Question

During 2014 to 2025, U.S. population is projected to grow by close to 8.6%, from about 319 million to 346 million. The population under age 18 is projected to grow by only 5%, while the population aged 65 and over is projected to grow by 41%. (The Complexities of Physician Supply and Demand: Projections from 2014 to 2025, Association of American Medical Colleges, Submitted by: IHS Inc. April 5, 2016) In 2011, the baby boom generation, or those people born between 1946 and 1964, which comprises approximately 75 million individuals, will begin to turn 65. By 2030, it is projected that approximately 70 million people, or 20% of the population, will be older than 65 (U.S. Census Bureau, 1996). Older adults, defined as people aged 65 years and older, possess greater cancer incidence and mortality rates compared to younger people. Approximately 60% of all cancers occur in the older adult population, resulting in an incidence rate that is 10 to 11 times higher than in the younger population (Ershler, 2003; Yancik & Ries, 2004). The risk of developing cancer is 8%–9% in people age 40–59, with a dramatic increase in risk of 20%–30% in people older than 60 years of age (Malik, 2004). According to Edwards et al. (2002), if current cancer incidence rates were applied to the population projections for the next five decades, the number of patients with cancer would double from 1.3 million to 2.6 million between 2000 and 2050 because of population growth and aging. These projections have a direct impact on future health care in research, practice, and educational settings (Cancer and the Aging Population, Diane G. Cope, PhD, ARNP, BC, AOCNP) Other facts: Total Oklahoma population: 3,751,351 (Population Demographics for Oklahoma 2017 and 2016 content provided by the US Census bureau for the years 2010, 2011, 2012, 2013, 2014 and 2015, 2016).Number of new cases of cancer (cancer incidence) is 454.8 per 100,000 men and women per year (based on 2008-2012 cases). Question: It appears that the above scenarios present a business opportunity to build a not-for-profit cancer hospital or clinic in Oklahoma. Is it a creative idea - Why or why not?

Answer 1

Yes, this is definitely a creative idea. There is a strong business opportunity to build a not-for-profit cancer hospital or clinic in Oklahoma. This is due to the fact that the provided data and statistics clearly indicate that the number of cancer patients will rise in future in Oklahoma.

Given the forecasted scenario of demand for health care by cancer patients and the supply in the form of availability of cancer hospitals and clinics we can see that there is a need to provide additional supply in future. There will exponential increase in health care requirements related to the cancer disease and hence to meet this increase in demand building a not-for-profit cancer hospital or clinic in Oklahoma is definitely a creative business idea that seeks to tap a strong and lucrative business opportunity.

The cancer incidence is high in the region and currently stands at 454.8 per 100,000 men and women per year. Thus there will a strong market for preventive cancer screening, diagnosis, oncology treatments and surgeries, post-surgery treatments like chemotherapy and radiotherapy.