Todd Sanders (Host):
Welcome back to the podcast. We have an incredible guest today, someone who I greatly admire, Pam Kehaly, who is the President and CEO of Blue Cross Blue Shield of Arizona and also the Co-Chair of Connect Maricopa. I think a lot of people know you, but for those who don't, tell us a little bit about yourself and maybe something that we wouldn't find on your bio.
Pam Kehaly (Guest):
Oh, that's a challenge. So I am Pam Kehaly. I'm the CEO of Blue Cross Blue Shield of Arizona, and I moved out here from California seven years ago.
Todd Sanders (Host):
Feels like less time, doesn't it?
Pam Kehaly (Guest):
Time flies. The older you get, the faster time goes.
Todd Sanders (Host):
I wouldn't say older, but it feels like you... I remember when you came here.
Pam Kehaly (Guest):
More experienced.
Todd Sanders (Host):
Yeah.
Pam Kehaly (Guest):
The more experience you get, the faster time goes, but I've been here for seven years and thoroughly enjoy it. I lived in California most of my life, and I have two boys, two young... They used to be young, but now they're adults. One is married. It was such a gift because when I moved out here, they, over time, migrated here as well. So they are here living in Arizona. So we get together every Sunday for dinner.
Todd Sanders (Host):
Who cooks?
Pam Kehaly (Guest):
We go out.
Todd Sanders (Host):
Oh, okay. So someone else cooks?
Pam Kehaly (Guest):
Someone else cooks. Yes. Yeah.
Todd Sanders (Host):
Okay, and so something maybe that wouldn't be on your bio?
Pam Kehaly (Guest):
Oh my goodness. Let's see. I used to ride horses.
Todd Sanders (Host):
Oh, really?
Pam Kehaly (Guest):
Yes. I love horses. I used to have them when I was younger, and it kept me out of trouble.
Todd Sanders (Host):
Do you think you could still ride pretty well?
Pam Kehaly (Guest):
Absolutely, ride very well. Yes.
Todd Sanders (Host):
Excellent.
Pam Kehaly (Guest):
Yes.
Todd Sanders (Host):
Okay. So we had no idea. Very good. Well, as I mentioned, you're also the Co-Chair of Connect Maricopa which essentially means that you're helping to lead the efforts on Prop 479. Can you talk a little bit about Prop 479 and maybe why you're interested in leading it?
Pam Kehaly (Guest):
That would be wonderful to be able to have the opportunity to talk about it because I am very passionate about it. Proposition 479 is essentially an extension of a half-cent sales tax that has been in existence for almost 40 years. So it's not a new tax, and what this tax does in just a nutshell is support the transportation infrastructure in Maricopa County, and it makes sure that we have good freeways, we don't have lots of potholes in our roads, we've got buses and Dial-a-Ride, and we've got all kinds of opportunities to get to places with as little stress as possible. So the extending extension of this half-cent sales tax will continue to allow us to keep up with the growth here in Arizona.
The proposition actually is... This is the third phase of the proposition. It started back in 1985. Believe it or not, that's when it was first put on the ballot. It was Proposition 300 then, and it passed, and it allowed us to do things like build out the State Route 51, Loop 101, Loop 202, all of those. That infrastructure is a result of this half-cent sales tax. So it's really important that we continue to approve that and make sure that we've got those funds to keep up with our growth and make sure that we have roads to get us to places in reasonable time with as little stress as possible.
Todd Sanders (Host):
Well, and thinking about the fact that you mentioned California, when I go back at least to Southern California, it seems like it's not necessarily keeping up the infrastructure there. I think probably you noticed that difference when you moved here. I think we've done a really good job of keeping ahead of growth.
Pam Kehaly (Guest):
We have, and that's one of the reasons I'm so passionate about this because coming from California, when I first got here, when you start new opportunities or new jobs, or move to places, you have good surprises, and you have bad surprises. This was such a good surprise when I got here to Arizona, and it took me 20 minutes every day to get to work. It was never more, and I could plan around travel. In California, I lived 30 miles from LA, and that doesn't sound like a lot. That sounds like here, if you live 30 miles from something, it's going to take you 30 minutes to get there.
Todd Sanders (Host):
It's doable.
Pam Kehaly (Guest):
Pretty much.
Todd Sanders (Host):
Yeah.
