CHICAGO--(Huron Healthcare briefing entitled “Can Standalone Cancer Centers Survive?” The viability of standalone cancer centers is being threatened by reform and economic pressures. Given current market constraints, hospitals are restructuring their delivery models to keep cancer patients within their health systems. As a result, standalone cancer centers are facing more competition for patients in tandem with declining reimbursement.)--Huron Consulting Group today issued a
“As challenging as it may seem, standalone cancer centers may have to reconsider how standalone they can afford to be in the context of the post-healthcare reform ecosystem.”
“To continue to perform at a high level, cancer centers will need to implement comprehensive performance improvement initiatives to ensure cost competitiveness,” said Dr. Andy Ziskind, managing director and Clinical solutions leader, Huron Healthcare. “As challenging as it may seem, standalone cancer centers may have to reconsider how standalone they can afford to be in the context of the post-healthcare reform ecosystem.”
Cancer centers need to address fundamental cost structures to continue to be successful. The approach must be comprehensive, and will require implementing sustainable performance improvement in the following areas:
- Reducing bad debt payments from 70% to 25%. Estimated savings: $20 billion over 10 years
- Optimizing the effectiveness of the workforce through comprehensive labor initiatives
- Smoothing demand to ensure most efficient use of specialized treatment areas
- Ensuring that all front to back-end revenue cycle processes are functioning at peak performance
- Optimizing patient flow to reduce length of stay and enhance the efficiency of ambulatory operations; as well as reducing care variation
“Implementing comprehensive performance improvement solutions can cushion declining reimbursement by lowering a cancer center’s overall cost structure to create time for leadership teams to build additional local market strategies,” says Dr. Ziskind.
The bottom line is that cancer centers are experiencing, and will continue to experience, challenges to their current business model. It is also unlikely that cancer centers’ sustained period of high patient volumes and high margins will continue in this time of uncertainty. As a result, organizations that are proactive, progressive, and adaptable will best be able to position themselves for success in the future.
To view the full briefing visit: http://www.huronconsultinggroup.com/Insights/Perspective/Healthcare/Can%20Standalone%20Cancer%20Centers%20Survive.aspx
In January, Huron Healthcare will release the next edition of the CEO Forum report. The report shares insights from hospital, health system and academic medical center CEOs about issues facing the healthcare industry. Read the 2012 CEO Forum report and learn more at: http://www.healthcareceoforum.com/
If you are interested in speaking with Dr. Andy Ziskind or another one of Huron Healthcare’s experts on standalone cancer centers or other issues impacting hospitals, health systems or academic medical centers, please contact:
Jennifer Frost Hennagir
About Huron Healthcare
Huron Healthcare partners with clients to provide comprehensive performance improvement solutions that improve quality, increase revenue, reduce expenses, and increase physician, patient, and employee satisfaction across the healthcare enterprise. Clients include national and regional integrated healthcare systems, leading academic medical centers, community hospitals and physician practices. Modern Healthcare ranked Huron Healthcare third on its 2011 list of the top 20 largest healthcare management consulting firms. Learn more at www.huronconsultinggroup.com/healthcare or follow us on Twitter: @Huron.
About Huron Consulting Group
Huron Consulting Group helps clients in diverse industries improve performance, comply with complex regulations, reduce costs, recover from distress, leverage technology, and stimulate growth. The Company teams with its clients to deliver sustainable and measurable results. Huron provides services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, Fortune 500 companies, leading academic institutions, medium-sized businesses, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.