In today’s rapidly evolving healthcare landscape, AI is increasingly being leveraged to enhance decision-making, improve financial performance, and streamline operations. Kevin Neuman, Principal and Healthcare Practice Leader at Novo Advisors, brings over three decades of experience in healthcare performance improvement and restructuring. In this Q&A Kevin shares his thoughts on the role of AI in healthcare, the challenges organizations face when adopting these technologies, and the key lessons he’s learned from leading successful turnarounds. His expertise provides valuable guidance on how AI can be used to not only stabilize struggling healthcare organizations but also drive long-term success.
Kevin: I’ve spent 35 years working in healthcare, focusing heavily on performance improvement. My work has ranged from improving financial performance and implementing technology solutions, to working with physicians and care providers on the front lines. I co-founded Perigon, a business intelligence company aimed at improving decision-making in the healthcare supply chain, which was later sold to a Fortune 30 medical products distributor. My experience in improving healthcare processes naturally led me into restructuring — moving people and processes around and focusing on financial stability are all key components of this field.
Kevin: The first priority is understanding the capabilities of the management team. Can they execute the changes necessary? It’s crucial to assess their strengths and weaknesses. I often find that some individuals struggle to make the tough decisions required for significant change. Leadership needs to be responsible and decisive. Our role is to provide the expertise and support, but ultimately, the management team must be willing to act.
Kevin: AI has been around for a while, but at its core, it's about data science. In healthcare, AI helps organizations bring together vast amounts of data to make better, more informed decisions. It allows us to move from "good" to "better" by providing deeper insights. However, there’s a lot of hype and fear around AI, especially the misconception that it will take jobs. In reality, AI enhances jobs and allows people to do more with better tools. It’s important to understand AI’s potential but also be realistic about its limitations.
Kevin: AI plays a significant role in reviewing historical data and predicting future performance. In healthcare we deal with an overwhelming amount of data but often it's fragmented. AI helps bring that data together to identify where investments will yield the best ROI and pinpoint areas that are hurting the business. With AI, we can create a clearer financial roadmap to guide organizations on where to focus resources for the best outcomes.
Kevin: Change, particularly in healthcare, can be uncomfortable, especially for people who have been with an organization for a long time. The key is to help people understand the journey and why they are a critical part of it. You have to enable them to see how these changes will ultimately help them perform their jobs better and improve patient care. From a technical standpoint, it's about demonstrating how AI can enhance efficiency and outcomes, not replace people.
Kevin: One of the most important lessons is that healthcare has multiple stakeholders — shareholders, employees, clinicians, and patients — and each needs to be brought into the conversation. You need to be clear about everyone’s role and whether they want to be part of the future state. Understanding both the business and care sides of the equation is crucial for a successful turnaround.
Kevin: One of the best practices is to be willing to experiment. AI, like all technologies, is a journey. It’s important to understand the technology and manage the risks while testing how it can be applied. Have a clear plan in place but be open to learning and adapting as you go.
Kevin: AI is an evolution and not a revolution. It’s important not to rush into it out of fear of being left behind. Take the time to understand the technology and its potential before implementing it. Stay level-headed and avoid getting caught up in the hype. Be informed and realistic about what AI can do for your organization.
Kevin: I’d like to see a broader understanding of how AI can support specific organizational goals, particularly in healthcare. We need to explore how AI can improve patient care without losing sight of the "do no harm" principle. There’s still a lot to learn about AI’s long-term outcomes, and I’m hopeful we’ll continue to experiment and find new ways to enhance care and decision-making.
Kevin: Face it head-on with a clear plan. Don’t fool yourself about what AI can or can’t do for your organization. Be proactive and informed — do your research, experiment with AI solutions, and manage the risks. Start with a simple Google search, which can lead you to a wealth of information. AI changes rapidly, so it’s important to stay curious and continually learn how to apply it effectively in the future.
To learn more about AI and Kevin’s expertise, contact him at kneuman@novo-advisors.com.
You can also join Kevin and TMA Nashville as they team up for a panel on Tuesday, December 3, where he will lead a discussion on AI's impact on restructuring, particularly in healthcare, from both legal and operational perspectives. He’ll be joined by Ronald Rerko (Practice Director at Onix Networking Corp.), Dr. Galina Datskovsky (AI expert and OpenAxes board member), and Kevin Michael Mooney (Attorney and Senior Director of Enterprise Data Governance at the Cleveland Clinic Foundation). The panel will cover key legal considerations, including intellectual property, privacy, confidentiality, and strategies for future-proofing AI models.
Live and Virtual event:
Tuesday, December 3, 2024
12:00 PM - 1:30 PM CDT
Holland & Knight LLP
511 Union Street, Suite 2700
Nashville, TN 37219
New York (October 2023) — Novo Advisors, a premier turnaround consultancy serving middle market firms, is proud to announce the expansion of its office in New York. Representing clients nationally from its Chicago headquarters and offices in Philadelphia, Minneapolis and Nashville, the growth in New York further extends the company’s services into the Northeast region.
Joining Novo Advisors to lead the effort to develop its business there are two New York-based experts, Matt Cohn, Partner, with 25 years’ experience managing both in-court and out-of-court restructurings, managing liquidity and developing business plans; and Rob Vanderbeek, JD, Partner, with more than 30 years of restructuring, performance improvement and due diligence as well as litigation, valuation and forensic experience. Both have successfully managed restructurings, Chapter 11 bankruptcies, sales processes and a host of financial matters for clients in numerous industries.
Highly regarded for the services provided by its seasoned consultants, the addition of Matt and Rob to the Novo roster fits the company’s long-term growth strategy.
“Both Matt and Rob bring unique talents to Novo. Matt’s restructuring and CRO experience and his extensive background with municipalities brings strength to our existing team as well as new capabilities in public finance. Rob’s background as an attorney, his work as a COO, in performance improvement and forensic analysis for complex cases will be extremely valuable to clients,” said Sandeep Gupta, Novo Advisor Managing Partner. “Having these two new experts onboard significantly enhances our bench strength.”
New York and the Northeast region are vibrant business centers. We are excited to bring our talents as trusted, collaborative partners to companies based there with our expanded team.”
Sandeep Gupta
Managing Partner, Novo Advisors
Matt and Rob join the current Novo team in the Northeast: Kevin Neuman, Principal and also based in New York, is a 30-year healthcare industry expert and successful entrepreneur specializing in operational improvement, financial stability, technology and analytics. Claudia Springer, Principal and head of the Philadelphia office, is an award-winning restructuring and bankruptcy attorney and mediator recognized for her strong business acumen.
“New York and the Northeast region are vibrant business centers. We are excited to bring our talents as trusted, collaborative partners to companies based there with our expanded team” said Gupta.
Founded in 2012, Novo Advisors is a business transformation partner specializing in turnarounds and restructurings, performance improvement, operations, transaction advisory, dispute resolution and interim management services. The company offers clients rapid, customized solutions based on an immersive understanding of their business and financial issues, and the opportunity to work with a team of senior-level industry pros dedicated to delivering value every step of the way.
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For more information, contact Anupy Singla at (312) 961-2565 or Anupy@novo-advisors.com.
