Satellite Healthcare: Plan for Growth
Specialized Hosp.
Written by Kristine Ellis   
Monday, 01 October 2007
Satellite Healthcare: Plan for Growth- Health Executive - RedCoat Publishing
These dialysis centers improve the lives of those with kidney disease while maintaining strong growth.
When Satellite Healthcare acquired five dialysis centers in the Austin, Texas area, late last year, the Mountain View, Calif.,-based company was following its very well-planned, well-disciplined expansion strategy. It was also improving the health of potentially thousands of patients living with end-stage renal disease.

Satellite Healthcare: Plan for Growth- Health Executive - RedCoat Publishing
Mark Burke, CEO
“In 2006, our standardized mortality rate, which is CMS’s key measure of clinical success, was 0.6. The national average was 1.0. In other words, our patients are 40% more likely to live,” said Mark Burke, CEO.
Satellite’s superior clinical results stem from its comprehensive capabilities. The company has four divisions: Satellite Dialysis, which provides in-center care for patients with kidney disease; Satellite Laboratory Services, which offers laboratory services to dialysis facilities throughout the country; Satellite Research, which sponsors research through intramural clinical research and extramural research grants; and WellBound, which is dedicated exclusively to the care of home dialysis patients.

With the Texas acquisition, Satellite now has 40 locations in five states. Its annual growth rate in recent years averages about 30%, and there are no plans to slow down any time soon.

“We are unencumbered by external investor pressures, so we have been able to make long-term investments in infrastructure and corporate capabilities that effectively give us large-company capabilities in a smaller, more flexible and collegial company. This is a significant competitive advantage over our competitors,” said Burke.

Ground-breaking work
Satellite was founded as a nonprofit more than 30 years ago to provide patient-centered renal care. The founder’s combination of research and services set an innovative course that decades later continues to position the company as an industry leader.

Most recently, Satellite is making a name for itself in its ground-breaking work in home dialysis. Treatment of chronic kidney disease traditionally occurs in the final stage, when patients need dialysis. In recent years, however, the focus has shifted to earlier intervention that helps patients better manage their disease to maintain their lifestyles and preserve their kidney function for as long as possible.

Satellite’s WellBound is the industry’s only company dedicated to home dialysis. In addition to classes on hypertension, exercise, diet, and other topics necessary for managing kidney disease, patients and their families learn about all of the options for self care, including the emerging daily home hemodialysis therapies.

Home dialysis is not only cost effective for the healthcare system, it provides an enhanced quality of life by giving patients a greater sense of control and independence. Daily home dialysis may provide even greater benefits, including healthier kidney function for many as well as improved cognitive thinking. Through WellBound, approximately 20% of Satellite’s patients are on some form of self-care home therapy, a percentage nearly three times greater than the norm.

Satellite’s patients are also more likely to receive dialysis via a fistula, a surgical connection of an artery and vein typically done in the patient’s forearm. CMS launched a Fistula First initiative in 2005 in response to the high rates of clotting and infection associated with the more common arteriovenous grafts, which require implantation of synthetic tubes. Here again, Satellite was ahead of the trend.

“We have been promoting fistulas for several years and have achieved a 55 percentage rate among our patients, compared to 39%, which is the CMS national average,” said Burke.

Satellite’s most recent innovation in patient care is its Optimum Start program, which focuses on the first 90 days of dialysis. Not only are the first three months of treatment emotionally difficult for patients as they adjust to this life change, but this period is also significantly more costly due to a lack of care coordination. In Optimum Start, patients are assigned to the Optimum team who anticipate and coordinate individual patient needs during this critical period.

Satellite’s improvements in patient care have led to strategic relationships with leading universities, payors, and key nephrology practices, including Baylor University, Northwestern, the University of California San Francisco, and Kaiser Permanent of Northern California, a leader in home therapy adoption. Many of these relationships include participation in clinical studies. “At any given time, we are participating in an average of 20 clinical studies,” Burke said.

Disciplined growth
Since becoming CEO 15 years ago, Burke has overseen $250 million in transactions as well as nurtured and launched all of Satellite’s major business lines.

“Given the complexities of today’s business environment, there is no one perfect leader, so you have to create an environment—and team—that lets people complement one another’s strengths and offset one another’s weaknesses. Yes, leadership is more distributed across the organization, but it removes the myth that one person can do it all,” he said.

That philosophy, backed by a generous benefits package and opportunities for advancement, help keep staff turnover at Satellite well under the industry average.

“We are fortunate to have very talented and passionate people who are excited about being part of a company that is making a difference. Our superior clinical outcomes, research efforts, and the success of WellBound, Satellite Dialysis, and Lab Services have all contributed to their sense of pride in what we do,” Burke said.

The company invests a disproportionately high amount of its revenue in IT to support its internal functions and its clients. For instance, finding no existing clinical system that met its needs, Satellite built a proprietary clinical management system called SPIN, followed by SPIN MD, specifically for its referring physicians. LabCheck, another proprietary services management program, is an integrated ordering and reporting system for managing renal lab services.

Its emphasis on IT solutions is part of the Satellite culture that must be transferred after an acquisition. The new locations are excited about the changes. “We’re bringing in new capabilities and technologies that will improve patient outcomes and make their jobs easier, so people are usually pretty excited,” Burke said.

Burke continues to look for other opportunities for expansion. To support that future growth, the company has recently built up its business development team and marketing capabilities.

“We will be focusing on building brand awareness, with an emphasis on communicating our superior services and capabilities to future nephrology partners in our target markets,” he said. “Joint venture partnerships, in both our in-center hemodialysis and our home therapies through WellBound, will be our primary vehicle for expansion in targeted markets throughout the US.”

Kristine Ellis is a freelance writer based in Helena, Montana. She can be contacted at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
< Previous Story   Next Story >