Value-Based Care News Digest - September 2020

September 11, 2020

Evolent Health rounds up recent value-based care news spanning policy, research, innovations, payers and providers. This month’s update covers developments in July and August.  

 

Top Trending Themes

1. After a successful IPO, Oak Street Health continues its market expansion, launching its first retail partnership with Walmart.

  • Oak Street went public Aug. 6 with a $328 million public offering. It exceeded its initial filing of $15-17 per share, as shares began trading at $21 and jumped to $40 by the end of the day. While Oak Street is a leader in a large addressable market of $325 billion and 27 million Medicare beneficiaries, the company has yet to be profitable, with an accumulated deficit of $369 million. "Our economic model is all about investing in our patients' care and investing in our communities," said CEO Mike Pykosz. "When you're growing at the rate we are and you're making those investments, it can lead to operating loss. But when we look at the economic potential of the model, we really try to look at 'What are our more mature centers doing? What is the care model and the impact on the patients who have been with us longer?' to get a sense of where we're going."
  • Oak Street has partnered with Walmart to open three clinics in Walmart supercenters in the Dallas-Fort Worth area. The clinics will offer preventive primary care and urgent care services, with extended hours for walk-ins and same-day appointments. Oak Street's clinics will replace Walmart's own care clinics at three Texas stores in Arlington, Benbrook and Carrollton. This partnership is a deviation from both companies’ clinic strategies up to this point:
    • To date, Oak Street has focused on caring for Medicare and dual-eligible patients in its 60 primary care clinics under value-based payment models. At its Walmart clinics, Oak Street will accept all types of patients (including children) as well as fee-for-service payment.
    • Last year, Walmart announced its ‘health superstore’ strategy, under which it launched large, wholly owned clinics in Georgia and Arkansas, with other clinics soon to launch in Florida and Illinois. The partnership with Oak Street strays from this ownership model, an interesting development given that Texas has more Walmart stores than any other state.

2. New market entrants Alphabet and Amazon are focusing on their strengths—providing new technology and analytics-based solutions—while relying on partners for non-core expertise to launch new products.  

3. OneOncology, a national partnership of independent oncology practices, is poised for growth after securing additional provider and research partnerships to drive advancements in community oncology. 

  • A new partnership with Los Angeles Cancer Network (LACN) adds 18 providers and more than 2,500 lives to the OneOncology platform. With the addition, OneOncology has more than 470 providers caring for about 220,000 patients across the U.S.
  • OneOncology also entered a research partnership with Foundation Medicine to provide precision medicine and genomic profiling to member practices’ oncology patients. Through their research collaboration, the two “will focus on accelerating molecular insights and patient care through the use of clinico-genomic datasets,” a press release stated. OneOncology will use its patient data to advance research and address gaps in knowledge about cancer treatments. The partners also will work together on clinical trial designs.

Industry News

Primary Care

Pediatrics

Specialty Care Management

Home Health

Health Systems


Government & Regulatory

CMS


Evolent In The News


Evolent Partner News

  • Dr. Lori Sieboldt, medical director of population health with Evolent ACO partners at Deaconess Care Integration, was named on the Modern Healthcare Top 25 Innovators list. Sieboldt is tackling gaps in care for vulnerable populations, addressing social determinants of health, and helping Deaconess consistently rank among the top-performing Next Generation ACOs.

Survey Says/Studies Show


People On The Move

 

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