Duluth’s New Direct Primary Care Clinics Open Up

DULUTH — Two new clinics have recently launched, contributing to the growing direct primary care sector in the Northland area. In April, Dr. Nyasha Spears and Dr. Kristin Lusian established Amity Creek Primary Care at 5931 E. Superior St., following a lawsuit that contested a noncompete clause with Aspirus St. Luke’s.

Just last month, Dr. Jay Joseph Allen opened Palisade Direct Primary Care at 1118 E. Superior St. The arrival of these Duluth businesses adds to a roster of 24 other direct primary care providers throughout Minnesota. This private healthcare model has seen notable growth over the past decade, with Hint Health’s 2026 Direct Primary Care Trends Report revealing that employer-funded memberships now account for 60% of active memberships, up from 21% in 2017.

“Going to medical school was one thing, but starting my own practice—well, that felt a bit like a leap into the unknown,” Allen mentioned during a recent “Small Seeds for Growth” business panel at the Clyde Iron Works event center. “But, to my relief, direct primary care is really gaining traction across the country. So, I found plenty of amazing doctors eager to lend a hand.”

Allen highlighted how rising healthcare costs, driven by insurance companies focused on maximizing profits, have made traditional healthcare increasingly burdensome for patients. “With premiums skyrocketing—projected to rise by another 15-20% this year—it just seems unsustainable,” he remarked.

After starting his career as a family physician with obstetrics at Essentia Health-Lakewalk Clinic in 2020, Allen began to notice a troubling trend. “Patients kept telling me they couldn’t return for follow-ups because their insurance didn’t cover their visits—at least not until they reached their high deductibles.” He recalled similar frustrations about necessary labs, feeling that the ongoing increase in costs and changes to Medicaid would only exacerbate issues of affordability and accessibility.

“It was shocking to realize that some labs could cost as little as $3!” Allen expressed. “That was really the turning point for me.” He invested around $30,000 to get the clinic started, secured a home equity line of credit as a backup, and received support from the Duluth 1200 Fund.

However, the path to opening has been anything but smooth. Just two weeks before the grand opening, there was a fire at his clinic, which was initially located in a building shared with Uncle Loui’s Cafe. After a brief stint at Lakewalk Surgery Center, they moved to another temporary location before finally settling into an old chiropractic clinic.

“The reality is, a typical family doctor is expected to handle around 2,000 to 3,000 patients. That’s why visits tend to feel rushed and doctors can feel overwhelmed,” Allen explained.

With direct primary care, the model shifts to a flat monthly membership fee paid directly to the doctor. This structure allows for more personalized care, longer consultations, and eliminates many of the constraints posed by insurance. “Without the pressure of a packed schedule, I can dedicate more time to truly educating my patients and empowering them to make informed healthcare choices,” Allen noted.

He plans to restrict his practice to a maximum of 500 memberships, aiming to maintain the same income as before, without overloading himself. “I’m not looking to continuously add patients,” he clarified.

Yet, this model leaves some gaps, particularly in rural areas where provider availability is limited. Additionally, it doesn’t replace traditional insurance, meaning patients still must pay standard premiums for specialist visits, surgeries, and emergencies. Some might even find that regulations regarding Health Savings Accounts complicate the tax-free nature of membership fees.

Interestingly, Allen shared that around half of Palisade DPC patients are currently uninsured. “I also want to provide my services as a benefit for employees at small businesses. Too many are losing staff to larger companies that offer better healthcare options,” he reflected.