Following a stampede of other providers, U.S. Oncology is leaving the business of owning physician practices.
The publicly traded cancer-care company said the approximately 50 physician practices it owns will be offered back to the doctors at favorable prices during the next 18 months. The company expects all the practices to accept the deal. Houston-based U.S. Oncology will not acquire any new practices.
During the 18-month transition, the move will cost U.S. Oncology $60 million in restructuring charges, a $420 million write-off of long-term assets and good will related to the practices and an annual net drop in operating earnings of $53 million, the company said. But the firm expects to get $160 million from the sale of assets back to the practices and will cut its debt by $140 million. %