EYL #155 CEO MADE $120 MILLION FROM HEALTHCARE

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My graduates from my school being forced back.

Drop drop, Mike, drop back dry. All right, guys, welcome back EYL.

We are in La Sunny, Los Angeles, and this is something that we've been looking forward to for a while. It's gonna be a dope conversation. So healthcare is actually fitting because we just spoke about this on Market Monday's House, just thinking that healthcare is the biggest business in the world. It makes up twenty four percent of the American budget, which is the biggest by far. Second to that as

Hey, no, it's good to be here, man, and it's at Prince of Detroit Film on I G Yeah, okay, you check it out. But here's something that's funny. You talk about healthcare. It is by far the largest economic injury in this country, but it's ugly money, so no one really pays attention to pays attention to it. You know,

That's interesting. We're in Hollywood. In Hollywood, they in healthcare. Yeah, so how did you get started?

You're a black man from Detroit, Michigan, So how did you get started in healthcare? Because the interesting thing that Dane was telling us, he was like, make sure you're asked him about this, Like it was like his family is already in the business, Like he actually already had the information and the knowledge and he grew up in

Yeah, so I did you know?

My mother was always been in healthcare and she got with my stepfather in about nineteen ninety, so the time I was ten years old and he was entrepreneurial, she was academic. They came together and ended up buying a hospital. It's one of the last black, for profit, black owned hospitals. It was called Southwest Detroit Hospital, but they renamed it

You know.

Then I went to Florida and m got my NBA.

In five years. You yeah, he went there for yeah? Yeah? Who did my brother? All right? What happened? He got home safe, He went to Saint John's, went back to New York. He got homesick, from fam. I never heard that. Yeah, probably was that around the Saint John. That's just the or it ain't told y'all.

You've probably got some babies running around. Your fan was amazing. But I came back with my NBA and I thought I was going to take my family's business to the next level, and unfortunately around the same time, finding up losing everything. So you know what most black businesses do, particularly then without mentorship, which is what you are providing, which is what is missing in our community is mentorship.

Excuse me, all that kind of stuff.

But that's what the wisdom is when you have the challenge, and so the right thing to do is come back into it and try again, do it smarter and be successful.

But most people, for whatever reason don't do that.

But my parents ended up invest everything in the hospital in HMO, so much so that when it all went under, they had no money in the bank, like they put up the house, in the business. They put it all in there, so we had the biggest house in Detroit. They literally put it up trying to save the hospital when they started going under, versus realizing your business is important, but it's not you. It's separate. It's separate dity, so

When he sees our huh which part? When he lost the house.

And they lost the house, they lost the first and everything. The diamond my mother had a twelve caret diamond ring probably worth a million dollars. Now had to hawket, you know what I'm saying, lost everything But for me. Then I decided, you know, I'm going to take it and just build my own company and live on a legacy.

So I did it. So I did that.

Twenty six I started my own healthcare company, my first one, and then sold it.

By a year later.

That wass CCS care compensation specialist.

So what was that we'll kind of company was?

So there was this dude who used to work for my parents selling insurance, like I remember mentioned going door to door medicaid well, he was a real smooth guy, kind of looked like a Dbar's brother.

Name I can't name the name, but anyway.

I heard that he had started his own company doing Medicaid enrollment for hospitals. So he had got this partnership with the CEO of a hospital in Detroit, and the whole business was someone's uninsured. By law, the hospital has to take care of him no matter what the case is that they have no ability to pay. But then if you could do the paperwork to get that person

Wife and his kids.

She let the girlfriend lived with the that's kind of money he was making everything. You could do anything with enough money.

Detroit play.

I'm saying, when you're at Detroit like that and not my household ain't gona right, But I'm saying, like a Detroit at the time, he literally moved his girlfriend and with his wife, he had palm trees flown in. He was making money. But my whole thing was in the d where it's called. But the whole thing was he had lost it because they had found out that CEO was in his pocket, or vice versa, and so he

Can we go back just for a second, because you were obviously were born into the healthcare industry, but you your entrepreneurial journey had a lot of stops. Yeah, right, So I know that that you had the ice cream truck at fam you did you did the fish and sandwich. What did you learn from those businesses that said you know what, this isn't gonna work because you immediately said that didn't work, but you learned.

Let me go back to my passion.

No, for sure, So ice cream truck, like you said, you know, I was doing that because to my surprise, I mean, how you in Florida don't have ice cream trucks. In Detroit it's cold to much out of the year. You have ice cream trucks during the summertime. So I had my tahoe converted to ice cream truck. I was playing Masterpiece of ice Cream Man, which was you know what I mean, the biggest.

Song of the radio at the time.

But you had to have like what ice, you had to have hot ice in anyway, then my ice cream was melting and I really didn't like it.

Like I was.

I enjoyed being a dude who pulled up in the tahoe with the ice cream Man playing, but I didn't like the process of working on the ice cream itself. Then I ended up starting these these uh sandwich shops, the Fries Palm Fritz Fries and the Cone because I was in Amsterdam and the coffee shops drink a lot of coffee came out and I was hungry for whatever reason, and at these fries in the corns, I'm like, I'm about to be the next Ronom McDonald. I'm about to

Yeah, so you ended up selling the first business, right, but you didn't just take cash, right, so it was like a stock option and the.

