Under the transaction, TPG, an asset management firm, will acquire a majority interest in OneOncology and AmerisourceBergen will have a minority interest; OneOncology physician leaders and practices will retain minority interests as well.
OneOncology, the Nashville-based network of independent community oncology practices covering 900 providers, today announced that TPG and AmerisourceBergen would acquire the network from General Atlantic, in a deal that will allow AmerisourceBergen to fully own OneOncology in 3 to 5 years.
According to a statement, the transaction puts the value of OneOncology at $2.1 billion.
Under the transaction, TPG, an asset management firm, will acquire a majority interest in OneOncology and AmerisourceBergen will have a minority interest, according to the statement released by the parties. It says, “OneOncology’s member practices, physicians, and management team will also retain a minority interest in the company.”
The global pharmaceutical solutions company AmerisourceBergen provides technology, practice management, and data and analytics solutions for community oncology practices. According to the statement, OneOncology’s practice management services are viewed as complementary to AmerisourceBergen’s existing capabilities in inventory management, practice analytics and clinical trial support.
“OneOncology has been focused on strengthening independent oncology practices by helping them grow and deliver high-value cancer services, and General Atlantic’s involvement and investment have been central to our success,” Jeff Patton, MD, CEO of OneOncology, said in the statement. “As we look ahead, we are excited to continue building the platform in partnership with TPG, a proven investor in the healthcare provider space, and AmerisourceBergen, a healthcare leader with significant capabilities and solutions for community oncology practices.”
Kendall Garrison, partner at TPG, said the physician leadership at OneOncology offers access to the most up-to-date technology, clinical pathways, and research “to deliver personalized care with market-leading patient outcomes and experiences,” while allowing practices to stay independent.
“We believe that lower cost, higher quality models represent the future of care delivery, and we are proud to partner with Dr Patton and the OneOncology team as well as AmerisourceBergen to invest behind accessible, best-in-class clinical care,” said John Schilling, partner at TPG.
“The investment in OneOncology will allow AmerisourceBergen to further deepen our relationships with community oncologists and expand on our solutions in specialty,” said Steven H. Collis, chairman, president and CEO of AmerisourceBergen. “As a platform built by and for community oncologists, OneOncology understands the operational complexities oncologists face and works to simplify the provider experience to drive improved patient outcomes. We are excited to work closely with OneOncology’s team and our partners at TPG, who have deep experience and a track record of success in supporting high-quality healthcare companies.”
As payers, starting with Medicare, have moved away from fee-for-service reimbursement models to those that reward practices for delivering better outcomes, practices must have the capacity to gather and interpret patients’ data. However, doing so requires upfront investment that few small practices can do alone. Thus, networks such as OneOncology have emerged to help physician-owned practices to retain ownership while developing technology, marketing, physician recruiting, and other services at scale.
Many OneOncology practices were participants in the recently completed Oncology Care Model (OCM) in Medicare and the Nashville-based Tennessee Oncology, one of the founding practices of OneOncology, was among the most successful practices in operating the OCM.
The arena is highly competitive, with OneOncology just this week adding a 16th practice to its platform. Another major network, The US Oncology Network, recently added Regional Cancer Care Associates, which operates in New Jersey, Connecticut, Maryland, and Washington, DC. Competition for practices will remain fierce as physicians prepare to deal with fallout from the Inflation Reduction Act, Medicare’s promotion of Medicare Advantage, and upcoming decisions on whether to take part in the Enhancing Oncology Model, the successor to the OCM.
General Atlantic Managing Director Justin Sunshine said the 2018 investment in OneOncology represented a “shared vision” and had resulted in a leader in cancer care. “We are proud that this mission-driven approach has resulted in a leading oncology platform that empowers high-quality and innovative cancer care in the community setting. We wish Dr. Patton and the OneOncology team continued success in their next phase of growth.”
In the transaction, AmerisourceBergen will purchase its minority interest in the joint venture for approximately $685 million in cash, which will represent approximately 35% ownership in the joint venture.
Frameworks for Advancing Health Equity: Urban Health Outreach
May 9th 2024In the series debut episode of "Frameworks for Advancing Health Equity," Mary Sligh, CRNP, and Chelsea Chappars, of Allegheny Health Network, explain how the Urban Health Outreach program aims to improve health equity for individuals experiencing homelessness.
Listen
Breast Cancer Treatment Disparities Impact Survival Based on Race, Age, Socioeconomics
May 9th 2024A new study has linked racial and ethnic disparities with factors like age, income, and insurance to breast cancer treatment decline. Patients who received all treatments had better survival, highlighting the need for interventions to improve access and reduce disparities.
Read More
Tackling Health Inequality: The Power of Education and Experience
April 30th 2024To help celebrate and recognize National Minority Health Month, we are bringing you a special month-long podcast series with our Strategic Alliance Partner, UPMC Health Plan. Welcome to our final episode of this limited series and our conversation with Janine Jelks-Seale, MSPPM, director of health equity at UPMC Health Plan.
Listen
Access Denied: CMS’ Action Hurts Patients With Cancer in Rural America
May 6th 2024CMS rules hindered the access of rural patients with cancer to medically integrated pharmacies in 2023. The authors discuss the impact on equity in health care, emphasizing the need for regulatory change.
Read More