Health equity is a topic that should always be on trend, and this episode of Bite the Orange is the perfect way to understand what it is and its importance.
Dr. Kate Merton, from Chicago ARC, stopped by to share her valuable two cents on this matter. She explains how Chicago ARC works to improve the startup environment with the thought of always giving back to the communities. Innovation can come from anywhere, and more importantly, Chicago ARC has studied what is going on in Israel to bring their best ideas and develop them in the United States. Kate talks about future projects and how the organization is partnering with other individuals and companies to leverage technology for a brighter, better healthcare future. Entrepreneurship can be hard in healthcare, but Chicago ARC can be your right hand in this process.
Tune in to this episode and don’t be afraid to bite the orange with their help!
FULL EPISODE
BTO_Kate Merton: Audio automatically transcribed by Sonix
BTO_Kate Merton: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.
Emmanuel Fombu:
Welcome to Bite The Orange. Through our conversations, we create a roadmap for the future of health with the most impactful leaders in the space. This is your host, Dr. Manny Fombu. Let's make the future of health care a reality together.
Emmanuel Fombu:
Hello, everyone. Thanks for taking the time today to join Kate Merton and myself on this great discussion today on another episode of Bite The Orange. Kate is someone very special and I'm sure her energy will come through and her knowledge and vision, it's quite addictive and I'm sure you'll find that during this discussion. So no pressure on you, Kate. So I'll start off by asking Kate to please introduce yourself to our audience, please.
Kate Merton:
Very nice to be included today, thank you for having me. My name is Kate Merton. By background, I'm a scientist, I used to discover drugs, I've worked in health care for quite a bit of time, and at the moment I'm concentrating on providing digital health and diagnostics for the people that need it the most in the areas of health equity.
Emmanuel Fombu:
Perfect. And thanks for saying that, Kate. We've worked together in the past and you're someone I really admire and you've been quite supportive in general when we have some discussions around this particular topic. So for our audience and people that might not be familiar with the topic, how would you define health equity?
Kate Merton:
Health equity to me means more than just health, let's just put that out there right at the front. You want to have equity in various aspects of your life, which mean you are going to get the health experience that you deserve. And health equity is more than just getting, getting to see your clinician or getting to have a point solution put in your hand or an app on your phone. Health equity actually speaks to all of those other things going on in your world which make a difference, where that could be nutrition and the food you eat, it's where you actually get to live, it's the transportation that's available to you to get to a doctor's visit, and it's the home in which you live and obviously sort of the job that you have which contributes to what you can afford. So health equity to me is made up of many of those aspects. And it actually talks about making sure that everyone gets high-quality care, equal access, and we're going to try and decrease the cost.
Emmanuel Fombu:
Excellent. I really like that definition, and I agree with you. I think if you look at everything like health care, like disparities in health care in general, and for years we've been talking about socioeconomic determinants of health, right, and that's been a major issue, and I think that became more prominent during the whole COVID pandemic period. Personally, I spent time in New York City through like going to the Bronx and certain parts of Brooklyn, and I visited the projects and I saw what people were actually going through and the amount of deaths that took place during that period. And this is no different from any other city across the country, and I think COVID actually exposed that. But right now you have a very interesting role, you know, doing this ... at Chicago, I know about Chicago ARC, you want to tell us about Chicago ARC and what is it that you're doing there?
