CEO MADE $120 MILLION FROM HEALTHCARE

27:20And the reason is because D.C. is the only place that has a governor's budget but is black ran. So you look at any other state in this country, you look in New York City, who knows what's going to happen? And to a degree, it may not really matter. You look at Atlanta, Georgia. You go to Detroit, Michigan. You got all these big cities which have a black mayor. But the mayor's budget is small. Because the governor got the money. Governors got more money They can actually Move Than the President of the United States Cause they Are like the biggest CEOs In this country But no one talks about it So how many black governors 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 Cause I spent time there But any city A big contract Would be a million dollars You know You get a contract With the airport You got a concession.

28:19You make a half million dollars a year. It's big. Any contract over$3 million, so$3,$4,$5 million, it would be construction. But the problem with construction for an entrepreneur is that there's a lot of expenses in construction. You got to have equipment. You got to have a million people. You can't make any profit. But the governor's control, watch this. Watch this. The second largest procurement in history of the United States was Georgia Medicaid. I'm sorry, was Florida Medicaid three years ago. It was$120 billion contract. Right now, over the next three months, California's putting out their Medicaid contract.

28:53Medicaid, what I was doing, it's going to be a$200 billion contract. $200 billion over five years. $200 billion over five years. Medicaid, 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. It's the governor's budget. It's the governor's budget, and the mayor is the governor, and she's a black woman. Before her, it was a black man. So it's the District of Columbia, so it's not a state. So it's a territory. They got the budget. The mayor is technically the governor. And they got the budget. Is the budget based on population?

29:28How do they determine the budget based on population? And tax base. But D.C. is a beautiful place. It's small with a big tax base. And they got the power. And then the other thing D.C. did through former mayor for life, Marion Barry, was the first place to institute a real program. And maybe Georgia did it, but DC did it powerfully where every contract that comes out of DC has to have 30 % minority participation. Now, what happens there is a lot of times the black companies will come in, they try to do small shit, do small things, right? Unintentionally, but they'll do janitorial service, they'll do marketing, contract, HVAC, they'll do printing, but they ain't no money.

30:09I mean, relatively speaking. What I was doing, I came in as a prime and I got the prime contract so I was getting $200 million a year out of D.C. government. Well, the problem with the companies that I had is I couldn't find a smaller black business to give a contract to that was worth 30%. They couldn't do the work. They didn't have the infrastructure. They weren't trying to do anything worth the bigger spend. But D.C., let me tell you, right now the Medicaid contracts because they did an expansion. D.C. right now is probably$3 billion a year. Just a little old D.C.,$3 billion. Well, of that, 30%, how much is that?

30:45Almost a billion dollars? It has to be spent with minorities. But how much you really think is being spent with the minority companies in D.C.? I can tell you because we had to do hearings because there wasn't enough to spend probably no more than 10 million, not even 10, 5, 5 million. 5 million from a billion. Not even that much. I'm saying it's like... 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 D.C.

31:22and this way to navigate it the way that I did it you know but as an entrepreneur you should look at your environment see where you at the skill I mean navigating through government contracts is obviously a skill where did you develop this was it watching your parents go to the hospital or was it something that you learned when you were a VP at your first company? On one side, my experience with my parents, having all these employees, 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 want to call it quid pro quo, but some pro quo, right?

32:03There is a fundamental human principle called reciprocity, right? You do it for me, I do it 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 at Accretive taught me, trained 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 you the example with the homeless program, and executed and put together an operating rhythm to push every day to improve our performance.

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33:11For a limited time only, you can join EYL University for 25 % off of the annual membership. Learn about stocks, credit, real estate, crypto, and more. Go to EYLUniversity.com right now and sign up to become an earner. Don't wait. Don't hesitate. Head over there now. We had a conversation earlier, Troy, about you asking me if someone wins the office. It was Rashad. The question was, well, why do they keep raising money? Yeah. They keep raising money because they may be borrowing to pay for the TV commercials and they need to pay that money back. The other thing that happens, too, is they always want to have more money because they can then king make or queen make.

33:50So now let's say the person's mayor or governor. And now they want to handpick city council. Right. So they want to give that city council member that they want so they know that they'll vote for whatever their initiatives are. They need to raise money for them. So they'll take the money that they raise for their campaign and then donate it to Kingmate to kind of build a powerful position in government. So they can make decisions they want to make and help folks that they want to help. The other reason is if they lose, they got debt. See, if you win, you can always raise money because now folks want to participate with you, right?

34:26The business people. but when you lose then you may have a hundred thousand dollars in debt a million dollars in debt and no one's gonna give you any money really because you lost so they always raise money just in case they lose too but anyway so you so the understanding government relationships and understanding what people want by the other side is training and Troy I got my training on you know how to operate my business at the highest level through my company at Accretive when I sold my company to Accretive, they taught me how to analyze data, how to synthesize it, how to analyze and identify out of all of the data points and metrics what actually moves needle the most, and then create an operational rigor to push every day to improve performance.

35:11Yeah, I think that's incredible, right? A lot of times people hear 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 skills to help you before you created a new company. That's right. That's incredible. And that's why we killed them. 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$40 million.

