UH, ValueHealth team up on surgical centers

Partnership aims to ‘enhance patient outcomes, reduce costs for care’

University Hospitals and ValueHealth, a technology-enabled, data-driven health care services company headquartered in Leawood, Kansas, recently announced a joint venture poised to create a highvalue network of state-ofthe art ambulatory surgical centers.

According to UH, the network will expand its geographic footprint in Northern Ohio for surgical care, focusing initially on orthopedic surgery and targeting hip and knee replacement.

The facilities will be multi-specialty and may include clinical services such as otolaryngology (ears, nose and throat), pain management, urology, general surgery, and cardiac care.

Additionally, the new entity formed by the venture aims to explore opportunities to leverage existing UH facilities to accelerate speed to market in creating the centers, which will augment UH’s continuity of care in communities that currently have limited surgical services.

Officials noted the partnership taps into ValueHealth’s expertise and reputation for “developing demand matching surgical networks, including its nationally recognized brand for hyper-specialty joint and spine surgery centers.”

Complementing its “operational expertise,” ValueHealth has developed a digital surgical technology platform that helps manage risk-sharing and bundled payment programs.

According to the company, with surgical spending a top cost driver for many payors and selffunded employers, the hyper-specialty centers of excellence can enhance the quality of care provided while reducing costs associated with the traditional fee-for-service model.

“We are pleased to join with UH i n expanding value-based care options for the Northeast Ohio community,” said ValueHealth Executive Chairman John Palumbo.

“UH is well known for providing the highest quality, advanced care while continuously i nnovating care models for the benefit of patients and payors.

With the partnership, UH joins more than 30 health systems currently integrated into ValueHealth’s payor-led digital surgical network.

ValueHealth’s technology includes patient management, payor bundles and warranty contracts, as well as its nationally recognized Ambulatory Centers of Excellence program.

“Health care consumers are insisting on greater value and we’re committed to delivering,” said UH President Dr. Cliff A. Megerian, who added that the system has been on a journey over the past several years to reduce variation in care while enhancing service experience, improving quality and reducing cost.

“We have demonstrated success with national bundled payment and travel surgery programs built around centers of excellence in areas such as joint replacement and bariatric surgery,” he said.

“Recently released results from 2019 showcase UH achieving the highest value performance in the state of Ohio with the lowest total annual cost of care for Medicare beneficiaries under an Accountable Care Organization.

“ValueHealth’s established relationships with employer consultants and national payors will augment UH’s ability to design win-win bundled payment contracts, bringing our world-renowned surgical expertise to more consumers in a value-focused model,” Megerian added.

ValueHealth President Don Bisbee said industry estimates project that approximately 50 percent of joint replacement surgeries will be performed in highly specialized outpatient surgery centers by 2025.

“By working together, we’re equipping employers and insurance companies with ways to increase the availability of high-quality, cost-effective health care for their employees and member patients, providing predictable and affordable rates,” he said.

“We’re thr illed UH shares our vision for valuebased care.”