First health care business. Yeah, I got stock options. So it's a funny story. I don't know if you want the whole story, but long story short, this company I was doing back in work because I didn't get a primary contract I was doing back in so basically their primary vendor, they couldn't get folks and road to Medicaid. They gave me the second shot. I was a garbage man. But for me, of course, I got them all to

That's what Dean was telling us. He was like, make sure you asked me about that. He started a company with a virtual regious office and sold the company.

I did it twice though. That was my first time. Second time, I want a half billion out of contract. So I was at work, you know what I'm saying by the dumpsters on the phone like snaked, Yeah, and I did that.

So how did you had to read this office space? So all right, let's let's get into that situation.

So you you you started the company, but in order for the company to be sold, it had to have looked like more than what it actually was, right, So that's why you got the regius office space, which anybody doesn't know region's office space reagis is like a shared office.

What makes I tryed to do this business in Georgia and uh to be like a subcontractor. But I learned quick learned is no real money. Here's one thing I'll clarify is my lane has been healthcare that's really the niche of government contracting, because really that's what I was doing once I got on the side, and my last

So let's just break this down. Medicaid is the government program health insurance. Yes for people low income people. Yes, so you get commissions if you signed people up for Medicaid.

Well know, the way it works is if you actually own the insurance company, which is what my parents had that's providing the medical right, and then I got it. So here's what happens. The government has the money and they're responsible for paying all the bills for people on Medicaid. All right, Well, what's happened is we had the providers, the hospitals and doctors and service providers, which is build a government over build them two or three times for

So do the math.

It's one hundred and fifty million years by twelve, like twelve million a month first contract. Before that have to be out the hospital bills though, same time, my member goes to the hospital, the doctor, the dentists gets prescriptions, emergency transportation not emergeny transporation. I pay for everything. And if those bills are greater and they have my costs, my administrative costs to pervert, provide the service, marketing, et cetera. If my costs are greater than what I got paid

Okay, So yeah, no, So are there things that you can do obviously to prevent Yeah?

Yeah, so what like, what are some of the things that I was out cold? I was the coldest with it.

So the average company in my industry is doing one point seven percent profit margins. You've run up to two percent. That's two percent, one hundred fifty million. It's like three million dollars a year, right, Well, that's the profit profit right. And there's some advanced accountants that look at all the past utilization patterns. How many times go to memergency room, home times ago impatient? It means they spend nine hospitals one night. How many folks are homeless and they how

I'm gonna make money, right, yeah, the show, it just hit me, It just hit me.

Give me twenty million dollars. I'm about to make some money. Yeah, and I'm gonna make a whole lot of money. So they was maked two percent. I was making ten and then my ten was round and down. So I was making like twenty million a year and I should have made four million year.

How come you were able to make way more higher profit margins in them?

Because big companies are built with mediocre, mediocre people.

Right.

So Blue crossby Shield and these big companies, United Healthcare, Senting, they're big, and like every big coming, it's just mediocre, right, because no one really gives a shit because they don't own it. But me, I won't forty percent of my company. So if I make twenty mins, eight millions comeing to Tommy Duncan's pocket. You feel me. If I make four million, I'm only getting eight hundred thousand.

So what I'm gonna do? I'm about to make the twenty?

How do I do it? I'm going through the data. So I became in actuary in my own mind. So, like I said before about like the food business, I didn't like it. I like the process of it. So I wasn't gonna become a cook or a chef. I didn't like it. But in this business, I love this shit. So I became an accountant to a degree in advances accountant to call it actuaries. I looked at all of my data identified, okay, well, who's cost me the most money? By individual and by.

Category?

So I give an example, identified that anyone who was in my membership had any condition. They could be a type two diabetic, they could be on dialysis, whatever the case may be. But if they were also homeless, they cost me five x more expensive. So no matter what the condition they had, they were also homeless, I cost cost five hundred percent more. So what I decided to do is identify all of my members that were homeless and put together programs to get them into housing.

Simple thing.

So at this meeting, I had forty people there because it was open meeting, and I kind of lead from the front. I'm a ground up guy, so let's all talk. Everybody gets respected in the floor. And what I quickly realized is because of that safe environment, two women to raise hand said I had actually been homeless in DC, and homeless were the kids.

They gave me the.

Real So I thought I had the bright idea, was wrong. They gave me the real lead of land. We put together plans in place we would douce homelesses about fifty percent. So out of all the metrics and data in our industry of healthcare, the only metric that we needed to focus on was getting folks that were homeless into housing. It seems simple, right, We did it. Cost came now a fifty percent, and our possibility went up directly.

So that's let's just go into that point minute. So just by actually looking at the numbers, you realized that the homeless people was actually costing you a lot more money. So you got to keep them on. So the way that solve it is housing. There are housing programs, but it's just a matter of most CEOs aren't really interested in.

Community outreach and trying.

So you actually going hand in hand and getting these people and saying like, look, we can get you a house, da da da, and we can put you in a shelter. And that way, not only are you getting them off the street, but you're actually increasing your profit revenue as well.

That's why I was like, I get it. Once you said it, I get it. You do the programs for the homeless. You create exercise classes, you create nutrition programs, more entry people, less people have to go to get any type of treatment or have to go, increase the expenses.

Trow one hundred per sent right.

So we actually built these community centers called our recenters in the hood. So in a TURFCE neighborhood in DC, we had four of them all throughout the district. And most of these companies call them corporate call wherever you want to call them. They ain't stepping foot in the hood and employees aren't, so we end up attracting people that were comfortable being the hood.

I call it the hood.

