e23098 Background: Medically integrated dispensing, consisting of multidisciplinary care teams dispensing drugs within clinics, has been associated with reduced medical spending for members receiving oral oncolytics (OO). However, there is little understanding of how medical spending differs across sites of care by dispensing channel. Objective: To compare 6-month pre/post all-cause medical spending by site of care between integrated and non-integrated dispensing channels among commercially insured members initiating OO therapy. Methods: Prime Therapeutics’ integrated pharmacy and medical claims database was used to identify members newly initiating an OO of interest between 1/1/2019 and 12/1/2022. Members were required to be continuously enrolled 6 months before and after index, had a cancer diagnosis, and had > $0 medical spending. Dispensing channel Integrated Health System Specialty Pharmacy (Int-HSSP), Integrated Physician Office (Int-Phys), Non-Integrated (Non-Int) was assigned using index OO fill. The primary outcomes were change in all-cause medical spending, medical drug spending, and non-drug medical spending divided into five site of care categories: inpatient, outpatient facility, emergency department, provider office visits, and other. Regression analysis was used to compare change in spending across channels, adjusting for demographics, health status, and cancer type. Results: A total of 30,928 (Int-HSSP: N = 5,500; Int-Phys: N = 2,550; Non-Int: N = 22,878) commercially insured members met all study criteria. Mean age ranged from 53.9 (Int-HSSP) to 56.1 years (Int-Phys). Compared to Non-Int (Unadjusted All Medical Pre: $56,214, Post: $67,050), significant cost savings were observed in the Int-Phys (Unadjusted All Medical Pre: $64,794 Post: $64,670; adj. diff -$5,672 [-9,384 to -1,960; p = 0.003]). Across categories of medical spending, the largest decreases were observed for inpatient medical spending (adj. diff -$2,663 [-5,000 to -326; p = 0.026]) and medical drug spending (adj. diff -$2,082 [-$4,248 to 84; p = 0.060]) with the remaining $927 in savings coming from differences across all other sites of care combined. No significant differences were observed for other medical spending categories or for Int-HSSP compared to Non-Int. Conclusions: Int-Phys dispensing channel for OO drugs was associated with a $5,672 reduction in medical spending compared to Non-Int, nearly half of which was driven by changes in inpatient non-drug medical spending alone. These findings support managed care models which include integrated oncology dispensing as a potential opportunity to reduce medical spending. Future work should assess the impact of dispensing channel on total cost of care and differences in healthcare utilization and in patient care experiences by dispensing channel.