35:44But because we were so profitable, we sold a company for$120 million. And that profitability was directly driven by, really, the training I received at Acreta to understand the data and then pushing it. So what was the last company that you sold? Like what was it? Same type of services provided? That was insurance. That was insurance. That was the Medicaid health plan. That was the Medicaid insurance company. Trusted, right? Trusted. Yeah. So you was providing the insurance for the Medicaid. Yeah. So people who have Medicaid, they have an insurance company, and I was one of the providers. This is interesting.

36:18It's something that I've never even heard of, speaking of Medicare. You actually bought a health care plan for Michigan Tenant in 2016? Yeah, Tenant. It's the largest for-profit health care system in the country. So here's how it goes. It's kind of a mix of both, right? So, one, there was a person who used to be a Supreme Court justice in Michigan and were very close with my parents. When I started my entrepreneurial journey, remember my parents, The other thing about government business is when you're on the positive side, when people like you, it's extraordinarily beneficial. But then something can happen where you get on the wrong side of politics.

37:01And so my parents got on the wrong side and lost everything. But then I was building my own. This person became a good friend of mine, kind of like a mentor to a degree. and it just so happened he ended up becoming the CEO of one of the tenant hospitals in Detroit and he told me that from corporate they had made a decision to sell their Medicaid health plan assets and because of that relationship he told me about it and then I contacted a guy who I made chairman of my board he's a very good friend of mine I contacted so my guy who was running the hospital told me I contacted my guy who is in that world of high power executives in healthcare none of them are black he talked to them and they confirmed yes we are looking to sell the asset and so you know within a few months they sold it to us what's the type of tag on that because I know you later sold it to Henry Ford We bought it for what we had to put in.

38:08It's called risk-based capital. I think all in, we probably put in like$13 million. Okay. You know? And then three years later. We sold it for$22.5. Yeah. But that 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$6 million a year in profit. Half a million a month. Half a million. Run a business and not thinking about podcasting? Podcasting? Think again. More Americans listen to podcasts than ad-supported streaming music from Spotify and Pandora. And as the number one podcaster, iHeart's twice as large as the next two combined.

38:43So whatever your customers listen to, they'll hear your message. Plus, only iHeart can extend your message to audiences across broadcast radio. Think podcasting can help your business? Think iHeart. Streaming, radio, and podcasting. Let us show you at iHeartAdvertising.com. That's iHeartAdvertising.com. month half million a month the first month i owned it we lost a million dollars oh you dig so he sent me an asset with all the financials it's a big publicly traded company right one that you would trust half million dollars a month they make it but somehow my first month i lose a million second month i lose another million third month i lose another million so now what's happening my private equity partners are coming to take my company over from me i got stories for days they come to take it from me because they say now we got to put my money in the company of course time you can't put the money up so we got to put the money up we're going to dilute you down and take your equity put the money up and it's becoming hostile because we have our investors who's money in this thing we gotta do what we have to do to retain as much value as we can so now he started showing up in my office every day taking over my finance so put my cfo out the way took over his office it coming every day so i'm like all right now i gotta fix the problem so fix problem how do i do it make all my vendors renegotiate their rates with me cut everything in half or I'm suing y 'all and I'm claiming fraud and everything.

40:03So now I call the state of Michigan. So here's what they, no matter how big the company is in healthcare, there's one thing that can destroy a company is called compliance. So if government believes that a company is not being compliant, they could take the whole company. And so I proactively called the state of Michigan's insurance bureau, even though I presented as 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.

40:40You 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 13 million. They took like 10 million out the company that they had to retain earnings. So then I contacted the insurance bureau and I threatened, I'll tell you a funny story too. you know let me tell you the story so i called the insurance bureau so you know i'm on record calling to have a meeting uh been in health care forever so we go there and i got my private equity partners right they talking all this shit to me they're trying to take my company from me dudes resign from the board so they can sue me so i knew that do resign from the board that means they're about to sue me so they can't sue me being on the board because it's conflict of interest so i'm like all right this is jewish guy they about to sue me and i got all these problems They're taking over my company.

41:22Anyway, so we go, and I got to get my money back. And I don't forget my money back, and I'm going to negotiate my vendor contracts. I can save everything. So we get to Dallas, and all these guys, P.U. come, they all said to me, they all said to me. We get there, and they quiet, scared to talk. But here's the thing. So I threatened the dude. I said, yeah, you know y 'all took their money out when you sold the company to me. And, you know, I got to meet with the insurance bureau. They want to meet with me about what happened because they see their financials have deteriorated. So I don't know. but that's the problem.

41:52So the dude, he said, I said, it's the team talking. I come back. I said, you know, I'm in the insurance bureau and y 'all took that money out. I don't know what they want to talk about. He kind of ignored it again. I said it a third time. I'm sorry, I'm sorry. He said, God damn it, Duncan, if you threaten me one more time. And I looked at him. I looked out the window. I said, all right, I won't say it again. I just want to make sure you heard me. Came back, I promise you, day later and they agreed to give us our money back got my money back and still renegotiated my contracts with my providers who had to pay my vendors so then now now they get my money back now my costs were lower going forward so I'm making money I probably made another 20 million on my it's unbelievable it's unbelievable so um so then I got my PE partners off of me and saved my company ended up being more profitable and then Henry's but then the company still wasn't making money and it wasn't working.

