Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Custom Media Event: ESG Summit
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Transformation Summit
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain Revenue Cycle
    • - Hospital at Home
    • - Workplace of the Future
    • - Virtual Health
    • - Future of Healthcare Staffing
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Providers
April 30, 2018 01:00 AM

Medicare Part B payment cuts, 340B growth blamed for oncology clinic closures

Susannah Luthi
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    More than 1,200 independent oncology clinics have either closed or been acquired by hospitals in the last decade, and oncologists blame the 340B program and Medicare Part B for the consolidation.

    The Community Oncology Alliance on Monday said that 423 individual clinics closed from 2008 to 2018, while 658 have been acquired by or entered into contracts with hospitals; 168 practices have merged or been acquired.

    Some clinics send their Medicare patients elsewhere for chemotherapy, an issue attributed to Medicare sequester-related cuts to Part B drug reimbursement.

    But the association also said the 340B program contributed to the shrinking oncology landscape.

    Florida, Texas and Michigan lost the most clinics, according to the association. Community Oncology Alliance President Ted Okon noted that the trends in these states illustrate two different results stemming from the same federal policies.

    Oncology centers in Texas and Florida increasingly banded together to keep their clinics separate from hospitals when the 340B program's expansion spurred hospitals to try bringing cancer care in-house. Over the last 10 years, oncologist consolidation accounted for almost 50 clinics closing in Florida and 43 in Texas, Okon said.

    Michigan, on the other hand, saw cancer doctors turn to hospitals as rural oncology clinics around the state closed. Okon attributed this to the hospitals wanting to expand into cancer treatment.

    "A hospital is typically constructing some big building, and that's why they want cancer care to go to their operating sites that are losing money or just barely breaking even," Okon said.

    Independent oncologists and hospitals have long warred over the 340B drug program. A growing number of House Republicans want to rework 340B through legislation before the midterm elections.

    Oncology clinics cannot participate in the program, unlike 45% of all Medicare acute-care hospitals, according to the Medicare Payment Advisory Commission. Yet Medicare pays the same Part B reimbursement to both 340B and non-340B providers.

    Starting Jan. 1, the CMS cut Medicare Part B reimbursements for 340B hospitals, prompting a major hospital lawsuit spearheaded by the American Hospital Association. The case is currently on appeal.

    Many oncologists say they are more vulnerable to being acquired by 340B hospitals because of the money in play through the potential cancer-drug discounts.

    "Oncology practices have to deal with the hospital, and then the hospitals are really strong-arming the practices," Okon said. "The practices are in a tough, delicate situation."

    Oncology groups are increasingly on board with the reporting requirements some House and Senate lawmakers want to impose on 340B hospitals. But Okon noted that he also wants the Part B reimbursement cut mandated by the sequester to stop and oncology groups may sue HHS in order to stop it.

    "We are at the end of the rope," Okon said. "This is a blunt ask: [the sequester] should not be applied to the Part B drugs."

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    U.S.-medical-tourism
    COVID-19 pandemic dents medical tourism revenue
    colorful-people_i_i.png
    The Joint Commission to add health equity standards to accreditations
    Sponsored Content
    Modern Healthcare A.M. Newsletter: Sign up to receive a comprehensive weekday morning newsletter designed for busy healthcare executives who need the latest and most important healthcare news and analysis.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Transformation Summit
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain Revenue Cycle
        • - Hospital at Home
        • - Workplace of the Future
        • - Virtual Health
        • - Future of Healthcare Staffing
      • Custom Media Event: ESG Summit
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing