Book Excerpt: Elements of a Successful Oncology Transaction

This is an excerpt from the HealthLeaders Media book Oncology: Strategies for Superior Service Line Performance by ECG Management Consultants, Inc.

Having completed the initial physician alignment planning, hospital and physician leadership are ready to begin defining the details of the arrangement. While the parties may agree on an overall approach, the negotiation of transaction details can reveal challenges and disagreements that will need resolution.

Taking the time to systematically work through the various deal points is critical to long-term success; however, it is not unusual for hospitals to rush the transaction process to meet a perceived crisis or artificial deadline. It is in these situations that obstacles can emerge that may disrupt negotiations and ultimately stall or derail the transaction process.

Ultimately, the details of the alignment model must reflect the unique needs of the players and the particular market. Despite their range in design and complexity, transactions that are successfully completed typically utilize a fairly standard method to work through the various issues and deal points.


Evaluate Business Implications
Even in the most urgent circumstances, it is important to utilize a structured process that will facilitate informed and shared decision-making while avoiding impulsive decisions that can ultimately stall discussions. Determining the basic feasibility of the relationship from a business perspective should be completed very early in discussions.