But when you're around the people that you're serving, you can affect them because you're actually communicating with them and you get them. You build a trust where they actually pay attention to what you are putting forth, they know the resources, and their behavior has changed for the positive.

So that's how you was able to increase just looking at stuff like that.

Studying analytics.

So you went from one percent where the average was one percent point set and so that's how.

You got to the ten percent. I was over ten killing them, killing them.

But the problem is, and actually wrote a book trying to change the policy for medicating the country.

I sent it to you.

It's called the Trading Dollar Medicaid Monster addresses single payer everything you've heard about politically that knowing fully understands addresses all of it, simplifies it. I took it to the person that runs ran centerce Medicare and Medicaid for the country to change policy.

Gave three policies to change, and.

He told me there's no way he could do it because one of the policies is affected into law through Obamacare and it'll be too hard to change policy. But what that policy is a mandatory medical loss ratio requirement. What that means is, remember the government pays us a health insurance premium per member per month five thousand per year, breaking down per month for one of bucks per month per person tracking, Well, let's use a five grand per

Because I'm thinking, like, if you did it in DC, this model seems like it could be scalable.

Right, Like, why can't we do it Detroit, New York City? Well, because it's political, it's hard to win the contracts. It's a big game. So let me tell you how. Let me tell you something else about to the entrepreneurs out here, go to what the opportunity is. I feel like a lot of times what we do is individuals, not just black but just in general is we believe whether whoever our God is or our universe is, you know, it's all on us, right, so God bless us, and it's.

Just wherever we are.

But the truth is, the environment has a big impact on your opportunity. And I was in Detroit in the money. Detroit, d C. Is a special place, and a lot of black folks who have been successful come through DC, A lot of them. You look them up. Most of them got to start a BT. You go through really look at black folks who made it big. Most of them spent time in DC. And the reason is because DC is the only place that has a governor's budget but as black ran. So you look at any other state

So how many black governments do you know? None?

Come on, Why is that they control the money? Sorry, they control the money. Governors control the money.

Let me tell you.

Out of the city of Atlanta, because I spent time there. With any city, a big contract to be a million dollars. You get a contract with the airport, you got a concession, you said you may you make a half million dollars a year.

It's big.

Any contract over three million, so three four five million, and it'd be construction. But the problem with construction for an entrepreneurs that there's a lot of expenses in construction. You gotta have equipment, you gotta have a million people. You can't make any profit. But governors controlled. Let me watch this. Watch this. The second largest procurement in history of United States was Georgia medicaid. I'm sorry, Wash Florida medicaid three years ago. It's one hundred and twenty billion

What I was doing. Who controls that? The governor?

I mean, you don't have to get a big piece to get a lot of money. But d C is special.

Because d C governor's budget.

It's a government's budget, and the mayor is the governor. And she's a black one.

Because that's for her. It was a black man. So it's a district of Columbia, so it's not a state, so it's a territory. So we got the budget. The mayor is technically the governor's in and they got the budget. Is the budget of power? Budget based on population?

How do they determine the budget based on populations in tax base?

Yeah?

Okay, but DC is beautiful place. It's small with a big tax base. And uh, they got the power. And then the other thing DC did through form I were mayor for life, Marion Barry was the first place to institute a real program. Maybe Georgia did it, but DC did it powerfully where every contract that comes out of DC has to have thirty percent minority participation. Now they what happens. There is a lot of times that black companies.

Will come in.

It tried to do small shit do small things right unintentionally. But they'll do janitorial service, they'll do marketing contract ahvag they do printing. But there ain't no money. I mean relatively speaking, what I was doing. I came in as a prime and I got the prime contract, So I was getting two hundre million dollars year out of DC government. Well, the problem with the companies that like I had is I couldn't find a smaller black business to give a

Probably, yeah, no more than ten million, not even ten five five five million from a billion, not even that much. I'm saying. It's like it's just not the companies aren't there. The companies aren't there to do the work.

And look, I mean we put game in the system by putting money in a black bank, but that's not really spending money. That's just money sitting. And even that's like small. But anyway, my points are that there's opportunity all over the place, particularly in DC, and this way to navigate it, the way that I did it, you know, but as an ospruar, you should look at your environment, see where you're at.

The skill I mean navigating through government contracts is obviously a skill.

Where did you develop this? Was it watching your parents.

Go through the hospital or was it something that you learned when you were at a VP at your first company.

On one side, my experience with my parents, you know, having all these employees, you know, all the politicians coming through every day, taught me government contracting because that's a lot of it is a sense of I don't call a quid pro quote, it's a pro quote.

Right.

There is a fundamental human principle called reciprocity.

Right, you do for me, I do for you.

But you ain't doing it for me. I ain't doing much for you. And the reason you need to get my attention is because you want me to prioritize your priority.

I got my own priorities.

So in order to do that, you got to incentivize me my experience that a creative taught me, train me. And that's the skills that I deployed when I looked at all of my data and identified which one moved the needle as I gave the example with the homeless program and executed and put together operating rhythm to push every day to improve our performance. He had a conversation earlier Troy about you're asking me if someone wins the office, and it was with Shay. The question was, well, while

So they always raise money just case they lose to But anyway, so.

The understanding government relationships and understanding what people want by the other side is training in Troy. I got my training on how to operate my business at the highest

I think that's incredible, Right.

A lot of times people here, someone sold their company and they took the cash and they walked away and tried to create a new company. Whereas you sold the company and stayed on and learned, yes, skills to help you before you created a new company.

That's right, that's incredible.