Pam Kehaly (Guest):
In California, I would never go into the city because to get there would be a two-hour commute, and it's not the kind of commute that is pleasant. Not that any commute is pleasant, but it's the stop, go a couple feet, stop, go a couple feet. I would sit in traffic, and I would look to people to my left and right. This is no joke. They're reading papers. They're reading the newspaper when they're sitting on the freeway. That's how slow you would go. When I got here, that quality of life was so different here because you don't have to deal with that here.
Todd Sanders (Host):
It makes such a significant difference, and maybe what I... back up a little bit. Obviously, you have a very significant day job in healthcare. Maybe you can talk a little bit about that, but maybe the idea that... or maybe what our listeners would be interested in, someone that's in healthcare, why would this interest you? Why does this matter to you?
Pam Kehaly (Guest):
So we cover 2 million people here, and our mission is to inspire health and make it easy. When I talk about inspiring health, it's not just physical health. It's community health. It's financial health. When I think back to my California days and driving, getting in the car, my stress level would go through the roof sitting in that traffic. It really is a health issue. It's a mental health. It's a social health. It's a community health issue. If you're dealing with traffic, your stress levels are going up. You're sitting in the car too long. You're not being mobile. You're just sitting there. You are not engaging in the community.
I would not go to events in California because it was just too much time travel to get there. Here, I go to events all the time because nothing really takes more than 30 minutes to get to. It's pretty much a rule of thumb, unless you go into Flagstaff, of course, or something like that, but everything is very doable. So my social life is so much more full here. So those are all components of health, and that's why I am very interested in making sure that we continue to invest in infrastructure here so we don't have those kind of issues.
Todd Sanders (Host):
Certainly, you don't want to go to that. I think the other thing it strikes me, you mentioned covering over 2 million people. That means that you have a pretty significant workforce. I'm assuming from a workforce perspective, this comes into play for you as you think about the concentric circles around where you're bringing in people to your offices.
Pam Kehaly (Guest):
Yes, that's absolutely right. So we have 3,300 employees, and they live all over, but we have to make it easy for them to get to work, easy for them to come in, and interact, and have team meetings, and bond. If it's going to take a three-hour drive to get here, it's going to be really hard to draw those people in, and it's important that we have people all over Arizona that live all over Arizona because we cover people that live all over Arizona. So it is important that we've got the right ways to get them into the office when that time is necessary.
Todd Sanders (Host):
You bet. Obviously, we're familiar with what we've done since '85. You mentioned a lot of progress since from that time. What can we look forward to? What additional projects might we see if this passes?
Pam Kehaly (Guest):
Right. So we all know Arizona is one of those states, lucky states that's growing. We have more people coming into Arizona than leaving, so we have to keep up with that volume. We have to keep up with that growth. If we don't, we end up like California. Some of the very specific projects that are planned when Prop 479 passes. We'll be doing the I-10 reliever freeway, continuing that build out. We will be completing a connector freeway to Pinal County.
Todd Sanders (Host):
Really necessary.
Pam Kehaly (Guest):
Very necessary, and then of course, we're so happy TSMC is here and has chosen Arizona as their headquarters, but they bring... that company brings a tremendous amount of employees and other companies with it, and so we have to keep up, make sure that we've got the roads to support that. So we'll be certainly building out that Loop 303 and I-17 to support that increased activity. Then, of course, there's just the maintenance. There's the potholes, and there's... making sure that we keep intersections that are busy safe and doing all the things that we need to do as we grow and as we utilize all these roads. They need maintenance.
Todd Sanders (Host):
Well, I'm glad you mentioned that. No, it's not sexy, but if you don't maintain these roads, you can have as many roads as you want or any kind of transportation mode. But if you're not maintaining it, it doesn't work, and I think you'll have friends come visit from other states, and they're always surprised at how great our roads are. I think that's really important part of this work. Clearly, the Greater Phoenix Chamber, the Arizona Chamber, a lot of our friends in the Chamber world have signed on to support this, but you built a pretty broad coalition. Can you talk about some of the other supporters that are a part of this?
Pam Kehaly (Guest):
It's pretty astounding how in this day and age where it's really hard to get bipartisan agreement on anything, we've got complete bipartisan agreement on this. Every mayor in Maricopa County, all 27 of them support this effort. They don't disagree on it. Every one of them does.
