Cancer Center Business Cancer Center Business Summit Introduction Summit Introduction Michael L. Blau, Esq. Foley & Lardner LLP Sponsors Sponsors Platinum • Abraxis Oncology • Aptium Oncology • Bayer HealthCare Pharmaceuticals, Inc. • HealthCare Appraisers, Inc. • IMPAC Medical Systems, Inc. • Lilly Oncology • Net.Orange, Inc. • Onyx Pharmaceuticals • OTN • PricewaterhouseCoopers LLP • US Oncology 2 1
Sponsors Sponsors Gold • D3 Radiation Planning Services • Genentech BioOncology • MarCap Corporation Silver • GlaxoSmithKline Oncology • MGI Pharma, Inc. • Novartis Oncology • Oncology Supply • Shattuck Hammond Partners • Sullivan, Cotter & Associates, Inc. • Varian Medical Systems 3 Sponsors Sponsors Bronze • Myriad Genetic Laboratories • Oncology Management Consulting Group • Physicians Total Care In-Kind • Hematology & Oncology News & Issues 4 2
Introduction Introduction Growth in Market Demand 1.6M 23% Increase 23% Increase in projected in projected cancer care cancer care 1.3M 857K 754K 508K 361K 188K 187K <50 50-64 >65 Total 2000 2010 Source: National Cancer Institute 5 Introduction Introduction Demand Growth Driven by Demographics and… 3,000,000 2,500,000 2,000,000 85+ 75-84 1,500,000 65-74 50-64 <50 1,000,000 500,000 0 2000 2010 2020 2030 2040 2050 Source: Surveillance, Epidemiology, and End Results (SEER) Program (www.seer.cancer.gov) Public-Use Data (1975-2002), National Cancer Institute 6 3
Introduction Introduction Improved Survivorship Rates Five Year Relative Survival Rate by Gender 66% 66% 66% 70% 61% 60% 55% 55% 60% Males and 50% 46% Females 50% Survival Rate Males 40% Females 30% 20% 10% 0% 1975-1979 1985-1989 1995-2002 Year of Diagnosis Source: Surveillance, Epidemiology, and End Results (SEER) Program (www.seer.cancer.gov) Public-Use Data (1975-2002), National Cancer Institute 7 Background Background Demand Presents Differing Inpatient and Outpatient Opportunities 20% Surgical Oncology – Oncology Imaging – Inpatient Outpatient Radiation Oncology – Outpatient Medical Oncology – Inpatient Net 10% Margin Surgical Oncology – Outpatient 0% (60%) 60% 0% Source: The Advisory Board, Innovations Center Futures Database Volume Growth, 2003-2008 8 4
Introduction Introduction Differing Business Renal 30% Opportunities by Thoracic GI-Colorectal Tumor Site Hematological Inpatient Growth by ENT Gynecology Tumor Site Neuro GI-Other Prostate Net 10% Margin Bladder Breast Ortho (30)% 10% Source: The Advisory Board, Innovations Center Futures Database (10%) 0% Volume Growth, 2003-2008 9 Introduction Introduction Differing Business 15% Breast Opportunities by Tumor Site Gynecology Hematological Outpatient Growth by Renal Tumor Site ENT GI-Colorectal Thoracic Ortho Neuro GI-Other Net 10% Margin Prostate Bladder (15)% Source: The Advisory Board, Innovations Center Futures Database (10%) 30% 50% Volume Growth, 2003-2008 10 5
Introduction New Business Introduction New Business Opportunities: Market Trends Opportunities: Market Trends • Rise of consumerism – quality and cost imperatives • New information technologies • Shift from inpatient to outpatient/minimally invasive • Reimbursement reductions for chemo drugs, drug administration, and imaging • Health reform 11 Introduction Business Introduction Business Opportunities: New Technologies Opportunities: New Technologies • Gene therapy • Vaccine therapy/Oral chemotherapy • Molecular diagnostics • Proton Beam therapy • Robotic surgery • Gamma knife • Cyberknife • Stereotactic radiosurgery • IGRT • Virtual colonoscopy • 64-Slice CT • EMR and HIT 12 6
Introduction New Business Introduction New Business Opportunities: Consumer/Retail Opportunities: Consumer/Retail • Community based clinical trials • Psycho-social programs • Alternative and complementary medicine programs • Survivorship programs • Concierge care/health coach programs • Palliative care • Home care • Pain management • Nutrition • Fitness and rehab • Family services • Reference library 13 Introduction Differing Business Introduction Differing Business Opportunities by Type of Providers Opportunities by Type of Providers • NCI Designated Centers • Academic Medical Centers • Community Hospitals • Community Cancer Centers • Medical Groups • Joint Ventures • Networks 14 7
Introduction Introduction • Coverting opportunities to business success is a challenge in cancer care – Multi-modality – Multi-disciplinary – Multi-stakeholders – Multi-site – Multi-systems – Multi-expenses – Multi-risks 15 As we look to the future, what will be the best business models and practices to organize the multitude of stakeholders into high quality effective, efficient and sustainable cancer care programs that meet patient needs in a humane and responsible manner? 16 8
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