Business as Usual: Highmark Health Talks About Supplier Diversity

Transcription: 

So good afternoon, everyone. This is Audrey Russo, President and CEO, the Pittsburgh Technology Council always glad to be here at 12 noon. And today's business as usual, I'm joined by co host, Jonathan kersting, is vice president of marketing and all things media at the tech Council. And you might know him through tech, five radio, as well as at the helm of our magazine called t q, and then a new one called on ramp. So we're busy here at the tech Council, we launched the series right at the beginning of the pandemic, and we wanted to make sure that the community was tied together. And we want to showcase some of the world changing work that's actually going on here in the region, as well as being connected to all of our elected officials, and all across the community in terms of what's happening. So we're still at it. And we really have lots of great people that are coming up as well. And today is no exception. A couple of things just about today is that we've muted your microphones. And we've done that on purpose, obviously, so that we can listen to our guests. But we've also have a chat session that Jonathan will keep his eyes on, so that we can have some exchange with Bob. And it's not meant for you to share your sell your wares. It's not meant for any kind of political kind of commentary at all. It's really meant to ask questions, and Bob and ways to get involved in terms of the work that he's doing in terms of supplier diversity. So I'm going to jump in, and I'm going to welcome Robert James, we're going to call him Bob James. Right. And he he is head of supplier diversity at Highmark. And if there's a lot that we really want to, you know, peel back and dive into today. But first, I want everyone to know, Bob the man, meaning Who is he? Where is he been? What's his journey? So let's bring Bob on. And I want to thank you for taking the time with us today. And welcome you, I think you have an interesting story, just like so many people do. And I think it's really important for people to have the context of who you are, what your professional journey has been, and how you've landed into this role that you're in right now. So you want to start, where do you want to start, Bob,

thank you so much, Audrey. Thank you for the kind introduction. I am really happy and excited to be on this webinar today. The Technology Council that you've been able to build is phenomenal. And so just wanted to let you know that. I hope you continue to do the great work that you've been doing. But I am Bob James, I'm Supplier Diversity Program Director for Highmark health. And it's something that I'm very passionate about. But to take a step back, I want to tell you a little bit about who I am, I'm a pittsburgher grew up in the airport area. And I'm a product of an entrepreneurial couple. And so we had a health care business growing up and some of you may be familiar with coreopsis crapless Health Center. And we also had mckees, rocks Hill center. And so our table top conversation all often revolved around health care issues, it revolved around health services that that we offered or could offer. But it also revolved around things that typical entrepreneur would talk about payroll, you know, are we gonna be able to make payroll? How do you make payroll and access to capital? Real Estate, you know, do you want to lease Do you want to own and ultimately, management I was, for many years, when I was in my teenage years, I work during the summers. But then as I got older, I actually worked full time for a length of time. And, and also as a kind of a consultant. So I'd help to manage the HR the employees of the, of the company, which, which always was a lot of fun and, and always in like to ensure that employees were treated fairly and equitably and, and so, ultimately, I had the opportunity following a lot of education, and a lot of having met a lot of people in Pittsburgh to even participate in the sale of the company. And so understanding, you know, at what point at what point is it the right time to sell and how do you find a buyer so kind of seen the full lifecycle of a company was in business for 52 years before we sold to a local hospital. So So that's kind of what I bring to the position is a sensitivity for kind of what entrepreneurs are going through and and how to how to find corporate business. We had contracts with a trucking companies like Schneider trucking, and Pepsi Cola for, for opportunities. And, and we were a diversifier. So it's something that that I, I truly understand some of the some of the sensitivities that a small diversifier might have So, so that's kind of the core of who I am I also I'm what I call reformed lawyer, I practiced law for 20 plus years. And I enjoyed it. I started my career as a healthcare lawyer. While working for our family company, I also worked for West Bend hospital, I managed five other practices and also did legal work relating to the acquisition of practices, I got to know that area well, which ultimately helped me to to be able to sell our own business to a hospital. And I also worked as a public finance lawyer. And while cutting my teeth. In that area, I worked for the government of the district, Columbia for about eight years as Deputy General Counsel. And so I managed our outside pool of attorneys. And so one of the things that was important to the government was that they have a diverse pool of law firms. And so that was one of my responsibilities to ensure that we had diverse law firms representing the District of Columbia and I, I really had an opportunity to see how that could actually lead to results that I think couldn't have been better. They really strengthened our law firms, and they encourage calm competition. So so that was kind of what I would say, formulated my framework. And my vision for supplier diversity was based on excellence, based on competition based on recognizing that you could actually elevate your supply chain by having having strong suppliers, who are diverse as well.

