Oncology practice trends from the national practice benchmark.

Area of Science:

• Oncology practice management
• Health services research
• Healthcare economics

Background:

• Community oncology practices are essential for cancer care delivery.
• Financial sustainability of these practices is a growing concern.
• Previous analyses predicted significant decreases in operating margins.

Purpose of the Study:

• To revise predictions on the financial viability of community oncology practices using 2011 National Practice Benchmark (NPB) data.
• To project financial trends for the next three years.
• To outline a conceptual framework for analyzing the oncology delivery system.

Main Methods:

• Analysis of National Practice Benchmark (NPB) data from 2005-2011.
• Revision of previous financial predictions based on new data.
• Projection of future financial trends and business structure changes.

Main Results:

• 2011 NPB data confirm a predicted decrease in operating margins for community oncology practices.
• The rate of margin reduction is now forecast to be slower than previously anticipated.
• Practices report increased belief in impending changes, yet most remain confident in their current business structures.

Conclusions:

• The financial outlook for community oncology practices appears less severe than in prior years.
• Slower margin reductions provide an opportunity for practices to adapt and invest.
• Continued adaptation of business models is crucial for long-term survival amidst evolving payment methodologies.