42:50So I was able to get Henry Ford Health System, which is the largest health system in Detroit, to buy my company. And I made a profit. So on something that was losing a million dollars a month that could have tanked everything, D.C., could have tanked everything, I ended up selling for$120 million. We made profits all over the place. And in the very... Oh, you want to go ahead. So yeah, I don't want to just breeze over the$120 million you sold the company for. So what was the process of you selling that? When was you saying, okay, this is the time to start actively looking for somebody to buy it or did they approach you and talk about that like how you actually value the EBITDA and all of that stuff like how you value the selling of a company because a lot of times people just hear like I sold the company but they don't actually know like the details that go into selling the company yeah Rashad so okay first

43:40in our industry because I got so many stories I could tell you which would be fun but um But in our industry, there is a framework for how you value our companies, right? And it's EBITDA, roughly eight times EBITDA, right? So you can 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 membership. 40 ,000 members, not a million dollars, but it'd be like$40 million, right? Or you can do it by EBITDA. But what happened with us is I didn't want to sell my company. I wanted to keep it and keep growing it. The problem I ran into is even though we were the highest performer in every metric, we were the most profitable, you know, every metric about getting people healthier, we were the best at it, I couldn't win other states.

44:27Because what I tell you, we had no black governors. You know, it just, and you had to have black governors to push to win the contract, and we didn't have it. And my PE partners, I didn't want to be diluted, so I don't want them putting up too much money. And then I get diluted down, so I'm owning, you know, 5%, 10 % of the company where I build it from scratch. At the time I was owning 40, I wanted to keep my 40. So all these different factors. But then what happened, as I shared with you, Rashad, so anyway, so my P firm, when they bought in, so I started a company without private equity. I had a partner of mine who I met out here in L.A.

45:01through a good friend of mine, who arranged to put up the first couple million dollars. And then I ended up having them bought out because relationship dynamics got difficult to manage through. So got them bought out, and when we got bought out, the company was worth$25 million total. So PE came in at$25 million, but remember I sold was$120 million. But when they came in three years earlier, you know, their whole thing is you make a profit, you create value, then you sell it, and you have this, you know, this gain. So they had been looking to sell the company, but I kept wanting to stay in the game because to me, shit, if I'm worth$100 million now and we're small, if I get bigger, we're worth more, a billion, two billion.

45:42I mean, I can keep going. But one thing that I think was a mistake that I made is I started making so much money that I got loose and I was just starting to spend too much. So I was sharing with Rashad earlier, you know, I did amongst many things. I had this big party in New York City where, but I told him I also had Tretch. I had Naughty by Nature. I had. After Christmas party. After Christmas party. I had Genuine. I danced with Genuine. Doing the moves and shit. 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.

46:23Yeah, real talk. But I'm going to tell you what happened. So when you're in healthcare and government, there's always these fundraisers. There's always small not-for-profits trying to raise money. And it's like this important thing. And 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 organization, healthcare, she comes up to me. She said, yeah, time of here you're making all this money. You know, you're doing real well, huh? And when she made that comment, I knew I was in trouble. It was just like, remember Mary Gaines?

46:55Yeah, yeah, yeah. When my man says that. Put the mink on. Put the mink on and threw it in the fireplace. And I'm like, damn. The word then got out, I'm in trouble. This is the pink Cadillac in Goodfellas. Pink Cadillac in Goodfellas. Don't take that shit back. It was. I bought a Bentley. When I got to D.C., I had a red 9-11 because it was 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 driving. Look, I'm driving like this shit. Like real talk, my head down, bring my sunglasses on, drive through the city.

47:28And D.C. is small. You can't control yourself. You cannot control yourself. It's a situation. It's a situation itself. It's impossible. Yeah, it's impossible. That's why every movie, the same shit happens. No matter how much advice you get, you can't do it. 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$2 million. And he was running around with his$2 million check. And he was showing it off.

48:08And it was one moment he was in a casino in Detroit. And it was this dude, I don't want to mention his name, who my stepfather was bragging to. Oh, you know, y 'all think y 'all hurting me because he was going to be a bad side of politics. I said, I just got$2 million. And he's showing it to me and I'll check. And I truly believe, and he'll tell you, that was the start of the full collapse. He could maybe fix it, but after that, it was a wrap. Because this dude controlled the hospital. He was general counsel for a hospital. And they just started suing the HMO. So long story short, I knew at that moment it was a wrap for me.

48:41So therefore, I needed to sell the company to extract as much value as I can before I end up losing everything. And the thing about government contracts and any contract business is it has its positives, its pros, it has its cons. Now, the positives of contract business is that once you have a contract, you've got revenue flowing. Right? Boom. Revenue flowing. the downside is when you lose your contract animal revenue flowing right so i went from getting 200 million dollars a year coming through to now if i don't have nothing i lose my contract i have zero so i'm not a situation where i could go from very risky it's all risk it's all or nothing it's literally all or nothing right now if you're in retail business which i call it like a restaurant you're selling something whatever you're doing and you have customers buying your product and service, they don't just cut you off.

