University of Iowa Health Care eyes $280M deal to expand cancer care, research in Iowa

IOWA CITY — University of Iowa Health Care is seeking Board of Regents approval to buy a 43-year-old community-based cancer-care business with 22 locations in Central and Western Iowa for $280 million.

The proposed deal between UIHC and “Mission Cancer + Blood” — transferring to UIHC leases for 12 clinics, including several affiliated with MercyOne and UnityPoint Health — will go before the board Tuesday. The deal also provides that UIHC would take over agreements the business has with health care organizations to provide services at those facilities.

If approved, UIHC will take over Mission Cancer’s locations and its equipment, inventory, workforce, supplies and business operations.

The transaction aims to help the university preserve and enhance cancer-care access for Iowans, especially those living in rural areas; bolster Iowa’s health care workforce by expanding training and education opportunities; and improve access to clinical trials and innovative treatments — also enhancing research endeavors.

“By joining forces with UI Health Care, we can provide more patients with access to comprehensive services, shortened time between diagnosis and treatment for rare and difficult cancers, and expanded options for the latest therapies offered as part of clinical trials,” Mission Chief Executive Officer Phil Stover said in a statement. “UI Health Care is committed to providing long-term, stable employment and meaningful engagement for all Mission team members, which is crucial to the lasting success of this collaboration.”

Personalized plans

Mission Cancer — founded in 1981 by four doctors wanting to offer “comprehensive cancer care and personalized treatment plans in a compassionate and trusting environment close to home” — today has a team of 19 full-time physicians who are board-certified in medical oncology, hematology and internal medicine.

Mission Cancer also has 41 advanced practice providers and more than 135 nursing and other staff members across its 22 Iowa locations that — combined — average 7,000 patients, 15,000 lab tests and 4,000 chemotherapy infusion treatments a month.

It offers in-house trials through collaborations with the Iowa-Wide Oncology Research Association, Des Moines Oncology Research Association and Mercy Cancer Research — amounting to more than 100 national and international research studies and clinical trials “right here in central Iowa” — including for patients with breast, lung, bladder and endometrial cancers.

It’s “core clinic” locations include:

It also has outreach locations in communities including Fort Dodge, in collaboration with Trinity Regional Medical Center; Pella, in collaboration with Pella Regional Health Center; and Oskaloosa, in collaboration with Mahaska Health.

“This agreement brings two fiscally strong organizations together and promotes new levels of collaboration in cancer care, research, and education across the state,” according to a Mission Cancer news release Monday. “We will continue to foster our long-standing and trusted partnerships with health systems and hospitals while expanding access to cancer care for all Iowans, especially those in rural areas.”

‘Challenging’ environment

The collaboration comes as Iowa holds the fastest-growing rate of new cancers nationally and the country’s second-highest cancer rate, behind Kentucky — with another 21,000 new cancers expected this year, according to the UI-based Iowa Cancer Registry’s 2024 “Cancer in Iowa” report.

Researchers have said they believe a confluence of factors are to blame for Iowa’s steep cancer rate — making it the only state in the nation to report a significant increase in incidence from 2015 to 2019 — ranging from alcohol use and abuse to obesity.

In announcing its sale to the university this week, Mission Cancer acknowledged, “Our current environment … is a challenging one.”

“Despite being the largest provider of cancer treatment with a network of 22 locations in communities across the state, Iowa’s need to improve access to care has never been more critical,” according to the release.

Under the asset-purchase agreement, the university will take ownership of all Mission’s contracts, leases and personal property — save some exceptions, including the Mission Cancer Foundation, formed in 2020 to raise money toward efforts to increase cancer care access and research.

Federal financial filings from the Mission Cancer Foundation for 2023 show it ended the fiscal year with net assets of $128,415.

Regarding the workforce transition, Mission Cancer upon closing the deal will terminate all its employees, who then will be offered a job with UIHC — so long as they’re in “good standing,” according to the agreement.

“Compensation terms of such employee offers will be reasonably commensurate” to existing wages, with each employee reviewed for appropriate UIHC classification. They’ll all be eligible for UI benefits.

“The parties do not anticipate that there will be any ‘employment losses’ as a consequence of the contemplated transactions,” according to the agreement, which does not obligate the university to “continue the employment of any transferred employee for any period.”

UIHC Vice President for Medical Affairs Denise Jamieson said the goal of this collaboration is to address Iowa’s growing cancer care needs.

“This agreement will promote new levels of collaboration in cancer care, research, and education across the state,” Jamieson said in a statement. “Working together, we have an opportunity to reduce the pain and suffering caused by cancer for many Iowans and train more physicians who go on to practice in the state of Iowa.”

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com