Ochsner Health and Novant Health plan to build clinics across the Southeast that will provide wellness programs, primary health care, and social services for older adults.
The partnership between the two nonprofit health systems, named 65 Plus, will also provide social events, fitness centers and wellness coaching to encourage older adults to stay more active as they age. grow old. The venture is the latest attempt by providers and payers to capture the lucrative healthcare market for older adults, including the baby boomer generation.
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Novant Health CEO Carl Armato said the partnership will help the two health systems improve care for older patients with more complex conditions as providers move. to value-based care.
“We hear about how long it sometimes takes for some patients with these complex diseases to get treatment,” says Armato. .”
The New Orleans-based Ochsner Health initiative expansion partnership began in May 2022 to build and operate 65 Plus clinics in Louisiana and Florida. It operates three clinics in Covington, Louisiana, Baton Rouge, Louisiana, and Pensacola, Florida. The Pensacola Clinic will become the first location to be co-branded.
Locations for other clinics have not been determined. Ochsner and Winston-Salem, North Carolina-based Novant will split the costs to build them, but did not disclose financial details of the joint venture. 65 Plus will operate separately from the hospital system.
Morningstar healthcare analyst Julie Utterback said the 65 Plus business model would align with Medicare Advantage plans that encourage patients to access preventive health services as well as primary care services.
According to the most recent data from the United States Census Bureau, there are about 56 million Americans aged 65 or older. These numbers are expected to grow to around 80 million by 2040. As a result, a number of elderly-focused healthcare businesses have begun to operate in recent years.
Oak Street Health launched in 2012 and provides value-based primary care to Medicare beneficiaries at approximately 170 locations in 21 states. CVS Health completed a $10.6 billion acquisition of the Chicago-based company in May.
Humana operates 250 value-based primary care clinics for older adults in dozens of states under the CenterWell brand. The company started operations in 2020. The company announced late last year that it would open between 30 and 50 clinics a year through 2025 in the form of a $1.2 billion joint venture with the company. private equity firm Welsh, Carson, Anderson and Stowe.
Tech-enabled startup Homeward Health launched in March 2022 with a $22 million investment from private equity firm General Catalyst. Homeward Health partners with private insurers to provide primary care at home and through mobile clinics to rural Medicare beneficiaries in Michigan and Minnesota.