49:33You have a real business, right? But in contract, you can lose everything. The problem with the retail is you got to build a big business. I start off, I got$20 million in revenue. I mean, it's... Big difference. Big difference. You got to build, but then when you get it, you're not as much at risk. Contract, you're at 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. Yeah, so you sold January 2020. and then you announced three weeks later JetDoc which is where you're at now one week later I want to just go back to this quickly so this is very important for people especially black entrepreneurs because a lot of times I feel like we have it's a gift and a curse but we have a deep emotional attachment to our business and people always criticize not always but a lot of times they criticize people it's like well we can never really grow as a community if we keep selling our businesses but you have to understand that there's no emotional attachment to business.

50:30You have to look at it from a very rational standpoint and it's like you can sell a business and then scale to another business as well. Once you saw that A, they was going to come at you because your lifestyle and then B, just the risk, you just realized, you did a calculation in your head and said it's time to go. That's right. Exactly right and because of the way I grew up and again my mother had a 12 carat diamond ring that she gave away 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 away everything trying to keep it open um i realized that the most attachment um was more of a curse and a blessing did you reach out to to blue cross or did they reach out to you to sell it like when it was time so they reached out to me um they reached out and then they were trying to get rid of me so so you know so then the district did this thing where they did another procurement, a new contract.

51:29So I just won a five-year contract. Like eight months later, they say, no, we're going to do it again. We're going to do another contract. So now you have to go through the process of winning a contract again. I just won. So I thought I said for five years, I mean, you know, I can try to grow or whatever. But then eight months later, they put, we're going to do another procurement. After they cut my rates twice. Remember, I was making so much money. They cut my rates twice, only me. And then they did this new procurement, which to me was a message. they kicking me out. It's a wrap. So, but, all love out of D.C., I, you know, Blue Cross connected with me and said they wanted to be in the Medicaid space and the company they bought didn't win the contract.

52:09But instead, they were encouraged and not negotiated a good deal anyway. Yeah. Yeah, so. So you sell that and then, that's where you're going. Yeah, so I was saying, and as you see the walls closing in, you're already drawing up division for the next thing. So talk about that process. I know it's closing in, but here comes the next thing, which is JetDoc, which you announced a week after you sell. 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.

52:49I really am. No one knows it better than I do because no one's been a founder CEO like I have. so it's one thing you know something because you work for somebody nothing like what y 'all doing you know it you know i'm saying it's different so i knew it i'm smart i grew up in it so i'm fifth i'm second generation i mean and when my mother and my stepfather started in the business they were guinea pigging this concept of medicaid managed care and of course they started in the black communities because that's where they 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.

53:22So I felt like I was being put on the sideline of the industry. And I was mad about it. And so even though I knew I was about to make this money, I was pissed. And so I started another company. And my plan was to launch this next company a week later and then, you know, shock the world with that. Unfortunately, that didn't happen. I launched it. You know, I launched JetDoc February 1st of 2020 with this concept of telehealth. I knew that's where the game was going pre-pandemic because I was looking through all my Again, I've looked through all my claims. Oh, I got a lot of claims, which are little claims, which can be done over telephone versus somebody having to park their car, go into the office, see a doctor for a Zipac, they can do it on the phone, boom, boom, boom, and the doctor's not a big risk because it's a Zipac.

54:06A Zipac. It's easy, right? So I knew that's where, when I looked at my claims, I paid over a million claims, you know, boom, this is where healthcare is going. I launched it February 1st on my own technology, building it myself, but then the pandemic hits like March 15th, and I go from being early to late because now my tech, I'm a month in to build my tech. My tech wasn't ready until September and I was late and then I thought, okay, well, I'm still good, so I'm going to self-finance it because I want partners because I had PE partners last time, private equity. Self-finance, don't let that go over your head.

54:40Well, sometimes it's a good idea, sometimes it's not a great idea, it depends. But I wanted full control of this. I thought this was going to be like a grand slam. Yeah. I self-financed it. And then I go out here to market, like boom, about to kill him. It was right before Labor Day last year. I'm about to kill him. I'm about to give away, you know, free doctor visits. But because I had Stripe on the app, I had to charge Lisa dollars. So I'm going to do dollar doctor visits. And the next morning I wake up, I didn't have that many, you know what I'm saying, people on my app, why not? I'm spending money on advertising.

55:11And I look at all the comments. They think they're, you know, not real doctors, Dr. Pepper, you know, Voodoo doctors, Dr. Dre, whatever. you know, Dr. Day, Dr. Dre. It wasn't real. And so people didn't assess value to what I was trying to sell. And really it was an amazing value proposition. It actually included discount pharmacy where anyone can go to any pharmacy in the country and get$85 to the cost of medication. It was unheard of. But because I wasn't getting the traction 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.

55:46And again, I actually kind of got it working. You know, my number is 100 people per day. If I get 100 people a day, sign up for JetDoc, it was booming. It's a subscription model. The problem is I got like 50 people a day. Actually, that wasn't a problem. 50 people a day would have been okay. The problem is that I spent$400 ,000 that month in advertising. I ain't spent$400 ,000 a month for those 50 people a day. I just can't. You know what I'm saying? You can't justify it. No, I ain't doing that. so but that was my problem you know what I'm saying so then I had to make another pivot business people do if you're going to be in business so I pivoted my pivot was I'm going to go back remember the guy I told you who I made chairman of my board who's at the highest level of healthcare in this country probably top 10 most powerful people in healthcare in this country by far used to run a CMS he's a friend of mine I hit him about what I'm doing they gave me a recurring license contract which is valuable when you're in a tech business.

