Overview

Oncology Solutions was engaged by three historically competitive cancer care entities, including two community hospitals and one large private practice provider of radiation therapy services. The parties began initial discussions to explore whether the community might be better served through consolidation and elimination of unnecessary, expensive services. Over the previous two years, all three providers had come under immense pressure to rationalize the existence of nine linear accelerators in a 30-mile radius, and each party recognized the value of assessing the viability of this model in a value-based ecosystem. For these reasons, the parties jointly engaged Oncology Solutions to be a facilitator and mediator for the transaction and to guide all parties towards common agreement on a quality-focused, cost-effective care delivery model for the region.

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The project involved an initial phase of discovery and joint-exploration of the universe of joint-venture options available to the parties. Oncology Solutions worked with the groups to decide upon a specific business structure and then worked closely with valuation firms to ensure the transaction met all criteria for commercial reasonableness and market value. After 14 months of negotiation and planning, the joint cancer care service went live with a consolidated radiation therapy operation across all nine sites. The group has successfully rationalized the locations to create a superior service and are positioned for ongoing success in a value-based environment.

Project

Multi-Hospital/Physician Joint Venture

Client

Two Community Hospitals and a Radiation Therapy Services Provider

What We Did

Facilitation. Financial Modeling. Business Structure.

Collaboration often trumps

perpetuated competition

in a value-based system

Alignment occasionally involves the merging of entire cancer businesses, between hospitals or between hospitals and practices. Our vast experience with a range of business models produces sustainable programs focused on economics of scale, clinical efficiency, and market superiority. Contact our team to learn more about how to put together business relationships that will endure.