OBR OncologyConsolidation Concerns: What Does $2.1 Billion OneOncology Deal Signal?

The recent acquisition of OneOncology by AmerisourceBergen Corporation and TPG Capital highlights the potential for private equity to support and grow community oncology care across the United States. Private equity firms are seeing opportunities in oncology, as they could help slow or reverse the trend of hospitals consolidating practices by providing significant funding needed upfront to start and operate a community oncology practice. With all the changing insurance relationships and the cost of doing business on a day-to-day basis, that’s a pretty risky proposition. But if private equity firms provide capital support, then it’s somebody else’s financial risk.

OneOncology is a management services organization that partners with community oncology practices to provide resources that help institutions improve care and remain sustainable as the reimbursement environment changes. Its services provide “shelter in the storm,” especially with value-based care. Many practices are entering into reimbursement models in which they are taking on downside-risk, being part of OneOncology’s network allows them to spread and minimize potential financial loss. The uniqueness of this model is that it supports practices while keeping the operational decision-making at the practice-level independent. The recent acquisition of OneOncology is further proof that OneOncology’s mission is receiving greater support, and it will allow OneOncology “to continue to invest in things like analytics, clinical research, precision medicine, etc., to allow us to better take care of patients in their own communities where we are located, all while remaining an independent physician-owned community practice.”