WEBVTT - Providence Health CEO Sounds Note of Optimism

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Masser and

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<v Speaker 1>Jason Kelly on Bloomberg Radio. Well, and what companies are

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<v Speaker 1>seeing and saying and deciding is going to rest largely

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<v Speaker 1>on the medical side of this. We have been very,

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<v Speaker 1>very fortunate over the past few weeks to interview a

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<v Speaker 1>number of people, have conversations with the number of folks

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<v Speaker 1>at the Providend St. Joseph Health System. Dr Rod Hawkman

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<v Speaker 1>uh is the president and CEO of that system. He

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<v Speaker 1>joins us on the phone from Seattle. Dr Hawkman, Really

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<v Speaker 1>nice to have you here with Caroline myself. Oh great

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<v Speaker 1>to be with you. And can we just say your

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<v Speaker 1>team is incredible, Jason, Jason said it right off the top.

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<v Speaker 1>I mean they have really from the get go. When

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<v Speaker 1>we were still working in our offices, we were talking

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<v Speaker 1>to your team and they really helped kind of set

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<v Speaker 1>the stage, made us have a much clearer understanding of

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<v Speaker 1>what you guys were dealing with and what you know

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<v Speaker 1>now we all know would eventually, you know, move to

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<v Speaker 1>some of the hot spots around the country. So we

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<v Speaker 1>thank you for that and really thank you so much

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<v Speaker 1>so help us understand where we are because you know,

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<v Speaker 1>One of the benefits of you guys being on the

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<v Speaker 1>front lines as you were, and as Carol said, you know,

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<v Speaker 1>unfortunately as it has moved eastward in many ways, is

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<v Speaker 1>we're learning a lot from talking to you and your team.

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<v Speaker 1>Give us a reality check, because this is a virus

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<v Speaker 1>that knows no borders. Uh. This is also a virus

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<v Speaker 1>that is not moving in any really predictable way, at

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<v Speaker 1>least in terms of kind of where it keeps popping up.

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<v Speaker 1>What's the reality check here for us? Dr Sure, so

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<v Speaker 1>that you know the thing that we had. We were

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<v Speaker 1>lucky enough, I guess, because we have the first case

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<v Speaker 1>January twenty one in h Washington State, and that put

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<v Speaker 1>us on the alarm because we knew once we have

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<v Speaker 1>that case, this this is going to spread. And of

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<v Speaker 1>course we had the Kirkland Nursing Home and then more

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<v Speaker 1>and more. But I think we have to understand. I'm

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<v Speaker 1>also an in and alogist by training, that was my degree.

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<v Speaker 1>So this this virus has been out and around and

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<v Speaker 1>it's not like it just pops up somewhere. So what

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<v Speaker 1>we're finding out a lot of asymptomatic cases, relatively mild cases.

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<v Speaker 1>So what we really think it's not like this thing

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<v Speaker 1>is just kind of spreading from one town to the next.

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<v Speaker 1>That in a lot of cases that's there and then

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<v Speaker 1>what happens the people get together or it you know,

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<v Speaker 1>it breaks out in the nursing home and then you

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<v Speaker 1>have a flare and it's up. So a lot of

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<v Speaker 1>us believe a lot of this has been out and

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<v Speaker 1>around us for a lot longer than we really believe

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<v Speaker 1>it to be. The good news for us is that

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<v Speaker 1>we've been at it longer, and we stayed pretty pretty

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<v Speaker 1>hard on social distancing, so we're really starting to see

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<v Speaker 1>not only we're starting to see the real decrease in

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<v Speaker 1>the number of cases things are opening up, and actually

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<v Speaker 1>some of our hostiles are half empty because we stopped

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<v Speaker 1>a lot of elective surgery and whatnot, and we're actually

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<v Speaker 1>trying to think, how do we turn this back on

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<v Speaker 1>carefully and what do we do next? So what you're

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<v Speaker 1>going to see around the rest of the country, and

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<v Speaker 1>are these what people would say, are what seem like outbreak,

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<v Speaker 1>but there's kind of be flares in cases that are there,

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<v Speaker 1>and it takes a while. Both ways, you did on

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<v Speaker 1>top of it, and i'd say more there a little

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<v Speaker 1>later on getting on top of it, and particularly in

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<v Speaker 1>densely populated areas. You know, it has a tendency obviously

