CLEVELAND, Ohio — A national network of senior-focused health clinics, ArchWell Health, is expanding into Greater Cleveland with a business model centered on preventive care.
The company profits by keeping its Medicare Advantage patients healthy and out of the hospital. These are the 4 takeaways from the original article, written by healthcare reporter Julie Washington.
1. The business model flips traditional healthcare incentives
ArchWell Health operates on a “value-based care” model, a significant departure from the common “fee-for-service” system. The company receives a set amount of reimbursement money from Medicare Advantage based on the anticipated number of hospitalizations for its patient pool. If ArchWell successfully keeps more patients out of the hospital than projected through preventive care, it retains the leftover funds.
As Dr. Don Goddard, the company’s national director of primary care, stated, “You don’t do well in this business, unless your patients are doing well.”
This model financially incentivizes the provider to focus on proactive health management and positive patient outcomes rather than the volume of services rendered.
2. Patient care is holistic
The clinics are designed to be more like community centers than traditional doctor’s offices, offering social activities like bingo, karaoke, and movies to combat loneliness and build strong patient-provider relationships.
This approach emphasizes addressing social determinants of health, such as access to healthy food and transportation. With a low patient-to-doctor ratio, office visits can last from 20 to 60 minutes, far exceeding the national average of 18 minutes. Care teams include social workers and case managers who coordinate specialist visits and conduct follow-ups within three days of any hospital discharge to ensure continuity of care.
3. ArchWell is rapidly expanding in Northeast Ohio
The primary care network is making a significant entry into the Greater Cleveland market, targeting areas with a growing elderly population and a shortage of primary care physicians.
The company opened its first locations in September and October in Parma, Brook Park, Eastlake, and Maple Heights.
A Westlake facility was set to open this week, with four more planned for Cleveland Heights, Euclid, and Cleveland’s Lorain Avenue and Kinsman Road.
To facilitate this rapid growth, ArchWell is repurposing six former retail locations, including Rite Aid, CVS, and Save-A-Lot stores, transforming them into modern healthcare facilities.
4. The model targets a specific, high-need demographic
ArchWell Health exclusively enrolls patients aged 60 and over who are on Medicare Advantage plans.
The goal is to manage chronic diseases, reduce emergency room visits, and prevent hospitalizations, which in turn improves the patients’ quality of life and drives the company’s financial success.
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