Independent community oncology practices significantly reduce the financial burden experienced by cancer patients compared to hospital outpatient settings, according to a study published in the American Journal of Public Health.
The study was led by Lucio Gordan, MD, president and managing physician of Florida Cancer Specialists and Research Institute (FCS), with several coauthors in leadership roles at FCS.
Financial toxicity, a term coined around 2013 with the rise of immunotherapy, refers to the economic burden of cancer care on patients and their families, affecting their overall wellbeing.
The research, titled “The Role of Utilizing Community Oncology Care To Decrease Cancer-Related Financial Toxicity,” analyzed real-world claims data and found significant cost differences. These differences stem from lower drug markups, reduced facility fees, and more efficient care delivery in independent community oncology settings.
Patients treated in community oncology clinics had a mean monthly care cost 24% lower than those treated in hospital outpatient settings—$12,548 compared to $16,555.
When comparing branded chemotherapy costs, community oncology was 39% less expensive on average, costing $6,674 versus $10,900 in hospital-based clinics.
“These findings reinforce what many of us in community oncology have long observed,” Gordan said in a statement released by the Community Oncology Alliance (COA), which represents independent community practices. He added that patients benefit not only from personalized care close to home but also from significantly reduced financial strain during a critical time.
The study emphasizes the impact of drug markups and facility fees on patients’ total costs, both substantially higher in hospital-based oncology departments. Because of the structure of many health plans, including Medicare, drug markups directly affect patient out-of-pocket expenses. Notably, the $2,000 out-of-pocket cap applies only to Medicare Part D and does not cover infused drugs paid through medical benefits.
Ted Okon, executive director of COA, stated, “This new data reaffirms what COA has championed for years—that community oncology is the backbone of cancer care in this country, delivering better value and outcomes for patients. As policymakers and stakeholders address the rise in cancer care costs, it is essential to support and strengthen the independent community oncology system.”
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