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<v Speaker 1>to spread a lot easier than it does in a

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<v Speaker 1>less dense settings. So I need we want to ask you,

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<v Speaker 1>you know, Dr Hawkman, you know, what does coming out

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<v Speaker 1>of this look like? And I know there's a bunch

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<v Speaker 1>of steps and we'll get into that, but what does

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<v Speaker 1>coming out of this look like? In your view? It's

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<v Speaker 1>gonna look so like people start out waves after what's

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<v Speaker 1>the second waves look like. I think it's more akin

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<v Speaker 1>to ripples that we're going to see. So we're going

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<v Speaker 1>to have to live within Spyrus as long. I hate

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<v Speaker 1>to say it until we have a vaccine, but I

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<v Speaker 1>think we can get into a better relationship with it

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<v Speaker 1>and be able to manage and control it better. Obviously,

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<v Speaker 1>as more people in the community have been exposed have

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<v Speaker 1>some level of immunity, we've it better at testing and

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<v Speaker 1>then you bring things back. But we're going to have

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<v Speaker 1>and we should expect in places like Washington or California

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<v Speaker 1>or other places that there will be these little ripples

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<v Speaker 1>that occur where there'll be in some cases that breakout.

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<v Speaker 1>We've got to you know, that's where the isolation. Getting

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<v Speaker 1>on top of it early really makes sense. But we'll

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<v Speaker 1>have that. We're gonna have to live with that. I

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<v Speaker 1>have to say through the end of the year. Now

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<v Speaker 1>is it compatible? You know, we live in a real

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<v Speaker 1>tech community. So following Amazon, Microsoft, we're all talking about

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<v Speaker 1>how to get people back to work and be able

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<v Speaker 1>to do that safely. And we think we can we

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<v Speaker 1>can gradually open that up, but we aren't gonna have

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<v Speaker 1>We're not going to see the end of the COVID nineteam,

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<v Speaker 1>but it'll be a lot more. It'll be easier to

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<v Speaker 1>control it, easier to to to diagnose it. And how

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<v Speaker 1>much do we worry about her or how should we

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<v Speaker 1>be thinking? Uh Dr Hawkman and and obviously a lot

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<v Speaker 1>of this is unknowable, but just our day to day

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<v Speaker 1>live lives. Once it gets back to some measure of

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<v Speaker 1>normal in that period where we don't have a vaccine,

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<v Speaker 1>where isolation has to happen, what does sort of day

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<v Speaker 1>to day social distancing look like if we're actually out

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<v Speaker 1>in the world. It's one thing to sort of essentially

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<v Speaker 1>be in your house, be with your family, but if

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<v Speaker 1>you're going to work, if you're doing certain things, what

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<v Speaker 1>what's the responsible way that we should think about living.

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<v Speaker 1>So we have let's hoell, you have a business as

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<v Speaker 1>a hundred of people in an office, or you've got

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<v Speaker 1>a construction site. You know, those are relatively self contained,

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<v Speaker 1>so you're pretty much with that group of people for

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<v Speaker 1>the day and then you come home. Those are a

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<v Speaker 1>little easier. In the perfect world that you'd love to

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<v Speaker 1>do is be able to COVID test everyone beforelet me

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<v Speaker 1>go back to work. Know that the all COVID nineteen negatives,

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<v Speaker 1>and those are actually pretty controlled settings. So office setting

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<v Speaker 1>or news froom setting, or construction site, you know, those

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<v Speaker 1>those gets there. There's some of the trickier ones tend

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<v Speaker 1>to be places there's a lot of contact with the public.

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<v Speaker 1>But let's face it, today, our grocery stores that are open,

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<v Speaker 1>we're able to manage that. So some of those things

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<v Speaker 1>that we're doing with masking and some distance between people,

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<v Speaker 1>not getting a big crowd of folks together will be

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<v Speaker 1>the way we manage it. So it's ask me, when's

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<v Speaker 1>the next time we're going to get three hundred people

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<v Speaker 1>together in an auditorium. I don't see that happening for

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<v Speaker 1>a real long while. You know, that's not going to happen,

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<v Speaker 1>but people in a work setting where they can kind

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<v Speaker 1>of keep reasonable hygiene distance potentially masking, uh, construction sites

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<v Speaker 1>and retail, you know, particularly small detail starting to get

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<v Speaker 1>small retail back where you just use common sense in

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<v Speaker 1>terms of how you do it. And I think we

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<v Speaker 1>have to be more ubiquitous with with masking. That will

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<v Speaker 1>be part of what we're gonna deal with because it's

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<v Speaker 1>not going to stop it, but they'll keep it control.