56:47So back to valuation. Service business and healthcare, 8 to 10x EBITDA, which is pre-tax profit. You know what the EBITDA stands for? Yeah, earnings before interest, taxes, depreciation, amortization. Okay. EBITDA. So pre-tax profit, 8 to 10x is roughly where you're going to end up. Services, but if you're in tech. It's like 22 or something like that. Ooh, baby. Yeah, John Henry was talking about that. Ooh, baby. And that's why I'm going to get a tech. That's what I did to tell you. So they're going to give me a million dollars a year in recurring revenue. So call it times. Well, that's$22 million.

57:21I'm worth 22 million off the top. I actually got a valuation of 17 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. It's 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 in healthcare, it's multiple of eight. But in tech, it's like in 20 plus. 20 plus. And here's another thing about tech.

57:50Tech will give you a multiplier of top line revenue. Remember what EBIT does after expenses and taxes. I mean, it's after expenses. That's net. It's net. Tech is gross. Gross. So you're doing a million dollars a year. You're getting 10, 15. That's 15 million. 15, yeah. You get a couple contracts. Now you're 40 million. I mean, and you're just doing tech. So why is that? because tech is just so explosive and it's just the growth is so scalable. Because if it works here, you'll work anywhere. It's not, once you build a tech and it has an application, what it costs to scale it is minimal. But services, you get in more people, you have more infrastructure, more blah, blah, blah.

58:31So tech is a sexy place to be. So the dude connects me with the company and then they end up investing and giving me an anchor contract. And so now we're actually at the close stages 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 Teladoc. So what's the revenue? Since you said you started with like a dollar, how much is it now? I mean, I'll say JetDoc. Yeah, JetDoc. That's the competition. Well, yeah, yeah. I was going to ask him about that. So JetDoc, you started with a dollar.

59:05How much is it now? So it doesn't matter, really, because now it's$20 a month, but$10 a month for unlimited, but it doesn't matter. Well, it does matter, but it's not my priority. That's direct-to-consumer. So people in Georgia and Florida can still call a jet doc, see a doctor, get a discount medication, boom, it's all easy. Pay$20 a visit. But what I've transitioned into is business-to-business. So that's when I was sharing with Troy earlier. There's an opportunity where, you know, I'm going to address homelessness because it's a major problem. which means a major opportunity. What we found, again, through my math, when I did it in D.C., is the average person spends 5x more expensive if they're also homeless.

59:49The average expense per year is about$20 ,000 a year. So somebody who's homeless, on average, they cost us$20 ,000 a year. That's the entire Medicaid, managed care industry. Well, so you have some folks that are homeless, they cost$20 ,000 a year. Remember, you only get paid$5 ,000 a year. So each person, you're losing$15 ,000. But then you have other people who don't see the doctor at all, and you're sitting in paying$5 ,000 a year. So, you know, you get paying out zero, but you're getting 5 ,000, so kind of, to a degree, not always averages way out, but, you know, it gets close to it. And that's where the 2 % profit margin comes from, and you shake all that out.

1:00:18But homelessness is a big problem. It's the biggest impact on the healthcare industry that no one really talks about. So we've had homeless people that were using the emergency room 15, 20, 30 times a month, right? Knowing what to say to be admitted inpatient. Meaning inpatient means they spend not in the hospital at least one night. So if somebody wants to get a meal, they want to just stay in the hospital, or for whatever reason, they want to get some more medications. Maybe because they need them. Maybe because they want to sell them. Who knows? They know what to say to get it and then the insurance companies are paying the bill.

1:00:47Or it's just cold down. It's cold. Ever. Whatever, right? But it costs money. Somebody goes inpatient, baby, it costs$15 ,000. And you can't turn somebody down. No. So it costs$15 ,000, right? Well, if they stay on average with just five nights, I'm paying$3 ,000 a night. Back, they could be staying with me at the Plaza Hotel in the penthouse suite. Yeah. 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 some quick math, Troy. In Oakland, California, we're talking to a big company. Let's say they have 10 ,000 members,$20 ,000 a year.

1:01:23That means they're spending$200 million a year on homeless members, on health care for their homeless,$200 million a year. I proved it in D.C. I cut my homeless members in half, which is 50%, and the cost came down accordingly. so if I took a$200 million baseline and I cut it in half that means$100 million in savings if I got half of that I made$50 million and they made 50 they saved 50 for giving me the contract it's a lot of money so that's the revenue model it's not really the consumer it's more business to business and government government contracts too? that's government or business to business so another company like the one that I had I can go contract with them and say I know how to save money I was doing 10 % 12 % profit margins you're doing you're trying to do two I can help you So that is a formula for Oakland.

1:02:08We know homelessness is a huge problem in L.A. as well. Can that also be replicated here? 100%. The thing is, I'm friends with the CEO of a big health plan in Oakland. In Oakland, okay. Relationships, right? Relationships. But once you pilot anything anywhere that's successful, then, yeah. You can do anything. 100%. Yeah. So the whole idea of virtual doctor visits, Teladoc is a well-known company who's a publicly traded company. but people are still a little leery about this. So you have a virtual doctor's visit. Because I've never done this before. Can you kind of explain to me what is a virtual doctor visit?

