Radio Advisory 271: Inside Ochsner Health's strategy for successful VBC
Oct 14, 2025
In this discussion, Eric Gallagher, CEO of Ochsner Health Network, and Dr. Beau Raymond, CMO, dive into their innovative approaches to value-based care. They reveal how Ochsner has successfully managed around 600,000 value-based lives while achieving significant cost savings, including $44M from CMS. Highlights include their strategy for chronic disease management, the importance of transparent payer-provider partnerships, and plans to harness AI for case management optimization. Their focus on care redesign and prevention sets a new standard in healthcare quality.
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High Performance In A Challenging Market
- Ochsner achieved meaningful cost savings and high quality despite operating in low-ranking health states with a 70% government payer mix.
- Their Medicare ACO ranked in the top 11% nationally while the CIN drove $56M savings in 2024 alone.
Prioritize Contracts And Conditions
- Be contract-selective and condition-focused when scaling value-based care to concentrate resources on where transformation is feasible.
- Apply unified care management playbooks across payers so all eligible patients receive high-value pathways.
Redesign Entire Care Journeys
- Redesign care end-to-end for target conditions, from prevention to end-of-life conversations.
- Standardize order sets and care pathways so every patient reliably receives guideline-concordant care.