And that's why we killed them. Yeah, my last company, we killed them and it benefited me financially. So my last company based upon the size, So if you just look at the metric of number of members, which is usually how they value managed care companies, we would have sold our company for forty million dollars, but because we were so profitable, we sold a.

Company f one hundred and twenty million dollars.

And that profitability was a was directly driven by really the training I received at the creative to understand the data and then pushing it.

So what was the last company that you sold, Like, what was the same type of services provide insurance?

That was insurance, that was a Medicaid health plan, that was Medicaid insurance trusted or trusted.

So you was providing the insurance for the Medicaid.

So people who have Medicaid, they have an insurance company, and I was one of the providers.

This is interesting, It's something that I've never even heard of.

Speaking of Medicare, you actually bought a healthcare plan from Michigan Tenant in twenty sixteen.

Yeah.

Tenants the largest for profit health care system in the country. So here's how it goes. It kind of makes to both right. So one, there was a person who used to be a Supreme Court justice in Michigan, and we're very close with my parents when I became when I started my entrepreneurial journey, remember my parents. The other thing about government business is when you're on the positive side

What's the type of tag on that, because I know you later sold it to Henry Ford.

We bought it for.

Well, we had to put in it's called risk base capital. I think all in we probably put in like thirteen million, ok, you know, and then three years later we sold it for twenty two and a half. Yeah, but it was a crazy story. But here's the real story. That ain't the story how much money we made. The real story, Troy, is that we bought it and they gave us these financials which showed it was making six million dollars a year in profit, half million a month, half million a month,

So fix problem? How do I do it?

Make all my vendors renegotiate their rates for me cut everything in half, or I'm suing y'all and I'm claiming fraud. And so now I called a State of Michigan. So here's what things. No matter how big the companies are, company is in healthcare, there's one thing that can destroy a company.

It's called compliance.

So the government believes that a company is not being compliant, they could tank the whole company. And so I proactively called the State of Michigan's insurance bureau, even though our percentage.

If they called me, they didn't.

I called them and I was threatening, well listen if the insurance bureau approved them. So what happens is when you're an insurance company, you make a profit. You can't really take your profits out every year. You just retain them and then when you sell your company, then you get all your money. So when they sold the company, we gave them thirteen million, they took like ten million

But here's what thing.

So I threatened the dude. I said, yeah, you know, y'all took that money out and you sold the company to me. And you know I got to meet with insurance bureau. They want to meet with me about what happened because they see that financials have deteriorated. So I don't know, but that's the problem. So the dude, he said, ah, I did this team talking. I come back, I said, you know, I mean the insurance bureau and y'all took that money out. I don't know what they want to

Came back.

I promised you a day later, and they agreed to give us some money back. Got my money back, and still renegotiated my contracts with my providers who had to pay my vendors. So then now now that they get my money back, now my cost with Lord going forward set up making money.

I probably made another twenty million. It's unbelievable. It's unbelievable, so said.

I got my pe partners off of me and save my company end up being more profitable, and then Henry's. But then the company still wasn't making money, and it was it wasn't working. So I was able to get Henry Ford health System health System in Detroit to buy my company, and I made a profit so on something that was losing a million dollars a month, it could a taint everything. DC could at taint everything. I ended up up some one hundred twenty minon outs they pross all over the place, and.

Then the very oh so yeah, I don't want to just breeze over one hundred and twenty million. You sold the company for so all right, so what is the

Yeah, so okay, first.

In our industry, because I got so many stories, I can tell you what should be fun, But in our industry there.

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Framework for how you value our companies right, and it's ebit US roughly eight times EBI to right. So you could value it that way, or as I told you before, you value it on the total number of membership, So call it like a million dollars of members. Forty thousand members have million dollars, but it'd be like forty million dollars right, Or you could do it boyut EBITDA. So but what happened with US is I didn't want to sell my company. I wanted to keep it and keep

So got in bought out and we got bought out.

The company was worth twenty five million dollars total, so p came in at twenty five million. But remember I sould was one hundred twenty millions. But when they came in three years earlier, you know, their whole thing is you make a profit, you create value, then you sell

So I was sharing with Shot earlier.

You know, I did, amongst many things, I had this big party in New York City where I told him I also had Tretch.

I had Naughty Boy Naguor, I had uh at Christmas. At Christmas, PRIs probably had Genuine.

I danced with Genuine doing the moves and ship.

I mean I was.

We had Freddie Jackson, you call it.

I had everybody showing up. I was like reinvigorating careers. Real talk the first verses. Yeah, real talk. But but let me tell you what happened. So when you're in healthcare in government, there's always these fundraisers, small not for profits trying to raise money, and it's like this important thing in all the politicians show up. So I'm at this Christmas dinner and this one woman who's like CEO of some small not for profit organizational healthcare.

She comes up to me.

She yeah, time to hear you making all this money. You know you're doing real well.

Huh.

And when she made that comment, I knew.

Coming out just like.

Remember, yeah, man said put the mink on through and through it in in the in the uh, in the fireplace, and I'm like, damn the word and got out.

The trusts, the Pink Catalact and good Fellas Pink Cali, good Fellas, Oh take that ship back.

It was.

But I bought a Bentley when I got to d C. I had a red uh Note eleven because of my first company. But I never drove it and I sold it because I had to be low key. But then you start making so much money you just can't help yourself.

I bought a Bentley. I'm kind of I'm driving.

I'm driving, driving like this and ship like real talking my hat down out in the city and it's in DC is small.