Todd Sanders (Host):
Hard to imagine.
Pam Kehaly (Guest):
It's like historic to see that kind of agreement. The tribal leaders support the effort. Business organizations, large and small, hands down, support this because of the issues that we talked about. They want employees to be able to get to work. They want their customers to be able to get to their facilities. The labor unions support it. AARP supports it because there's Dial-a-Ride that is a component of this, and that's very, very important in keeping our elderly population engaged, and able to get to doctors, and do things that are important to a life, a lifestyle. Public safety organizations certainly support this. Ability360 supports this. So there's just... across the board. I'm sure there's somebody out there that doesn't support this. I have not found them. I've talked to so many people about this, and hands down, it's just very... across the board support. So it's nice to see that.
Todd Sanders (Host):
It does feel like a unicorn to your point. We seem to be divided on everything, and this is one where... Yeah, you're right. There's obviously someone out there that doesn't support it, but they're not out there waving their arms, and there seems to be just support for moving our economy forward through transportation.
Pam Kehaly (Guest):
That's right.
Todd Sanders (Host):
So I guess when I think about this, I mentioned the fact that you have a pretty significant day job covering 2 million people in our state. Tell us a little bit about your leadership style. I mean, clearly, you see your calling clearly in healthcare, but you also have a broader calling, it seems, in the community space. I've been witness to a number of initiatives that require a lot of time and energy, you can't just put your name on it where you've raised your hand.
Pam Kehaly (Guest):
Yes.
Todd Sanders (Host):
Why?
Pam Kehaly (Guest):
Well, I am so blessed to be working for an organization where I can do good in the community through the organization and get a paycheck for that. It's a glorious thing, and it's a privilege. That is what drives me. That's what engages me. That's what really gets me passionate about life is the ability to utilize my position in my organization with Blue Cross Blue Shield of Arizona behind me. It's not all altruistic. Certainly, as we lift the community, that improves health across the board, and that's a good thing for everybody, for every single person. So that really drives my engagement.
In terms of my leadership style, I learned a long, long time ago that it's all about the people around you. I hire really, really smart people, and I don't have to... I'm not the smartest person in the room, and I don't need to be, but I hire people that really know how to run a business, and how to engage employees, and how to lead. That is very rewarding as well, to be able to work with people like that that are just so extraordinary.
Todd Sanders (Host):
I like that playbook. It does tend to succeed.
Pam Kehaly (Guest):
Yes.
Todd Sanders (Host):
Well, and you mentioned seven years. It does feel like just yesterday, but clearly, you understand The Valley and Arizona. What do you think are some of the biggest challenges and opportunities for us here in Arizona?
Pam Kehaly (Guest):
Well, I think the opportunity certainly is growth, and it's really exciting to see that happen every single year where you see more businesses move here than leave. You see more people move here than leave from here, and just to be part of that growth is exciting. With that growth comes responsibility. Certainly, this infrastructure. But we have to also keep up with other things like, for instance, energy, water, education. That's all really, really important things that we have to invest in here in Arizona. Those are all opportunities that we need to invest in to continue to keep our state vibrant and strong.
Todd Sanders (Host):
From a business perspective, to your point, I mean, obviously, businesses have an objective. What should be the role of business in looking at those challenges and creating opportunities?
Pam Kehaly (Guest):
I think businesses can be connectors and facilitators. I think that it's the role of business to support government and supporting the people of the state. We all have different roles, but the role of business isn't to lead that, but it's to facilitate that and support that, support the efforts that the state legislator, this legislature, the state politicians. They set the agenda, and we are here to support that. The other piece is just quality of life for people. Businesses are here to support the quality of life for the people that live here in Arizona.
Todd Sanders (Host):
You think that's why we see so many people, for instance, from California coming to Arizona?
Pam Kehaly (Guest):
Absolutely. I had other job opportunities to go to different states, and I did choose Arizona. I chose it for reasons that were different than actually what I experienced.
Todd Sanders (Host):
Really?
Pam Kehaly (Guest):
Yes. Certainly, I miss things like the ocean, but here in Arizona, I have been so enamored with the people, and the graciousness of the people that live here, and the welcoming nature. It was so easy to become part of the community because people just open up, and help you, and are there to help you integrate into society. So it's just such a wonderful experience moving here.
