Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Insight Report2016 Annual Report
2016 - What’s In the Pages That Follow
March31st,2017
DearFriends,
PleasefindtheenclosedCVPMemberNetwork2016YearinReview.Inthepagesthatfollow,youwillfindreportsonrevenue,transaction,andnewclientdynamicscomparedto2015.
Asalways,pleasedon’thesitatetocallshouldyoueverhaveaquestionorneedregardingthisoranyInsightreport.
Here’stoahealthyandprosperous2017forallofourMemberHospitals.
BestRegards,
[email protected](302)690-2187
2016
The Data….
Revenue Dynamics vs. Full Year 2015
In2016,revenuedynamicsweregenerallystrongacrossthestudypopulation.Acrossthegroup,most(25/30)membersreportedgrowthcomparedto2015.Inadatasetofalmost$68Mofhospitalrevenue,theaverageincreaseinrevenuewas6%andandthemedianincreasewas5.7%.
10.5%
2.1%7.0%
6.7% 7.3%
15.9%
28.0%
-2.3%
29.5%
0.4% 3.8% 5.7%
-0.2%
2.6% 3.2%7.5% 7.9% 10
.9%
4.8%
-7.1%
8.7%
8.6%
5.1%
-3.1%
1.7%
-2.8%
5.8% 9.
3%17.5%
-15.2%
8.7%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
Transaction Dynamics vs. Full Year 2015
2016provedamoderatelysuccessfulyearfortransactiongrowth,anindicationthatpracticesgrewbothbyvolumeandpricingdecisions.Aslightlylessermajorityofpractices(20/30)observedincreasedvolumegrowthwiththeaveragegrowthrateof3.7%andthemediangrowthrateofandmedianrateofgrowthrateof2.7%.
3.4%
10.0%
3.7%
-0.1%
3.4%
12.7%
23.6%
-1.2%
27.4%
-0.4%
6.5%
2.1%
0.7%
-5.8%-0.3%
1.9% 4.5% 6.5%
-1.1%
-4.6%
2.5% 4.1%
11.6%
2.7%
-2.7%
-6.4%
7.5%
2.7%
8.0%
-13.2%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
New Client Dynamics vs. Full Year 2015
NewclientacquisitionrateshavealwaysvariedconsiderablyacrosstheMemberNetworkreflectingabroaddiversityinmaturityofeachbusinessandlocaldemographicimpacts.
Fortheyear,only13of30practicesreportedanincreaseinthenumberofnewclients,suggestingthepossiblematurationofmanyclientbasesandtheneedforpracticestofindnewwaystoattractclientsandpatientstotheirbusiness.Themedianchangefortheyearwas-1.9%andtheaveragewas1.3%
9.3%15.2%
-17.4%
-4.6%
-17.1%
5.6%
18.2%
1.4%
14.6%
-5.6%
42.0%
23.6%
-13.9%
-26.0%
5.2%
-7.3%
6.6%
-5.9%
-10.2%
42.1%
28.1%
1.7%
-8.7% -2.6%
-16.5%
-23.5%
16.0%
-1.2%
-13.0%
-18.3%
-0.9%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
First Quarter (Q1) 2016
The Data….
Revenue Dynamics vs. Q1 2015
AVERAGE:9.6%MEDIAN:7.5%LOW:-5.3%HIGH:41.6%
1.0% 2.1%7.6%
13.6%
6.9%
14.8%
41.6%
14.2%
24.0%
3.0%
-0.7%
13.0%
4.3% 8.1%
-1.5%
14.4%
6.3% 7.9%
5.2%
-5.3%
15.8% 19.6%
7.5%
-0.4%
4.5% 8.0%
5.7%
22.8%
22.4%
2.0%
-10%
0%
10%
20%
30%
40%
50%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
Transaction Dynamics vs. Q1 2015
-2.1%
17.2%
0.5%
-2.6%
4.3% 8.
2%30.2%
23.5%31.8%
6.1%
2.5% 3.2% 5.0% 5.3%
-2.6%
6.4%
2.4%
9.6%
2.3%
-4.3%
6.7%
5.8% 9.
