Q&A: Joseph Marabito, ikaSystems
With the spotlight on health care costs and health insurance, Southborough-based ikaSystems finds its cloud computing health payer software platforms in increasing demand, as insurers seek to reduce administrative costs. In April, Joseph Marabito left a job with a pharmacy benefits company in New Jersey to join ikaSystems as president, taking over the operational duties of Ravi Ika, the company's founder and CEO. Here, Marabito discusses his new role at the growing company, which has nearly tripled its staff since 2009, how he thinks cloud computing can play a role in reducing health care costs, and how regular business hours tend not to apply when it comes to email communications with his new boss.
>> Why did you make the decision to come to ikaSystems and what do you feel that you bring to the company?
I think it's a terrific company based primarily on two factors: the people and the products. The products are truly revolutionary in the world of health plan systems. Our technology enables them to significantly reduce their administrative costs and spend more time focusing on what they really want to do, which is help people get better and stay healthier.
>> What's the culture like at ikaSystems?
I think it's a very innovative culture. We try to find creative solutions to our clients' problems. We tend to work very collaboratively with them. We listen a lot to our customers. It's one of the aspects of the culture I love and want to continue to foster and develop as we grow.
>> Why is cloud computing important in the health care industry right now?
It's important because it liberates health plans from the day-to-day chore of managing their own IT infrastructure. There are billions of dollars spent on IT infrastructure in aggregate by health plans. If we can make just a small dent in that expenditure, we're freeing up funds that can be used for better purposes.
>> To what extent has the industry moved toward cloud computing and what might be holding it back?
If you look at the installed base of systems and you ask what proportion of those systems is cloud computing-based, I'd say very few. It hasn't made its way yet into the core administrative systems like claims processing systems, enrollment systems and billing systems. But it's starting to.
>> You're stepping in to help lead a company that was previously run by its founder, Ravi Ika. What are the challenges and what are the opportunities of someone in your position?
I think Ravi is happy to have the help because the company has grown so significantly from when he founded it. It was easy for Ravi to manage everything a few years back. I think because of the success of the company, it's become a challenge that really requires more than one person. Ravi is tireless. He works around the clock. I get emails from him in the middle of the night. I'm up watching my BlackBerry. I think it's exciting to work with Ravi. He's a terrific leader and has brought the company so successfully to this point.
>> What trends do you see moving forward in the health care industry?
One emerging need is the market is moving from an orientation of providing health coverage through a group to an orientation of providing health coverage to a specific individual. Today, people get health coverage from employer. Ten years from now it wouldn't surprise me if half the people in the country actually just bought their coverage directly from whatever health plan they felt best suited their family's needs.
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>> The company received a $120-million infusion of venture capital during 2010. With the spotlight on health insurance and health insurance costs, how uniquely positioned is ikaSystems to thrive in this market?
Right now, my No. 1 problem is I can't hire enough people. We have north of 300 people today and we're going to increase that by 50 percent this year. I think that's just evidence that the market is aggressively moving toward our products and services. We're a leader in cloud-computing technology for core administrative systems for health plans. We've been at it longer than most folks in the space. We've got a more comprehensive suite of services and now we've got a lot of vocally supportive clients.
>> What sorts of positions are you trying to fill?
Developers, architects and business analysts. We need people to help us take our technology and implement it with new clients. It's our No. 1 need right now. We've got a great staff. We just don't have enough right now.
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