Planning Case Study · 2020. 5. 20. · Mealor has facilitated multidisciplinary tumor site teams...
Transcript of Planning Case Study · 2020. 5. 20. · Mealor has facilitated multidisciplinary tumor site teams...
On the vanguard of thought. The future of healthcare requires nothing less.On the vanguard of thought. The future of healthcare requires nothing less.Reimagining Cancer Care
Planning Case Study
Barbara Ann Karmanos Cancer InstituteMcLaren Health Care
Detroit, Michigan
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Planning for partnership & cancer care success
Planning For Partnership & Cancer Care Success
In 2012, Dr. Gerold Bepler, CEO of the Barbara Ann Karmanos
Cancer Institute (Karmanos), began a search for a strategic
partner for the NCI-designated cancer center. Dr. Bepler
recognized the traditional fee for service reimbursement
landscape was passing away and that positioning Karmanos
for success would require thinking creatively about strategic
partnerships, organizational efficiencies and mechanisms to
reach a much larger clinical population.
Picking A Partner For The Future Of Cancer Care Delivery And Research
As part of this exploration, Oncology Solutions was engaged
to facilitate joint strategic discussions between Karmanos
and McLaren Health Care. Oncology Solutions had assisted
McLaren over a span of 20 years with strategic and facility
planning engagements, including establishing the cancer
tertiary cancer center in Flint, MI, and launching the Great Lakes Cancer Institute for system-wide oncology integration.
With this history, Oncology Solutions had a good sense of market dynamics and the key strategic issues that would need to
be resolved to form a meaningful partnership between the two entities. Both Karmanos and McLaren brought significant
interest and momentum into developing a sustainable model for the future. As McLaren and Karmanos began their strategic
exploration, the two parties agreed on guiding principles to govern the acquisition – including developing a superior value-
based cancer delivery network and protecting the funding for Karmanos’ 700 cancer research programs. Oncology Solutions
provided intensive analytic support and facilitated a series of joint planning discussions to address each parties’ goals – both
shared and divergent – to arrive at a model that could preserve their triple mission of clinical care, research and education.
The Barbara Ann Karmanos Cancer Institute is one of only 49
National Cancer Institute-designated comprehensive cancer
centers in the United States.
Oncology Solutions was jointly engaged by Karmanos Cancer
Institute and McLaren Health Care as they planned strategically
for their integrated delivery model.
Barbara Ann Karmanos Cancer Institute
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Planning for partnership & cancer care success
Integral to this process was the development of detailed financials supporting the long term financial sustainability of the
project and a determination as to whether each party secured a “return” on the investment in each other’s primary interest,
i.e., clinical care and research.
Market OpportunityMarket analytics and disease-
level cancer projections to
assess community need and
organizational opportunity.
Return on InvestmentDetailed five-year pro forma
financials and business case
outlining the impact of the
proposed strategic partnership.
Organizational ArchitectureConversion of strategy into
a binding letter of intent for
McLaren’s eventual acquisition
of Karmanos.
“I have had the privilege of working with the exceptional team at Oncology Solutions for the past five years and have seen first-hand their unprecedented level of passion, commitment and expertise when serving their clients while improving patient care delivery.”
Justin Klamerus, MD, MMM
Now, President, Cancer Hospital and Network Previous, President McLaren Cancer Institute
“By joining forces with McLaren, this agreement strengthens our ability to provide exceptional cancer care and furthers our commitment to cancer research and exceptional care across the state of Michigan.”
Joint planning and model development led to the successful signing of a letter of intent (LOI) between
Karmanos and McLaren in 2014. Broadly, this enabled the parties to achieve the following:
1. Integration of Karmanos’ clinical expertise into one of Michigan’s largest health networks.
2. Delivery of scale to both organizations as McLaren sought quaternary expertise and Karmanos extended
its clinical and research programs across the 10-hospital health system.
3. Preservation of financial vitality and growth in Karmanos’ robust research portfolio.
4. Extension of superior quality and access to clinical trials across McLaren’s six million person service area.
5. Provider compact to establish principles of professional practice for all members of the larger Institute.
6. Adoption of service line governance across the Karmanos network.
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Planning for partnership & cancer care success
The LOI was successfully developed into formal merger agreements and the two institutions are now fully
integrated in their delivery of cancer care and research. Collectively, the Karmanos Cancer Institute touches
~12,000 new cancer patients each year and continues to lead the way in advancing value-based care in the
state of Michigan.
