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Nicole Ochoa Moving the Needle Written by: Nicole Ochoa
Issue: September 2010 | NSIDE Medical
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Carenet president John Erwin is re-energizing the industry.

John Erwin, president of Carenet, is empowering his clients to take health care to the next level. Originally founded by CHRISTUS, Carenet is a health care firm based in San Antonio, which works with approximately 90 organizations across the country, employing more than 250 individuals, while continuing to experience rapid growth at a rate of 20 to 30 percent per year.

Emergence of Leadership

The son of a military father, Erwin had lived in 13 places by the time he was 17 years old. Erwin's family eventually settled in Nebraska, where he graduated from the University of Nebraska. In 1978, in Omaha, Neb., Erwin entered the call center business. At the time, Dial America Marketing was the largest call center operator with more than 50 offices across the country. "It was the beginning of the industry," Erwin said.

In August 1988, West Corp. Chief Executive Officer Gary West approached Erwin with a proposal for an outbound company that would propel Erwin to create West Corp. outbound. San Antonio popped up as the perfect location for two reasons: a high unemployment rate and very little competition. In 1990, the West Corp. outbound call center opened its doors in the Alamo City without a single client. However, over the next 10 years, West Corp. would grow to more than 10,000 employees, $220 million in revenue and 17 locations. "It was a magical moment," Erwin said proudly.

As West Corp. manifested into the most profitable sales company in the industry, Erwin's accomplishments did not go unnoticed. In 2004, CHRISTUS contacted Erwin with a new business opportunity. The concept required the right focus, management team, technology and infrastructure. "At that time," Erwin said, "I didn't know health care had all these different support structures built into them like disease management, advocacy, condition support and case management." Erwin saw the potential of an opportunity of this magnitude and began to pave new ground into health care.

Who is Carenet?

Carenet serves as the catalyst between patients, providers and insurance companies. "You have certain needs to be met, your provider wants to make sure he's serving you well and the insurance companies want to make sure that was the right course of action," Erwin explained. "All those parties need to come together to do the right thing so you get the right level of care."

Carenet's objective, as Erwin points out, is to serve as an expert health advisor to give patients more informed decision-making opportunities they haven't seen before. According to Erwin, "Our goal is to help patients navigate the system, empower them to make the best decisions and make everyone a little bit better." Erwin foresees prolific changes in the health care industry, including a greater emergence of technology and a concentrated effort on improving overall customer experience.

Setting the Standard

With the new health care reform system underway, Erwin says it will indeed have a profound effect on the company. However, its main objective is going to be defining and executing best practices.

"We should be the clearing house of what is working very well," Erwin said. "There are going to be thousands of entities trying to do the best they can, but we will be [the] best practices. How are we going to ensure that this is being done in the most efficient, valuable, patient-centered manner?"

Carenet's client list encompasses top medical facilities and programs throughout the United States, including Johns Hopkins Hospital, Scripps and the U.S. military. "Clients are incredibly careful in terms of who they work with," Erwin said. "They do their due diligence in being very respectful of their members, and they take their time." It is the strong relationship Carenet builds with each of its clients that attributes to a 98 percent client retention rate.

"This is a people business," Erwin said. "How we affect our teams and how our teams affect our clients is really everything." Erwin uses an analogy comparing his motivation in developing the right team to building the Spurs. "Every chance we get when we're making a crucial decision, we're trying to find the Tim Duncan or Manu Ginobili or Parker," he said. "It's that relentless drive to find those people."

On any given day, Erwin points out, the score might be 3-2: "three things we did really great and two things not so great. Being keenly aware of that makes you realize you better have the right folks."

Erwin asserts the success of Carenet is a direct testament to the caliber of its employees. "Our success is due to the team we've assembled," he said. "It's a mix of executives [who] have come from outside of health care and a mix that come from within health care."

Carenet Says It All

On May 21, Carenet celebrated with the city of San Antonio during a special open house event. "I have been so well supported by the city of San Antonio for the last 20 years," Erwin said with enthusiasm. "This is a city that understands the importance of progressive business leaders [who] are growing companies. They have welcomed us with the red carpet since day one, and it has been nothing short of exceptional. We love the city. We love the people. We love the support."

What's next for health care?

"We think there's a real opportunity over the next five to 10 years for the award-winning health care institutions to differentiate themselves on how they support their members," Erwin said. "We're all going to feel better about it and have accessibility to experts who are really in our corner. Our best chance to affect people and pass that on is now."

Within the brevity of his uncompromising leadership and vision, Erwin maintains his highest priority is building this type of framework into the culture of Carenet. An innovative man, Erwin reflects on the performance of today, but relishes in the potential of tomorrow. "Everyone wants to see health care take the next step," he said, "and we will help empower that."

For more information about Carenet, visit www.callcarenet.com.

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