Wow, reform that so you're never gonna go back and practice law.

You know, I always leave it as something I can do but, but right now, I really, I want to spend the second part of my career doing what I'm most passionate about in my past about diversity and inclusion and how that can elevate a company.

Good for ya. Good. They're really lucky to have a broad background and so cool that you came back to Pittsburgh to after spending time in DC. So you've got to be bullish on what's happening here in Pittsburgh,

and bullish. You know, I left when I went to college and came back to clerked for judge Ziegler, federal district court here and in Pittsburgh. But then, upon marrying my wife, she was in a more global area, we had worked for the World Bank. And so we charted our course, down to Washington for about 17 years, but returned five years ago, and it's nice to be able to compare other places to Pittsburgh, Pittsburgh has a lot to offer. And it's something that I'm easily able to market to people having seen other places. We're a small, big city, we have global aspects to our city. Our people are very friendly here. And, and we have world class companies trying to do world class things. So it is a welcome opportunity to be back. As you know, many people who come back the I live in the same residence that I grew up in, and that's a common I know among many Pittsburgh's Yep. So, so yeah, it really, yeah. It's a wonderful, it's wonderful to return and I don't anticipate leaving.

Wow. So Jonathan, we've got to tap into him as we go out to Pittsburgh. So this is a guy whose story we need to include.

We have our new pitch man right here.

often as you tell stories, this this guy would be great. So thank you so much, Bob. So let's talk about the job that you're in now and the role that you have now tell us what you do what your priorities are. So

Highmark health has a small

supplier diversity program that focuses on small diverse businesses. And so one of the things that I was tasked to do was to help to build that program, and to ensure that we are incorporating a pool of suppliers that are representative of our membership, which is truly diverse in the areas that we serve, you know, the patients and the members that we serve. So I'm tasked with ensuring that we are utilizing the best person practices of supplier diversity, but then also innovating the best practices in the area of supplier diversity so that we can truly be excellent. And be building up a supply chain that enables us to ensure that our mission is as strong as it can be. So one of our goals is to create a remarkable health experience for our members and for our patients. So anytime I'm looking at a supplier, I demand excellence, to ensure that we are able to fulfill that mission, we take that mission very seriously.

And so I'm assuming that you have metrics right that you want to that you want to We absolutely do.

what gets measured gets counted, it's very important to have metrics in supplier diversity so that we have a sense for so that number one, we can set goals and we can have a sense for whether or not we are truly achieving what we set out to achieve so. So do we do have metrics, we report out our metrics to our senior executives, we report them out to our board of directors, we have a group of a senior executives, which is called our executive steering committee, it's enterprise wide. It includes Allegheny Health Network, representative, gateway, health representatives. And so we report those metrics, as well as our activities out at those meetings. So it is something that we take very seriously, we set goals every year. And we commit to achieving those goals through our activities.

So here we are, we want to know more about this, right? We want to understand what are the opportunities? How do we find out? What should we be looking for? How can you start the conversation so that we can understand what people can do to be a part of Highmark, in terms of selling their goods? And whether it's at early stages or at late stages?