Todd Sanders (Host):
It's nice that you had expectations, and then they exceeded those expectations in terms of what you got.
Pam Kehaly (Guest):
Yes. Far exceeded.
Todd Sanders (Host):
I think it's also worth noting that there have been some challenges in your time here. Certainly, COVID hit. What were some of the biggest lessons you learned as a leader? I'm not talking from a healthcare perspective. As a leader when you had to navigate that.
Pam Kehaly (Guest):
It would have been really easy just to continue to do what we do, and we could have gotten by just doing what we do. We make sure that we pay the claims, and make sure people have access to medical care, and make sure that the quality of care that they receive is appropriate, and all those things that an insurance company does, but we pushed ourselves out of our comfort zone by supporting the vaccine sites, and we-
Todd Sanders (Host):
One of the first sites at the stadium. I know that.
Pam Kehaly (Guest):
I was there every day for weeks, and I just remember thinking, "I'm going to really either drive our company into the ground by doing this, or it's going to help people, and it will all be worth it," but it was way out of our comfort zone. We had hundreds of volunteers there every day, and these were people that worked at the company. They didn't know how to run a vaccine site, so I was just afraid. "Is this the right decision? Are we going to burn people out? Are we going to drive them away?" Everybody rose to the occasion, and it was a wonderful experience, but my lesson was you have to push yourself. You have to push yourself out of your comfort zone, and generally, it's worth it.
Todd Sanders (Host):
Well, it's interesting because to your point, you were having to have a battle on two fronts, and you did it anyway.
Pam Kehaly (Guest):
Yes, and I remember we would have daily meetings at my company, talk about the COVID site, and then talk about business. There were people that had to stay behind and run the business, and they were just so concerned that they couldn't keep the wheels on the bus while we had all these people volunteering at the COVID site. So it was a balance, but pushed the organization. I think it taught everybody that we can do well by doing good.
Todd Sanders (Host):
Absolutely. Do you think it made you a better leader?
Pam Kehaly (Guest):
Absolutely.
Todd Sanders (Host):
Yeah?
Pam Kehaly (Guest):
Absolutely. As I saw the potential in people, I saw people step up to levels that I never thought they could step up to. It was incredible to watch this growth.
Todd Sanders (Host):
Yeah. It was a real opportunity, I think, in spite of some incredible tragedy for people to lead.
Pam Kehaly (Guest):
Absolutely. Yeah.
Todd Sanders (Host):
Make a difference. Well, speaking of leadership and recognition, I noticed that you, our friend, Paul Luna, Christy Farley were granted honorary degrees at NAU. Is that correct?
Pam Kehaly (Guest):
That is correct. That is one of my biggest honors. I was so surprised and honored to get that reach out, and I had the opportunity to address the graduating class. I did the commencement speech, and I was so nervous.
Todd Sanders (Host):
I don't blame you.
Pam Kehaly (Guest):
I was so nervous. I had all these young kids that were just embarking on their wonderful new lives, looking at me like I had something really important to say, and it was really... It was something else. It was a huge honor, but I have never been more nervous in my life, and I speak all the time to large crowds.
Todd Sanders (Host):
Yeah. You do a lot of them.
Pam Kehaly (Guest):
This particular group was pretty special, but very nervous.
Todd Sanders (Host):
What was your message?
Pam Kehaly (Guest):
My message was cherishing your jelly beans.
Todd Sanders (Host):
You might need to go into that a little bit.
Pam Kehaly (Guest):
So when you're born, you're handed, basically... Imagine you're handed a jar of about 27,000 jelly beans, and every single day, you get to eat one of those jelly beans, and you can... Those 27,000 jelly beans represent the average lifespan, and so you just get one per day, and you never get them back. Once you use them, you never get them back, and so my message was how important it was to cherish every single one because the supply is not infinite, and don't be the type of person that wakes up Monday morning and says, "Oh my gosh, I can't wait till Friday. I just got to get through the work week," because you've effectively taken five jelly beans and just thrown them away.
Todd Sanders (Host):
They're gone.
Pam Kehaly (Guest):
They're gone.
Todd Sanders (Host):
I love that. I guarantee you they're going to remember that.
Pam Kehaly (Guest):
I hope so.
Todd Sanders (Host):
What a great unconventional speech that all of us can visualize.
