The Culture Of Risk at UPMC: President of UPMC Enterprises, Tal Heppenstall, Explains

Tal Heppenstall has a dual role at UPMC. He’s been treasurer of
the $21 billion dollar health care provider and insurer since
2003, where he’s responsible for the day-to-day cash needs of an
organization that integrates 90,000 employees, 40 hospitals, 700
doctors’ offices and outpatient sites, and a 3.9 million-member
Insurance Services Division. In addition, Tal is president of
UPMC Enterprises, where its mission is to create products and
businesses that make life changing medicine happen.

In this episode of Healthcare is Hard: A Podcast for Insiders,
Tal talks to Keith Figlioli about the elements that have created
this unique, world-class organization and how it will continue to
adapt in a post-COVID world. They address topics including:



A Culture of Risk. According to Tal, one defining factor
that sets UPMC apart from other non-profits is its tolerance
for risk. It’s a theme he points to throughout the interview,
talking about how the organization’s high risk tolerance
enabled its success on the payer side, but how it is also an
inherent characteristic of an academic medical center.
Innovation is why UPMC exists, but Tal believes that without
the willingness to take risks, it’s just a word.


Constant Reinvention. Another important part of being
rooted in an academic medical center is the bias towards
discovery and reinvention. This has always been core to UPMC,
but especially in the current environment as big tech, retail
and others enter the market, innovation is not optional.
However, Tal is quick to point out that the corporate venture
operation under UPMC Enterprises is not a fund. It’s not about
short term returns, but rather a reinvestment to make sure the
organization is successful in its mission.


UPMC’s Best Startup Ever. Innovation has resulted in a
financial difference at UPMC, but one startup stands out in
Tal’s mind – the health plan UPMC created in the late 90s. It’s
now the largest medical insurer in western Pennsylvania with
revenues of $12 billion. Tal recounts an environment in the
market where one payer dominated for years and how competitive
rates forced UPMC to do more with less. UPMC in turn became a
very efficient organization and, as Tal puts it, is why they
chose to do more with less of their own money instead of
relying on another payer.


The Pervasive Impact of COVID-19. Tal and Keith’s
discussion reflects the fact that COVID-19 has permeated into
every aspect of healthcare and is not a single topic of
discussion, but an important part of every topic for the
healthcare industry. Throughout the interview Tal shares his
thoughts about COVID including how it has accelerated digital
health, the challenges it has created for payers and providers,
and the role government will continue to play driving change in
response.



To hear Tal and Keith talk about these topics and more, listen to
this episode of Healthcare is Hard: A Podcast for Insiders.