Well, I couldn't.

You can't control yourself. You cannot control yourself in this situation. In the situation itself possible, It's impossible.

That's why every movie the same should happen. No matter how much advice you get, you couldn't do it.

So but but here's a here's a but here's a real life story. So right, the pink Cadillac, you know, the Chinchilla. When I was growing up, it's about the time we lost everything and I came back home to try to save it. My stepfather had just sold a piece of property which was attached to the hospital for two million dollars and he was running around with his two million dollar check and he was showing it off.

So I'm not a.

Situation where I could go from verry risky. It's all risks, it's all enough and it's literally all enoughing right now. If you're in retail business, what our cause like red restaurant are you're selling something, whatever you're doing, and you have customers buying your product and service, they don't just cut you off. You know you have a real business, right But in contract you can lose everything. The problem with the retails you got to build this big business.

I mean it's big difference, big difference. You got to y'all. You know, you got to build.

But then when you get it, you're not as much at risk contract, you're full risk. My partners were putting pressure on me to sell it, and I'm like, all right, I need to sell this company before I end up with nothing.

So you sold January twenty twenty. Yeah, and then you announced three weeks later JEDDOK, which is where you're at now.

One week later, we both I want to just go back to you quick.

So this is very important for people, especially black entrepreneurs, because a lot of times I feel like we have it's a gift in the curse, but we have a deep emotional attachment to our business and people always criticize, not always by lives. Time they criticize people, it's like, well, we can never really grow as a community if we

That's right, exactly right.

And because the where I grew up and again, my mother had a twelve care diamond ring and she gave way for practically nothing, and all the furs and the cars and the house and everything, because they were trying to keep that business open that clearly was closing. Gave way everything trying to keep it open. I realized that the most attachment was more of a curse and a blessing. Did you reach out to Blue Cross Bushel or did they reach out to you to sell it? And said

It's a rap. So but I love out of DC.

You know, Blue Cross Connect connected with me said they wanted to be in the medicaid space and the company they bought didn't win the contract, but instead they were encouraged and not negotiate a good deal.

Anyway. Yeah, yeah, so so you sell that then and then jet That's yes, I was saying.

And as you see the walls closing in, yeah, you're already drawn up the vision for the next thing.

So talk about that process.

I know it's closing in, but here comes the next thing, which is Jet Doc, which you announced a week after you saw.

Yeah.

So I didn't like, you know, I didn't want to sell my company, and I felt like I was being forced out, and not just in d C, but I felt like I'm the smartest person in healthcare, and I wrote a book to prove it.

I really am.

No one knows better than I do, because no one's been found of CEO like I have. So it's one thing you know something because you work for somebody, another thing like what y'all doing? You know that you know what I'm saying.

It's different. So I knew it. I'm smart.

I grew up in it, so I fifth second generation, I mean and when my mother and my stepfather started in the business, they were guinea pigging this concept to medicate managed care. And of course they started in the black communities because that's where the guinea pig. But because of that, my parents had the first experience with it. So like, no one knows the game better than I do. So I felt like I was being put on the sideline of the industry right, and I was mad about it.

You know, boom. This is where healthcare is going.

I launched February first on my own technology building myself. But then pandemic hits like March fifteenth, and I go from being early till late because now my tech I'm I just I'm a month in the building.

My tech.

My tech went ready until until September.

Yeah, and I was late.

And then I thought, okay, well I'm still good. So I'm self financing because I want partners, because I had pee partners last time, private equity.

Self finance that don't let that go over your heah. Yeah.

But sometimes a good idea, sometimes it's not the great idea.

It depends.

But I wanted full control of this. I thought it was going to be like a Grand Slam, A self financed it. And then I go out here to market like being about to kill them. It was right before Labor Day last year. I'm about to kill them. I'm about to give away you know, free doctor visits. But because I had stripe on the app. I had to charge lease of dollars. I'm gonna do dollar dollar doctor visits. And the next morning I wake up, I didn't had that mini. You know what I'm saying people on my app?

It's unheard of.

But because I wasn't getting attraction I expected to get, I decided to do celebrity route like everybody else and go influencer. I got with Rick Ross and then we launched this big thing earlier this year, and again I actually kind of got it working. You know, my number is one hundred people per day. If I got one hundred people to day sign up for jet Doc, it was booming a subscription model. The problem is I g's like fifty people to day. Actually that wasn't a problem.

They can't justify it. No, I ain't doing that. So but that was my problem.

So then I had to make another pivot. Business people do if you're gonna be in business. So I pivoted. My pivot was I'm gonna go back. Remember the guy I told you who I made chairman of my board, who's at the highest level of health care in this country most probably top ten most problem for people health care in this country by far, used to run CMS. He's a friend of mine. I hit him about what I'm doing. They gave me a recurring license contract, which

You know what the EBIT the stands for.

Yeah, Earnings before interest, taxes, depreciation and amortization EBIT die, so pre tax profit eight to ten x is roughly ware you're gonna end up services.

But if you're in tech, it's like twenty two or something like that.

Bank Bank, And that's why I want to get a tech That's why they did detect. So they're gonna give me a million dollars a year in recurrent revenue, so call time. So well that's twenty two MILLI dollars country, I'm worth twenty two million off the top. I actually got a eventuation of seventeen million.

And that is I'm glad you said that. So that is how you value a company. It's like the money that you're making. I'm trying to break this down as easy for people to understand as possible. The money that you make after all the expenses and all of that is done every single year. And then you have multiple So depending on what industry you're in, that will determine your multiple. So you were saying healthcare's multiples of eight, but in tech is like in twenty plus twenty plus.

