe that the health systems, the hospitals, all

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<v Speaker 1>of the hospitals in New York, especially in the city

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<v Speaker 1>area and in Long Island, have done a spectacular job here. Um.

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<v Speaker 1>This is an experience and an adventure of that. Uh.

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<v Speaker 1>Nobody really wants to live through. But when you're in it,

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<v Speaker 1>you do the best you can. And I think we've

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<v Speaker 1>done an exemplary job. And if it comes back again

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<v Speaker 1>in the fall, I think we are quite ready to

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<v Speaker 1>hand it was whatever is drawn at us in the fall,

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<v Speaker 1>assuming and hoping, of course it doesn't happen. I have

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<v Speaker 1>to say, I talked with the CEO of Unilever earlier today,

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<v Speaker 1>and you know, they are expecting and others are expecting

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<v Speaker 1>that we do get a second wave, and you've got

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<v Speaker 1>to be pandemic ready. And I do wonder. You know,

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<v Speaker 1>you have a massive healthcare system, um, largest as I

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<v Speaker 1>think Jason said in uh, the city of or the

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<v Speaker 1>state of New York. So are you planning for a

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<v Speaker 1>second wave, Do you feel like you will be better prepared? Yes,

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<v Speaker 1>we we We We have a very strong uh you know,

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<v Speaker 1>emergency management infrastructure here, and we walk as a reel system,

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<v Speaker 1>so all hospitals walk together, etcetera. So we have put

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<v Speaker 1>in place already a whole structure of what we would

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<v Speaker 1>do if there is another rebound in the in the fall.

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<v Speaker 1>So we are ready given the experiences that we've been

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<v Speaker 1>through over the past about them a half where we

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<v Speaker 1>have actually created an out health system alone and all

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<v Speaker 1>those similar things, about two thousand new beds, so we

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<v Speaker 1>know how all. We know how to surge up to

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<v Speaker 1>create new beds, We know how to create the I

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<v Speaker 1>CEU facilities quickly, we know how to deploy staff and

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<v Speaker 1>much more efficient with and we did at the very

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<v Speaker 1>beginning of this. So we are very much much much

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<v Speaker 1>more prepared. Um. We obviously will be much better to

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<v Speaker 1>coropate all of the ppe the masks and the gloves

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<v Speaker 1>that was a problem, as everybody knows at the beginning

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<v Speaker 1>of the crisis. So yes, the answer is we're more

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<v Speaker 1>prepared um. And we learned an awful lot of things

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<v Speaker 1>that every time you go through this you learn and

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<v Speaker 1>then the next time you're most your your better positions.

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<v Speaker 1>So let's talk about PPE because that is something too

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<v Speaker 1>that came up with Alan Joe CEO of Unilever, and

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<v Speaker 1>again he taps into global supply chains understands and he

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<v Speaker 1>said they didn't. He said, there's lots of PPE out

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<v Speaker 1>there if you tap the global networks. Is that where

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<v Speaker 1>we messed up? Well, you know, uh, we we did.

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<v Speaker 1>We we tapped every part of the world that we

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<v Speaker 1>could finally tap that we could possibly tap to get

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<v Speaker 1>all in supplies. And so did in the state of

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<v Speaker 1>New York. Um uh, they happened, and all the search

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<v Speaker 1>here happened very very very quickly. Give you an example

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<v Speaker 1>of masks alone in our health system, we use between

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<v Speaker 1>ten and fifteen thousand masks a day, so that means

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<v Speaker 1>you're losing you're using a hudd masks a week. Because

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<v Speaker 1>of our scale and our size. What we need to

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<v Speaker 1>do here is make sure that we have a number

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<v Speaker 1>of places around the around the world that we can

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<v Speaker 1>get the supplies from. But we also have to learn

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<v Speaker 1>how to make these things here in the United States ourselves. Uh.

