PYA has released a white paper, “An Overview of Oncology Services and Related Valuation Considerations,” to help cancer care providers considering engaging in alignment strategies with other organizations to understand the complex compliance and valuation considerations of such alignments.
As cancer diagnoses are expected to grow to 2.8 million in the U.S. by 2030, hospitals, health systems, and medical centers treating cancer patients are facing declining reimbursement rates, rising operating and capital costs, and significant shortages of oncologists and clinical staff. To mitigate these challenges and deliver quality care more sustainably, many provider networks are aligning, and the industry is seeing an increase in acquisitions, joint ventures, professional services agreements, management services agreements, and co-branded partnerships.
Oncology business transactions are complex and must address many compliance implications and valuation considerations. To help cancer care providers facing these alignment issues, the white paper
- Discusses current trends and challenges in oncology care delivery;
- Highlights the role of oncology providers and partnership models; and
- Offers guidance on appropriate methodologies and key considerations for performing oncology business valuations.
The paper provides a thorough review of the oncology industry, including the factors impacting revenue: sites of care, capital costs, treatment types, and reimbursement landscape. It addresses the primary reasons organizations engage in alignment transactions and discusses the impact on compliance.
Importantly, the PYA white paper also leads providers through valuation considerations as they apply to medical oncology and radiation oncology, using three well-established approaches: market approach, cost approach, and income approach.
For more than 40 years, PYA has served the healthcare industry with expertise in valuation, regulatory compliance, strategy, and operations. The PYA team helps healthcare providers operate sustainably to continue to provide essential care to their patients. For assistance with business transactions, contact our executives.
