Healthcare supply and services company Cardinal Health has a deal in place to acquire Integrated Oncology Network, a collection of more than 50 community oncology centers, for just over $1.1 billion, the companies announced Friday.
The pickup will see ION’s practices, over 100 providers and other practice management and practice growth services join Navista, Cardinal’s cancer unit.
By doing so, those practices will also gain access to the unit’s AI analytics capabilities as well as the insights platform PPS Analytics Cardinal absorbed earlier this year when it acquired Specialty Networks.
“Driving growth in specialty continues to be a top priority, and we’ve made investments to expand our offerings through both Navista and our acquisition of Specialty Networks,” Jason Hollar, CEO of Cardinal Health, said in a statement. “With their proven model providing extensive support of community oncology across the cancer care continuum and healthcare ecosystem, we’re confident [ION] will further accelerate our oncology strategy and enable us to create value for providers and patients.”
The parties’ definitive agreement is subject to customary closing conditions including regulatory approval. Cardinal said it expects the deal to be accretive to its earnings a year after the deal closes.
ION’s independent community oncology network was founded in 2008 and spans 10 states. Its member centers tap into supportive practice management services spanning revenue cycle management, payor relations, physician recruitment, practice marketing, finance, accounting, human resources and information technology.
“[ION] and Cardinal Health share a mission of helping community oncology practices deliver world-class patient care and a world-class patient experience to patients and families close to home,” Barry Tanner, CEO of ION, said in a release. “This partnership will give community practices the tools and technology they need to enhance and grow that mission and make a positive impact on patient outcomes.”
Dublin, Ohio-based Cardinal, one of the country’s major pharmaceutical supply chain operators, has been building out its offerings for specialty care providers.
It’s also in a cancer care arms race with some of its healthcare service company contemporaries. Last month, McKesson unveiled a deal to purchase a controlling stake in a unit of Florida Cancer Specialists & Research Institute for nearly $2.5 billion. Drug distributor Cencora also picked up a minority interest in OneOncology alongside TPG’s majority interest in a spring 2023 deal valuing the cancer care network at $2.1 billion.
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