New Onmark Benchmarking Survey Shows Treating Patients in the Office With Specialty Drugs is Critical to Rheumatologists' Revenue Streams
January 06, 2009

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Onmark, a leading national group purchasing organization (GPO) for community-based medical practices and a McKesson Specialty Care Solutions company, found that rheumatologists rely on specialty drugs purchased and administered to patients for practice revenue streams. At the same time, these specialty drugs represent the largest percentage of costs incurred by practices.

This first-of its-kind survey on the rheumatology market, conducted by Onmark, measures operational and financial benchmarks to help practices improve business operations, practice efficiency and quality of care delivered. Onmark has conducted a similar annual survey for oncology practices since 2006.

The survey collected data for calendar year 2007 in five areas:

  • General practice information
  • Accounts receivable (A/R) and general revenue data
  • Operating costs
  • Ancillary services
  • Compensation

“Similar to what we have seen in oncology, rheumatologists seek new tools to help them improve efficiencies and increase revenue while maintaining a high level of focus on patient care,” said Mike Cunningham, Pharm.D, Onmark vice president and general manager. “Onmark’s benchmarking surveys in oncology and rheumatology provide actionable information to physicians that empowers them to maximize practice operations and optimize time with patients.”

The “Bottom Line” in Rheumatology Practices

Combined, the sale and administration of drugs to patients represent an average 74% of the surveyed practices’ revenue. The total cost of drugs for in-office administration to patients accounts for an average 62% of all practice expenses.

Survey responses show total average drug costs of $4,875,796 per practice (with an average 4.5 rheumatologists), subtracting all rebates and other cash or product concessions received, and excluding pharmaceuticals sold to patients for use outside the practice (such as oral drugs).

The three most commonly coded procedures are related to drug administration:

Code   Procedure
96413 Chemo administration, intravenous infusion up to 1 hour, single or initial substance/drug
90774 Intravenous push, single or initial substance/drug
90765 Intravenous infusion, for therapy, prophylaxis, or diagnosis

Practices reported offering ancillary in-house services including DEXA, NCT, MRI and ultrasound tests as well as labs. These services require equipment such as an ultrasound unit, chemistry analyzer, immunoassay analyzer, and CBC machine. An annual average of over 47,000 total tests were done contributing an average of over $476,600 in combined annual revenue, at an average combined annual expense of over $201,500.

Overall, practices are collecting A/R dollars early in the process, with 68.6% being collected in 0–30 days. Based on the low number of days outstanding, an assumption can be made that the majority of claims are being submitted electronically.

“We understand the complex landscape of the specialty care market and the resulting challenges facing our members,” said John Akscin, McKesson Specialty Care Solutions vice president for government relations. “Our goal is to support rheumatologists with meaningful data, information and solutions to manage these changes and empower them to optimize their business and deliver high quality patient care.”

About Onmark

Onmark, a McKesson Specialty Care Solutions company, is a leading national group purchasing organization (GPO) for community-based practices with more than 2,400 members representing over 4,100 physicians and in excess of $8 billion in annual drug purchases. Through strategic relationships with McKesson Corporation, pharmaceutical companies and industry experts, Onmark provides its members with access to a full portfolio of competitive contracts for pharmaceutical products and medical/surgical supplies, the most aggressive pricing available through McKesson, practice management resources, clinical tools and educational programs. For information about the products, services and programs available to Onmark members, visit www.onmarkservices.com.

About McKesson and McKesson Specialty Care Solutions

McKesson Corporation, currently ranked 18th on the Fortune 500, is a healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes and improving the quality and safety of patient care. McKesson has been in continuous operation for more than 175 years, making it the longest-operating company in healthcare today. Over the course of its history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. A business unit of McKesson Corporation, McKesson Specialty Care Solutions including Onmark delivers the services manufacturers, payors and providers need to ensure specialty pharmaceutical products, coordinated reimbursement and clinical services are available to patients with complex diseases. For more information, visit www.mckesson.com.