1:02:47Because I'm assuming that it's limitations involved. Like you can only see somebody. You can't like hit that elbow and check the 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. So in the current state of technology and its limitations, most telehealth visits are, you know, you have flu symptoms or maybe you think you may have COVID symptoms or you got a headache, you need some strong Advil or something that you don't need to see a doctor. You know it and a doctor knows it. You don't need to see them in person.

1:03:27And so you download the app and you basically are like a Zoom call, a FaceTime with the doctor. And you talk to them about your symptoms and they're going to prescribe your medication. And then in JetDoc, then the doctor will automatically send the script to wherever pharmacy you feel is most convenient for you. You go pick it up, you get 85 % off the cost of medication. The discount card is embedded in the app. Where health care is going is more sophisticated technology, which we're on the forefront of that with this contract we have. I was just sharing with you, where we're including with our app integrated remote patient monitoring.

1:04:01So folks at Diabetic need glucometers to measure the sugar in their blood. And so we're integrating like a pulse oximeter to see what their heartbeat is. But we're integrating these into our app so it's fully integrated. So now you can have devices that have advanced photography capabilities. They can actually see more clearly 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 is on the way, and we're in the forefront of it. We're building this integrated application with JetDoc to have 20 remote patient monitoring devices fully integrated to the system.

1:04:53So pre-COVID in the telehealth space, there was an average about projected average about 800 ,000 visits, 800 ,000 visits a month. Obviously, post-COVID, that number has run to over a billion. So that means a lot of people in the space. So what's JetDoc's plan to separate it? because I know Shadi mentioned a company that's 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'll answer the question. There's a lot of room. There's room galore. And there's room galore, direct-to-consumer.

1:05:34There's so many different pockets of opportunities. So whether you focus on mental health, you focus on this niche over here, there's a telecompany that's been very successful doing transgender. care. Doctors transgender or transgender friendly or what have you. And all the members of transgender because they have their own healthcare 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. STDs is a big niche. So figure out what the niche is. There's a lot of opportunity for it for niching direct to consumer. But also when you do direct to business I mean how many businesses are?

1:06:08There's a trillion of them. So there's always things you can try to do something new and different which means the opportunity to grow B2B is pretty massive as well. When I was saying I got to figure out what I want to do is how far do I want to take it? If you ask me a year ago, two years ago, I'll tell you I'm going to take it all the way. Publicly trade it, own and control it, make it a legacy business. Am I there right now? I don't know. I'm still thinking about that. So do I just want to create it, create value and then sell it and have another hit and maybe get in a TV? Prince of control.

1:06:39I would name Dash. Stay tuned. Stay tuned. But that's the decision entrepreneurs had to make is 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 hear these issues that 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 that you think can be done to fix it? You'll understand it. It's get rid of mandatory medical loss ratio requirements. So I shared with you earlier, out of$100 we receive in revenue, we are required by law to spend$85 out of 100, so 85 % on the direct cost of care, hospital, doctor, pharmacy, dental, transportation, et cetera.

1:07:30Well, if you spend 85 % of your dollar every year, medical cost inflation is 2%. It's been 2 % forever, which means next year you're going to be spending your total cost. So the government's going to pay in the total cost. The taxpayers are paying it. So 85, it's like compound interest. What was 85 % is not 85.2%, right? And then the next year is 85.2 plus another 2%. So not 85.2 because 2 % of 85 is great net, right? It's like 1.7. So now it goes up to 87%. So every year the cost of health care keeps going up because of inflation. and you're requiring folks to spend that money. You dig what I'm saying?

1:08:11So every year the cost of health care goes up. That's why it's crazy. What you would want to do is get rid of mandatory medical loss ratio requirements and then incentivize companies to reduce the total cost of care for their membership. And by doing that, they would, what should be the case is if they reduce their cost, they actually get more contracts with governments to do more business. That's usually how it works. Like Walmart, lower the cost, the more business you get. But the way government has said it is they have these mandatory medical loss ratio requirements, which means you have to spend 85 % of your money.

1:08:42And if you spend less than that, it's not legal. Well, the reason they do that, the government has done that, is what they have been afraid of are insurance companies skimping on care for the purposes of retaining it as profit. So let's say Troy needs to go get some imaging done. He has some heart palpitation or something. He wants to get checked out. They're worried that me as an insurance company, let's say I'm Blue Cross Blue Shield, and he's my member, I say, no, Troy, you can't go get this imaging service because it's not a cover benefit or I don't want you to do it because it's going to cost me$1 ,000 a year insurer.

1:09:17So to protect against that, to protect the people, they make these mandatory medical loss ratio requirements. But the truth is in health care, because if somebody goes to the emergency room, by law, the hospital has to see the person, and by law, I've got to pay the bill, then the percent of spending that can really be affected by me trying to skip on services is like less than 10%. So it's really like 7%. So if I can only affect 7%, why are you forcing the system to overspend on the other 93 %? You dig what I'm saying? What should be the case, like anything in capitalism, is if I can get my costs lower, I should be able to get more business.

1:09:54I should be incentivized to get my costs down. And the only way to really get costs down in healthcare is get people healthier. It's what I explained to you on the homeless issue. I cut my cost in half because I got half my people housing. So I was sitting down at 65 % medical loss ratio, which the government thought was a bad thing, which is why they forced me to get out of the industry, where 65 % is a good thing because guess what happens? If I'm at 65 and the system is set to where I get more business because I'm a lower cost provider than my other competitors, then guess what? But the big companies that are in health insurance will now actually compete to get their costs lower.

1:10:34So if I had an impact doing things with homelessness and all this other stuff I did, reducing, you know, man, I had people, man, I had thousands of people who I stopped from being hooked to dialysis for the rest of their life. I call it dialysis row. If somebody has an A1C, which is basically measuring the sugar in someone's blood, if it's five and a half or greater, that means they're diabetic. So if it's less than five and a half, they're pre-diabetic. No, actually less than seven. Yeah, less than seven. You know, less than seven. But I had people, but then let's say they have A1C, eight, nine, ten, eleven, twelve.

1:11:12That means any day they could require dialysis. And that's a bad thing because now they have dialysis every day for the rest of their life until they get a transplant or they die. I had thousands of people, thousands of people, because I looked at my data. Who had A1Cs that were over seven? who have A1Cs that were growing over a period of time right they had a 7.5 now they had a 9 uh oh I better focus on these people get them into care get them a glucometer give me real time notification when it spikes and then my staff is going to reach out to them 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 behaviors right fruit fruit right yeah a lot of times people think it breaks down in your body it's sugar that's right yeah glucose no question so people think they're doing something healthy but it's killing.

1:11:56But listen, people, watch this. Thousands of people, thousands of people, my aunt included. And many people y 'all know included. But my aunt was on rheumatoid arthritis since the last 34 years. Well, to treat rheumatoid arthritis is medications and most of them attack the kidney. Right? So over time, it'll deteriorate the kidney and before you know it, they need dialysis. But not because of lifestyle, or eating habits is just because they're on a medication to treat something and instead it burns the kidney up and now she's on dialysis. We had thousands of people that we identified through medication they were on and how long they were on it.

1:12:36They had A1Cs that were rising that we move A1C from being in the hotbed, the hot land of any day now you could be on dialysis, dialysis row, to being pre-diabetic. Lifestyle, behavior changes. Thousands of people because I care. Diet. Most of us diet. And medication compliance. A lot of people don't take their medication. Why? Sometimes it makes them shit. Or dialysis. Not dialysis, diarrhea. Right? So you have side effects. So much healthcare can be fixed. But here's my real point. My point is we identified all these triggers and we did something about it. And through doing something about it, we gave people a longer life, healthier life.

1:13:16We avoided folks on dialysis and all those impacts. But not only that, we saved a lot of money in the process. because when somebody is on dialysis, guess what it costs us every year? $85 ,000. When you include dialysis and I'm going to the emergency room a couple times and be an inpatient, $85 ,000 a year. If I'm only getting paid$5 ,000, which means I'm losing$80 ,000 per person on dialysis. So what did I do? I'm getting out in front. Save the other day with homeless. Preventive medicine, yeah. But what happens there? I save money and people have better, healthier lives. Right? But that's little old Tommy Duncan because Tommy Duncan was also, I care about people, and the profit goes in my own pocketbook.

1:13:56so I'm doing these things which are making a big difference the big companies aren't doing them but if they actually incentivize if you get your costs lower which you can only do it doing things I just shared with you then the big companies would 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 incentive to do it instead the incentive is just keep things status quo which is why health care outcomes are status quo and the cost of system keeps going up every year and the governor and the governments don't do shit.

1:14:24How do we change it? Political action? Political action, man. You just got to get political action, man. You got to get black governor. That's my headline. Get a black governor. That's what you need to do. When's the last black governor in America? It was in Virginia. New York. Oh, the last one. The black guy. But that wasn't real long. Yeah. He was the governor. No, no disrespect to Patterson, but he wasn't elected. no he wasn't elected but he served as for and then he got kicked and then he got kicked got him out of there but you gotta ask somebody coming in eyes wide open you know what they're doing Virginia that was the last elected black governor yeah there's a guy named I can't remember his name but you need somebody really coming in you know with a plan and know 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 it's like I feel like and you know better than me obviously but this billions of dollars that's made in people being sick.

1:15:21You might have been losing money, but there's other companies and other people that's actually making money from people being sick. Treatment, mass. Hospitals. Yeah, but it's okay. Pharmaceutical companies. Yeah, it's okay. So the lobby, it might be 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 eliminating 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 in insurance companies where they can actually keep people healthier and out the hospital.

1:16:02This medication is better or different for this reason. The government has taken the stance, because of what I shared earlier, that if you do not police the insurance companies from skimping on care, they will skimp on care, and that will be to the detriment of the public. And what I'm sharing with you is the way the system is designed from the inside. The only skimping you can do is no more than 7 % of total spending. So you're sacrificing 93 % because of the 7%, which happens all the time. There you have it, ladies and gentlemen. Prince of Detroit has spoken. Another classic. I appreciate you, brother.

1:16:35So what do the people need to tap in? Can you say your information, all the information that you have about JetDoc, Instagram, website, all of that stuff? I'll 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? What are 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 you just can't just quit your job.

