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Page 1: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA
Page 2: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Annual Cancer Center Business Summit Industry Survey 2010

Ron Barkley, M.S., J.D. US Oncology

Teri U. Guidi, MBA, FAAMA The Oncology Business Institute

With special thanks to Jodi Brunner, Eric Howe

and Chuck Morales of Meetings and Incentives for their survey instrument design and compilations

Page 3: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Annual Cancer Center Business Summit Industry Survey 2010

Hypothesis: health reform is leading to increased activity among cancer care providers to affiliate, consolidate, integrate. 2010 Survey explored:

• Employment and professional service contracts;

• Sites of service (physician practice or hospital-based);

• Facilities and equipment relationships;

• Staffing & management relationships;

• Information technology (IT) and EMR relationships;

• Forms of clinical integration and associated compensation.

Page 4: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Respondent Profile

Collaborate Go it Alone

Practices 16 16

Community Hospitals 35 9

Academics 1 2

Other 3 4

SubTotal 55 31

Grand Total 86

64% 36%

Page 5: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Does Size Matter?

1

9

13

9

0

2

4

6

8

10

12

14

>25 Physicians 13-25

Physicians

2-5 Physicians 6-12

Physicians

Practice Size

3 3

7

18

0

2

4

6

8

10

12

14

16

18

<100 beds >400 beds 100-250 beds 251-400 beds

Hospital Size

Page 6: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Going it Alone

• A substantially larger proportion of practices intend to “go it alone”

Going it Alone

Practices

52%Hospitals

29%

AMCs

6%

Other

13%

Page 7: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Reasons to Go it Alone

9

3

8

11

0

2

4

6

8

10

12

Already

Dominate

Bigger is not

Better

No Partners Other

Reasons

Reasons to Go it Alone

Page 8: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Collaborators Collaborators

Practices

29%

Hospitals

64%

AMCs

2%

Other

5%

• A larger proportion of hospitals report seeking collaborations than practices

Page 9: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Oncologists Seeking Management and Physician Affiliations

Oncologists seek management company

Actively Pursuing

11%

Exploring

28%

Current Status

6%

Not Exploring/NA

55%

Oncologists seek affiliation with other physiciansCurrent Status

11%Actively Pursuing

11%

Exploring

21%

Not Exploring/NA

57%

• Over half are not considering affiliation with management companies or with other physicians

Page 10: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Oncologists Seeking Hospital Affiliations

• Over 70% are currently or actively pursuing affiliation but more than half are not considering employment

Oncologists seek affiliation with hospital/AMC

Current Status

26%

Exploring

16%

Not Exploring/NA

16%

Actively Pursuing

42%

Oncologists seek employment by hospital/AMCCurrent Status

12%

Exploring

24%

Actively Pursuing

12%

Not Exploring/NA

52%

Page 11: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Who is Billing Infusions?

• Over 2/3 report infusion services in the hospital (with or without the Professional Services) while fewer than half now provide infusion in the office.

Chemo in HOPD +/- in Office

Exploring

15%

Not Exploring/NA

19%

Actively Pursuing

2%Current Status

64%

Chemo in Office

Actively Pursuing

0%

Current Status

44%

Exploring

2%

Not Exploring/NA

54%

Page 12: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Who is Billing for Radiation?

• Radiation therapy is provided as a hospital service nearly 3 times as often as it is in a free-standing center

RT in HOPD +/- Professional Fees

Exploring

2%

Not Exploring/NA

25%

Current Status

71%

Actively Pursuing

2%

RT Freestanding, not HOPD

Exploring

6%

Not Exploring/NA

67%

Current Status

27%Actively Pursuing

0%

Page 13: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Space and Equipment

• Few joint investments yet but larger proportions lease space or equipment

16%

8%4%

15%

6%

31%

43%

9% 8%

0%

10%

20%

30%

40%

50%

Practice leases

equipment to/from

hospital

Shared ownership/equity

joint venture

Practice leases space

to/from hospital

Space/Equipment Structure Current Status

Actively Pursuing

Exploring

Page 14: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Staffing and Management

• Hospitals provide staff to or manage practices in larger proportions than the inverse

37%

6%

13%15%

6%8%

35%

6%

12%

20%

2%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Hospital provides

staff to practice

Practice provides

staff to hospital

Hospital manages

practice

Practice manages

HOPD

Staffing and Management Current Status

Actively Pursuing

Exploring

Page 15: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Professional Services Agreements

• Many have oncology medical directorships while employment and PSAs exist in nearly identical numbers

69%

2%

13%

31%

6%

16%

29%

10%

20%

0%

10%

20%

30%

40%

50%

60%

70%

Oncologists serve as

medical director

Hospital employs

oncologists

Oncologists provide

professional services

(PSA)

Physician and Professional Services Current Status

Actively Pursuing

Exploring

Page 16: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Information Technology

• Scheduling, PACS, etc.

47%

6%8%

42%

8%4%

48%

2% 2%

0%

10%

20%

30%

40%

50%

Mix of practice and hospital's

other IT

Using hospital's other IT Using practice's other IT

Other IT Systems UseCurrent Status

Actively Pursuing

Exploring

Page 17: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Electronic Medical Records

• Oncology-specific EMRs are clearly becoming the norm

20%

0%

6%

31%

2%

8%

30%

17%

8%

36%

14%

2%0%

10%

20%

30%

40%

Using hospital's non-

oncology EMR

Mix of practice and

hospital EMR

Using hospital's

oncology EMR

Using practice's

oncology EMR

EMR UseCurrent Status

Actively Pursuing

Exploring

Page 18: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Multidisciplinary Clinics • Over 80% have or are exploring multi-disciplinary clinics

• Only 44% compensate or are exploring compensation

22%

8%

12%

8%

39%

27% 27%

57%

0%

10%

20%

30%

40%

50%

60%

Current Status Actively Pursuing Exploring Not Exploring/NA

Multidisciplinary Clinics

Multi-disciplinary Clinics in Use

Compensation for Participation

Page 19: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Pathways and Guidelines

• Pathways/Guidelines and measuring adherence are of high interest

• Compensation is however rarely on the radar screen

46%

33%

4%

18%22%

14%

24%24%20%

12%

22%

63%

0%

10%

20%

30%

40%

50%

60%

70%

Current Status Actively Pursuing Exploring Not Exploring/NA

Pathways

Oncology Clinical Pathways in Use

Oncology Pathways Measured/Enforced

Compensation for Adherence

Page 20: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Measuring Results

• Outcomes and satisfaction measurement is high while compensation is rarely under consideration

54%

71%

10% 10%

4%6%

18%14%

29%

18%

12%

55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Current Status Actively Pursuing Exploring Not Exploring/NA

Outcome Measures

Clinical Outcomes Measured

Patient Satisfaction Outcomes Measured

Compensation for Outcomes

Page 21: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

2010 Summit Survey Observations

• 2/3 of respondents were seeking collaboration versus 1/3 intending to “go it alone;”

• Going it alone because: already dominant; bigger not better; no available partners; reason unspecified;

• Larger proportion of hospitals than physicians seeking collaboration;

• Decline in physician office as site of infusion services;

• Representative sampling of business relationships involving facilities, equipment, staff, IT/EMR;

• Clinical integration (mult-D; pathways; outcomes measures). But little in way of compensation.

Page 22: Annual Cancer Center Business Summit Industry Survey 2010ccbdgroup.com/survey2010.pdf · Summit Industry Survey 2010 Ron Barkley, M.S., J.D. US Oncology Teri U. Guidi, MBA, FAAMA

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Thank You