FOR IMMEDIATE RELEASE: CARRUM HEALTH NAMES NORTHERN LIGHT A CENTER OF EXCELLENCE FOR ORTHOPEDIC AND BARIATRIC SURGERIES
March 1, 2020

Northern Light Mercy Hospital in Portland and Northern Light Eastern Maine Medical Center (EMMC )have been designated as “Centers of Excellence” for bariatric and orthopedic surgical procedures by Carrum Health, a health company focused on bundled payments and concierge surgeries based in San Francisco. 
 
Centers of Excellence, a concept pioneered by large employers like Walmart and GE, are a growing trend in employer-based healthcare strategy. Companies like Carrum Health identify facilities and surgeons that achieve superior outcomes for patients, and they incentivize patients to utilize those facilities. In Carrum Health’s program, which won top prize in Harvard University and Harvard Medical School’s 2017 Health Acceleration Challenge, services are paid for under “bundled” contracts, that is, a flat fee that includes all services associated with a given episode of care. For a knee replacement, for instance, the price of the surgery would include any pre- and post-op care, as well as the surgeon, anesthesiologist, facility fees, and any durable medical equipment used. These services also come with warranties to protect employers against costs associated with avoidable readmissions, which often carry a higher price tag than the initial surgery.
 
The cost and quality of healthcare services, especially in Maine, are a significant driving force behind employer healthcare strategy. According to an analysis of 160,000 commercially-insured lives in Maine conducted by the Healthcare Purchaser Alliance of Maine, the cost of  hip and knee replacements can vary by 615% in the state. This variation is not correlated to the quality of the procedure, and it exists not only from facility to facility, but within a single hospital depending on the individual surgeon delivering the care. Carrum Health provides employers with consistent, transparent pricing which is over 30 percent below the state fee-for-service average for some procedures.
 
“Controlling rising healthcare costs and ensuring that patients receive care from the highest quality providers are top priorities for our employer members,” notes Peter Hayes, CEO of the Healthcare Purchaser Alliance. “Not only does Carrum Health help to ensure that patients get top quality care at a predictable, affordable cost, but their program helps to transform our healthcare system. Bundled payments and warranties create the right incentives for providers to focus on achieving the best outcomes for patients.”
 
In December, Carrum Health announced that the Jackson Laboratory and the State of Maine Employee health plan are leveraging their platform through a partnership with the Healthcare Purchaser Alliance of Maine. Through the Carrum/HPA partnership, employers can offer employees, early retirees and their dependents Carrum Health’s award-winning technology platform to find the best providers and bundled payments for over 90 surgical procedures. Those members will now have access to Nothern Light Mercy and Northern Light EMMC. 
 
“When the State of Maine partnered with Carrum Health last year, it was looking to disrupt the northeast healthcare industry and become a leader in value-based care,” said Kurt Caswell, Executive Director of the Maine State Employee Health Commission. “By teaming up with Carrum to offer services at our hospitals, it’s happening now.”