1:17:07I know so many people just quit their job, think they're going to open a business, then that business doesn't work. Then they don't have a job or a business. you know all of my businesses I started I had something already going right I had this going I started mine so I calculated my risk yeah I could lose it all I could lose a lot but I ain't gonna lose it all at the time I started my DC business I had a son I was married with a son and my wife was pregnant right so I did these things again I calculated my risk so do your research understand your industry understand what is the best upside are you going into a lifestyle business, meaning you just want to be profitable and you make a million dollars a year.

1:17:43If that's the highest upside, that's a great lifestyle. But no, that's what you're getting into. Or you're trying to do a value creation business. Do what I did. You create something that may take a little more time. Maybe it goes fast because of the technology. But guess what? Now you're selling$400 million or a billion dollars and then you actually get a lump sum of money. And I'm going to tell you this. When you get a lump sum of money, it's a beautiful thing. You can make$5 million a year. That sounds good, right? You can make$10 million a year. But then you got half the taxes and then you got lifestyle, you got a big house, you're living out here, you got a thousand cars, you know, you're spending your money.

1:18:13But you get that lump sum, that big check and that money be working for you. It ain't got to work. That money working. You dig what I'm saying? Like my money works. I ain't got to do it. S-H-I-T, my money be working. In the stock market, in this, it's just working on its own and that's where I decided I wanted to be and that's where I'm at. But really know what you're trying to get into and what you're trying to get out of it. You know, do your research, do your homework. When I want to contract in D.C. is because I did in addition to all things I talked about. Right. You know, I did a political stuff, a government contracts to people and all that kind of smooth stuff.

1:18:47But also I put together the best plan for the district. Right. I understood where the power was. It was in D.C. I understood the program for CBE, the minority business of D.C. I understood all the health care can all the I read every article about health care in D.C. DC is broken up by war to eight wars like boroughs probably New York I understood the health issues of each borough in New York and I put together a plan for it and so anyway I just really advise people do their homework you know calculate the risk do your homework but take risks 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 Tommy2Duncan on IG at Tommy2Duncan

1:19:38JetDoc MyJetDoc on IG JetDoc.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 more than anything Rashad and Troy Is talk about entrepreneurship To help people be successful I feel like that's what's What's missing in our community Is real mentorship On kind of ropes to skip The ropes to know And I feel like y 'all are doing it And so I appreciate you having me On the show to do my little part I 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 formula for our success is just bring people on that people can relate to and break down very complex situations and make them understandable and that's what you did so Thank you for joining us, brother.

1:20:34Can I do one more thing? For sure. One more thing. All right.

1:20:41Right 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 for disruption. You could start a hot sauce company, market that hot sauce, and before you know it, you'll be bigger than Red Hot. You look around at pillows, anything you can see, it's all up for disruption.

1:21:22It's the first time in history that's the case, where people can go from whatever they're doing to become a billionaire overnight because they can talk directly to consumers. That's like us We disrupt the whole industry When it comes to financing We have a show called Market Monday Shout out 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 30 years Good guy So he was talking and he was like Yeah earn your leisure they got the show And he was like they're influencing Financial markets He's like, there's like 7 ,000 people watching the show live.

1:22:04They're influencing financial markets more than anybody on the street. Jeez. He said that, and that was crazy, but it's true. And it's like, you know what I'm saying? It's what he just said. That's game-changing, man. Yeah. Disruption at its finest. So I'll leave you with this. Make sure, as you're doing what you're doing, have somebody legal doing your research, keep you all in compliance, because the more profit you get, they'll be coming at you. Yeah, that's what Dean said. Dean just said that. You know, he just said that to us last night. That's what Dame said yesterday. That's a fact. That's a fact.

1:22:36No, I appreciate that, brother. Definitely, definitely. Troy, housekeeping items? Oh, man. I want to, Dame also said that we should mention this, that there was a Wolf of Wall Street. This is the Wolf of Healthcare. Yeah, the Wolf of Healthcare. The Wolf of Healthcare. And I hear the word Prince of Detroit, but we might have to nominate him for another title. Because this is pretty legendary. That being said, shout out to Jet Talk. and one of the things I know that you guys pride yourself on is affordability and accessibility and so I want to encourage people just to check it out. Just check it out.

1:23:08But yeah, shout out to everybody on Patreon.com. That is our Prop2Pay program. Shout out to all the earners that are on there. Shout out to everybody in EYL University. Staff has grown, y 'all. Shout out to the earners and shout out to everybody 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. You know him? No. That's Southwest T's son. and he gave me this merch. He's a good friend of ours. It's very rare when we wear something that's not our show. Yeah, I hardly ever wear anything. My man Chill, they just got in the legal marijuana business.

1:23:41They're working with Al Harrington. Shout out to Al Harrington, Viola, and they got a strand. And this was a drop of his new strand. So shout out to Chill. Shout out to his dad, Southwest T. 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 what I'm saying? it's a good vibe out there that's my city that's my city yeah yeah yeah I like it man so shout out to my boy Chill man yeah but again shout out to the merch team shout out to our boy Mike I. Bogart for the exclusive drops we got something that we brewing y 'all trust me it's gonna be major yeah love is love thank you guys for rocking with us we'll see you next week peace peace my graduates from my school being Forbes backdrop backdrop f*** a mic drop Backdrop.

1:24:28Backdrop.

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