2020 Community Oncology Alliance Practice Impact Report
1,748 Community Oncology Clinics and/or Practices Have Closed, Been Acquired by Hospitals, Merged, or Reported Financial Struggles Since 2008
Significant Increase in Community Oncology Practice Mergers and/or Acquisitions with Other Non-Hospital Practices or Corporate Entities as Hospital Acquisitions Continue
The 2020 Community Oncology Alliance (COA) Practice Impact Report tracks the changing landscape of community cancer care in the United States. This is the eighth practice impact report issued by COA and covers a twelve-year period from January 2008 through April 2020. Compiled from public and private data sources, this report provides a unique look at community oncology trends at both the national and state levels.
The 2020 Community Oncology Practice Impact Report data shows that over the last 12 years, 1,748 community oncology clinics and/or practices have closed, been acquired by hospitals, undergone corporate mergers, or reported that they are struggling financially. Specifically, the data show:
- 435 clinics closed — Individual clinic treatment sites that have closed.
- 348 practices struggling financially – Practices (typically comprised of multiple clinic sites) having financial difficulties, struggling to pay bills and/or stay open.
- 40 practices sending patients elsewhere – Practices (typically comprised of multiple clinic sites) sending their Medicare patients elsewhere for chemotherapy.
- 722 practices acquired by hospitals – Practices (typically comprised of multiple clinic sites) acquired by a hospital or, with less frequency, have entered into a contractual professional services agreement binding them to a hospital.
- 203 practices merged or acquired – Practices (typically comprised of multiple clinic sites) merged with another community oncology practice and/or acquired by a corporate entity.
Since the last Community Oncology Practice Impact Report issued in 2018, there has been a 20.8 percent increase in practices merging with, or being acquired by, another community oncology practice and/or acquired by a corporate entity. This major jump is likely the result of practices seeking protection from hospital merger pressures. The rate of practices being acquired by hospitals continued at a steady pace, with a 9.7 percent increase from 2018 to 2020, fueled most notably by hospitals’ financial incentives in the 340B Drug Discount Program and higher payments to hospitals for cancer care services.
Despite community oncology practices keeping their doors open to treat patients in need during the COVID-19 pandemic, early data indicates that the crisis is significantly impacting practices, which are already reporting steep decreases in visits, treatments, and new patients. While government support and policy changes are helping practices weather the storm, it is unclear if hospitals will use unrestricted bailouts to fuel growth post crisis by pressuring further acquisitions on community oncology practices.
2020 Community Oncology Alliance Practice Impact Report
1,748 Community Oncology Clinics and/or Practices Have Closed, Been Acquired by Hospitals, Merged, or Reported Financial Struggles Since 2008
Significant Increase in Community Oncology Practice Mergers and/or Acquisitions with Other Non-Hospital Practices or Corporate Entities as Hospital Acquisitions Continue
The 2020 Community Oncology Alliance (COA) Practice Impact Report tracks the changing landscape of community cancer care in the United States. This is the eighth practice impact report issued by COA and covers a twelve-year period from January 2008 through April 2020. Compiled from public and private data sources, this report provides a unique look at community oncology trends at both the national and state levels.
The 2020 Community Oncology Practice Impact Report data shows that over the last 12 years, 1,748 community oncology clinics and/or practices have closed, been acquired by hospitals, undergone corporate mergers, or reported that they are struggling financially. Specifically, the data show:
- 435 clinics closed — Individual clinic treatment sites that have closed.
- 348 practices struggling financially – Practices (typically comprised of multiple clinic sites) having financial difficulties, struggling to pay bills and/or stay open.
- 40 practices sending patients elsewhere – Practices (typically comprised of multiple clinic sites) sending their Medicare patients elsewhere for chemotherapy.
- 722 practices acquired by hospitals – Practices (typically comprised of multiple clinic sites) acquired by a hospital or, with less frequency, have entered into a contractual professional services agreement binding them to a hospital.
- 203 practices merged or acquired – Practices (typically comprised of multiple clinic sites) merged with another community oncology practice and/or acquired by a corporate entity.
Since the last Community Oncology Practice Impact Report issued in 2018, there has been a 20.8 percent increase in practices merging with, or being acquired by, another community oncology practice and/or acquired by a corporate entity. This major jump is likely the result of practices seeking protection from hospital merger pressures. The rate of practices being acquired by hospitals continued at a steady pace, with a 9.7 percent increase from 2018 to 2020, fueled most notably by hospitals’ financial incentives in the 340B Drug Discount Program and higher payments to hospitals for cancer care services.
Despite community oncology practices keeping their doors open to treat patients in need during the COVID-19 pandemic, early data indicates that the crisis is significantly impacting practices, which are already reporting steep decreases in visits, treatments, and new patients. While government support and policy changes are helping practices weather the storm, it is unclear if hospitals will use unrestricted bailouts to fuel growth post crisis by pressuring further acquisitions on community oncology practices.
