OneOncology and Pacific Cancer Care expand Central Coast cancer services with Los Gatos radiation oncology acquisition

In a move that underlines the accelerating shift toward decentralized, physician-led cancer care in the United States, OneOncology LLC and its Monterey-based partner Pacific Cancer Care have signed definitive agreements to acquire the radiation oncology clinic located at 15400 National Avenue in Los Gatos, California. The facility is being acquired from Good Samaritan Hospital, part of the HCA Healthcare system, and will transition to Pacific Cancer Care’s control by October 2025.

The acquisition comes amid growing national demand for localized, cost-effective oncology delivery systems that provide patients with high-quality care closer to home. With the Los Gatos clinic representing the last remaining community-based radiation therapy center in the region, the deal not only preserves patient access but also marks a strategic investment in scalable, outpatient-driven cancer treatment.

While neither OneOncology nor Pacific Cancer Care are publicly traded, this development parallels broader institutional themes in healthcare equities. Investor sentiment continues to favor networks that can operate independently of costly hospital systems while delivering clinical outcomes at or above national benchmarks.

What Does the Los Gatos Acquisition Mean for Community-Based Cancer Care?

The Los Gatos radiation oncology clinic is a vital asset for Central Coast oncology infrastructure, offering external beam radiation therapy via a high-precision linear accelerator. These systems are critical for delivering targeted radiation to treat cancers of the breast, prostate, head and neck, cervix, lungs, brain, and skin, with minimal damage to surrounding tissue.

The facility’s absorption into the Pacific Cancer Care network ensures continuity of service for a patient base increasingly vulnerable to care disruptions caused by hospital consolidations and service line exits. According to Pacific Cancer Care’s President and Managing Partner Dr. Zach Koontz, the integration of radiation oncology strengthens the clinic’s ability to deliver full-spectrum, multidisciplinary care. He emphasized that localized access eliminates burdensome travel, reduces fragmentation, and significantly lowers patient costs compared to hospital-based alternatives.

This deal further supports a sector-wide pivot toward value-based care models, where continuity, accessibility, and affordability are being prioritized by both payers and policymakers.

How Does This Reflect OneOncology’s Strategic Expansion Playbook?

OneOncology, headquartered in Nashville, Tennessee, has grown rapidly by championing a physician-led, tech-enabled care model that emphasizes local autonomy with centralized operational support. The platform currently supports more than 850 providers across dozens of independent oncology practices nationwide.

Through its partnership model, OneOncology enables practices like Pacific Cancer Care to preserve clinical independence while accessing national-scale technology, analytics, clinical pathways, and capital resources. This approach has positioned OneOncology as a formidable counterpoint to hospital system consolidation, which often results in elevated patient costs and diminished local access.

Jeff Patton, MD, CEO of OneOncology, noted that the acquisition reinforces their commitment to keeping “world-class care in the community,” enabling patients to avoid the clinical and financial risks of centralized treatment models.

The Los Gatos acquisition fits squarely within OneOncology’s broader investment thesis: empower high-performing regional partners with infrastructure, while keeping care local, efficient, and aligned with evolving regulatory and payer incentives.

How Will Pacific Cancer Care Broaden Services Post-Acquisition?

Pacific Cancer Care already delivers an integrated suite of services spanning medical oncology, hematology, clinical trials, chronic disease management, palliative care, in-house labs, health coaching, and an oral pharmacy. The addition of radiation oncology fills the final major clinical gap in its continuum of care.

From October 2025 onward, the Los Gatos site will become the first Pacific Cancer Care location with in-house radiation therapy capabilities. The seamless integration of this service allows for same-day multidisciplinary consults, consolidated records, and unified treatment planning—all hallmarks of high-value, patient-centered cancer care.

Industry analysts note that multi-service oncology clinics tend to report higher patient retention rates, reduced emergency room admissions, and improved compliance with evidence-based treatment pathways. Moreover, these capabilities position Pacific Cancer Care for deeper partnerships with payers, including in emerging alternative payment models (APMs) under CMS and commercial insurers.

