Sen. Elizabeth Warren (D-Mass.) is urging the Federal Trade Commission to scrutinize recent deals from McKesson and Cardinal Health to buy oncology practices, saying those transactions pose “clear, anticompetitive risks.”
McKesson, Cardinal Health, and Cencora are the three dominant wholesalers that distribute drugs and medical products. But they have prioritized becoming more than middlemen by also becoming cancer care providers. Just as in other parts of health care that are vertically integrated, there is a large opportunity to profit by being both the buyer and seller of products and services — especially on high-priced cancer drugs.
In August, McKesson agreed to pay $2.5 billion for a 70% stake in the administrative organization that controls Florida Cancer Specialists, which has more than 500 oncologists and other cancer providers. McKesson already controls another cancer practice, The US Oncology Network. A month later, Cardinal Health said it would buy Integrated Oncology Network, which includes 100 cancer doctors and clinicians, for $1.1 billion. Last year, Cencora bought a minority stake in OneOncology with private equity firm TPG.
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