Pam Kehaly (Guest):
Yes.
Todd Sanders (Host):
Right? Everybody gets it.
Pam Kehaly (Guest):
Yes.
Todd Sanders (Host):
You think about it. You're right. You're never getting that back, so every day is important.
Pam Kehaly (Guest):
Absolutely. Right.
Todd Sanders (Host):
Well, as we think about 479, wrapping things up, where can our listeners go to learn more about 479 and have a good sense for what are the current funding priorities, what are the future priorities, and maybe even how they can contribute or get involved?
Pam Kehaly (Guest):
We have a wonderful website that outlines all of that information, and you can go to connect-maricopa.com, and you can see how to... if you want to contribute, if you want to engage, if you want to learn what the plan is. There's Q&As out there. It's a very good site.
Todd Sanders (Host):
Excellent, and we'll make sure we put a link in the video as well and encourage all of you to... If you're voting early, please vote for this initiative or certainly if you're going to the polls like I am. I love to do that. Make sure you do. Make sure you check. Go all the way to the end of the ballot because it's going to be a long one, and make sure that you check 479. Well, thank you for joining us. Really appreciate you taking the time, but also for your leadership on 479 and so many other issues important to our business community. We're going to end with a quick lightning round. Trust me, it's easy. It's not like the commencement address. So we'll start with, what was your first job and first... It doesn't need to be professional. First job?
Pam Kehaly (Guest):
I cleaned houses.
Todd Sanders (Host):
Did you?
Pam Kehaly (Guest):
Yes.
Todd Sanders (Host):
What did you learn?
Pam Kehaly (Guest):
I learned that I don't like to clean houses, but I was probably just 13 years old, and I created flyers and sent them around.
Todd Sanders (Host):
Did you? You started early.
Pam Kehaly (Guest):
So I cleaned other people's houses. I think I just learned the value of hard work that if you want to do anything, you've got to work hard at it. You've got to just apply yourself and do your best. So I cleaned those bathrooms So good. I cleaned those kitchens so good.
Todd Sanders (Host):
Good for you.
Pam Kehaly (Guest):
I felt proud every time I locked up.
Todd Sanders (Host):
13?
Pam Kehaly (Guest):
Yeah.
Todd Sanders (Host):
It reminds you that there's dignity in all work.
Pam Kehaly (Guest):
Absolutely. I felt so proud when I would walk into a house that was messy, I would walk out of it, it was all clean. I felt very proud, so.
Todd Sanders (Host):
I like that. All right. So then, let's turn to first concert. What was your first concert?
Pam Kehaly (Guest):
First concert? Oh my goodness. It was, oh, Jackson Browne.
Todd Sanders (Host):
Oh, excellent. That's a good one.
Pam Kehaly (Guest):
Yes. How could I forget that? Jackson Browne. Running on Empty.
Todd Sanders (Host):
Excellent. That was the right answer, so good job there. What's one of your hidden talents? Obviously, horseback riding is one of them. What's another hidden talent?
Pam Kehaly (Guest):
I can roll my tongue.
Todd Sanders (Host):
Can you? Like it's in Spanish, roll your Rs?
Pam Kehaly (Guest):
No, no, like roll it.
Todd Sanders (Host):
Oh, really? Can you? That is genetic, but that's a hard thing to do. Excellent. See? Then, last one. What's your first car? Probably because you were working at 13.
Pam Kehaly (Guest):
A red Mustang.
Todd Sanders (Host):
Perfect.
Pam Kehaly (Guest):
Yes.
Todd Sanders (Host):
In California?
Pam Kehaly (Guest):
In California.
Todd Sanders (Host):
Wow.
Pam Kehaly (Guest):
I thought I was it. I thought I was the it girl.
Todd Sanders (Host):
I mean, I think you kind of were at that point.
Pam Kehaly (Guest):
Yeah.
Todd Sanders (Host):
Yeah. You had everything going on. Well, thank you.
Pam Kehaly (Guest):
Thank you so much.
Todd Sanders (Host):
Really appreciate it. Appreciate the time, and we'll look forward to having you again. Maybe we can chat about healthcare at some other time.
Pam Kehaly (Guest):
That would be fabulous. It's so nice to see you.
Todd Sanders (Host):
You as well. Thank you.
Pam Kehaly (Guest):
Thank you.