City of Hope to acquire Cancer Treatment Centers of America

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City of Hope, a non-profit cancer research organization based in California Buying America chain of for-profit cancer treatment centers for $390 million.

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why it matters: The merger will merge two separate organizations – City of Hope, which is known for research, and CTCA, which has a history The number of cherry-picking patients who are healthy and have better health insurance.

big picture: CTCA’s hospitals and outpatient centers will give the City of Hope a larger, geographically broad patient base, which it plans to use as an extension of its research center.

  • The City of Hope also plans to convert CTCA facilities to non-profit status, exempting them from most taxes.
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Between the lines: The pandemic drastically cut care at many hospitals across the country, while the City of Hope saw fewer patients in 2020 As people stayed at home, the hospital was less affected than others.

  • City of Hope almost 600 days cash on hand As of June 30, well above hospital industry norms and plenty of cushion to buy a company like CTCA.
  • The City of Hope derives the majority of its annual revenue of more than $2.3 billion from patients who have occupational health insurance. Low-income patients on Medicaid represent less than 10% of hospital revenue.

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