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Analysis

How Oak Street Health Retains 97% of Its Patients

By Philip Betbeze  
   October 19, 2017

HLM: What’s your vision of full deployment?

Pykosz: We had to have conviction that the model was sustainable and replicable. We knew what we wanted to build.

We learned a lot on the way because with a small number of patients you couldn’t take full risk. So we pretended we were in a value-based world when we were in fee-for-service.

We lost a lot of money on the way, but it got us to a place where we had a lot of conviction we would be successful in a risk model. When we did, we got paid differently and the financials looked a lot better but the care model didn’t change.

We could put up hundreds of these but we struggle with what’s the proper pace, because the need is so high. We won’t have imaging or surgery centers. There are plenty of those around. Going to Philly is a big step from the Midwest. It puts us in the national conversation. The model works.

Philip Betbeze is the senior leadership editor at HealthLeaders.


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