Purdue University chooses Franciscan Health as provider for high-quality, affordable, cost-transparent hip and knee replacement services

WEST LAFAYETTE, Ind. — Purdue University, in its ongoing efforts to improve quality of care, manage premiums and counter the exorbitant cost of medical procedures in Indiana, has announced that Franciscan Health is now the provider of choice for two of the fastest-growing and expensive medical procedures in the U.S. — hip and knee joint replacements.

 Hip and knee replacements account for 25% of the musculoskeletal expenses for Purdue and its employees, in great part due to the high cost of health care in Indiana, which ranks among the highest in the country, according to the RAND report. Data analysis of Purdue claims shows knee replacement costs ranged from $21,000 to $67,000, and even more startling is the claims data for hip replacements, with prices ranging from $19,000 to $91,000.

“Too often health care providers have concealed prices and stifled competition,” said Christopher Ruhl, chief financial officer and treasurer at Purdue. “The University is committed to reversing this practice, making health care easier to understand, more transparent and less expensive.”

Following an extensive study of costs at Indiana providers, Purdue determined that the University and its employees have been paying far too much and, in many cases, receiving inferior quality care. In 2019, Purdue issued a request for proposal and evaluated responses from several joint replacement providers in Indiana based on access to high-quality, evidence-based total hip and knee replacement services and outcomes, price transparency, convenience and overall cost. 

Franciscan emerged as the clear choice for the Center of Excellence, providing nationally recognized high-quality care, transparent pricing and a substantial reduction in costs. Franciscan Health Mooresville is ranked as the No. 1 hospital in Indiana for Medical Excellence in Joint Replacement and is ranked in the top 10% in the nation for Joint Replacement by CareChex.  Franciscan Health Mooresville is home to the internationally known Center for Hip & Knee Surgery.  The hospital network also has a Carmel location for joint replacement.

 “For more than 30 years, Franciscan Health Mooresville has performed around 2,500 joint replacements each year, caring for patients from all over the Midwest, the nation and the world.  We have instructed hundreds of surgeons in the latest techniques and methods for joint implants,” said James Callaghan, president and CEO of Franciscan Health Central Indiana. 

“Quality of care is paramount when making decisions on where to go and whom to trust with our health care needs,” said Bill Bell, vice president for human resources at Purdue. “With Franciscan, the University can mandate quality performance guarantees, ensure lower incidents of readmission after surgery, decrease the rate of infections and speed return to function, allowing us to take care of our people and provide them with the best outlook for quality of life after joint replacement.”

As part of the new provider agreement, Purdue will provide additional financial assistance for all individuals covered on a Purdue health plan who have hip or knee replacements at Franciscan Health’s Mooresville or Carmel location.  The University will arrange and fund travel and overnight accommodations for the member and a guest for surgery. Additionally, members will receive a cash payment of $500 once the replacement is completed. More information is available here.

“Purdue’s goal is to build a health care model that provides the highest quality of care, makes health care less complicated and more transparent, while controlling costs for our employees, their families and the University,” said Mitch Daniels, Purdue University president. “We will continue to move in the direction of improving quality while lowering costs. This model is the first of many more to come as the University works directly with health care providers to address Indiana’s unacceptable ranking as one of the highest in the nation for per capita health care costs.”

Terry Wilson, president and CEO of Franciscan Health Western Indiana, said, “This is an exciting partnership that we have forged with Purdue University and a wonderful opportunity to provide its employees with the top-notch care they deserve. We established a solid relationship with the University in 2018 when Dr. Carly Day, a member of Franciscan Physician Network, was selected Purdue Sports Medicine team physician. In that role, she and her team oversee all aspects of medical care for more than 500 Purdue athletes.

Franciscan Health has provided comprehensive medical services across the state of Indiana for over 100 years and is already a trusted partner with the University, providing sports medicine coverage to its athletic program.

About Purdue University

Purdue University is a top public research institution developing practical solutions to today’s toughest challenges. Ranked the No. 6 Most Innovative University in the United States by U.S. News & World Report, Purdue delivers world-changing research and out-of-this-world discovery. Committed to hands-on and online, real-world learning, Purdue offers a transformative education to all. Committed to affordability and accessibility, Purdue has frozen tuition and most fees at 2012-13 levels, enabling more students than ever to graduate debt-free. See how Purdue never stops in the persistent pursuit of the next giant leap at purdue.edu.

Media contact: Jim Bush, jsbush@purdue.edu 

Sources: Chris Ruhl, Bill Bell, Mitch Daniels