Is Cleveland Clinic’s direct-to-employer program working?

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Cleveland Clinic launched its Centers of Excellence program in 2010 with big goals of revolutionizing value-based care for large employers nationwide.

The health system made a splash with its plan for direct-to-employer contracts and large national partners agreeing to send employees to Cleveland for nonemergent heart care. The health system introduced its Musculoskeletal Center of Excellence and Bariatric Center of Excellence in 2022 and then the Cancer Center of Excellence earlier this year.

With focused centers staffed by clinical teams to achieve top results, the health system hoped to bend the quality and cost curve for partners.

“Our offerings are designed not only to improve access to high quality care but also to offer tailored benefits solutions designed to boost employee retention and satisfaction,” said Wesley Wolfe, vice president of network payment strategies at Cleveland Clinic.

The concept is great – especially now as many healthcare organizations are seeing margins tighten and employers are looking for more affordable solutions. But did it work?

Fifteen years later, the health system’s 2,000 employer partners think so. Cleveland Clinic now cares for 16 million employees and dependents from all states nationwide through the program, and since inception, the program has delivered 60,000 patient encounters.

Cleveland Clinic reported the following outcomes on Oct. 15:

  • $55 million in total savings
  • $25 million savings through surgical avoidance
  • 30% cost savings for employers with bundled pricing and travel programs
  • 24% reduction in avoidable readmissions
  • 96 Net Promoter Score

“Our solutions have grown and adapted alongside the changing needs of employers,” Meghan Cassidy, senior director of sales and product development for network payment strategies at Cleveland Clinic, said in a news release. “We believe the future will be shaped by AI-powered predictive care, enhanced value-based payment models with performance guarantees and greater transparency and accountability to help employers navigate rising healthcare costs.”

Cleveland Clinic’s Employer Solutions program includes virtual second opinions and clinical reviews, so patients can connect with the experts before traveling for care. This couldn’t come at a better time, as healthcare premiums are expected to rocket 18% next year, according to The Commonwealth Fund, and overall costs continue increasing 5.8% per year through 2033, according to Health Affairs.

“Looking ahead, we are poised to continue driving positive change in healthcare delivery,” Mr. Wolfe said.

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