Hospital outpatient versus doctor office cost for physician administered cancer drugs

Evidence Driven Drug Pricing Project
January 4, 2017

A new analysis reviews several analyses of differential costs of care provided in the doctors’ offices and hospital outpatient settings.

Trade associations and lobbying groups representing cancer physicians and some policy experts regularly report that oncology care costs more in the hospital outpatient department. The assertion is a complex one, however. It could mean that payment rates are different, that the efficiency of care is different, or that margins and mark-ups are different. In this report we review published analyses related to the cost of cancer care in the two settings and determine what assertions about cost differentials in the two settings are supported by previous studies.