With the conclusion of the deal, City of Hope will convert the Cancer Treatment Centers into a non-profit organization.
Less than two months after announcing the deal, City of Hope said Wednesday it has completed the $390 million acquisition of the Cancer Treatment Centers of America.
With the completion of the deal, City of Hope said it intends to shift the Cancer Treatment Centers of America to a non-profit organization. City of Hope announced it was purchasing Cancer Treatment Centers in early December.
Robert Stone, president and CEO of City of Hope, said in a statement the acquistion of Cancer Treatment Centers will combine “complementary strengths, with a shared commitment to providing the best, most compassionate care possible.”
“Together, we are creating a new model for how cancer care is delivered, leveraging real-world cancer care experience to inform scientific innovation and making tomorrow’s new discoveries available to the people who need them today.”
The newly merged organization now covers a sizable footprint including some major metropolitan areas.
City of Hope’s network stretches across California, Arizona, Illinois and Georgia, and the organization plans to open a hospital in Irvine, California later this year.
Cancer Treatment Centers operates oncology hospitals in Atlanta, Chicago and Phoenix and five outpatient treatment facilities.
The combined organization will include 11,000 employees and 575 doctors and will serve about 115,000 patients annually, City of Hope said.
Stone previously said the acquistion will allow City of Hope to offer more cancer care to underserved communities.
With the deal complete, Pat Basu will remain as CEO of the Cancer Treatment Centers and will report directly to Stone. In a statement in December, Basu said cancer patients would be the beneficiaries.
“Building on more than three decades of unparalleled patient experience and quality care, 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,” Basu said in December.
While 2021 saw a dip in hospital mergers, analysts said they expected to see more mergers and acquisitions in 2022.
Industry observers also expected to see more merger talks involving hospital systems and partners in areas such as outpatient services, specialty surgeries, telemedicine, and home healthcare.
Last month, KPMG surveyed investors and found most expected to increase their merger and acquisition efforts in healthcare and the life sciences. Analysts projected some smaller hospitals and systems that are struggling may need to join with larger hospital systems.