Drug Distributors Double Down, HATCo’s deal with Summa, and a Finalized Fee Schedule

Hospitalogy November 12, 2024
Blake Madden

Drug Distributors continue Vertical Integration Strategy as Cencora, Cardinal make Big Bets

Deals among PE-backed physician practice management players and strategic buyers (drug distributors in this case) are heating up.

On November 6, Cencora bought Retina Consultants of America (RCA) for $4.6B (an 85% stake and $500M in incentive payments).

• RCA serves 300+ retina specialists in 23 states and sees 2 million patient visits annually.
• Interestingly RCA specializes in clinical trials in research, which Cencora is sure to have an invested (literally) interest in.
• Through eventually owning both OneOncology and RCA, Cencora will look to build out a more integrated management services organization (an MSO, as our industry so fondly loves its acronym) to house its services subsidiary.

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