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<v Speaker 1>You should not always be relying on people overseas to

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<v Speaker 1>get basic core supplies that you need. We have to

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<v Speaker 1>do them here. That's a lesson from this experience or

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<v Speaker 1>the supply chain because most of us depending on off

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<v Speaker 1>on on China, that supply chain got completely disrupted. So yes,

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<v Speaker 1>where we cut off a little bit off God, a

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<v Speaker 1>little bit at the beginning, that's if we make that

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<v Speaker 1>mistake a second time around in you know, then it's

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<v Speaker 1>on us that hopefully whatever again happened. But we have

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<v Speaker 1>to make some of these things in the United States.

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<v Speaker 1>There's no reason we cannot do it. We must do it. So, Michael,

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<v Speaker 1>I do want to ask you. You know, you talked

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<v Speaker 1>about learning how to treat this disease, and I do wonder,

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<v Speaker 1>especially now that you have to look at, maybe more

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<v Speaker 1>closely at how to treat everything else that you would

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<v Speaker 1>normally be doing. How does that change, even in the

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<v Speaker 1>short term treating you know, the patients who are COVID

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<v Speaker 1>nineteen related, as well as doing the regular business of

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<v Speaker 1>being a massive hospital system. Well, a lot of the

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<v Speaker 1>regular business, mostly surgery, and a lot of our outpatient

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<v Speaker 1>ambilatory facilities we close. We stopped doing except for emergency

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<v Speaker 1>surgery that was that was necessary. So all all of

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<v Speaker 1>that we have to bring back. But there are there

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<v Speaker 1>are a couple of lessons here without over be getting

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<v Speaker 1>too complicated. One is um tellent medicine that everybody has

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<v Speaker 1>been talking about. There was a lot of resistance to

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<v Speaker 1>tell a medicine. The payers and the government didn't really

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<v Speaker 1>want to pay for it, and a lot of doctors

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<v Speaker 1>didn't want to use it. I can tell you we've

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<v Speaker 1>had a phenomenal increase in the use of telemedicine and

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<v Speaker 1>virtual health during the last five or six weeks, so

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<v Speaker 1>that horses out of the bond. We will be doing

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<v Speaker 1>substantially more telemedicine in the future than we ever imagine

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<v Speaker 1>that we would be doing, uh, you know, two months ago,

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<v Speaker 1>So that's a benefit. The other thing is we have

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<v Speaker 1>now we've had over the last six weeks thirty two

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<v Speaker 1>thousand employees working from home, and we find out that,

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<v Speaker 1>you know, with certain functions, that can work just as

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<v Speaker 1>efficiently from home as they do by coming to the office.

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<v Speaker 1>So my guess there's a lot of those employees will

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<v Speaker 1>not come back to the office anymore. And the third

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<v Speaker 1>item is that a lot of the various clinical disciplines

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<v Speaker 1>we're all working to important unity breaking down all of

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<v Speaker 1>the clinical barrios storing the treatment of COVID. That will

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<v Speaker 1>be a benefit that will help sc forward. All right,

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<v Speaker 1>stick with us, We're going to continue this conversation. I

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<v Speaker 1>want to talk to you about some of the work

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<v Speaker 1>you've done with Governor Andrew Cuomo. I mean, this has

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<v Speaker 1>been a massive undertaking. We know we're speaking with Michael Dowling,

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<v Speaker 1>President CEO of north Well Health. He'll be back with

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<v Speaker 1>us in just a few minutes. This is Bloomberg. We're

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<v Speaker 1>talking with Michael Dowling, President and chief executive officer of

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<v Speaker 1>north Well Health, on the phone from Lake Success, New York,

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<v Speaker 1>and it's a massive hospital operation here in New York State. Michael,

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<v Speaker 1>one thing I do wonder, and I know we want

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<v Speaker 1>to get into some of the work you've done with

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<v Speaker 1>Governor Cuomo, but I do wonder about the financial impact

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<v Speaker 1>of all of this. And obviously, when you're in the

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<v Speaker 1>midst of a crisis, you do what you have to

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<v Speaker 1>do right to take care of everybody, make sure your

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<v Speaker 1>workers are safe, make sure patients are taken care of.

