Marathon Health Expands Value-Based Primary Care Network, Reports Cost Savings One Year Post-Merger

Marathon Health, the Indianapolis-based value-based primary care provider, has significantly expanded its footprint and integrated its technology platform in the year following its merger with Everside Health. CEO Jeff Wells reports that the company now controls approximately 25% of the advanced primary care market and has achieved substantial cost savings for patients compared to traditional healthcare delivery models.

Expansion and Integration

Since the merger, Marathon Health has grown its network from 680 health centers to more than 750, adding approximately 100 new locations across 41 states. The company has focused on strengthening its presence in key geographical areas, including Indiana, Ohio, the Carolinas, Florida, Colorado, and New Jersey.

In addition to physical expansion, Marathon Health has successfully transitioned its health centers onto a single technology platform called Ignite. This integration process has been crucial for streamlining operations and improving care delivery.

Cost Savings and Value-Based Care Model

According to Wells, Marathon Health patients are experiencing total costs of care that are 25% to 30% lower than those in traditional healthcare settings. This aligns with the company's initial projections of 25% cost savings for employer-sponsored health plans and unions.

Wells attributes these savings to several factors:

1. Addressing market inefficiencies in healthcare pricing
2. Reducing unnecessary healthcare utilization, which he estimates at around 30%
3. Implementing a primary care model that focuses on lifestyle improvements and better management of chronic conditions

The value-based reimbursement model employed by Marathon Health incentivizes prevention of illness rather than volume-based care, which Wells believes is a key differentiator from fee-for-service health systems.

Challenges and Future Outlook

As Marathon Health continues to grow, it faces challenges common to the primary care industry. Wells identifies provider burnout as a significant concern, particularly related to technology use and administrative burdens. To address this, the company conducts regular pulse surveys and maintains open dialogues with its clinical teams.

Looking ahead, Wells sees the broader primary care field as "dying" under the current fee-for-service reimbursement environment. He positions Marathon Health's advanced primary care model as a solution to this problem, offering an attractive alternative for clinical talent seeking a more patient-centered approach to healthcare delivery.

With approximately 70% of primary care still being delivered in person, Marathon Health is balancing its core in-person care model with an increased offering of remote and virtual care options, which have seen a 300% increase compared to pre-pandemic levels.

As the healthcare landscape continues to evolve, Marathon Health appears poised to capitalize on the growing demand for value-based primary care services, leveraging its expanded network and integrated technology platform to drive further growth and innovation in the sector.