Cancer drug manufacturer will begin managing cancer centers

posted 5-2-97

The second-largest manufacturer of cancer drugs in the world, Zeneca, recently took over management of 11 cancer centers it owns in U.S. hospitals.

The British pharmaceutical company will now be in the unprecedented position of directly overseeing physicians and patient care at the centers, as well as producing the drugs that physicians could prescribe or use in studies.

Some analysts suggest that the unique arrangement is a conflict of interest and might spark similar deals. Zeneca executives say that the acquisition will not interfere with patient care or limit the freedom of physicians.

Zeneca recently completed its buyout of Salick Health Care in Los Angeles, the original owner of the centers. The purchase began in 1995 when Zeneca bought 50 percent of the company and concluded earlier than expected this year.

Shortly after the transaction, the clinics' founder, Bernard Salick, MD, announced his resignation, saying that Zeneca had offered him a watered-down post with few of his usual responsibilities. He also announced plans to launch a competing company. The move came as a surprise since Salick had originally planned to stay on board and serve as a buffer between the drugmaker and the hospitals.

A kidney specialist turned entrepreneur, Salick is known for providing a wide range of services at his centers and for paying top dollar to hire prominent cancer specialists. Following the takeover, Salick said that while patient care will likely remain excellent under Zeneca, he worries that physicians may have less independence.

But Zeneca representatives say physician autonomy is secure. "They all treat cancer patients who come into the centers in whatever ways they feel are appropriate," said Alan Milbauer, Zeneca's vice president of external affairs. "Salick doesn't dictate what treatment to use. ... Zeneca doesn't plan to change that. The last thing we want to do is change the model."

Salick's integrated network of cancer centers are:

• The Alta Bates Comprehensive Cancer Center in Berkeley, California
• The Cedars-Sinai Comprehensive Cancer Center in Los Angeles
• The Desert Hospital Comprehensive Cancer Center in Palm Springs, California
• The SHC Specialty Hospital in Westlake Village, California
• The Comprehensive Cancer Care Specialists of the Palm Beaches in Atlantis, Florida
• The Comprehensive Cancer Care Specialists at Kendall in Miami, Florida
• The Mount Sinai Comprehensive Cancer Center in Miami Beach, Florida
• The Comprehensive Cancer Center at Parkway Regional Medical Center in North Miami, Florida
• The University of Kansas Cancer Center in Kansas City
• The Temple University Cancer Center in Philadelphia, Pennsylvania
• The Saint Vincent's Comprehensive Cancer Center in New York

While hospital officials were unwilling to comment officially on the takeover, one spokesperson noted that only a small percentage of the drugs currently used by the cancer center associated with her hospital are manufactured by Zeneca.

Related Sites
Salick Health Care, Inc.
Zeneca Pharmaceuticals