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Cancer Care Costs Skyrocket After Iowa Practice Sale
4 Sep
Summary
- Patient costs increased significantly after hospital acquisition of Mission Cancer.
- National research shows hospital ownership raises prices without quality improvement.
- Bipartisan attention is now focused on these rising healthcare costs.
The acquisition of Mission Cancer + Blood in Iowa by the University of Iowa Health Care (UIHC) has resulted in a fivefold increase in costs for some patients' life-saving cancer treatments. This situation reflects a national trend where hospital systems purchasing independent oncology practices lead to higher patient expenses, without a demonstrated increase in the quality of care.
Research indicates that after hospital systems acquire physician practices, patient prices rise significantly. For instance, Tim Day’s monthly hormone therapy drug cost, which was approximately $14,500 billed to insurance, increased substantially after the UIHC acquisition. His out-of-pocket expenses for injections and office visits rose from $140 quarterly to over $740.
This escalating cost trend is drawing bipartisan attention in Congress. Studies show that hospital ownership of physician practices has increased substantially nationwide, contributing to overall healthcare spending growth. Concerns are being raised about the profitability of oncology drugs under programs like 340B, which critics argue can incentivize higher costs.
Former Mission co-founder Dr. Bob Shreck expressed concern that the higher facility fees charged under UIHC ownership inflate costs for insurers, potentially leading to higher premium rates statewide. While UIHC contends these are federally mandated, some argue that outpatient clinics have the option to forgo such fees, prompting calls for greater oversight and transparency in healthcare pricing.
