The agreement marks DuPage Medical’s first out-of-state expansion since its launch in 1999.
Bringing together groups of physicians in suburban Chicago, DuPage Medical has amassed a local power over the years with 800 physicians and net revenues of $ 1 billion. But pressure is growing on groups of independent doctors as hospital chains, health insurers and national retailers enter their business.
The addition of nearly 170 South Bend clinics to 11 clinics – located near the Michiana border – allows DuPage Medical to expand while remaining independent.
The weather will not surprise industry observers. Many doctors have seen that revenues decreased so rapidly in the COVID-19 pandemic that patients avoided treatment for fear of infection. DuPage Medical’s model provides practitioners struggling with the opportunity to remain independent by taking advantage of reimbursement rates, technology, and data capabilities of a larger organization.
It is unclear whether South Bend’s responsible care organization, which manages about 7,000 Medicare beneficiaries, is part of the agreement. But the advancement of “value-based care” is one of the goals included in DuPage Medical’s statement this week.
“This first agreement of its kind will allow us to serve more patients and communities and respond to their needs by providing the most progressive care possible,” Steve Nelson, CEO of DuPage Medical, said in the statement.
Kelly Macken-Marble continues her role as CEO of South Bend, in addition to serving as regional CEO in the Chicago suburbs, with a focus on additional growth opportunities, the statement says.
Los Angeles-based Ares Management invested $ 1 billion in DuPage Medical in 2017.