TOI Launches Florida Oncology Network, a Fully Delegated Cancer Care Network, and Announces Four Additional Value-based Contracts in Q1
Rhea-AI Summary
The Oncology Institute (NASDAQ: TOI) has launched the Florida Oncology Network, a fully delegated cancer care network, marking a significant expansion in Florida's healthcare landscape. The network combines TOI Clinics with value-focused medical and radiation oncologists across the state to deliver coordinated, accessible, and affordable cancer care.
TOI has partnered with Provider Network Solutions (PNS) to manage claims administration and network operations. The collaboration leverages TOI's clinical model with PNS's expertise in delegated provider networks in Florida. The network is immediately operational, with plans for expansion throughout 2025.
Additionally, TOI has secured four new value-based contracts in Q1 2025, adding 80,000 lives, including 42,000 Medicare Advantage lives under the new fully delegated model in Florida.
Positive
- Secured 80,000 new lives through value-based contracts in Q1 2025
- Added 42,000 Medicare Advantage lives in Florida under delegated model
- Geographic expansion through new Florida Oncology Network
- Strategic partnership with PNS for network operations
Negative
- None.
Insights
TOI's launch of the Florida Oncology Network represents a significant strategic expansion that dramatically increases its value-based footprint. The addition of 80,000 lives in Q1 alone, including 42,000 Medicare Advantage lives under the fully delegated model, marks substantial growth for a company with TOI's market capitalization (
The fully delegated model is particularly noteworthy as it positions TOI to capture greater economic value by taking on more comprehensive management of cancer patients. This model typically involves accepting greater financial risk but offers higher margins and more control over the care delivery process when executed effectively.
The partnership with Provider Network Solutions adds credibility to this initiative, as PNS brings established expertise in network management and claims administration in the Florida market. This collaboration should help TOI navigate the operational complexities of scaling a specialty care network while focusing on their clinical strengths.
For investors, this expansion signals TOI's commitment to the value-based oncology model and ability to secure payor partnerships across multiple markets. The accelerated pace of contract signings in Q1 suggests strong market validation of TOI's approach to cancer care management, potentially creating a foundation for sustainable revenue growth through 2025 and beyond.
TOI's move to launch a fully delegated oncology network in Florida represents an advanced evolution in specialty care risk models. Fully delegated arrangements transfer substantial clinical and financial responsibility from payors to providers, requiring sophisticated care management capabilities but offering greater autonomy and margin potential.
The 42,000 Medicare Advantage lives under this model are particularly valuable, as cancer prevalence increases with age, creating more opportunities to demonstrate clinical and financial value. Medicare Advantage plans typically pay higher rates for specialty care management compared to commercial plans, potentially enhancing the revenue impact of this expansion.
TOI's approach of combining their owned clinics with a broader network of aligned oncologists follows a proven playbook for specialty care networks - building sufficient geographic coverage while maintaining clinical quality control. The collaboration with PNS for administrative functions allows TOI to focus on clinical operations while leveraging established back-office infrastructure.
The rapid addition of four value-based contracts across markets indicates TOI's model is gaining traction with multiple payors. This diversification reduces single-payor dependency while creating economies of scale in TOI's value-based infrastructure. As these contracts mature, TOI should benefit from more predictable revenue streams compared to traditional fee-for-service oncology practices, creating a potentially more stable business model despite initial implementation investments.
CERRITOS, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- The Oncology Institute, Inc. (NASDAQ: TOI) (“TOI” or the “Company”), one of the largest value-based community oncology groups in the United States, today proudly announced the launch of the Florida Oncology Network. This new fully delegated network will expand access to high-quality, coordinated cancer care for Florida residents.
The Florida Oncology Network includes TOI Clinics and a robust panel of value-focused medical and radiation oncologists strategically located throughout the state. The network is designed to provide comprehensive cancer care that is accessible, affordable, and focused on outcomes for patients and payor partners.
Under the delegated arrangement, TOI has partnered with Provider Network Solutions (PNS), the market leader in specialty MSO and third-party administrative services, and through its affiliates will provide claims administration and processing as well as network management. The collaboration brings together TOI’s nationally recognized clinical model and PNS’s deep experience supporting delegated provider networks in Florida. Together, the organizations will focus on improving patient outcomes, reducing unnecessary variation in care, and aligning incentives with value-based objectives.
The Florida Oncology Network commences operations effective immediately, with plans to grow both its geographic footprint and patient reach across Florida throughout 2025. This comes alongside 80,000 additional lives already signed in 2025 to date, through four separate agreements across markets, including over 42,000 Medicare Advantage lives in the new fully delegated model in Florida.
“I’m very excited about the launch of Florida Oncology Network and our continued rapid growth in capitated lives in Q1,” said Dan Virnich, CEO of TOI. “This milestone allows us to scale more quickly while serving the needs of health plan partners across markets with a comprehensive delegated oncology model.”
About The Oncology Institute
Founded in 2007, TOI is advancing oncology by delivering highly specialized, value-based cancer care in the community setting. TOI offers cutting-edge, evidence-based cancer care to a population of over 1.8 million patients including clinical trials, transfusions, and other services traditionally associated with the most advanced care delivery organizations. With over 120 employed clinicians and more than 700 teammates in over 70 clinic locations, TOI is changing oncology for the better. For more information, visit www.theoncologyinstitute.com
About Provider Network Solutions (PNS)
Provider Network Solutions is the market leader in specialty MSO and third-party administrative services, managing over 3.7 million member plans across Florida, Texas, and Puerto Rico. PNS’s mission is to provide health plans and providers with a comprehensive value-based ecosystem, ensuring high-quality patient care and operational efficiency. For more information, visit www.providernetworksolutions.com
Contacts
Media
The Oncology Institute, Inc.
Jaime Valles
marketing@theoncologyinstitute.com
Investors
Solebury Strategic Communications
investors@theoncologyinstitute.com
FAQ
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