Kate Merton:
Yeah, I'll be very excited to tell you about Chicago ARC. So we are a new initiative that is just launching and we like to describe ourselves as a venture collaborative that's concentrating on health equity. And in a prior life, I spent a lot of time working with startups and looking at solutions, which were often then going to look for the problem that they were going to solve. And so what we are trying to do is get turnaround and we're working with communities, we're working with health systems and other corporate partners to say, hey, in the world of health equity, what are you seeing and what are the true solutions which right now we can deal with? We do have a, we do have a way to deal with the long term, but right now we're asking those three groups, what solutions could we put in your hands or what are those different clinical programs that need to be designed to truly make a difference, and that can be around the point solution, it could be around helping people get educated around their insurance, it could be transportation, could be various things. And then once we have that list of what is really needed on the ground and how it needs to be implemented, we are raising 100 million dollar fund in order to invest in some of these early-stage solutions, which we can implement. The reason, how we're actually tying it together and the reason we think this is going to work is that we've got partnerships in place with some of the leading institutions in Chicago, in the Midwest, such as Sinai and New Chicago. So what, so that when they tell us, hey, we're looking for this and we find the solution, we're able to quickly bring it back and plug it into their health system. That's great for the startups because it decreases the time to market, which we all know can be pretty tricky and involves going through a lot of burn of capital. But it actually means that those health systems get to see things early on and give input on how these different solutions are actually going to make a difference. We're going to make sure that these startups are fully supported and I can go into other ways and talk about that. But the outcome of this, and this is where I say we're going to support health actually in the long term, is that we're given 5% of the profits from the fund into a local not-for-profit, which is going to help people in that area think about starting their own social impact companies. How can we help educate people around their insurance? How can we help them with food and all these other things? So overall, Chicago ARC is the near term, how can we help what's going on today, and then in the long term, how can we give money back and make this a sustainable cycle so that people can you know, people know what is going on in their life and they know best how to fix it. So we want to be able to give them the funds to do this and make sure this isn't just like another philanthropic fund and this isn't just like another VC, but we're actually putting the pieces together, so we're bringing all the different groups so we can have a bigger impact.
Emmanuel Fombu:
That's quite incredible and it's a very unique kind of model. But this is, didn't come out of nowhere, right? It's actually a model that you actually following here, I know there's a connection between what you're doing with Chicago ARC and Sheba ARC, model out of Israel, right? And I think ARC for my homework stands for Accelerate, Redesign and Collaborate.
Kate Merton:
You're right! You've done your homework, Manny. This is great. So I'm talking with me. So four years ago, the founder of Chicago ARC, his name is Dr. Ken Buck. He was sent on a mission by the then mayor of Chicago, Rahm Emanuel, to go to Israel and see how they could connect to better the two ecosystems. So Israel is known as Start-Up Nation, the not, they joke that every other person in Israel has got a startup because it is so well funded by the government, not just about developing the tech, but actually clinically piloting it to quickly de-risk it. So when Ken went over there, he had the opportunity to meet with a number of hospitals, HMOs, VCs, and the biggest hospital in Israel, hospital system's called Sheba, and they're actually a top ten ranked hospital in the world and set up a partnership with them because they have this really novel mechanism around innovation and how they actually have their physicians within the hospital and other entrepreneurs quickly build things, test them, see if it works, and then try and build models so that it doesn't, it's not just a point solution in the hospital. How can they put various point solutions and send it out to the community and do some remote patient monitoring and quickly set up clinics in places that need it, so they really have this sort of model built where they can see what the problem is, build it, test it, and if it's wrong, go again. And they also have a wonderful global network with the future of health system that they have, that's a whole other conversation, but essentially coming out, they realized that Sheba had something. And if, again, if we wanted to make a quick near-term impact in Chicago, why would we not start some of the tech coming out of Israel like it would please me, nothing would please me more that the tech be made here in the US, we support entrepreneurs, but that, we should not ignore other countries that kind of like got a few things now and we're able to bring that cheap model into Chicago right now. And we also have the opportunity to work with some of the other hospitals and HMOs and universities in Israel as well.
Emmanuel Fombu:
Gotcha. That is quite, that's quite interesting. And I think it falls that, it falls in the bucket of something I really care about, about democratizing health care, right? I mean, innovation comes from anywhere around the globe. So in this particular model, you're only looking at a potential, let's have a startup, right? And I'm based in New York and I partner with Chicago ARC, although I need to make a shirt or you can?
Kate Merton:
No, you know, I'm actually, because we're both were based there for a little bit. Yeah, I'm talking to a number of startups like we like to say, but we are source agnostic. Right now, we are concentrating on the needs of Chicago, Illinois, and the Midwest, but quite frankly, if we can work with Chicago, which has got some of the worst statistics for health equity, there's actually a discrepancy in life expectancy there of 30 years between different zip codes. You know, you live on the south side of Chicago, your life expectancy could be 30 years less. So we've actually got a wonderful opportunity to make a big difference. And if it works there and we bring in these technologies from wherever it makes sense, it could then be scaled to Baltimore, Oakland, it's not just for the Midwest. We're starting there because it has got the country's third-largest health care market.