7%3.3%
1.3%
-4.6%
6.0%
1.4%
9.0%
-15.5%
5.5%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:5.7%MEDIAN:4.7%LOW:-15.5%HIGH:31.8%
New Client Dynamics vs. Q1 2015
26.2%
18.0%
-27.3%
-0.4%
7.4% 10.4%
12.5%
7.9%
-52.2%
4.3%
16.9%
21.4%
-12.2%-3.5%
-0.5%
-9.2%
3.9%
-16.4%
-13.2%
-20.9%
-21.1%
14.2%
8.3%
-8.3%
-22.3%
-9.3% -2.1%
30.5%
4.0%
-48.3%
-2.6%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:-2.7%MEDIAN:-0.5%LOW:-52.2%HIGH:30.5%
Second Quarter (Q2) 2016
The Data….
Revenue Dynamics vs. Q2 2015
13.8%
6.8% 8.6%
2.7%7.3%
15.1%
36.2%
-2.5%
13.6%
-3.5%
17.7%
11.3%
-2.7%
3.5% 6.1%
-1.7%
16.9%
1.7%
-1.1%
-6.6% -0.8%
6.6% 8.8%
-5.6%
3.8%
-10.9%
3.0%
19.0%
14.3%
-20.5%
4.2%
-30%
-20%
-10%
0%
10%
20%
30%
40%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:5.4%MEDIAN:5.0%LOW:-20.5%HIGH:36.2%
Transaction Dynamics vs. Q2 2015
3.9% 4.2% 6.2%
-0.5%
0.4%
11.1%
26.4%
6.9%11.7%
-7.4%
5.6%
3.6%
-5.3%
0.4% 2.4%
-1.0%
15.0%
2.5%
-4.9%
-5.2%
-5.9%
5.5%
17.3%
9.0%
-3.2%
-15.6%
4.0% 5.7%
3.7%
-18.3%
1.9%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:2.6%MEDIAN:3.6%LOW:-18.3%HIGH:26.4%
New Client Dynamics vs. Q2 2015
-9.1%
15.5%
2.0%
-15.6%
1.3%
-2.4%
16.7%
-9.5%
-1.2%
-7.0%
30.9% 58
.2%
-15.3%
-28.0%
22.9%
-9.7%
-2.8%
-6.0%
24.1%
175.5%
24.7%
4.1%
-3.9%
-21.3%
-19.4%
-35.7%
9.5%
-14.5%
-15.5%
5.6%
2.7%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:5.8%MEDIAN:-2.6%LOW:-35.7%HIGH:175%
Third Quarter (Q3) 2016
The Data….
Revenue Dynamics vs. Q3 2015
10%
-2%
2%9%
7%13%
25%
-9%
26%
-1%
-5% -3%
3%0%
3%7%
4%19%
6%-13%
17%
3%0%
-4% -2%
-4%
6%1%
17%
-18%
4%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:3.9%MEDIAN:2.9%LOW:-17.8%HIGH:26.5%
Transaction Dynamics vs. Q3 2015
4.4%
9.7%
2.4% 4.4%
1.8%
13.7%
24.9%
-17.7%
25.5%
-4.7%
4.5%
2.3%5.8%
-16.6%
0.8%
0.5%
0.5%
6.6%
-3.3%
-8.4%
10.0%
-1.0%
10.5%
-1.8%
-5.5%
-4.8%
11.5%
-3.1%
9.4%
-8.1%
1.8%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:2.5%MEDIAN:2.0%LOW:-17.7%HIGH:25.5%
New Client Dynamics vs. Q3 2015
7.1% 13.0%
-22.4%
12.7%
-36.3%
11.9% 27.1%
-15.8%
75.7%
-1.6%
100.0%
4.8%
1.3%
-33.2%
-9.1%
-14.5%
19.3%
12.7%
-12.6% -7.9%
85.9%
-5.2%
-15.7%
1.8%
-17.0%
-25.9%
32.5%
-14.7%
-25.7%
-20.9%-1.8%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:4.2%MEDIAN:-3.4%LOW:-36.3%HIGH:100%
Fourth Quarter (Q4) 2016
The Data….
