The US Oncology Network: Widening Payment Gap Between Independent Physicians and Hospitals Threatens Community-Based Cancer Care

THE WOODLANDS, Texas— The US Oncology Network, a national network of independent physicians delivering value-based, integrated, cancer care in the community setting, today expressed deep concerns with the continued cuts to physician reimbursement in the Medicare Physician Fee Schedule (PFS) Proposed Rule for Calendar Year (CY) 2025. The Centers for Medicare & Medicaid Services (CMS) has proposed a -2.8% cut to physician payment in 2025 while increasing payment to hospital-based providers by 2.6% in the Hospital Outpatient Prospective Payment System (HOPPS) proposed rule.

The cuts come as independent practices nationwide continue to face headwinds, including increasing administrative burdens, staffing shortages, declining commercial reimbursement, and rising inflation – threatening practice operations and sustainability. In fact, the share of physicians working in private practice fell by 13% from 2012 to 2022.

“It is really discouraging to see the Medicare physician fee schedule cut year after year,” said Dr. Marcus Neubauer, Chief Medical Officer of The US Oncology Network. “Independent oncology practices support high-quality care for patients in communities across the nation. Cuts that threaten our sustainability and access to care for our patients must end– it isn’t good for cancer care.”

Years of declining physician reimbursement, coupled with substantial payment increases to hospitals, have fueled hospital acquisitions of private medical practices, particularly in cancer care. From 2008 to 2020, over 1,000 community oncology practices closed or were acquired by hospitals, reducing patients’ access to their trusted community providers and driving up payment rates for healthcare services.

To rectify this long-standing disparity, The Network urges Congress to prevent these cuts from going into effect in 2025 and to work towards a long-term solution that will provide payment stability for independent practices and their patients.

To learn more about the proposals in CY25 PFS proposed rule, read The Network’s Health Policy Update.