And here's another thing about tech. Tech will give you a multiplier of top line revenue. I'm talking about ebit does after expenses and taxes. I mean, it's after expenses net is net. Tech is gross gross. So you're doing a million dollars a year, you getting ten fifteen, that's fifteen million, your a couple of contracts. Now you're forty million. I mean, and you're just doing tech.

So why is that?

Because tech is just so explosive and it's just the because it's scale, so scalable, because if wor it's here, you'll work anywhere.

It's not.

Once you've build a tech and it has an application, what it costs of scale it is minimum. But services you get in more people, you have more infrastructure, more blah blah blah. So tech is a sixty place to be. So the dude connects me with the company and then they end up investing giving me an anchor contract. And so now we're actually at the closed age of winning. Appears to be winning a statewide contract to provide telehealth services. And we have another company that we're looking to.

Do business with a few more and so telling doot. So what's the revenue census? You say you started with like a doubt? How much is it now? I mean, well we still got to say jet dotah.

Yeah, Yet that's a competition.

Well yeah, yeah, I was acting about that. So jet dot you started with a dollar, how much is it now?

So it doesn't matter really because now it's twenty dollars a month, but we're ten dollars a month unlimited. But it doesn't matter. Well, it does matter, but it's not my priority. That's director consumer. So people in Georgia and Florida can still call it jet docs. See a doctor, get it, this got medication boom. It's all easy, pay a twenty bucks a visit. But what I've transitioned into is business to business. So that's when I was sharing

Thousand dollars, and you can't turn somebody down, no, So it.

Costs fifteen thousand. Right, Well, if they stay on average, which is five nights, I'm paying three thousand dollars a night back. They could be staying with me at the Plasta Hotel and Penhouse Sweep. That's what I'm paying. So the opportunity is getting folks that are homeless into housing. And there's a big opportunity. I was giving you a quick mathty in Oakland, California, we're talking to a big company. Let's say they have ten thousand members, twenty thousand dollars

Dollars a year. I proved it in DC.

I cut my homeless members in half by fifty and half, which is fifty percent, and it costs came down accordingly. So if I took a two hundred million dollar baseline and I cut it in half, that means a hundred million dollars in savings. If I got half of that, I may fit man. And they made fifty. They say fifty for giving me the contract. It's a lot of money.

So that's that's the revenue models, not really the consumer. It's more business in government government contracts too.

That's government or business business. So another company like the one that I had, I can go contract with him and say, I know how to save money I was doing. I was doing ten percent, twelve percent profit margins.

You're doing you're trying to do too? Are you helping?

So that that that is a formula for Oakland. We know homelessness is a huge problem in la as well. Yeah, can that also be replicated here? One hundred percent? The thing is I'm friends with the CEO of a big help planing.

In Oakland and Oakland relationships, rightships.

But once you pilot anything anywhere successful, then did undred percent.

So the whole idea of virtual doctor visits.

Teleerdoct is a well known company who's a publicly traded company, but people are still a little lary about this.

So you have a virtual doctor visit.

What Because I've never done this before, can you kind of explain to me what is a virtual doctor visit? Because I'm assuming that it's some limitations involved, like you can only see somebody, you can't like hit that hell bow and check that cough and all that. So, like, how does that work? And do you think that this is something that will be the normal moving forward?

I do in the current in the current state of technology and its limitations, most all health visits are you know, you have flu symptoms, or maybe you think you may have COVID symptoms, or you have a headache, you need some strong advil or something that you don't need to see a doctor. You know it, and the doctors knows it.

See what their you know, uh, their heartbeat is.

But we're we're integrating these into our app so it's fully integrated. So now you can have you know, devices that have advanced huh, what's the word photography capabilities. They can actually see more clear than your iPhone what's going on. So you can actually use devices or smart scales to get more information. So you're actually replicating an in person visit without being in person. So that technology doing the

To the system.

So pre COVID, in the tele health space, there was an average about projected average, about eight hundred thousand visits eight hundred thousand visits a month. Obviously, post COVID that number has run to a billions, So that means it's a lot of people in the space. So what's jet Dot's plan to separate it? Because I know Shoddy mentioned a company as a competition, how do you separate yourselves from the rest of the competition.

The reality is I got to figure out what I want to do. So you know, there's so much room. First of all, I answered question, it's a lot of room. There's room galore, and there's room galore direct consumer. There's so many different pockets of opportunities. So whether you focus on mental health, do you focus on this niche? Over here, there's a telecompany that's been very successful doing transgender care actually transgender or transgender.

Friendly, what have you.

And all the members are transgend because they have their own health care issues, right, and so it's very focused. So what's happening now is the telecompanies are trying to figure out what the niche is. Right, STDs is a big niche, so fire out with the niche is our

Am I there right now? You know I don't know.

I'm still thinking about that. So do I just want to create it, create value and sell it and have another hit and maybe getting a TV life but tuned, stay tuned. But that's the decision, you know, to how to make it? You know where the passion lies and is it still burning?

Let me ask you this before we wrap some general questions.

You say, you wrote the book Medicare Medicaid we always had these issues that you know, it's so flawed, And you said, can you give us one of the solutions that you have in the book or something that why is it so flawed?