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<v Speaker 1>But there is a reality of the financial cost. Talk

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<v Speaker 1>to me a little bit about that. Yes, Well, when

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<v Speaker 1>you're in the middle of a crisis like this. In

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<v Speaker 1>a situation like this where the public health is such

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<v Speaker 1>a major, major, you know, foremost priority, you don't let

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<v Speaker 1>yourself worried so much about the financial impact. You just

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<v Speaker 1>do what you have to do and at the end

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<v Speaker 1>of the day, you do the right thing irrespective. Uh.

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<v Speaker 1>And you are obviously with the recognition that you're going

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<v Speaker 1>to get hurt financially, but you then say, I'm going

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<v Speaker 1>to deal with that later. For our health system, for example, Uh,

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<v Speaker 1>this has impacted us a big time. We are losses

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<v Speaker 1>are about three fifty million a month because we had

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<v Speaker 1>to croptail most of the major revenue streams that were

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<v Speaker 1>coming in, like surgery, and we we stopped all of

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<v Speaker 1>that sorgery to be able to take care of COVID patients. So, yes,

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<v Speaker 1>it does have an impact, but we will recover. Um.

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<v Speaker 1>We are now beginning to think about how we get

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<v Speaker 1>back that other business that we lost over the next

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<v Speaker 1>coup the months. It will take time because it is complicated,

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<v Speaker 1>and also you have to make sure you build confidence

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<v Speaker 1>among the public that they feel very very safe when

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<v Speaker 1>they come back to any health care facility that has

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<v Speaker 1>had corpid patients in it. So we will recover, We

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<v Speaker 1>will come back. It will take time. Um, but you

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<v Speaker 1>have to feel good about what you do, irrespective as

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<v Speaker 1>a financial impact, when you know you're doing what's right

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<v Speaker 1>by the public. And so let's talk about your work

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<v Speaker 1>with Governor Cuomo if we can, uh. The governor uh

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<v Speaker 1>making a statement today, you know, no more school uh

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<v Speaker 1>for this year. Certainly that impacts a lot of us

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<v Speaker 1>here in New York State, and it has an impact

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<v Speaker 1>on reopening, especially when it comes to parents. Help us

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<v Speaker 1>understand the advice that you are giving him about reopening

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<v Speaker 1>and what that looks like, especially across the state and

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<v Speaker 1>candidly and very parochially, especially here in the down State area. Sure, well,

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<v Speaker 1>you know, I've known the governor for a long time.

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<v Speaker 1>I worked for twelve years with his father, and uh,

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<v Speaker 1>you know, Andrew the Governor has been you know, providing

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<v Speaker 1>extraordinary leadership here as we all know. I mean, it's

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<v Speaker 1>a lesson in great leadership. So it's easy to work

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<v Speaker 1>with him, UM, I do. I've talked to him quite regularly.

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<v Speaker 1>And now, of course the focus is on to make

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<v Speaker 1>sure that we can get the economy back, but we've

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<v Speaker 1>got to do it very smartly. We can't just jump

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<v Speaker 1>and make you know very quick judgments too quickly, because

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<v Speaker 1>what you'd want to avoid is to generate any um uh,

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<v Speaker 1>continuing increases and transmissions so that you have the the

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<v Speaker 1>COVID crisis comes back to hit you again. So it

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<v Speaker 1>has to be done very deliberately, business by business, sector

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<v Speaker 1>by sector, and I believe that will begin to happen

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<v Speaker 1>now over the next couple of months. UM. It is

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<v Speaker 1>inconvenient for everybody. Um. People are unhappy, but there will

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<v Speaker 1>be a lot more unhappy if we do things stupidly

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<v Speaker 1>and we get another round of the COVID crisis. Then

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<v Speaker 1>it only makes the economic situation so much worse. Um.

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<v Speaker 1>And you let people second guessing all of the time.

