Visits to oncologists up, but profit per patient is on the decline
Published on Cancer Network (http://www.cancernetwork.com)
Visits to oncologists up, but profit per patient is on the decline
October 01, 2008
SAN FRANCISCO—New patient visits to oncologists increased by 22% over the past 3 years;
however, oncologists’ average profit per patient fell by 91%. These were among the key findings of
Onmark’s 2008 “Office-Based Oncology Benchmarking Survey,” which measures m operational and
financial benchmarks among community-based oncology practices.
SAN FRANCISCO—New patient visits to oncologists increased by 22% over the past 3 years; however,
oncologists’ average profit per patient fell by 91%. These were among the key findings of Onmark’s
2008 “Office-Based Oncology Benchmarking Survey,” which measures m operational and financial
benchmarks among community-based oncology practices.
Survey results indicated that between 2005 and 2007, the average number of oncologists per
practice increased by 48% (from 2.9 to 4.3). Meanwhile, there was a 22% increase in the average
number of new patient visits per oncologist (from 300 to 388) and a 29% increase in the average
number of established patient visits (from 3,481 to 5,139).
Revenue per oncologist per patient varied over the survey years, averaging $4,464 in 2005, $5,250
in 2006, and $4,082 in 2007. However, the average profit per oncologist per patient decreased
steadily, from $937 to $654 to $89—amounting to a 91% drop over the 3-year period.
Survey results also indicated that the percentage of oncologists’ total payor revenue accounted for
by Medicare Advantage plans rose from 2% to 20% over the 3-year period, while the percentage
collected from traditional Medicare fee-for-service programs fell by 16%. Drug costs accounted for
61% of a practice’s budget in 2005 but 79% in 2007; the percentage made up by costs for “other”
items fell from 26% to 6%.
“In 2005, the entire industry had to come to terms with a significant decrease in the reimbursement
for drugs administered in oncology clinics,” said Onmark vice president and general manager Mike
Cunningham, PharmD, in a press statement. “This change required oncologists to adjust the way
they traditionally conducted business and re-evaluate what financial success meant. As our survey
shows, even 3 years later, we are still seeing the effects these changes have had on the industry.”
Source URL: http://www.cancernetwork.com/articles/visits-oncologists-profit-patient-decline
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