Oak Street Health, an 8-year old startup that soared during its market debut last week, is looking to rebuild health care.
The Chicago company has created a health care model that focuses on low-income seniors, said Oak Street CEO Mike Pykosz. It seeks to minimize overall costs by keeping people as healthy as possible, matching the amount of care people receive to what they need. .
In 2018, nearly two-thirds of Medicare spending, or $455 billion, went to hospitalization, while primary care received only 3%, according to an Oak Street regulatory filing. Oak Street, which provides care for 85,000 people, is altering that ratio by seeing its most ill patients more often. It gets monthly payments for each person it looks after, rather than being paid for each patient visit or service.
The system stands in contrast with typical fee-for-service physicians , who see patients of various ages, and often spend relatively little time with each one. producing suboptimal care, Pykosz said.
Oak Street (ticker: OSH) is looking to change that model. The company’s 57 primary-care centers cater to one group—elderly patients on Medicare. Oak Street employs about 2,300 people, including 260 primary-care providers. The company’s specialty care teams, including primary-care physicians or nurse practitioners, meet daily or weekly to discuss client treatment plans. Patient care includes face-to-face visits, telehealth visits, remote patient monitoring and in-home care.
Some Oak Street locations have pharmacies, behavioral-health specialists and podiatrists. The startup also provides vans that will transport patients, free of charge, from their home to the center. “We spend a ton of time with our patients,” Pykosz told Barron’s.
In 2018, nearly two-thirds of Medicare spending, or $455 billion, went to hospitalization, while primary care received only 3%, according to an Oak Street regulatory filing. Oak Street, which provides care for 85,000 people, is altering that ratio by seeing its most ill patients more often.
Oak Street’s healthiest customers will visit an Oak Street Center roughly four times a year, while the sickest will come roughly every two to three weeks, said CFO Tim Cook. This concentration has helped Oak Street reduce hospitalizations by 50%, Pykosz said. “We are less focused on how frequently we see a patient and more focused on what’s right for the patient,” he said.
Instead of charging patients each time they visit a center, Oak Street receives a monthly payment from Medicare Advantage plans to cover treatment, he said. “We practice preventative primary care,” Pykosz said.
Oak Street is not profitable. The company reported revenue of $201.8 million for the quarter ended March 31, compared with $117.4 million for that period in 2019. Net losses attributable to the company were $15 million as of March 31, up from roughly $10 million a year earlier.
Healthcare companies that provide alternative delivery have done well in the IPO market. 1Life Healthcare (ONEM) went public in January and has since gained 110%, while Teladoc Health’s (TDOC) stock has risen 131% year to date. Oak Street went public Thursday after raising $328 million. Its shares surged 86% and closed at $39.03. The stock on Friday shed more than 3%, but surged almost 13% on Monday to close at $44.
The company plans to use proceeds from the IPO to pay off $80 million of debt and to expand, Cook said. Oak Street is now in nine states, with a new center in Texas, as well as operations in Illinois, Indiana, Michigan, North Carolina, Ohio, Pennsylvania, Rhode Island and Tennessee. It plans to be in New York and Mississippi by the end of 2020, Cook said.
“We’re thrilled with the outcome,” Pykosz said. “This is a milestone along a much longer journey. We believe in the care we delivered yesterday and are looking to bring the same care tomorrow. We are in the early innings.”
"care" - Google News
August 11, 2020 at 05:00PM
https://ift.tt/3ixSolc
Oak Street Health Just Went Public. It’s Trying to Fix Health Care. - Barron's
"care" - Google News
https://ift.tt/2N6arSB
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Oak Street Health Just Went Public. It’s Trying to Fix Health Care. - Barron's"
Post a Comment