Where do we excellent question. So we regularly have activities that engage diverse suppliers. But for any diversifier, who may be listening, I'd encourage you, you can google Highmark, and supplier diversity, and you'll be able to register to be a supplier potential supplier. at that website, in addition, we routinely partner with our third party organization partners, such as the Women's Business Enterprise Council, or the eastern minority supplier Development Council. And we we have these third parties for all the different classifications that we count us bln for for disabled own business enterprises and, and so we routinely engage at their events. But then, of course, we have, we found, and I'd say it's part of a best practice of a world class company, is when you actually customized an event that is designed for your enterprise. And so we've done that as well. And we can talk about that later. That's our annual small diverse Business Forum. And so we involve all of our procurement team members, from agent gateway to Highmark, for a annual event, that's our premier what I call pipelining event, where suppliers have an opportunity to learn about the opportunities that Highmark has to offer, they have an opportunity to learn and hear firsthand success stories from suppliers who are currently in our supply chain. And I think that often can be insightful for suppliers to actually see and hear what challenges they face. So sometimes they may hear a story, for instance, that we didn't get an opportunity for the first five years, but we were able to stick with it. And we did this differently. And this is what caused us to be able to engage and find an opportunity. And so those stories of how suppliers are able to kind of turn the corner and find opportunities are something that I think are invaluable to entrepreneurs so that they can fully understand. Is this is this even a right company for me to be knocking on the door of or maybe Is there something I should to tweak in terms of my capability statement? Is there a way Is there an expectation of what I should bring to the table when I when and if I were to get that first meeting with your procurement team. And so that's one of the roles that I am To serve, I'm kind of that liaison. I represent that that small, diverse supplier who may be knocking on the door, and I try to ensure that they are that they have an understanding of our needs and expectations. And so that's one of the great things that you think about having people like me at companies in Pittsburgh,

well, so to make sure everyone understands what's the definition of a diverse supplier.

So that's great. So every company is going to be different. But at Highmark, when we look at a diverse supplier, they're based on specific classifications, so we have a classification for women business owner, and that women business owner, their company has to be certified by a third party, business organization, we call them our partner, Women's Business Enterprise Council. And they have to be more than 50% owned by women. And they have to have certain other requirements and their strict requirements to ensure that they're meeting certain guidelines that are consistent with our expectations. So Women's Business, women's companies, minority owned companies, LGBT owned companies, veteran owned companies, service disabled owned companies, disabled owned companies. And then we also even look at HUBZone suppliers. And to some extent, small business suppliers, we track spin with small businesses, as well. So so those are the classifications, but what we do do is we ensure that a company is as they have indicated in terms of their certification. And we have lots of kind of checks and double checks. We also some of our customers, our government, customers care about this. And we want to make sure that, that when we report out our results that that they are accurate. And so we have certain checks and double checks twice a year, to ensure companies haven't changed in terms of their diversity status. So so those are the principal types of businesses.

So if you have opportunities, let's say right now, and then we'll I'm going to ask Jonathan to just grab whatever's on the chat. If you have opportunities that are right now, do they or do they run in cycles? Or is there information on the site that has about opportunities? How does that work?

I'm glad you asked about right now. So generally, the best way of finding opportunities at Highmark health is through our premier matchmaking event, which is actually this month, it's never number 12, per se. And so at that event, any supplier can register. And they can put in the type of company that they are. And then our procurement team members will look at their capabilities and determine based on their needs, whether or not they have a need for that particular service or good that that company has to offer. And so that is our primary pipelining event. And I encourage anyone to join and to register, because it really people do find opportunities during this event, and so what we'll actually do is we will have feature three success stories at that event. I think all of them found their opportunity through previous small diverse Business Forum. So it's a formula that that works in terms of understanding our process, and meeting our procurement team members and I who identify whether or not they would be suitable for doing business with us.

Okay, Jonathan, you want to grab some of these? I think they're definitely

Yeah. First off, we've got a nice note from Christina cash, who's a regular on our show, and she says Highmark health has been the best supplier diversity programs in the region. So we appreciate the positive vibes of Christina. So Courtney Williamson wants to know, um, how do you engage with with diverse providers? For example, DMV, suppliers?

Oh, wonderful question. One of my favorites. So we are one of the first in the country to be able to actually have a supplier diversity initiative that we call provider diversity for our providers, well, who are providers, a lot of people don't don't know what that term means. So that includes our physicians who have independently own practices. It could be chiropractors, it could be physical therapists, could be independently own pharmacy companies could be independently own home health care companies, medical equipment companies. So essentially, if you had Highmark insurance, and you went to a provider, and you let's say ultimately get back that kind of the statement for the services that you received anything that's on that statement where that provider is independently owned. We actually track that spend. And we do outreach to those businesses, to let them know about our supplier diversity program. And so for instance, all the all the diverse providers received the invitation for our upcoming forum, so that they can learn about these different opportunities that are available, how to engage with our suppliers, and one of the individuals that will feature on what we call our leadership panel for procurement is somebody who's in leadership when it comes to providers. And so the provider contracting process is actually different than the typical procurement process, but, but they're similar. And so any buddy who fits into that category of provider who might be listening, can actually engage at our small verse Business Forum with a team member who can help them determine whether or not they'd be suitable to do business with Highmark.

