Newspaper article THE JOURNAL RECORD

Firm Develops Industry Niche with Chain of Cancer Centrs

Newspaper article THE JOURNAL RECORD

Firm Develops Industry Niche with Chain of Cancer Centrs

Article excerpt

N.Y. Times News Service LOS ANGELES _ Analysts say that Salick Health Care Inc., which derives 70 percent of its revenues from its cancer centers, has developed a unique niche within the health care industry. Certain recent problems aside, they say, the company is poised for steady, impressive growth. Dr. Bernard Salick, the chairman of the company, remembers the terror he felt when his daughter was diagnosed with cancer in 1983. After she recovered, he decided to expand his company, which operates kidney dialysis centers, by opening cancer treatment centers. To avoid the frustrations of traveling to far-flung medical centers for treatment and the terrible disruptions to family life that his family endured, the centers provide patients with chemotherapy and radiation treatment along with other necessary medical and psychological services. All services are available 24 hours a day, seven days a week. "It's a very viable concept," said Stewart R. Spector, a health care analyst based on New York's Long Island. "Very few hospitals are open 24 hours a day, seven days a week. With this, an individual who has cancer can continue to work or go to school. They can get treatment in the evening, or on a Saturday or Sunday. Salick also has ancillary services like psychological counseling and nutrition." Salick, which is based in Beverly Hills, Calif., currently operates eight cancer diagnostic and treatment centers, which are affiliated with hospitals in Florida, California and Pennsylvania. The company says it is discussing the concept with several more hospitals across the country and plans to open at least two or three more centers a year for the foreseeable future. Analysts say that 1.1 million new cases of cancer are diagnosed each year in the United States. Cancer programs generally account for 10 percent to 15 percent of a hospital's patients. Given that market, Salick has room to grow by 15 percent to 20 percent annually. In the 1990 fiscal year, Salick's net income rose to $4.2 million, or 74 cents a share, which included a gain from debt retirement, up from $3. …
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