Dr. Lucio Gordan Co-Authors Study Validating Financial Impact of Medicare Sequester Cut on Community Oncology

Gainesville, FL – December 6, 2018…… Florida Cancer Specialists President and Managing Physician Dr. Lucio Gordan was lead author of the study “The Financial Impact of the Sequester Cut to Medicare Part B Drug Reimbursement in Community Oncology,” which was recently published in the in the American Journal of Managed Care(AJMC). The study included almost 400,000 Medicare patients who were followed for a 27-month period and were treated in community oncology practices in 33 states.

Results of the study revealed that these community oncology practices have lost $78 million as a result of the ongoing Medicare sequester cut to reimbursement for Part B drugs. This correlates to a loss of more than $847,000 per practice due to the sequester cut.  The Community Oncology Alliance (COA) states that these losses have driven an increase in the number of closings and rate of closure of community oncology practices in the United States.

“The sequester cut to Medicare Part B drug reimbursement is both illegal and unconstitutional, and it has cost practices millions of dollars in just the last two years. This is in addition to the billions that it has cost seniors and Medicare in unnecessary spending from shifting cancer care to the more expensive hospital setting,” said Ted Okon, executive director of COA. “The data in this study is eye-opening and should clearly demonstrate the need for Congress and the Trump Administration to fix this misguided constitutional violation.”

Sequestration occurred because Congress was unable to negotiate a balanced budget in 2011. It is an automatic cut to Federal government spending. Beginning in 2013, the Centers for Medicare & Medicaid Services (CMS) starting applying a two percent sequester cut to all Medicare Part B reimbursement, including for chemotherapy drugs.

The study states, “The closure of community oncology practices represents a significant impediment to appropriate access to cancer care. Another negative consequence of the closure of community practices is the shift of site of care from the community setting to outpatient hospital systems.”

Headshot Press Release Profile - DrLucioGordan_PresidentandManagingPhysicianA September 2017 study, “The Value of Community Oncology: Site of Care Cost Analysis,” which was also co-authored by Dr. Gordan, found that the total cost of care for cancer patients receiving chemotherapy delivered in the hospital outpatient setting is nearly 60%, or $90,144 per year, more expensive than the same treatment delivered in independent, community oncology practices. Additionally, cancer patients treated in the hospital setting are more likely to visit the emergency department (ED) following treatment, thus, driving healthcare costs even higher.




To read the full article: http://ascopubs.org/doi/full/10.1200/JOP.17.00040

To read “The Value of Community Oncology: Site of Care Cost Analysis: https://www.communityoncology.org/wp-content/uploads/sites/20/2018/08/Site-of-Care-Cost-Analysis-White-Paper_9.25.17.pdf



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Founded in 1984, Florida Cancer Specialists & Research Institute (FCS) is the largest independent medical oncology/hematology practice in the United States. With more than 220 physicians, 200 advanced practice registered nurses (APRN) and physician assistants (PA) and nearly 100 locations in our network, we are committed to providing world-class cancer care in community-based settings close to home. 

Recognized by the American Society of Clinical Oncology (ASCO) with a national Clinical Trials Participation Award, FCS offers patients access to more clinical trials than any private oncology practice in Florida. In the past 3 years, the majority of new cancer drugs approved for use in the U.S. were studied in clinical trials with Florida Cancer Specialists participation.* Our physicians are consistently ranked nationally as Top Doctors by U.S. News & World Report. Trained in such prestigious medical schools and research institutes as Duke, Stanford, Harvard, Emory, M.D. Anderson, and Memorial Sloan-Kettering, the physicians of Florida Cancer Specialists provide leadership and consultation in the state's leading hospitals.

FCS serves patients on the Gulf Coast from Naples to the greater Tampa Bay area, north as far as Tallahassee, in Orlando and surrounding Central Florida communities, and on the East Coast from Palm Beach County to the Jacksonville area.

Florida Cancer Specialists has built a national reputation for excellence that is reflected in exceptional and compassionate patient care, driven by innovative clinical research and cutting-edge technologies that help advance targeted treatments and genetically-based immunotherapies, and embodied by our outstanding team of highly-trained and dedicated physicians, clinicians and staff.
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