It's tough. Well, another question here. If we can slide this one in from Kimmy Williams, once No, I'm basically, uh, do you do you accept, like, like lists or so forth? proposals for solutions, if there's something that that's not being listed?

Yes. So somebody had, and I've seen Actually, this occur where somebody may have a new product, that, that maybe it's just being certified by the FDA, or that they feel is something that that should be reimbursed reimbursable by our let's say, by our health plan, we do have someone who they can talk to. And so we we write, we and that's part of what we try to do the supplier diversity program, we try to ensure that there's a door for a conversation for these different suppliers. So you mentioned the provider who has a product that currently, let's say a health plan may not cover. So yeah, we have a door for a conversation in that regard. And, and I know I've taken many people through that door, or if you're a provider, and you want to you feel that there's more business, for instance, our family owned business owned a physical therapy practice. And so let's say we might want to be one of the physical therapy practices that can do more business with Highmark, one of the practices of choice for the health plan, you know, based on the services that we provide, and, and the network that we can provide. And so being able to knock on the door and know where to go to contract with, in that case, our health plan is is everything, otherwise, you you have no opportunity, and you may have great things to provide to our company. So ensuring that that that conversation can be had so that we can ensure that we've got the strongest network of providers is is really, really key. And one of the things we had the AMA, an AMA board member, Dr. William McDade he was our keynote last year as we kicked off our provider diversity program. And one of the things he drove home, in relation to provide Mercy is that when you have diverse providers, it helps to mitigate health disparities. And so obviously, is the health plan, we certainly want to mitigate health disparities. And so it was exciting to hear what he presented and to see the alignment of some of the things that we're working on at Highmark health in terms of trying to mitigate health disparities. So that's what I mean by making our supplier diversity program relevant. It's not just a, you know, a program just to exist, but rather it's a program to ensure excellence, and it aligns with our mission.

That's great. So Jonathan, put a link out I think Ben asks how to companies register for that event. So what's the date of that event? The

date is Thursday, November 12. And it goes from 10 o'clock until five o'clock pm. From 10 to one will feature presentations will feature MB tech CEO Richard Taylor, who you may be familiar with, who has really been able to develop some phenomenal opportunities with Allegheny Health Network, multi million dollar contracts. So we'll feature Richard and and his joint venture partner as well. And then we will have as our second success story, you may be aware that we have put into the community over a million masks. And we're going to talk about how we utilize small diverse suppliers to help save lives in the regions that we serve. And so that's a very exciting initiative that once again went to our mission. You know, we're a health plan we want people to be in, in great health. And so then our third success story is aerial aerial investment investments CEO john Rogers is a one of our new suppliers. So john, are you may be familiar with he's a nationally recognized entrepreneur and DNI thought leader, but he is the owner of the nation's largest African American mutual fund. And so hymarc has invested monies in his company and his mutual fund, and so he is a supplier. One of the things I think that's unique about our event is that every speaker other than the Highmark employees who present from time to time are actual Highmark supplier. So everyone from our mistress of ceremonies, Dario Chisholm, she says, she's a supply. Richard Taylor is a supplier john Rogers is a supplier you know, keya Tomlin, who helped out with the masks is a supplier, you know, so every speaker, our event planner, fantasy, Zellers is a supplier. So that's one of the things that we want to show that we actually walk the walk and talk the talk in terms of our supplier diversity program,

really excited. So that's coming up on November 12. And it's not too late to register,

right? It's not too late to register. Yep. And I don't know, if you follow Highmark health on LinkedIn, you can find information I know that they have been putting out and you can also join me on LinkedIn, Robert James Highmark health and you'll also see it on my LinkedIn page. And we can certainly ensure that you have the information to distribute to to your members. So we'd love to ask you,

that's really great. I can't thank you enough. We can't thank you enough for all that information. And it's so timely. Is there anything that and I'm just going to sort of call you on this? And you can you can tell me now. But is there anything that you wish was out there? That was out there that you just sort of wished for in terms of suppliers or providers? That is a solution or, or a Yeah, is a solution. Just in terms of your world, we've got to see so many things.

