Rwt1 Business Research

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Business Research Report Proton Beam Therapy Program Presented to: Medical System Gamma, Senior Leadership Technology Assessment Committee Assessment Code: RWT1 Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 Proton Beam Therapy Market 4 Proton Beam Therapy Facilities 5 Operations 6 Recommendations 6 Conclusion 7 References 8 Executive Summary The Senior Leadership Technology Assessment Committee of Medical Center Gamma requested evaluation of Proton Beam Therapy (PBT) for the determination of whether this emerging technology program should be implemented within the system. Identification of the current market, financial costs of equipment and operation reimbursement and costs was requested. PBT technology provides the opportunity for greater cancer treatment with reduced impact on normal tissue as compared to traditional radiation therapy. With 60% of the nearly 1.2 million cancer patients requiring radiation therapy, the potential market is vast. Expert opinions forecasts that PBT could replace the traditional photon therapy equipment. Currently there are 15 facilities operating, with an additional 10 in development. The capacity of the existing programs is less than 4% of the potential market. First generation of this technology required large football field building requirements to house the equipment, with costs ranging up to $180 million to install. New FDA approval of smaller accelerators has reduced the costs to the $25 million range for accelerator and facility. Technology is continuing to evolve at a rapid pace. Reimbursement rates and coverage for treatment is highly volatile. Medicare rates have dropped 23% in the past year, but are under review as there are concerns with the data calculation. Insurance payers are evaluating the coverage
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