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<v Speaker 1>But you have to take a very rational, smart look

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<v Speaker 1>at how it is you do that. And and that's

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<v Speaker 1>the process that the government is going through. Nobody wants

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<v Speaker 1>the economy open up more than hand, but he wants

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<v Speaker 1>to make sure we do it right, especially given the

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<v Speaker 1>degree and the severity of the issue that we've had

0:12:28.960 --> 0:12:31.360
<v Speaker 1>in New York, because we've been the epicenter of the

0:12:31.400 --> 0:12:34.080
<v Speaker 1>COVID crisis. Well, and I think that's a really good point,

0:12:34.160 --> 0:12:38.880
<v Speaker 1>because we you know safe to say it's different around

0:12:38.920 --> 0:12:41.640
<v Speaker 1>the country. But what happened in New York. You were

0:12:41.679 --> 0:12:45.960
<v Speaker 1>seeing it firsthand, your staff was seeing it firsthand. I

0:12:46.040 --> 0:12:53.200
<v Speaker 1>mean tell us, I mean it was really difficult, yes,

0:12:53.280 --> 0:12:55.160
<v Speaker 1>and I I and I've been in this business a

0:12:55.160 --> 0:12:58.199
<v Speaker 1>long time, and I've been in every hospital and every

0:12:58.200 --> 0:13:03.200
<v Speaker 1>intensive care unit almost every day for the last couple

0:13:03.240 --> 0:13:06.200
<v Speaker 1>of weeks. And I don't and I don't care how

0:13:06.240 --> 0:13:09.920
<v Speaker 1>long you've been in this business or how extensive your

0:13:09.960 --> 0:13:13.480
<v Speaker 1>knowledge has been. I don't. I've not met anybody that

0:13:13.520 --> 0:13:17.199
<v Speaker 1>has been in a circumstance like this, when you are

0:13:17.280 --> 0:13:21.160
<v Speaker 1>in a hospital with extraordinarily sick people where you got

0:13:21.520 --> 0:13:25.720
<v Speaker 1>you know, mortality rates happening, you know quickly each day.

0:13:25.760 --> 0:13:28.959
<v Speaker 1>Actually you have so many people on events, many who

0:13:28.960 --> 0:13:32.280
<v Speaker 1>may never come off. And where your hospital is essentially

0:13:32.320 --> 0:13:37.040
<v Speaker 1>all COVID patients, with a few exceptions COVID patients. It's

0:13:37.120 --> 0:13:41.480
<v Speaker 1>it's a strange, strange experience to go through. Um, you

0:13:41.520 --> 0:13:43.840
<v Speaker 1>don't want to go through the second time. You want

0:13:43.840 --> 0:13:45.599
<v Speaker 1>to go through this once. I think we handled it

0:13:45.679 --> 0:13:48.840
<v Speaker 1>quite well, but you do not want to recome back now.

0:13:48.920 --> 0:13:50.440
<v Speaker 1>It may you may get a bump up in this

0:13:50.679 --> 0:13:53.080
<v Speaker 1>in the fall. But it's just a bump up. You

0:13:53.120 --> 0:13:56.199
<v Speaker 1>can handle it. Um So, if you have to delay

0:13:56.200 --> 0:13:59.479
<v Speaker 1>and reopening for poot to three weeks despite somebody inconvenience

0:13:59.480 --> 0:14:02.199
<v Speaker 1>to appoy what might happen again, it's the right thing

0:14:02.240 --> 0:14:04.600
<v Speaker 1>to do, all right. Michael Dowling, thank you so much

0:14:04.600 --> 0:14:06.880
<v Speaker 1>for all of your time on this Friday, President, chief

0:14:06.880 --> 0:14:09.400
<v Speaker 1>executive Officer of Northwell Health. They have truly been in

0:14:09.440 --> 0:14:11.040
<v Speaker 1>the thick of it when it comes to the virus

0:14:11.360 --> 0:14:13.480
<v Speaker 1>here in New York joining us on the phone,