As an extension of the planning and transactional work, Oncology Solutions continued its role as advisor for
Karmanos in a variety of capacities between 2014 and present. This included establishing an organizational
architecture to optimally align clinical and research activities, a full-scale clinical research program assessment
and a business planning effort for the expansion of the clinical trials office as well as exploration of additional
strategic affiliations.
References for Oncology Solutions’ work with Karmanos Cancer Institute:
Justin Klamerus, MD
President, Cancer Hospital & Network
Barbara Ann Karmanos Cancer Institute
Philip Incarnati
President & CEO
McLaren Health Care
Gerold Bepler, MD, PhD
President & CEO
Karmanos Cancer Institute
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Planning for partnership & cancer care success
About the Authors
Richard B. Taylor, PhD
Director
Chartis Oncology Solutions
404.836.2000
Richard Taylor is a Director with the Chartis Group in the
Oncology Solutions practice. He brings more than 44 years of
experience in providing strategic direction to cancer programs across
the country. Mr. Taylor helps healthcare organizations solve their most
challenging business needs, including strategic planning, mergers
and acquisitions, business transformation, physician integration,
and system-wide cancer program implementation. He has also had
an influential role in shaping notable milestones in the evolution of
cancer care. As an advisor to the National Institutes of Health, Mr.
Taylor was instrumental in designing the evaluation criteria for the
NCI Comprehensive Cancer Centers Program, and co-founded the
Association of Community Cancer Centers.
Rhonda S. Mealor
Director and Practice Leader
Chartis Oncology Solutions
404.836.2000
Rhonda Mealor is a Director with the Chartis Group and Practice
Leader for the Oncology Solutions practice. She offers more than
30 years of experience assisting healthcare organizations with the
alignment of current operations and strategic goals to improve
performance and achieve long-term growth. She has helped many
organizations reduce costs, improve resource utilization, enhance
the patient and physician experience, and provide more efficient,
coordinated care through the development of multidisciplinary, tumor-
specific programming. Ms. Mealor has facilitated multidisciplinary
tumor site teams for more than 60 clients and has facilitated more than
750 meetings helping to implement best practice, improve resource
utilization and provide more efficient care.
v
Kelley D. Simpson, MBA
Director
Chartis Oncology Solutions
404.277.6567
Kelley Simpson is a Director with the Chartis Group in the Oncology
Solutions practice. Ms. Simpson has a passion for helping hospitals and
physicians drive transformative cancer care delivery. Her strategic,
analytical, and operational skills and organizational experience
enable her to be a catalyst for change with physician enterprise and
ambulatory networks. Hospital and oncology executives, faculty
practice plan, and medical staff trust Ms. Simpson to work alongside
their care teams to enhance oncology service line performance. Her
27 years of experience with the full range of challenges facing
community hospitals/health systems and NCI/academic centers
allows her to identify high-impact opportunities while mitigating
the tendency to problem-solve isolated issues that may not lead to
sustainable practices.
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Planning for partnership & cancer care success
About the Authors
Ryan Langdale, MBA
Principal
Chartis Oncology Solutions
404.449.3730
Ryan Langdale is a Principal with the Chartis Group in the Oncology
Solutions practice. He has consulted for more than 60 cancer programs,
including some of the nation’s top health systems. His areas of focus
include hospital and health system strategy, delivery network design,
and mergers and partnerships. Mr. Langdale’s recent work included
design of an integrated delivery model for one of the largest health
systems in upstate New York; care design for the opening of a $400M
cancer center in south Florida; and strategic planning for the affiliation
programs at two of the top NCI cancer centers. Mr. Langdale is a
regular contributor to industry publications, including a recent article
“Integrating Cancer Care Isn’t Always Easy—But It Brings Results” in
Hospital & Health Networks.
Atlanta | Boston | Chicago | Minneapolis | New York | San Francisco
About Chartis Oncology Solutions
Chartis Oncology Solutions was established in January 2018 when Oncology Solutions joined The Chartis Group, a
comprehensive healthcare advisory and analytics firm. Chartis Oncology Solutions offers preeminent cancer care advisory
and analytics services to community hospitals, health systems, NCI-designated and academic cancer programs across the
country. With an unparalleled depth of expertise and experience, Chartis Oncology Solutions works collaboratively with
healthcare professionals to strategically and operationally implement cancer care programs that enhance patient experience,
improve provider performance and impact communities. Oncology Solutions was founded in 1973 as the first firm exclusively
dedicated to serving cancer providers. For more information, visit www.oncologysolutions.com.