Hospital system City of Hope is acquiring Cancer Treatment Centers of America to build a national, integrated cancer research and treatment system.
Financial details of the acquisition were not disclosed, but Reuters reported the deal was valued at $390 million.
The acquisition of the network of oncology hospitals and outpatient care centers will “advance the missions of both organizations,” they said in a joint press release, and build a research and treatment system to "transform the future of cancer care.”
It will also expand City of Hope’s portfolio and contribute not only to its cancer services but also to research and development.
The organizations said the combined entity will be one of the largest cancer research and treatment organizations in the country with one of the largest geographic footprints, serving approximately 115,000 patients each year. Together, City of Hope and CTCA will comprise about 11,000 employees, including 575 physicians across four states.
City of Hope currently serves patients in Southern California, and the acquisition will expand its reach across a network of locations in California—including a new campus in Irvine opening in summer 2022—as well as Arizona, Illinois and Georgia.
The transaction is expected to close in the early part of 2022, after which City of Hope plans to turn CTCA into a nonprofit.
“We’re excited to become a part of City of Hope, and to take a step closer to reaching so many more cancer patients with our unique, patient-centered model,” Pat Basu, M.D., president and CEO of CTCA, said in a press release. He added that cancer patients will reap the ultimate reward through this aligned partnership.
City of Hope is a National Cancer Institute-designated comprehensive cancer research and treatment organization. Founded in 1913, City of Hope is a leader in bone marrow transplantation and immunotherapy such as CAR T-cell therapy. Human synthetic insulin, monoclonal antibodies and numerous breakthrough cancer medicines are based on technology developed at City of Hope.
The organization says it conducts nearly 1,000 clinical trials annually. With more than 450 patent portfolios, 95 active investigator-initiated investigational new drugs and approximately 50 IND applications submitted to the U.S. Food & Drug Administration every year, City of Hope touts that it is among the leading innovators in cancer research.
CTCA offers an integrated approach that combines surgery, radiation, chemotherapy, immunotherapy and advancements in precision medicine with supportive therapies to manage side effects and enhance quality of life during treatment and into survivorship. CTCA says its patient satisfaction scores consistently rank among the highest for all cancer care providers in the country.
However, a Reuters investigation in 2013 alleged that the organization's survival data were misleading and that it was refusing some patients treatment in order to improve the mortality statistics it used to promote its cancer centers.
However, City of Hope's CEO told Stat News that he is confident in the decision and does not expect the acquisition to greatly influence prices.
In 2016, Los Angeles-based City of Hope, which is a founding member of the National Comprehensive Cancer Network, acquired Translational Genomics Research Institute to expand its research capabilities. It also launched AccessHope a few years later, a program that enables it to share its expertise with partner employers for their employees who need clinical decision support.