Oncology News Central (ONC)Oncology Partnership Leads to Lawsuit: Part of National Trend?

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The oncology partnership landscape is experiencing significant shifts across the United States, with multiple high-profile separations occurring between hospital systems and private practices. A recent case in Lynchburg, Virginia, between Centra Health and Lynchburg Hematology Oncology Clinic (LHOC) exemplifies the complex dynamics at play, affecting patient care delivery and practice operations.

Key Points:

• The Centra Health-LHOC separation disrupted care for more than 10,000 cancer patients, resulting in a 50% increase in patient referrals to The University of Virginia
• Multiple major cancer care partnerships dissolved in 2023-2024, including Dana-Farber/Brigham and Women’s, Johns Hopkins/Allegheny Health Network, and Methodist Le Bonheur/West Clinic
• Professional Services Agreements (PSAs) in oncology allow private physicians to maintain bargaining power while reducing administrative costs
• The 340B Drug Pricing Program has become a significant driver for hospitals seeking oncology partnerships due to potential profit margins
• Hospital systems can exert pressure on private practices through referral control and hospital privileges, as demonstrated in the Alliance Cancer Specialists case with Jefferson Health
• Some practices have successfully returned to private practice despite challenges, including New Mexico Cancer Care Associates and West Clinic P.C.

“When you own the referral base, you can put a lot of pressure on private practices. It’s really [caused] an annihilation of private practices across the country.”
– Dr. Moshe Chasky

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