What Are the Broader Implications for California’s Oncology Market?

California remains one of the most competitive and fragmented oncology markets in the U.S., with strong representation from academic health systems, private hospitals, and independent clinics. Yet access to radiation oncology—particularly outside metro hubs—has been steadily declining due to regulatory pressures, reimbursement constraints, and staffing shortages.

The Los Gatos acquisition, while localized, is strategically important for counterbalancing this trend in Northern California. With its patient-centered design and independent operational model, the center will serve as a regional anchor for outpatient-based radiation services.

Pacific Cancer Care’s expansion also increases its leverage in statewide payer negotiations, clinical trial recruitment, and infrastructure grants tied to health equity and rural access improvement programs.

Why Are Investors and Analysts Watching These Non-Public Oncology Networks?

While neither Pacific Cancer Care nor OneOncology trades on public exchanges, their activities reflect important shifts in the health services investment landscape. Wall Street analysts covering healthcare REITs, outpatient infrastructure plays (e.g., NASDAQ: ACHC, NYSE: UHS), and managed care operators are closely monitoring how independent oncology networks build durable, scalable business models.

There’s strong institutional interest in care platforms that reduce reliance on inpatient facilities. These models deliver better EBITDA margins (typically in the 15–22% range versus ~10% in hospital oncology), faster cash conversion cycles, and lower capital intensity per site.

Even though this transaction does not immediately impact public equity valuations, it reinforces the investment thesis behind outpatient infrastructure platforms like GenesisCare, US Oncology Network, and recently IPO’d oncology data platforms.

According to early analyst sentiment, the deal confirms that localized radiation assets with operational continuity and modern equipment continue to be attractive strategic targets. With more hospital systems divesting non-core assets, analysts expect a continued wave of tuck-in acquisitions by regional groups supported by national platforms like OneOncology.

How Is Institutional Sentiment Shaping M&A in the Oncology Sector?

Institutional capital is flowing into oncology through private equity, infrastructure funds, and corporate M&A. Over the past 24 months, the U.S. has seen a surge in sub-$100 million acquisitions of outpatient cancer centers, with notable transactions involving radiation therapy units and specialty diagnostic clinics.

These deals are fueled by three main tailwinds: the CMS Radiation Oncology Model (which favors bundled payments), persistent labor shortages in hospital systems (pushing procedures outpatient), and the growing power of physician-led networks in payer contracting.

While OneOncology does not disclose its financials, its acquisition strategy aligns with institutional preferences for network effects, cost containment, and patient satisfaction metrics. The Los Gatos transaction, though relatively small, exemplifies these dynamics at play and could serve as a model for similar markets nationwide.

What Is the Near-Term Outlook for OneOncology and Its Network Partners?

Analysts expect continued geographic expansion for OneOncology and its partners, particularly in underserved or hospital-oversaturated oncology markets. With strategic acquisitions like Los Gatos, Pacific Cancer Care is likely to become a candidate for further network consolidation, payer pilot programs, or academic affiliation partnerships.

From a technology standpoint, OneOncology is also investing in AI-enhanced clinical pathways, tele-radiation consults, and patient engagement platforms, which could be piloted at the Los Gatos site post-renovation.

Further, the group’s focus on comprehensive, cost-conscious, community-based oncology is expected to position it well against the backdrop of heightened payer scrutiny and regulatory incentives for site-of-care optimization.

Future M&A activity is likely, especially if more hospitals exit radiation services. Institutional investors will closely watch whether OneOncology pursues bolt-on acquisitions or vertically integrates adjacent specialties such as imaging, surgical oncology, or precision diagnostics.

By retaining and upgrading the Los Gatos Radiation Oncology Center, OneOncology and Pacific Cancer Care are not just expanding their footprint—they are reaffirming a care model that prioritizes accessibility, physician leadership, and financial sustainability. In doing so, they are setting a precedent for how modern oncology networks can deliver both clinical excellence and operational resilience in a fast-evolving healthcare economy.