NOVO Health: Bundling prices for savings

Posted on Jun 1, 2016 :: Innovation
Posted by , Insight on Business Staff Writer

One of the great health care challenges of the day is to find ways to reduce skyrocketing medical costs faced by employers. NOVO Health has addressed the issue by bringing together independent physician groups who combined their expertise to devise a comprehensive, consumer-driven plan that saves employers significant dollars while empowering employees to take ownership of their health care.

“NOVO is delivering the best health care outcomes, and best patient experience at the best price by returning control back to where it should be: in the hands of the physicians, employers and employees,” said one of our judges.

Based in Appleton with 12 employees, NOVO Health represents board-certified, independent physicians offering specialty health care solutions to businesses and organizations. Representing the Orthopedic & Sports Institute of the Fox Valley, Neuroscience Group, NeuroSpine Center of Wisconsin, and Fox Valley Hematology & Oncology, NOVO Health combines proven business strategies with leading-edge medical innovations to advance workforce health while dramatically reducing the medical spending of self-insured companies.

Savings are realized by price bundling an entire episode of care, from surgery to rehabilitation a fixed price (quoted in advance) for a multitude of procedures.

Further, quality metrics from the NOVO groups reveal much lower complication rates compared to state and national figures.

These innovations have helped NOVO grow sales, reduce expenses and increase NOVO’s customer base.

Presently, 22 local companies are directly contracted with the groups for price bundled services and 14 are taking advantage of onsite services.

Neenah Foundry, for example, contracted for onsite physical therapy services for its 1,000- plus employees, saving nearly $400,000 through avoidance of Workers’ Compensation claims in 2015. NOVO is saving self-insured companies an average of 30 percent per year for the specialist services it provides.

Additionally, NOVO is designed to replicate its model nationwide.

By removing waste and variation from processes, developing expertise around protocols and managing medical operations that result in low complication rates, costs are controlled. Combined with a retail experience for the patient one that surveys indicate is over 95 percent patient recommended you have the kind of disruptive innovation that can define an industry.