For the price tag, McKesson will have a controlling interest
representing about 70% ownership of Core Ventures.
Healthcare services company McKesson has signed a definitive
agreement to acquire a controlling interest in Community Oncology
Revitalization Enterprise Ventures (Core Ventures) for about
$2.49 billion.
Core Ventures, a business and administrative services
organization, was established by Florida Cancer Specialists and
Research Institute, a physician-owned community oncology
practice. FCS physicians will continue to retain a minority
interest in Core Ventures. For the price tag, McKesson will have
a controlling interest representing about 70% ownership.
Following completion of the transaction, Core Ventures will be
part of the Oncology platform, and financial results will be
reported within McKesson’s U.S. Pharmaceutical segment.
WHAT’S THE IMPACT
Following the close of the transaction, FCS, a practice with more
than 250 physicians and 280 advanced practice providers across
nearly 100 locations in Florida, will remain independently owned
and FCS will join McKesson’s U.S. Oncology Network. The
transaction is subject to customary closing conditions, including
necessary regulatory clearances.
FCS said that, over the years, its services have grown to include
clinical trials, diagnostic imaging, medical oncology and
chemotherapy infusion, integrative therapy, molecular and
pathology lab services, radiation oncology, sequencing, medically
integrated dispensing and data services. FCS currently conducts
clinical trials through Sarah Cannon Research Institute (SCRI),
an oncology research organization conducting community-based
clinical trials.
“This milestone marks an important step forward in our efforts to
advance community-based oncology care,” said McKesson CEO Brian
Tyler. “By growing our Oncology platform, we will bring advanced
treatments and improved care experiences to patients, while also
reducing the overall cost of care.”
THE LARGER TREND
Last year, the Center for Medicare and Medicaid Innovation
released
<https://www.healthcarefinancenews.com/news/cms-releases-new-onco
logy-model-has-payment-incentives-and-downside-risk> a new,
voluntary Enhancing Oncology Model intended to reduce spending
and improve quality of care for cancer patients. The EOM is a
five-year voluntary model that has payment incentives and
requires participant-redesign activities. The model will end in
June 2028.
Under EOM, participating Physician Group Practices take on
accountability for their patients’ healthcare quality and for
total spending during six-month episodes of care for Medicare
patients with certain cancers.
ON THE RECORD
“Above all else, our patients are the true beneficiaries of this
transaction, as we seek to drive meaningful outcomes and deliver
sustained value with every interaction,” said Dr. Lucio N.
Gordon, president and managing physician, FCS. “Through the power
of our combined operational expertise, we can bolster community
oncology’s role in increasing access to high-quality, affordable
care.”
“This is a historic moment for FCS and reflects the evolution of
our practice and the forward-thinking of physician leadership,
our board, and the entire organization at large,” said FCS CEO
Nathan H. Walcker. “The US Oncology Network and FCS share a
mission and we both aim to strengthen patient-centered cancer
care in the community to improve outcomes. We are thrilled to
partner with McKesson and join The Network, which furthers the
joint commitment to bringing the best medicine and innovation for
patients into communities across Florida.”
The M&A market for healthcare companies continues to build on STRATEGIC opportunities. The strategic corporate buyers and private equity investors remain committed to acquiring strong businesses that are well prepared for a transaction. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering prime valuations and options for management.
Do you know the current market value of your business? We do! We are here to help you plan, prepare, explore and succeed in executing your strategic options.
Contact Paragon Ventures for more information.
800-719-1555