Emmanuel Fombu:
Gotcha, and this is not only about the model, but it's like a whole real estate plan and development associated with Chicago ARC, correct?
Kate Merton:
Yes. So there is a on the South side of Chicago is very called Bronzeville, which has got some really rich, cool history, we could talk about another time, but what is happening there just below McCormick Place, which is the big convention center, there is 100-acre site that's being developed, it's going to be called the Bronzeville Lakefront Development. And it is, they are looking to build the healthy city of the future. And by that I mean the actual buildings which are going to be built there are, going to be have zero impact on the environment. If anything, hopefully they will be beneficial and they're going to be constructed in such a way that the right amount of light comes in so it doesn't negatively impact your mental health. So from an architectural place, it, architectural way, it's actually going to be the greenest site, it's going to be the most healthy site. But they're looking to have their new senior living facility, a micro-hospital, there will be places to work, there will be places to live. And what they're looking to do is partner with various corporates and have us as a sort of a catalyst to bring in the best tech that they possibly can, the best health care solution. So we can almost use that space once it's built up to be like a living lab, of okay, if this great technology is coming in and we need a new sensor in the wall of the senior living facility to see if someone fell over, quickly, Let's go find it, plug it in, let's see if it works. So Chicago ARC is actually really lucky to be performing with Farpoint, who are the group that are leading this initiative and building out because we're getting to give our health perspective on, if you are building this healthy city of the future, like who are the partners that you need there, what's the tech that needs to be considered? And they've actually joined us on some of our multiple trips to Israel to look at new building tech, clean tech, water tech, all these different kinds of things.
Emmanuel Fombu:
So this takes me next to the next point. I know you've done quite a few, few trips now to Israel, and I did a trip myself to Jerusalem and Tel Aviv not long ago, and I think it's quite interesting. So what has been the most amazing thing that you've discovered about traveling Israel in terms of the startup ecosystem?
Kate Merton:
So the biggest, the biggest thing was that Israel is a small country, but it's so densely packed with innovators, it literally because of the way the government I think for a long time now, has structured such that there is funding for people to be like, if you see a need and there's a good idea there will be money for you to get going. So the actual infrastructure of how they've organized themselves from an industry perspective and a health perspective is phenomenal. So the number of companies to pick from was shocking. We've worked with our startup ...., which is the organization in Israel, getting to know them and all the different verticals that they worked in, that was shocking. And then I think the good job that Sheba and others have done about making sure that it doesn't just stay in the walls of the hospital and how they themselves realize that there are health equity issues in Israel and they are combating that. Like there is actually a big difference between the care you get in Tel Aviv and out in the rural areas and they are quickly trying to iterate on technology to get rid of that. They're, they're doing a lot of work in the Gaza Strip actually to make sure that sort of the healthcare the Palestinians receive is, is kind of like equipment and that kind of stuff. So I've been really impressed by the density of the technology that can do attitude of the individuals and the fact that they kind of want to make sure this goes across borders.
Emmanuel Fombu:
And to the US piece, and I know you've got this role and I'm sure you have a vision for this role. I know we talked about this previously, I mean offline and you mentioned the idea of how you collaborate with hospitals to actually identify the needs that they have and then how you go about sourcing the right technology to prepare them up, right? So if someone is listening right now and someone, let's say, is a health system in Chicago, that's not part of your network, another health system somewhere, or another startup that is interested in partnering with you, can you just walk us through how that, how that whole process works?
