Overcoming the Barriers to Implementing Novel Technologies

Author: Len Lyons

As a relatively newer player in the radiation therapy space, we tend to have a lot of conversations with CFOs, Service Line Managers and Clinical staff discussing the challenges in adopting new technology, and particularly large capital purchases into their cancer centers. Throughout these conversations, we tend to hear some consistent concerns they share regardless of location or size or type of institution. This article aims to share some of those concerns and share how many of our clients have been successful in adopting new technology despite a challenging macroenvironment.

Radiation therapy prioritization remains low despite rebound

Industry research indicates that capital acquisition trends have recovered in 2023 from pre-pandemic levels and will continue to do so into 2024.[1] While there is an expectation that budgets will stabilize, hospital execs reported they will prioritize capital spending to service lines with clear ROI. Here are a few general takeaways[2]:

• Radiation therapy spend is ranked 12th out of 22 services in terms of priority
• Only 4% of capital budget growth is expected to increase 20% or more with the majority (52%) expected to see modest increase of 1-10% conservatively, with some even decreasing
• The replacement market is robust. Of the 3,935 machines, 10% or 400 are replaced each year[3]

Despite the above, there is a growing demand for cancer centers to have the latest innovation to remain competitive and offer the best possible care to patients. In speaking with our customers and potential customers the below are some considerations.

New technology must attract new, incremental patients

What’s unique about SCINTIX therapy is that it has the potential to treat metastatic disease in patients that are not typically candidates for radiotherapy and rely heavily on chemotherapy, targeted drugs, or immunotherapy to treat multiple lesions. Increasing studies over the last decade have demonstrated that there are increases in survival outcomes when radiation therapy is delivered as part of the overall treatment regimen.

SCINTIX therapy is currently cleared to treat tumors in the lung or bone that may arise from primary or metastatic tumors. We estimate that the lung and bone cancer represent ~70% of metastatic cases, which creates a robust proforma even now as we work to gain FDA clearance of other sites throughout the body. ?

Hybrid functionality is key

The X1 provides two lines of revenue for the department enabling the treatment of standard SBRT and IMRT case for anatomical treatments and SCINTIX therapy to deliver biology-guided, i.e., PET-directed, radiation therapy. The X1 effectively works in two modes allowing for overflow of cases from other traditional linacs in the department, but also the ability to now deliver the latest SCINTIX treatments.

Novel technology must have accretive reimbursement

Reimbursement is a critical component for providers investing in large capex purchases. Since SCINTIX therapy’s groundbreaking technology is unique, the Center for Medicare and Medicaid Services (CMS) has established a national payment rate specific to SCINTIX therapy using the CMS’ New Tech (NT) Ambulatory Payment Classification (APC) pathway. This pathway is reserved for novel procedures that are not represented in the existing reimbursement claims data used to describe new procedures and their associated resources. With a payment rate of twice the reimbursement of SBRT, this represents the most positive change in radiotherapy reimbursement in nearly 20 years. The positive changes related to SCINTIX are not just about the reimbursement – the insights our early clinical adopters are gaining around SCINTIX and how it can help them significantly improve motion management and reduce margins are really exciting. This accretive payment is key to enabling providers to adopt novel treatment options, like SCINTIX therapy, with the goal of improving patient outcomes.

In closing

So, what does it take to justify the cost to implement new technology, particularly a new linac, into a cancer center? It must be multifunctional with dual-treatment capability, achieve an ROI based on incremental patients and, of course, have accretive reimbursement to support adoption.

If you haven’t yet, be sure to reach out. Let’s discuss if SCINTIX therapy can help support your practice growth objectives.

Len Lyons joined?RefleXion in October 2018 as?vice president of sales and has over 25 years of sales and service leadership experience in the radiation oncology industry including executive roles where he developed an elite sales force to win key accounts and large health system opportunities. A cornerstone of Lyons’ success is his multifaceted approach encompassing relationships with strategic partners, building referral patterns, a deep understanding of buyer behavior, and identifying vertical market opportunities.?

[1] Jefferies Hospital Survey, 2023.

[2] Goldman Sachs Hospital Due Diligence, Q4 2023.

[3] IMV 2022-2023 Radiation Therapy Market Summary Report.