Revenue Dynamics vs. Q4 2015
17.9%
2.0%10.5%
3.1% 8.4%
20.1%
12.6%
-9.4%
55.6%
3.3% 4.5%
2.9%
-5.1% -0.3%
5.3%12.1%
4.4%
16.8%
9.9%
-3.3%
4.5% 6.8%
4.7%
-2.1%
0.1%
-2.5%
8.9%
-1.4%
16.4%
-22.5%
6.5%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:6.1%MEDIAN:4.5%LOW:-22.5%HIGH:55.6%
Transaction Dynamics vs. Q4 2015
7.2% 9.6%
5.9%
-2.0%
7.3%
17.6%
14.7%
-11.6%
42.3%
5.5%
13.5%
-0.3%
-1.8%
-11.4%
-2.0%
2.2%
0.9%7.3%
1.7%
-0.4%
0.3%6.5% 9.0%
0.6%
-3.4%
0.2%
8.5%
6.9% 10.3%
-10.9%
3.9%
-20%
-10%
0%
10%
20%
30%
40%
50%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:4.5%MEDIAN:3.8%LOW:-11.6%HIGH:42.3%
New Client Dynamics vs. Q4 2015
16.9%
15.3%
-21.0%
-14.0%
-40.5%
2.8% 14
.5% 27.8%
100.0%
-16.8%
29.3%
15.4%
-27.0%
-38.0%
12.6%
5.4%
5.3%
-13.6%
-29.3%
17.5% 28.8%
-4.8%
-16.9%
30.3%
-4.4%
-20.3%
20.3%
7.0%
-12.8% -6.7%
-2.1%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
TOTAL
AVERAGE:2.8%MEDIAN:4.0%LOW:-40.5%HIGH:100%
In Summary¡ 2016provedtobereasonablysuccessfulformostgroupmembers.Forthethirdstraight
yearinarow,mostkeyperformanceindicatorsendeduponthepositivesideoftheequation.
¡ Revenue– Revenuegrowthincreasedthroughouttheyearforthemajorityofmemberhospitals.Totalrevenuefortheentirestudypopulationwascloseto9%withthemedianvaluejustunder6%.¡ Thefirstquartershowedthemostaggressivegrowthfortheyearwiththemedianvaluejustunder8%.¡ Growthinthesecondquarterseemedtoslow(medianvalue5%)comparedtopriorperiodandthen
furtherintothethirdquarter(medianvalue2.9%).¡ Thefourthquarterseemedtorecoversomewhatasmediangrowthwasreportedat4.5%overprior
period.
¡ Transactions– Althoughfollowingsimilarseasonality,transactionvolumedidnotkeeppacewithpracticerevenuedynamics.Fortheyear,mediangrowthdidnotexceed3%acrossthestudypopulation.¡ Peaktransactiongrowthwasobservedinthefirstquarterat5.7%.¡ Significantvolumeslowingwasobservedintheremainderoftheyearwiththesecond,thirdandfourth
quartersseeingtransactiongrowthlessthan4%overprioryear.
¡ NewClients– Newclientgrowthvalueswerehighlydiversewithmanypracticesreportingsignificantgrowthinnewclientnumberswhileotherreportedsubstantialcontractionofnewclientvalues.Fortheyear,thetotalpopulationfinishedflatwithnewclientnumbersjustunder1%lessthan2015.
¡ Movinginto2017,wewillwatchfornewclientnumberdynamicsasanindicatorifthemarketisseeingabroadermaturationandreductioninthetotalpoolofnewclients.
Appendix 1: Policies: CVP Member Network Management Group Antitrust Compliance Policy
ThepurposeoftheMemberNetworkManagementGroupistoaggregateanddisseminaterelevant,timely,localindustrytrendsandmarketdynamicsinordertobetterserveandmeettheneedsofourclientsandpatients.Membersshallnotenactorenforceanyrulewhichrestricts,limits,orinterfereswithparticipantsintheirrelationswitheachother,intheirdoctor/patient/clientrelationshipsorintheconductoftheirbusinessinthefollowingareas.ParticipatingMembersandtheirrepresentativesshallnot:
¡ Fix,control,recommend,orsuggestfeeschargedforservices.¡ Fix,control,recommend,orsuggestthecompensationofferedbyother
participants.¡ Basedues,fees,orchargesoncommissions,listedprices,orsalespricesonanother
participant’spricingstructure.Feesandchargesshoulddirectlyrelatetothecostsincurredinbringingservicestoclients.
¡ ProhibitordiscouragecooperationbetweenparticipantsandotherveterinaryprofessionalsthatdonotparticipateintheMemberNetworkManagementGroup.
¡ Prohibitordiscourageparticipantsfromparticipatinginpoliticalactivities.¡ Thesepolicyprohibitionsaresubjecttoandlimitedbyapplicablestatutes,
ordinances,andgovernmentalregulations,toagreementsenteredintobytheMemberNetworkManagementGroupandanagencyofgovernment,andtofinaldecreesofcourtsoradministrativeagencies.
¡ Version1.6– September15,2016