Independent community oncology practices significantly reduce financial toxicity for cancer patients compared to hospital outpatient settings, according to a study published in the American Journal of Public Health. The study, led by Dr. Lucio Gordan, president and managing physician of Florida Cancer Specialists and Research Institute (FCS), analyzed real-world claims data to assess cost differences between care settings.
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 that negatively impacts their wellbeing.
The study, titled “The Role of Utilizing Community Oncology Care To Decrease Cancer-Related Financial Toxicity,” found that the mean monthly cost of care for patients treated in community oncology clinics was 24% lower than those treated in hospital outpatient settings—$12,548 versus $16,555. When focusing on branded chemotherapy, costs were 39% lower in community oncology, averaging $6,674 compared to $10,900 in hospital-based clinics.
Dr. Gordan stated that these findings confirm observations in community oncology: patients benefit from compassionate, personalized care close to home while incurring significantly less financial strain during treatment.
The research highlights the disproportionate impact of drug markups and facility fees on total care costs in hospital-based oncology departments. These higher charges directly affect patient out-of-pocket expenses due to health plan structures, including Medicare. Notably, Medicare’s $2,000 out-of-pocket cap applies only to Part D prescription drugs, not infused drugs covered under medical benefits.
Ted Okon, executive director of the Community Oncology Alliance (COA), emphasized that the data supports COA’s long-standing position that community oncology forms the backbone of cancer care in the United States, delivering better value and outcomes. Okon urged policymakers and stakeholders to prioritize support for independent community oncology to address rising cancer care costs effectively.
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