Kate Merton:
Yeah, absolutely. So with the health systems, we're not, we're not just a VC that's looking to bring and plug-in great tech into their emergency room, that's not what we do. We're actually, when people become our partners, we're actually planning to gather everyone around the table, and it doesn't matter whether you're Northwestern or New Chicago, everyone needs to come to the table and say, hey, this is what I'm seeing in the health equity. So first of all, it gives those health systems a chance to learn from each other and work out what they're prioritizing. And in some cases, the health system might be like, this is my specific need and my hospital, I want Chicago ARC to help us with this. But actually we have found that the hospital systems already have begun to talk to each other and say we see a need in, for example, maternal and child health. And instead of us doing it in a silo on our own, we would rather do it with the health system down the road that we previously haven't worked with in a practical level, like they all talk, but like how can we practically collaboratively test the technology together, which will be more efficient because you're getting out to more patients and hopefully decrease the cost. So we're bringing together the health systems to talk and learn first and then if they're already existing solutions or a suite of clinical solutions, I should say, coming from that we've seen already rolled out in Sheba, we can bring that out and they can kind of do active learning together, so that's how the health systems work. And then they tell us the prioritized areas of focus and then that's when the startups come in. We've already spent time both in the US, in Israel and a few other countries to say, okay, these are the areas that we have been told are of interest and we go talk to the startups and we explain our model that we've already got partners for you to go work with, we're going to cut down your time to market. And another key part of the model, which I've kind of like refers back to the day days at GE Labs where you and I met, a key part of making sure that startup, startup is successful, is making sure that they get the right help at the right time. And so if you were to bring a startup from outside of the region, outside of the country, and ask them to plug into the incredibly complicated healthcare system in the US, that might be tough for some. So what we're actually going to provide to each one of the startups that we invest in is a healthcare navigator, and that means it's going to be an individual who knows the system here, probably as exited a startup has been successful and unsuccessful at a startup. So they know all the ups and downs and they're going to be literally daily attached to the startup. Say, okay, if you're putting this pilot in place with X health system, did you talk to this person? Do you know the intricacies of integrating into their area, all these different things which could trip people up and then also talking about broader strategic things. So we're going to help the actual startup on a daily basis, we're not just going to fund them and throw them over the wall. We're going to stay very, very attached to them. And that's why we call ourselves a venture collaborative rather than a VC because it's not just about the funding and making a quick intro and sitting on your board. We are going to be involved in the weeds and help you hire people and work with those health systems that we've developed relationships with.
Emmanuel Fombu:
I really like this model. For some time now I've been using this term ..., which is like death by pilots, right? What is it? Right. Well, you do pilots or you do a competition and then people win and then you let them hang by themselves, right? So I really like this, it's a great model. And I think it comes from your experience you've had, you know, working in the industry for a long time, ..., right? Understanding some of the challenges. So I think overall, it's fair to say that not only do you guys support startups and health systems that find the right needs, we also help them. So you have sourcing, piloting and scaling, right, and making sure ....
Kate Merton:
Yeah. So we will make it. So depending upon the site, we will make an initial seed investment and then we're very happy to help sort of syndicate around as well and bringing all our friends and the other people we know in the VC community and then reinvest. And we are, like you say, there to help them scale because Chicago and the Midwest is just the start. The world is their oyster and we want to see them be successful. And it's kind of, unless you say like the knowledge, once you've been in this industry for quite a while longer than I'd like to admit, you do understand like, okay, you've worked in this health system, but for your strategy, you're probably going to want to go there next because it's going to build out a different demographic and the different patients that you serve. So it's all of this kind of information that we're going to impart to the startups, especially if they're coming from outside of the US to try and help them be successful in the long run.
Emmanuel Fombu:
So what does success look like to you the next six months?
Kate Merton:
Like success in the next six months is to bring in. So we already have three signed health care partners. We're looking to have ten within the next six months and keep growing from there. So when we say that we are the ... in Illinois, in the Midwest, we truly mean it because we're the place where everyone feels they can come together and get equal treatment. We're actually going to close the first part, first round of our 100 million dollar funds so that we can get going with three startups towards the end of the year. We already we already have some areas that the health systems have said they're interested in, we've already kind of found some of the startups that may be a good match, so we want to get cracking. And so even before our space is built down in the Bronzeville Lakefront district, we're actually going to start working virtually and getting done within the next six months.
