Healthcare is rapidly consolidating. In 2022, just 44% of physicians owned their practice — likely due to rising operational costs and other financial barriers — and the loss of physician autonomy has been felt across the industry.
Orthopaedic Solutions Management (OSM), a physician-led musculoskeletal services platform, is bucking the trend. In partnership with MD Healthcare Partners, OSM empowers its 150-plus physicians across Florida and South Georgia to deliver high-quality care while preserving private practice.
Becker's ASC Review spoke with Charles Davis, managing partner at MD Healthcare Partners, to learn more about the OSM partnership and how it's driving desired outcomes in care access, physician growth and value-based care.
Editor's note: Responses have been edited for length and clarity.
Question: Tell us about OSM's platform — how has it grown in the last year?
Charles Davis: OSM is one of the largest and fastest-growing musculoskeletal service providers in the country with national recognition for clinical excellence. We offer a differentiated partnership model that drives an enhanced value proposition for the entire continuum of care.
Last year brought exceptional growth for OSM. We added more than 50 new physicians through de novo expansion in several key markets and our partnership with Tallahassee (Fla.) Orthopedic Clinic last May. We also expanded several initiatives with new and existing health systems and payers, focused on increased patient access in a cost-effective manner.
Q: How does MD Healthcare Partners' private investment model benefit surgeons? How is it different from private equity?
CD: MD Healthcare Partners was established to create a more flexible investment option for providers looking for a growth partner without the guardrails that typically come with private equity. We generally make minority investments, allowing physicians to be the greatest beneficiaries of their growth, and have a limited engagement model that allows for an unmatched level of support from our team.
Q: Where do you see value-based care headed? What opportunities are there for VBC in orthopedics?
CD: Value-based care is a concept that is so overly — and ineffectively — used. The goal of lowering the cost of care through a risk-bearing model that creates a financial incentive for providers isn't a novel concept. The challenge lies in how outcomes are measured, which is totally different when applied to chronic care versus episodic care. Refining those measures will likely be a major focus in the years to come.
In the simplest form, musculoskeletal care has proven to be one of the most successful specialties in value-based models, primarily driven by site-of-service differential and higher utilization of conservative treatment options like physical therapy. OSM has been at the forefront of this in Florida and has value-based contracts with most payers. This opportunity continues to expand for orthopedic surgeons, as they now have the ability to perform higher-acuity procedures like total joint replacements in ASCs.
Q: What's on the horizon for OSM?
CD: This is going to be an exciting year for OSM. We are rolling out several new initiatives, including proprietary software solutions that will drive enhanced efficiency for our care teams. Additionally, we are increasing patient access to ancillary services in various markets and have multiple new partnerships in the works.