Becker’s Healthcare Podcast: In-Depth Summary of Episode Featuring John Scholl

Podcast Information:

• Title: Becker’s Healthcare Podcast
• Host: Chanel Bunger
• Episode Guest: John Scholl, President of Scholl Business Insights LLC
• Release Date: June 23, 2025
• Duration: Approximately 16 minutes

Introduction

In this episode of the Becker’s Healthcare Podcast, host Chanel Bunger engages in a comprehensive discussion with John Scholl, the President of Scholl Business Insights LLC. The conversation delves into the intricacies of capital management within healthcare systems, exploring the challenges and modern solutions essential for effective financial oversight and asset management in hospitals.

John Scholl's Background

John Scholl opens the discussion by sharing his extensive experience in both healthcare operations and the broader business sector:

“I have spent 10 years in hospital operations... Prior to that, I spent about 30 years as an executive outside of healthcare in the manufacturing side…”
(00:23)

Scholl highlights his expertise in overseeing critical departments such as surgery, radiology, and supply chain management at Coralwell Health, Michigan’s largest healthcare system. His transition from a global executive in manufacturing to founding his consulting business underscores his multifaceted understanding of both operational and financial aspects in healthcare.

Current Trends in Healthcare

Scholl identifies two primary trends reshaping the healthcare landscape:

1. Clinical AI in Radiology

“Hospitals apply clinical AI in the radiology space... it's one of the ripest environments for the application of AI in healthcare today.”
(01:17)

He emphasizes the burgeoning role of artificial intelligence in enhancing radiological services, noting its potential to revolutionize diagnostics and operational efficiency.

2. Capital Management Processes

“How do you get things approved? How do you manage the fleet that you have and planning and budgeting and forecasting? It's an archaic system…”
(01:17)

Scholl points out the outdated nature of capital management systems in hospitals, describing them as cumbersome and inefficient. He likens the capital approval process to “the American Ninja Warrior obstacle course,” highlighting the numerous hurdles that hinder effective financial management.

Challenges with Capital Management Systems

Diving deeper, Scholl outlines the fundamental issues plaguing current capital management systems:

“Hospitals have not been keeping up on this kind of technology... There are disjointed functions with asset management...”
(03:07)

Key Challenges:

• Technological Lag: Hospitals prioritize upgrades to EMRs like Epic or Cerner, along with backend systems such as Workday or Infor PeopleSoft, often neglecting capital management technologies.
• Data Silos: Critical data remains fragmented across various systems, impeding comprehensive asset management and financial forecasting.
• Inconsistent Processes: The capital budgeting and forecasting processes lack integration, leading to unrealistic financial planning and accountability issues.

Scholl underscores the collective struggle faced by health systems, attributing the inefficiencies not to individual shortcomings but to systemic technological inadequacies.

Strategies to Strengthen Capital Management Systems

Scholl offers a roadmap to overhaul capital management in healthcare, structured around six pivotal pillars:

1. Data Management

“Capture the necessary data that you have, make it digital and connect it.”
(05:43)

A robust data foundation is essential, encompassing detailed information on inventory, utilization, and financial metrics. Integrating this data ensures informed decision-making and accurate risk assessments.

2. Process Onboarding

Standardizing and digitizing the onboarding process for capital requests is crucial. This includes:

• Consistent Inputs: Ensuring uniform data entry for ROI calculations and total cost of ownership.
• Transparent Dashboards: Providing stakeholders with real-time visibility into request statuses.

3. Capital Budgeting and Forecasting

Scholl emphasizes the necessity of basing budgets on realistic needs rather than arbitrary figures:

“Instead of throwing a number out there in a forecast or a budget that the operators will just look at and know that it is not enough.”
(05:43)

This involves aligning budgets with actual asset conditions and future projections to prevent underfunding critical areas.

4. Prioritizing Needs

Effective prioritization relies on comprehensive data to make informed decisions about which capital projects to fund, especially when resources are limited.

5. Strategic Partnerships

Building strategic partnerships with suppliers can enhance capital management:

“Hospitals need help through strategic partnerships... by tapping into risk-based agreements...”
(05:43)

Collaborating with suppliers on shared-risk and gain-sharing models fosters a cooperative relationship that benefits both parties, improving asset management efficiencies.

6. Asset Procurement and Maintenance Systems

Reevaluating procurement and maintenance strategies ensures that service agreements align with the criticality of assets:

“Some assets don't need a four-hour response time... you might find that you're overpaying for protection that you don't really need.”
(05:43)

This tiered approach to maintenance agreements optimizes costs while ensuring essential equipment remains operational.

Steps for Organizations to Begin Improvement

When asked how organizations should initiate improvements in their capital management systems, Scholl advises a structured approach:

“The most important Thing that you've got to do is an assessment of your current system.”
(13:12)

Actionable Steps:

1. Self-Assessment: Utilize a maturity model to evaluate the current state of the capital management program across key factors.
2. Benchmarking for Excellence: Aim for best-in-class standards rather than merely comparing against peers.
3. Leadership Engagement: Present findings to senior leadership to secure alignment and resources.
4. Highlighting Consequences: Emphasize the risks of maintaining inefficient systems to motivate change.
5. Strategic Planning: Develop a clear plan with defined resources and timelines to implement improvements.

Scholl stresses the importance of senior executives understanding the available digital solutions to drive effective capital management enhancements.

Conclusion

John Scholl’s insights provide a valuable framework for healthcare organizations aiming to modernize their capital management processes. By addressing data fragmentation, standardizing processes, and fostering strategic partnerships, hospitals can achieve more efficient and effective financial oversight. Implementing these strategies is crucial for managing the growing array of assets and ensuring sustainable operations in the evolving healthcare landscape.

Connect with John Scholl

For listeners interested in furthering their understanding or seeking consulting services, John Scholl can be reached via his website: schollbusinessinsights.com.

Notable Quotes:

• John Scholl:
  “Sometimes when you're going through a capital management ask in a hospital, it feels like you're going through the American Ninja Warrior obstacle course…”
  (02:30)

• John Scholl:
  “There are consequences to continuing to have inefficient and ineffective capital management systems.”
  (14:00)

• John Scholl:
  “Most importantly, we've got to start thinking about what are the consequences of continuing to have inefficient and ineffective capital management systems.”
  (14:10)

This episode offers actionable insights for healthcare administrators and financial officers seeking to enhance their capital management frameworks, ensuring better resource allocation and improved patient care outcomes.