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<v Speaker 1>Right now, our guest, Dr Rod Hawkman, he is President

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<v Speaker 1>and chief executive officer Providence Joseph Health, on the phone

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<v Speaker 1>from Seattle, Washington. As you know from our loyal listeners,

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<v Speaker 1>this hospital is part of a massive uh ST Joseph

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<v Speaker 1>Health system. It's about dollar system. It's fifty one hospital,

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<v Speaker 1>seven states, UM, eight hundred clinics caregivers, So it's massive um.

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<v Speaker 1>Dr Hawkman. So we were talking about kind of life

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<v Speaker 1>after the virus and you said you don't see large

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<v Speaker 1>groups gathering for a long time. Two questions, what's a

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<v Speaker 1>long time? And so things like sports, concerts, um, kids

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<v Speaker 1>going to college, Uh, you know, pick your thing, commuting,

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<v Speaker 1>Like how do we you know, what are the events

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<v Speaker 1>we can do? What are the events we can't. You

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<v Speaker 1>talked about office settings probably work, but I'd love more

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<v Speaker 1>specifics you're thinking, because it's a really informed thinking. Sure.

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<v Speaker 1>So I've had a whole bunch of university presidents call

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<v Speaker 1>me and say, Okay, can I get my kids back

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<v Speaker 1>in September? And if we do, how do we do it?

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<v Speaker 1>So we have good discussions about that. I said, when

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<v Speaker 1>the kids, If you can get the kids back, which

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<v Speaker 1>I think I think you can, it's preferably love to

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<v Speaker 1>test them before they come back to campus and have

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<v Speaker 1>as much information knowing that they're healthy coming back. And

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<v Speaker 1>then in in the you know, you're not gonna have

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<v Speaker 1>a lecture hall with three hundred people in it, but

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<v Speaker 1>you could have smaller classrooms with some spread and probably

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<v Speaker 1>do learning that's a combination of virtual and in place learning.

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<v Speaker 1>Uh So, kind of mapping that out and making sure

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<v Speaker 1>to do it. So I think there's really some hope

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<v Speaker 1>for universities because you can manage the population, manage the setting.

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<v Speaker 1>I think in terms of large gatherings, you know, concerts,

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<v Speaker 1>a lot of folks that have theaters in Seattle, it said,

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<v Speaker 1>when can we get back to what we're doing? It's

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<v Speaker 1>just gonna be hard to see unless we have a

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<v Speaker 1>better control on what this looks like getting two hundred,

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<v Speaker 1>fifty or three hundred people in the same room. So

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<v Speaker 1>for sporting events, I kind of think we're all going

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<v Speaker 1>to learn to love golf a lot, and the question

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<v Speaker 1>is whether you can do You can do some pro

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<v Speaker 1>sports maybe without a large crowd. You know, that's control,

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<v Speaker 1>but at least you can watch it on TV. So

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<v Speaker 1>that's some of the ways thinking in terms of that.

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<v Speaker 1>The good news is is that every week that goes

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<v Speaker 1>by we learn more. So Alaska's really opening up. We're

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<v Speaker 1>going to start opening up, and I think we'll learn

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<v Speaker 1>a lot by what happens. So every week or month

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<v Speaker 1>that goes by, we'll get smarter about it and be

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<v Speaker 1>able to kind of refine some of those predictions that

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<v Speaker 1>are out there. But right now, if you ask me

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<v Speaker 1>that's that would be off the top quick. Did you

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<v Speaker 1>say so, I'm sorry forgive me. Did you give us

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<v Speaker 1>a time frame for when we can kind of get

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<v Speaker 1>back to normal large groups? Is that a year away? Well,

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<v Speaker 1>I think when when you're talking large groups like seeing

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<v Speaker 1>you know, in our place, the Seahawks or the Mariners

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<v Speaker 1>are doing that I gotta believe that we're not going

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<v Speaker 1>to feel comfortable with that till we have a vaccine.