And what are some like at least one thing you under think can be done to fix it? You understand it. It's get rid of mandatory medical loss racial requirements. So I shared with you earlier, out of one hundred dollars we receive in revenue, we were required by a lot of spend eighty five dollars out of one hundred eighty five percent on the direct cost of care hospital, doctor, pharmacy, dental, transportation.

Et cetera.

Well, if you spend eighty five percent of your dollar every year, medical cost inflation is two percent. It's been two percent forever, which means next year you're going to be spending your total costs. So the governments won paying the total costs. The taxpayers are paying, so eighty five it's like compound interest eighty What was eighty five percent not eighty five point two percent?

Right?

And then the next year is eighty five point two plus another two percent, so not eighty five point two, it's two percent of eighty five. It's great net, right, it's like one point seven. So then I goes up to eighty seven percent. Every year, the cost healthcare keeps going up because of inflation, and you're requiring folks to spend that money. You did know what I'm saying. So every year the cost of healthcare goes up. That's why it's crazy.

What what you want to do is.

Get rid of mandatory medical lost racial requirements and then incentivize companies to reduce the total cost care for their membership.

And by doing that they would.

What should be the case is if they reduce their cost to actually get more contracts with governments to do more business. That's usually how it works, like Walmart. Lower of cost, the more business you get. But the way government has said it is they have these mandatory medical lost racial requirements, which means you have to spend eighty percent of your money and if you spend less than that,

So let's say Troy needs to go, you know, get some imaging done.

He has some heart palpitation or something he wants to get checked out. Their worry that me is an insurance company. Let's say I'm Blue Cross, we should and he's my member. I say no, Troy, you can't go get this this imaging service because it's not a cover benefit, or I just don't want you to do it because you know it's gonna cost me a thousand dollars.

You're insured.

So to protect against that, to protect the people, they make these mandatory medical lost racial requirements. But the truth is in healthcare, because of somebody goes to emergency room, by law, the hospital has to see the person, and by law, I got to pay the bill. Then the percent of spending that can really be affected by me trying to skip on services, it's like less than ten percent,

You dig what I'm saying.

What should be the case, like anything in capitalism, is if I can get my cost lower, I should be able to get more business. I should be incentivized to get my cost down. And the only way to really get cost down in healthcare is get people healthier. Is but I explained to you on the homeless issue, I cut my costs in half because I got.

Half my people housing.

So I was sitting down at sixty five percent medical loss ratio, which the government thought was a bad thing. Was while they forced me to get out of the industry where sixty five per cent is a good thing, because guess what happens if I'm in sixty five and the system is.

Set to where.

I get more business because I'm a lower cost provider than my other competitors. To guess what, the big companies that are in health insurance will now actually compete to get their cost lower.

So if I had an impact.

Doing things with homelessness and all this other stuff I did reducing you know, man, I had people, matter had thousand of people who I stopped from from being hooked to dallas for the rest of their life. I call it Diallasis bro If somebody has an A one ce which basically measuring the blood that the sugar in someone's blood, if they're if it's five and a half or greater, that means they're diabetics. So it's less than five and

But I have people.

But then you let's say that a one see eight, nine, ten, eleven, twelve, that means any day they could be in.

They could require Dallasis.

And that's a that's a bad thing because now the thousands every day for the rest of their life until they get a transplant or they die. I had some thousand people, thousand people because I looked at my data who had A one seeds that were over seven who have a one seeds that were growing over a period of time. Right, they at seven point five out they had a nine. Oh, I better focus on these people, get them in the care, get them a gukama that

What do you have for lunch? Oh?

You think it's healthy to eat eat food all the time.

Guess what? Not so much?

You know, what are you doing in changing the behaviors?

Right? Fruit? Fruit?

Right?

Yeah? A lot of times food. People think food it breaks down your body and sugar, that's right, no question.

So people think they're doing something healthy, but it's killing. But listen, listen, people watch this. Thousands of people, thousand people my aunt included, and many people y'all know included. But my aunt was on h room to authritis since the last thirty four years. Well, to treat room to the aarthritis is medications and most of them attack the kidney right, so over time.

It'll interiorate the kidney before you know it.

They need dallasis, but not because of lifestyle or eating habits, just because they're on a medication to treat something and instead it burns the kidney up and now she's on dallasis We have thousand people that we identified through medications they're on and how long they're on it.

They had a one cs that were rising that we move a one.

C from being in the hot bed the hot land of any day, now you could be on dallasis Dallas's role to being pre diabetic. Lifestyle behavior changes thousands of people because I care diet next to did diet most of his diet and medication compliance. A lot of people don't taking medication. Why sometimes make some shit or dialysis or not. Dallasis diarrhea right, Sure, a side effects me so much health care can be fixed. But here's my

I'm getting on the front moment.

But what happens there, I save money and people have better healthier lives.

Right.

But that's a little old Tommy Dunky because Tommy duncan, which also I care about people, and the profit goes to my own pocketbook.

So I'm doing these.

Things which are making a big difference that big companies aren't doing them. But if they actually incentivize, if you get your cost lower, which you can only do it doing things I just share with you, then the big companies will actually do what I'm doing, and they would do it way better because they have all the resources in the world, but right now they have no incentivized

How do we change it? Get political action?

Political action, man, You just got to get political action, man.

You got to get black governor. That's my that's my that's my headline. Get the black governor. That's what you need to do. When's the last black governor in America? In Virginia? New York own the last guy, but.

That was that wasn't real. He was the governor. No, no disrespect to Patterson, but he wasn't elected.