So and obviously, we, we, when you think of Highmark health we we have lots of affiliates. We have Highmark health insurance company, we have gateway, you have Allegheny Health Network. And so we have united Concordia dental, we have Hm, l solutions. So we have a lot of companies, that all bring different requirements to the table. And so that, of course, is our primary reason for having that customized event, where we really want to hear from different suppliers, many of whom sometimes bring something different to the table. And I always say, when you present yourself, let us know what distinct what distinguishes you, from everyone else in your industry who is pitching to us. And for those who are able to do that, that's usually what enables him to get to that next step. So, you know, when I look at things that I'm very serious about finding that are hard to find, you know, some of those players would include, they might be health plan, suppliers, like third party administrators, you know, in health care, we have certain requirements to ensure that information remains private and confidential we call high trust certification. So it's a very high threshold for smaller businesses to meet but but we have small versus businesses that are out there that can meet it, who are willing to be on the path to meet it. So for instance, for call center, you know, that's a requirement that we that we have. And so that's why through the forum, we let people know what are the requirements, whether it be for construction on our buildings, or whether it be for health plan opportunities where there's privacy involved, and we give them the requirements. And we also have people who can help walk them through. If they're committed to wanting to do business with us, they help walk them through the process of getting certified. So, so we try to provide I'll call that full service You know, information of information so that people really can engage with us. And to the extent that they are serious about doing business with us, they have a process. And I should add, here's something that I think is truly unique throughout the country in terms of what we do and shows our commitment, we keep a company on retainer, that helps a small business that thinks that they qualify for being a diverse business, we help walk them through the process of certification. So they aren't out there on their own, if they're a provider, not really accustomed to the different terminology or how to certify. We have a company on a woman owned business, disabled in business. That's absolutely phenomenal what they do, they're experts, and they help walk the walk through that process. And they can work with our third party, business advocacy partners, people, let's say like, who Christina cash works with Eastern minority supplier Development Council, they will also work with them to get that certification for MB or the Women's Business Enterprise Council for web certification, you know, on down the list, so. So we really try to offer that full service of, you know, start to finish so that no one has to wonder, Well, how do I do this? No, we provide that information. We provide a team to help get you through the process, if that is something that you want to do.

Well, listen, Bob, this is been fabulous. November 12, is coming upon us. So anyone who's interested, it would definitely be worth your while we put the website out there, Bob, you're no longer a stranger to us. So we're gonna pull on you and make sure that we're helping you achieve your goals. There's incredible amount of opportunities right at at the footsteps of Highmark, and all their subsidiaries as well. They have been very good citizens. So thank you for your leadership. Thanks for taking the time with us today. Just to get people apprised about what's happening because it matters, it matters for innovators. It matters for people who are existing service providers as well. And we appreciate your leadership and and we appreciate your candidness right at the onset, telling us that you are reformed attorney, sort of funny, we can help you I think there's this 12 step program for that. And I want to thank everyone for joining us today really appreciate this such valuable information. Jonathan, who else is coming on the show this week? Today?

we're winding down the week. How's it Thursday? Tomorrow already? It's so we have the Alleghenies at Angel fund stopping by tomorrow with Justin Mendell. So that's gonna be really cool. Another source to go out to for people seeking capital and entrepreneurial help, which is great. And like I said, we're like we're ending the week in total style, by having rich Fitzgerald county executive stop by Fred Lee, what is his fourth appearance on business as usual? so looking forward to it.

Thank you, everyone. Thanks again. Bob. James, thank you. Thank you for coming back to Pittsburgh and being bullish on all things. Thank you, Audrey. Really appreciate it. Thanks, everyone. We'll see you again tomorrow. Take care.

Take care. Thank you. Appreciate it again.

Transcribed by https://otter.ai