In 2003 the Colorado General Assembly allowed the state’s 30-year-old no-fault automobile insurance system to expire and the state reverted to a tort-based liability system. This resulted in chaos for patients injured in automobile accidents that were without private health insurance.
Michael Bumann, founder and CEO of Red Dot Management, realized the need for medical facilities that could focus on motor vehicle accident (MVA) patients. Michael left his employment at a law firm that represented injured clients to form the first of its kind multidisciplinary medical clinics that specialized in providing care and treatment to MVA patients.
Fast forward to 2020 and Red Dot Management stands as the only company in the country able to acquire the entire balance sheet of multi-million dollar pools of MVA accounts from national hospital systems. During the relentless spread of COVID-19, Michael and the Red Dot team have proven just how essential their business is to the health of hospital systems.
“Now, more than ever, with all of the stresses hospitals are experiencing, our platform has been exceptionally well received. Hospitals realize the turn-key benefits of our platform that increase their revenue and lower their FTE costs; and with the added benefit of improving their patients’ experience. Recently a VP of Revenue told us our platform is the only bright spot in their otherwise bleak landscape.”- Michael Bumann | CEO
After spending years running into burning buildings as a firefighter, putting out fires as a CEO seemed like an average day for Michael Bumann.
Micahel says, “I’ve found a lot of similarities between firefighting and being the CEO of a fast growing company. Both require mental fortitude; ability to execute under pressure; and to establish fluid, but functional command structures. In many ways, Red Dot is a continuation of my EMS service. As a Fireman and EMT, it was hands-on to the patient in the field; with Red Dot’s platform, it’s for patients that have left the hospital and must contend with the taunting path post motor vehicle accident. At our core Red Dot helps those injured patients by keeping them from being re-victimized in the direct debt collection process. Due to this patient-centric approach, I’m proud to be able to say our platform positively impacts over 1,000,000 people per year.”
Between February and May of 2020, Coronavirus swept over the world, shutting down huge parts of the economy and leading to short term unemployment rates that haven’t been seen since the great depression. Hospitals were not immune to this shutdown and many hospitals were forced to furlough non-essential workers. That loss of resources poked holes in an already fragile system that was ill-equipped to handle complex accounts, especially self-pay MVA’s.
Thanks to Red Dot, many hospitals have found a better option to resolve these complex claims.
“While it’s important to note that though Red Dot’s platform isn’t opportunistic of the COVID pandemic, it has helped highlight the multiple benefits our platform provides hospital systems: We reduce their staff cost; increase their bottom line revenue, while improving the patient experience which results in an easy “win” for the Revenue Cycle Management team burden with a myriad of challenges,” Michael explained to us.
Early in 2020, Red Dot was actively looking for a technology partner that could help them deliver their service at scale. They were looking for a scalable cloud platform that could provide security and limit risk, and also automate a majority of their operations tasks.
After seeing an initial demonstration of the Cycle platform, Michael immediately saw it as a way to take strides toward all of his team’s technical goals at once. The first thing that stood out was, on Cycle, everything is secure by default. Cycle’s “Secure by Default” philosophy means that everything on the platform is the most secure in its default settings. Each time an application needs to be opened to the public internet or a capability needs to be added, that will have to be explicitly defined by someone on the technical team. This takes a ton of pressure off of the Red Dot team. They can easily choose where and how to allow access to an application and at the same time eliminate the possibility of small oversights in configurations that could have led to security vulnerabilities.
“First and foremost, we focus on data security. Cycle.io provides us an industry-leading level of security and comfort that allows us to continue to scale operations without degradation in security. We were expecting to hire two full-time DevOps engineers over the next year to facilitate the management of our growing portfolio of applications and to hedge against the inherent technical debt of other solutions we had considered like Mesos and Kubernetes. With Cycle we were able to remove the need for dedicated DevOps engineers, saving us ~$275,000 a year, and bring our existing team fully up to speed within a week of use.“- Michael Bumann | CEO
On top of the blistering velocity Red Dot has achieved using Cycle, they were able to keep their goals in check and not deviate from the secure, risk-averse strategy they had set out with and that’s a huge win. Michael views Cycle.io as a continuation of thier focus on core competencies.
Red Dot has been growing tremendously through these last several months. With hospitals around the country busy trying to catch up from the fallout of COVID-19, they’ve found an increased need to find revenue in higher-margin procedures. As the Red Dot team continues to scale up, Michael can see that his team’s partnership with Cycle is more than a means to an end. Cycle is a product that he’s excited to grow with and we can’t wait to see that growth continue!.
To learn more about Red Dot Management, check out their website.