Emmanuel Fombu:
Correct. So if I was a startup listening and I wanted to get in contact with you, is there like a list? I'm sure, I don't want people sending you random slide decks about things that you might not be interested in, right? In general, right? So is, is there a certain place where people could understand what you're looking for right now, what your top priorities are in terms of needs, or is that something you're working on?
Kate Merton:
Yes. So there is a Chicago ARC website which you can go to, and it's got my contact details if you want to delve more into some of the specific areas of interest, do feel free to reach out to me through that or through LinkedIn. The reason, there are some areas of interest already specified there, but I would say that they are evolving and the reason is, is because we keep having conversations with our health system, which I think is the best thing. We don't just randomly say we're interested in chronic disease. Like if you contact me, I will be able to say we're interested in chronic disease and this is the specific problem we're trying to fix. So I would actually welcome people reaching out. Some of the information is on the website, but I can give you the most up to date all my partnership director Jeff Margolis.
Emmanuel Fombu:
Perfect. So what we'll do there is I will definitely include the link to your website, right and your contact information with this podcast once upon its release so everyone knows how to get hold of you. I think it's a fantastic initiative, I think it's, addresses one of the main concerns around health care, right? Do you see yourself from your company piece, get involved in clinical research at some point, because you have all these hospitals with lots of patients involved, right, a lot of piloting of the different studies happening. Is that something that you're trying to bring underrepresented communities into clinical research?
Kate Merton:
Yes. So in the long term, so right now we're getting up and going and you've got like now the funds and get some companies going. But we have actually set ourselves up neatly so that we can take in not for profit funds and actually run some of those trials. So the great thing about having all the health systems come together, they're going to be able to say, hey, I'm really interested in this, maybe before I even go look for tech, we need to do a little bit more research, we need to do it across four health systems and how do we get that done. So, yeah, I do see Chicago ARC as a long term vehicle to do research across different demographics, starting on the southwest side of Chicago and then moving out from there.
Emmanuel Fombu:
This is fantastic. I know we've run out of time. So thanks a lot, Kate, for joining us. But one more thing. The name of the podcast clearly is Bite the Orange, right? And the whole idea behind by the orange, as we discussed before, is people, it's hard for people to actually change the way they do things, right? Like you look at orange, its outside is bitter, but inside is sweet. So what you're doing right now is exactly a good example of biting the orange. So I think you're a great advocate for it. I have an orange here, but I actually build it so I cannot follow my own rule, bitting the orange. But hopefully before the episode, it'll be great to get a picture of you biting an orange with the skin on. So hopefully you can do that and enjoy the movement, you can.
Kate Merton:
I will. I will go find an orange and I will take a picture and I will send it to you.
Emmanuel Fombu:
Perfectly so. So thank you once again, Kate. And looking forward to following across the journey and we'll see how you're doing, and best of luck.
Kate Merton:
Thanks so much, Manny. Thanks for having me. Bye, guys.
Emmanuel Fombu:
Thank you for listening to Bite the Orange. If you want to change health care with us, please contact us at info@EmmanuelFombu.com, or you can visit us at EmmanuelFombu.com or BiteTheOrange.com. If you like this episode and want more information about us, you can also visit us at EmmanuelFombu.com.
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About Kate Merton:
Katherine (Kate) Merton, Ph.D., is the executive director of the Chicago ARC, bringing more than 20 years of experience working in healthcare R&D and innovation. Previously, she ran Anthem’s Digital Incubator and was the Head of Johnson & Johnson Innovation, JLABS, in New York City, Boston, and Philadelphia. Merton received her undergraduate degree in Pharmacology & Toxicology from King’s College London, holds a Ph.D. in Pharmacology & Toxicology from the University of California, Irvine Medical School, and received her MBA from the Fuqua School of Business at Duke University.
Things You’ll Learn:
Health equity is much more than just plain health.
Health equity and the social determinants of health are strictly linked.
ARC stands for Accelerate, Redesign, and Collaborate.
Innovation comes from anywhere around the world.
Navigating the American health system may be complicated for outsiders.
Resources:
Connect and follow Kate on LinkedIn.
Know more about Chicago ARC.