City of Hope has completed its acquisition of Cancer Treatment Centers of America (CTCA) and now plans to convert the entity into a nonprofit. The Duarte, Calif.-based nonprofit is a National Cancer Institute-designated comprehensive cancer center with more than $6 billion in total assets acquired the network of oncology hospitals and outpatient centers for a reported $390 million.
The combined organization will serve approximately 115,000 patients each year, with more than 11,000 employees and 575 physicians across a network of locations in California, including a new City of Hope campus in Irvine opening this summer. Founded in 1988, CTCA has hospitals in Atlanta, Chicago and Phoenix in addition to five outpatient cancer centers, located in downtown Chicago; Gilbert, Ariz.; Gurnee, Ill.; Phoenix, and Scottsdale, Ariz.
“With the completion of this acquisition, City of Hope and Cancer Treatment Centers of America are combining complementary strengths, with a shared commitment to providing the best, most compassionate care possible,” Robert Stone, president and CEO of City of Hope and the Helen and Morgan Chu Chief Executive Officer Distinguished Chair, said in a statement. “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.”
Pat Basu, M.D., will remain president and CEO of CTCA, reporting directly to Stone. The organization is now branded as Cancer Treatment Centers of America, a part of City of Hope.
The acquisition expects to expand and accelerate City of Hope’s ability to quickly translate research and science into lifesaving care, connecting breakthrough discoveries and academic medicine expertise with community-based specialized cancer care. This acquisition also expands the portfolio, reach and impact of City of Hope’s cancer services and capabilities, including research and development, into more communities around the country.
City of Hope conducts nearly 1,000 clinical trials annually that can enroll approximately 25% of its patients. With more than 450 patent portfolios, 95 active investigator-initiated investigational new drugs (INDs) and approximately 50 IND applications to the U.S. Food & Drug Administration every year, City of Hope describes itself as among the leading innovators in cancer research. The organization also has one of the largest and most successful in bone marrow and stem cell transplant procedures, performing more than 17,000.
J.P. Morgan acted as exclusive financial advisor and Jones Day acted as legal counsel to City of Hope in the transaction. Goldman Sachs & Co. acted as exclusive financial advisor and McDermott Will & Emery and Katten Muchin Rosenman LLP acted as legal counsel to CTCA.
City of Hope reported total revenue of almost $2.4 billion across its various entities and affiliates in Fiscal Year Ending 2020, including $1.8 billion in program revenue, $185 million in public support and $123 million in government grants, with total assets of $6.6 billion and net assets of $4.115 billion.