Valley Oaks Medical Group’s strategy in healthcare
Less than two years from the inception of Valley Oaks Medical Group, the company has tactically acquired nine primary care and six specialty clinics in key healthcare markets such as Nevada, Texas, South Carolina and Connecticut. The company’s strategy is to target clinics in geographies that are favorable to the retirement population, which in turn provides access to a high number of Medicare patients.
Guru Charan, Founder and CEO, said, “We believe that the diverse communities Valley Oaks serves have been systematically underserved due to a lack of accessibility to quality healthcare services. We are building the scale, delivery infrastructure, and care management systems to provide industry-leading services to a large patient population.”
Organizationally, the group is split into two divisions — primary care and specialty care facilities. The primary care division focuses on the value-based model and is central to the company’s vision of comprehensive care coordination. The model is well suited to the implementation of preventive care and disease management, which is critical in removing redundancies and reducing costs within the network. While most healthcare organizations focus on reactive care, managing symptoms once they appear, Valley Oaks believes in preemptive care, preventing illness and disease states before they occur. Care is provided through several different mediums, including face-to-face visits, telehealth visits, remote patient monitoring, and in-home care.
As the number of facilities grows, Valley Oaks increases the number of providers serving the populations to keep the average number of patients per care team low, which ensures optimal care quality and patient experience. The care teams are trained to address the whole person across medical, social and behavioral elements in a welcoming and hospitable manner. Focusing on providing preventive care to patients reduces instances of expensive emergency care and hospitalization, which lowers the overall cost of care in the healthcare system.
Dr. Rajesh Sonani, President of Valley Oaks, stated, “As we deliver on keeping our patients healthier, we capture the cost savings, driving our profitability. This leads to optimized patient care, easier access to scheduling, and less administrative burden for a patient.” The value-based model in the primary care division has consistently demonstrated outstanding clinical results, reduced costs and delivered an industry-leading patient experience.
The specialty division is currently comprised of rheumatology, neurology, infectious disease and wound care specialties. Each department was selectively acquired in response to a specific demand of the senior population in the local markets where they are located. Through technology-enabled treatment, the Valley Oaks physicians effectively manage and treat chronic conditions. The providers’ personalized and innovative approach effectively manages patient illnesses and improves health outcomes.
The specialty division incorporated infusion centers as a faster, more effective relief for various conditions. In 2020, the U.S. infusion market totaled $100 billion in spend, with 28% of that generated in outpatient clinics. Infusion therapy continues to be one of the most prominent treatment methods for illnesses. Valley Oaks physicians are utilizing the infusions for proactive patient care. To assist with some of the costly drugs for the infusions, Valley Oaks obtained approval for a 340B program, which allows them to purchase outpatient medication at a significantly discounted price. The saved money supports community healthcare costs and benefits individual patient lives with better access to otherwise expensive drugs. The specialty division is critical to easing accessibility to healthcare networks in the respective communities Valley Oaks treats.
The two divisions function separately but are strategically connected in the senior care ecosystem. The primary care facilities oversee a value-based model in conjunction with referring to specialty physicians in their own network. The patient care journey is enhanced by the collaboration of these two divisions of care. Valley Oaks Medical Group targets the growing population of Medicare patients for an all-encompassing medical experience by strategically offering a range of services. Their presence has been noticed in the healthcare community as their strategy is one for acknowledgment. The company plans to continue its meteoric growth by expanding to more states and seeking to acquire more facilities that align with its vision.