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<v Speaker 1>And then the question on the vaccine, and you know,

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<v Speaker 1>there's so much noise out there. I kind of laugh

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<v Speaker 1>when I hear it. You know, there's at least fifteen

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<v Speaker 1>different companies working on vaccines, and part of it's working

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<v Speaker 1>on there's some newer vaccine technology that uses Messenger R

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<v Speaker 1>and A that might give us a vaccine faster than

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<v Speaker 1>some of the others. You know, we're going to see

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<v Speaker 1>how that is, because we've got to get better at

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<v Speaker 1>getting vaccine faster than saying a year, a year and

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<v Speaker 1>a half. So that's what I'm looking towards. The best

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<v Speaker 1>estimates are, you know, our December January, and then you'd

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<v Speaker 1>start by vaccinating your caregivers and you know, kind of

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<v Speaker 1>roll it out from there. But that's that's why conventional

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<v Speaker 1>wisdom right now. So Dr Hagman, I have a fairly

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<v Speaker 1>simple question that opens up a larger discussion, and unfortunately

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<v Speaker 1>only have about a minute a half, which is should

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<v Speaker 1>I go for my annual check up? Like what what

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<v Speaker 1>should I be doing at this point when it comes

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<v Speaker 1>to normal healthcare? Well, you got to know what's on

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<v Speaker 1>the list, and this is what really has a story,

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<v Speaker 1>and a lot of health kiss being put off. We've

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<v Speaker 1>seen about half the number of strokes and heart attacks

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<v Speaker 1>that we saw last year. We don't know that all

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<v Speaker 1>of a sudden the whole country has gotten really healthy,

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<v Speaker 1>that's not it. So we think a lot of people

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<v Speaker 1>are putting things off. So I would look down the

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<v Speaker 1>list of what you know if you're being treated for

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<v Speaker 1>a chronic condition. Some of it. We've been doing thirteen

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<v Speaker 1>thousand virtual visits a day with our patients, so it's

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<v Speaker 1>also a good way to see if that's available. So

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<v Speaker 1>at least you could do a virtual visit check in

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<v Speaker 1>which a practitioner and then see, you know, what kind

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<v Speaker 1>of testing you need or something to be put off.

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<v Speaker 1>But I would check in and see if you can

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<v Speaker 1>at least do a virtual visit for starters. Interesting. Interesting,

0:11:39.679 --> 0:11:42.720
<v Speaker 1>How worried are you and now only have about thirty seconds?

0:11:42.720 --> 0:11:44.640
<v Speaker 1>How worried are you that you know you're gonna have

0:11:44.679 --> 0:11:48.480
<v Speaker 1>some real disruption in your business financially over the next

0:11:48.520 --> 0:11:51.520
<v Speaker 1>year or so? I wish it was next year. I'm

0:11:51.520 --> 0:11:54.959
<v Speaker 1>looking at the May financials looks like so I'm the

0:11:55.080 --> 0:11:58.640
<v Speaker 1>chair and like the American Hospital Association, so we're there.

0:11:59.040 --> 0:12:01.360
<v Speaker 1>We're just on a call today with folks around the country.

0:12:01.320 --> 0:12:04.680
<v Speaker 1>We're really concerned about the hit the whole healthcare system

0:12:04.760 --> 0:12:07.640
<v Speaker 1>is gonna take, even with some of the money that's

0:12:07.640 --> 0:12:10.360
<v Speaker 1>coming from not d C. So that's gonna be a

0:12:10.400 --> 0:12:12.480
<v Speaker 1>story that we're going to see evolve over the next

0:12:12.520 --> 0:12:16.840
<v Speaker 1>couple of months. But I'm worried, particularly about smaller hospitals,

0:12:16.840 --> 0:12:20.120
<v Speaker 1>but even large systems. Alright, well, we look forward to

0:12:20.120 --> 0:12:23.200
<v Speaker 1>continuing the conversation. Uh, and as Carol said at the

0:12:23.240 --> 0:12:26.600
<v Speaker 1>beginning of our chat, just really appreciate you and your team.

0:12:27.160 --> 0:12:31.840
<v Speaker 1>You guys have just done an unbelievable job amid obviously

0:12:31.880 --> 0:12:35.120
<v Speaker 1>a lot of stresses and strains of helping keep us

0:12:35.120 --> 0:12:38.400
<v Speaker 1>and our audience really honest about this. Dr Rod Huckman, Uh,

0:12:38.400 --> 0:12:41.600
<v Speaker 1>he's the boss out of Providence St. Joseph. Help