A new network of primary care providers for adults on Medicare to open in Columbia

Oak Street Health is expanding to South Carolina in Columbia, Greenville and Spartanburg in early 2021.

The medical primary care network treats adults on Medicare and is already established in 11 other states, according to a news release from the company this week.

In August, Oak Street Health became a publicly traded company after raising $328 million, according to a Barron’s report. The Chicago-based startup has a unique business model that requires patients to pay a monthly fee for services, rather than pay per visit.

The idea behind this is that Oak Street Health will keep patients healthier and minimize hospitalization costs in the end. In 2018, about $455 billion or two-thirds of Medicare spending went to hospitals, compared to 3% of spending that went to primary care, according to an Oak Street regulatory filing.

For around $12,000 a year per patient, Oak Street Health will offer in-person or telehealth visits, a 24/7 patient support line, individualized, preventive care plans, access to transportation to and from the center for eligible patients, behavioral health care, social health support and Medicare education classes.

All of these services are meant to help older adults “meet their unique needs in one convenient location,” the news release said.

The company said its primary care offices have driven about a 51% reduction in patient hospital admissions compared to Medicare benchmarks, a 42% reduction in 30-day readmission rates and a 51% reduction in emergency department visits.

Oak Street Health maintains a Net Promoter Score of 90 on an index of -100 to 100 among its patients, meaning most patients recommend its services.

The company was founded in 2012 and currently operates more than 70 centers across Illinois, Michigan, Ohio, Pennsylvania, Texas, Indiana, North Carolina, Rhode Island, Tennessee, New York and Mississippi. The news release announced Oak Street Health’s move into Louisiana and South Carolina. The company did not identify specific locations it plans to open in Columbia, Greenville and Spartanburg.

Oak Street Health stock hit its highest price since debuting on Thursday at approximately $56. This came after Chief Financial Officer Timothy Cook sold 100,000 shares Monday at $46 a share, reported by Yahoo Finance.

This story was originally published December 10, 2020 at 12:25 PM.