Salick Health Care, a chain of 11 cancer centers, signed what it said is the nation's first capitated contract for a full range of oncology services.
The contract, announced last week, covers 100,000 adult enrollees of Miami-based Physicians Corp. of America. It's valued at $25 million to $35 million over its life. Later, it might be extended to all PCA's 319,000 Florida enrollees.
Several other providers are known to be working on capitated oncology contracts. An example is Atlanta-based Preferred Oncology Networks, which is developing a network of cancer centers that would provide capitated services (May 2, p. 65).
Capitated payments to Salick cover counseling, physician fees, radiology and laboratory services, chemotherapy, home-care services and others. Discounted fees were negotiated for inpatient surgeries and bone-marrow transplants.
Salick runs five cancer centers and one radiation oncology center in southern Florida. The Los Angeles-based company reported revenues of $116 million in its fiscal year ended Aug. 31, 1993.
It said it is discussing similar arrangements with several managed-care companies around the country.
Salick operates 10 comprehensive cancer centers nationwide and has announced an agreement to open another with George Washington University in the District of Columbia. It also operates dialysis centers and provides inpatient dialysis services for hospitals.
The company last week reported earnings of $7.6 million, or 80 cents per share, for its third quarter ended May 31, compared with net income of $6.7 million, or 73 cents per share, in the year-ago period. Revenues rose 13% to $96.4 million.