Carrum Health, the leader in value-based Centers of Excellence (COE) for specialty care, has officially announced a major expansion of its network to over 1,000 locations, something which now places 90% of Americans within 50 miles of a Carrum COE.
According to certain reports, the company also took this opportunity to extend its specialty care offerings across new categories that collectively cover 40% of employer medical spend.
More on that would reveal how Carrum’s network expansion milestone was achieved with a differentiated approach revolving around the company’s C.A.R.E. model.
Talk about this C.A.R.E model on a slightly deeper level, we begin from the fact that it is curated for the top 10% quality. You see, Carrum is understood to have the most rigorous quality standards in the COE market, standards that are applied at both the facility and physician level.
Next up, we must dig into its Appropriateness first mindset. The stated mindset refers to Carrum uniquely incentivizing providers to focus on the most appropriate treatment plan instead of the most profitable one.
Another detail worth a mention is rooted in the presence of Risk-bearing providers, as Carrum is the only COE solution to incentivize providers by tying payments to outcomes across surgery, cancer care and substance use treatments.
Joining that would be the prospect of End-to-end transparency. In essence, Carrum shares all provider network and pricing with employers upfront, meaning there is no uncertainty about who is in the network or surprise charges.
Contextualizing the importance of such a move are the rising healthcare costs, with another 8% increase in the same expected to materialize this year. In fact, specialty care now accounts for roughly half of employer healthcare spend. The reality in question has caused almost 50% of employers to rely upon Centers of Excellence during 2025 for controlling costs and improving outcomes.
75% of these employers are also planning to adopt COEs within two years itself.
“The employers that Business Group on Health surveyed have expressed strong concerns about the upward trajectory of healthcare costs and become increasingly discerning in seeking solutions that curb costs while improving outcomes,” said Ellen Kelsay, President and CEO of Business Group on Health. “Many have recognized Centers of Excellence as one of the optimal tools in the toolkit to deliver tangible impact. Carrum Health’s investment to significantly expand access to its COE network is a timely development that will help employers bring high-quality care to even more of their members while meaningfully decreasing spend.”
Talk about what areas Carrum’s newly expanded services cover, they include Gastroenterology, where the company contributes towards essential screening procedures like colonoscopies and endoscopies. The next area would be of General Surgery, which expands from bariatric surgery to now include abdominal surgeries, such as hernia repairs, gall bladder removal, and non-emergency appendectomies.
Then, there is Gynecology. This one packs together gynecological surgeries, such as hysterectomies, fertility-preserving procedures, and pelvic floor reconstruction. Carrum also focuses on pain management by preaching preventive care and conservative treatments to minimize the need for invasive interventions.
Among other areas, we have Urology, where the company offers advanced care tailored to the unique needs of men and women. Rounding up highlights would be ENT surgeries that see Carrum addressing issues like deviated septum, sinus conditions, tonsillectomies, and ruptured eardrums.
Founded in 2014, Carrum’s rise up the ranks stems from offering a value-based Centers of Excellence (COE) solution that connects their members with a rigorously vetted network of specialty care providers. The company’s excellence can also be validated on the back of its ability to reduce unnecessary procedures by as much as 30%, lower readmissions by 80%, and save employers up to 45% per episode of surgical care.
“Employers are looking for comprehensive solutions built around their members’ needs, that offer the full spectrum of high-quality specialty care under one umbrella, be it highly complex multidisciplinary care or simple procedures,” said Christoph Dankert, Chief Network Officer of Carrum Health. “By pioneering the COE model in novel specialties like Cancer and Substance Use Disorders, we have integrated high-quality local access with the top 10% of nationally recognized Centers of Excellence.”