He wasn't elected, but he served as for and then he got out of it. But yeah, somebody coming in like you got it, you know what they're doing Virginia. That was the last elected black governor. Yeah, this guy named I can't remember his name, but somebody really coming in. You know, it's a plan that what they're doing. They got a squad. You know, they have relationships now, you know.

But even but even with the governor, like even if it's a black governor's like I feel like you know better than me obviously, But this billions of dollars that's made in people being sick, Like you might have been losing money, but there's other companies and other people that's actually making money from people being sick. Treatments, hospitals, company and companies. Yes, okay, so the lobby, it might be you know too strong to push it, no matter who's the president or the governor or I.

Agree with that, but somebody has to have audacity. And eliminated medical loss ratio actually can be viewed as a positive thing, even for the biotech companies, because then they would start to design things and market to the provider groups and insurance companies. Look and I actually keep people healthier and out the hospital. This medication is better or different.

There you have it, ladies and gentlemen. Princess Detroit had spoken another classic. I appreciate you, brother, So what what do the people need to tap in?

Well?

Can you say your information all of them making that you have about jet dot, Instagram, website and all of that stuff.

I do it all.

But before I do, I just want to make the comment any entrepreneurs out there, do your research on your business. You know, research the industry. What are the success rates? Where the failure rates and failure rates are okay? But why do they fail? You know, calculate your risk. Don't just jump out there. Calculate it. You know, particularly if you're an adult, meaning you have you know, responsibilities and

Do what I did.

You create something that may take a little more time. Maybe it goes fast because the technology, but guess what now you sell it four hundred million dollars billion dollars and then you actually get a lump sum of money. And I will tell you this, When you get lump some money, it's a beautiful thing. You could make five million dollars a year, that sounds good, right, you can make ten million a year. But then you got half

Right. My shirt says what high risk.

I'm a high risk, high reward guy, you know. But uh, you know, if you want more, you gotta do more. That being said Tommy two duncan on, I g at Tommy two duncan Uh jet doc my jet doc when I that dot dot com the Prince of Detroit Film, Go check that out, Prince of Detroit Film. That's what I'm doing. I'm having fun with that, and I got other things popping. But what I love to do on anything Rashot and Troy's talk about entrepreneurship to help people

Thank you, appreciate you man. I'm glad we was able to connect. Definitely look forward to, you know, establishing a stronger relationship. Tons and tons of information and it's one of these things where we don't know a lot about, you know, the type of informational topics when it comes to healthcare, and just to have somebody you know, that we can relate to. That's kind of been the formul of our success is just bring people on that people can relate to and break down very complex situations and

Right now, because of social media, every industry is up for disruption. It's the first time in history. So before you know, most black people, folks who come from where we come from, had barriers right resources, know how I talked about that like real mentorship, but even access to resources. How do you get to clients? It costs money to market. Now through social media, I promise you everything is up

That's like us.

We also say the whole industry when it comes to finance, and we have a show called Market Monday. Shott to Ian our partner on that, and it's like massively successful show. Every single Monday we talk about stocks and investing. So shout out to Josh Brown. Josh Brown is on CNBC and he's been on Wall Street for like thirty years.

Good guy.

So he was talking and he was like, yeah, your legia. I got the show and he was like them, they're influencing financial markets. He's like, there's like seven thousand people watching the show live. Like they're influencing financial markets more than anybody on the street.

Geez. He said that, and that was crazy. But it's true crazy, and it's like, you know what I'm saying. It's just said. It's like it's that's game changing, man. Yeah, the disruption at its finest. So I'll leave you with this.

Make sure you know you're doing what you're doing, have somebody legal doing your research, keep you all in compliance, because it's more powfer you get they're be coming at you.

Yeah, that's what they said that. He just said that. That's what Dave said yesterday. That's a fact.

No.

I appreciate that, brother, definitely definitely Troy housekeeping items.

Oh man, I want to, I want to. Dame also said that we should mention this that there was a wolf of will Street. This is the wolf of healthcare. Yeah, heth wolf of healthcare and I had the word Prince of Detroit. We might have to nominate him for another title, because this is this is pretty legendary. That being said, shout out to Jed Talk And one of the things I know that you guys probed yourself on is affordability and accessibility, and so I want to encourage people just to check it out.

Just check it out.

But yeah, shout everybody on pictureon dot com. That is our proud to paid program. Shout told earners that on their shout to everybody. E y l University staff has grown, y'all. Shout out to the earners and shout everybody, uh with the merch. I know y'all see us with the exclusive merch.

Oh, speaking of Detroit, shout out to my boy Chill. Oh yeah, yeah, yeah, no, no, that's Southwest's son and he gave me this murch He's real.

He's a friend of good friend. It's very rare when we wear something that's not show. But my man Chill.

They just got in the legal marijuana business and working with Al Harrington. Shout out to Al Harrington Viola and they got a strand and this was a drop of his new strands. So shout out to Chill. Shout out to his dad, Southwest. He got a chance to chop it up with him, good guy. Shout out to all the guys in Detroit, man, real, real, solid, old school type of just get money. Yeah, you know, it's a good vibe out there.

That's my city. I like it man. So shout shout out to my boy chill Man. Yeah.

But again, shout shout to the merch team. Shout to that boy Mike eye Ballguard for the exclusive drops. We got something that we brewing. Trust me, it's gonna be major. Uh Yeah, love us love.

Thank you guys for rocking with us. We'll see you next week.

Peace, My graduates from my school being force back drop b drop Mike, drop back drop drop.

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