The Health Care Arms Race Continues
8/2/2007 Seattle, WA Leslie Helm www.washingtonceo.com Expensive new equipment adds fuel to hospital rivalries The Swedish Cancer Institute (SCI) announced Wednesday it is has signed a contract to buy a $22 million system that uses the latest technology to help treat cancer. But the purchase may trigger a costly "arms race" between competing hospitals and medical centers to see who can provide the most technologically advanced care. To avoid such a costly race in the field of medical equipment, Swedish says it is speaking with other medical providers in the area to partner in employing the revolutionary technology. But there are other plans already in the works. The new system is the latest generation of proton beam radiotherapy equipment, known as the Clinatron 250, built by Still River Systems of Littleton, Mass. Swedish argues it will be the first center in the Pacific Northwest to offer proton beam radiation therapy (PBRT) when it receives the equipment sometime in 2010. But the Seattle Cancer Care Alliance, made up of several medical institutions affiliated with the University of Washington, announced plans last year that it would build its own center using similar technology for $100 million. Rod Hochman, who became CEO of Swedish Medical Center in April, says Swedish wants to create a consortium with other hospitals and universities to share both the cost and use of the new machine. "It will be great for the community," says Hochman. Compared to the way hospitals have approached the acquisition of such cutting-edge equipment [...]