Leksell Gamma Knife^® Offers Attractive ROI

As patients survive their primary cancer longer, doctors are seeing an increase in the number of cancer patients threatened with secondary cancer that has spread to the brain, also called metastatic brain tumors. At least 10-15% of all patients detected with a primary cancer will develop a secondary cancer in the brain. Metastatic brain tumors (cancers in the brain) affect about 200,000 people a year.

Non-invasive radiosurgery for brain tumors – whether palliative or curative – offers proven efficacy and preservation of a patient’s quality of life. More and more brain tumor patients are joining the almost half a million people worldwide who have been treated with Gamma Knife® surgery.

Studies show that Gamma Knife radiosurgery results in local control exceeding an average of 85% for the management of tumors in any brain location. And, despite the name, there is no blade or knife – it’s called Gamma Knife because of the surgical precision and effectiveness. So there’s no incision or blood, and minimal risk of complications.

Strong ROI with Gamma Knife

During the two decades that Gamma Knife has been in clinical use, a proven business model has evolved that provides investors and institutional owners of Leksell Gamma Knife with a strong return on investment. Gamma Knife has an annual breakeven patient load of just 76, while the average site in the U.S. treats over 160 patients per year.  Users of Gamma Knife have praised it as “the best single investment this hospital has ever made” and the independent Health Care Advisory Board says it is, “a hidden profit sanctuary.”

And because Gamma Knife is considered the industry gold standard, its addition to a neurosurgery program offers credibility among both physicians and patients. Studies have shown that there is a definite halo effect for the associated hospital, as Gamma Knife patients have a need for associated services such as imaging.

Dedicated Device vs. All-In-One

In recent years, the financial success of Gamma Knife has attracted competitors with claims they are “as good as” Gamma Knife. These are simply modified linear accelerators (linac) that offer both full body and intracranial treatments.

On the surface, the all-in-one nature of these linacs – including CyberKnife – seems to offer a sound financial proposition. However, deeper examination reveals that the Gamma Knife accommodates a larger volume of patients compared to linac devices. In addition, neurosurgeons like Gamma Knife because they don’t have to compete with other doctors and cases for its use, treatment procedures are completed in a single day, and treatments are two to four times quicker than linacs such as CyberKnife.

Gamma Knife also offers a broader range of intracranial applications. In addition to treating brain tumors, Gamma Knife surgery can be used to treat pain and functional conditions, such as epilepsy, facial pain and arteriovenous malformations. Because linacs are as not as precise as Gamma Knife, physicians don’t rely on them for these applications.

Proven Reimbursement

Not only does Gamma Knife radiosurgery have a history of excellent reimbursement, the procedure was awarded a permanent CPT code in 2007 by Medicare. Gamma Knife reimbursement has been steadily rising over the past three years, and the conferring of a permanent code that is unique to Gamma Knife radiosurgery confirms the value of the treatment in the eyes of payors, both private and public.

Under the CMS Hospital Outpatient Prospective Payment System, Gamma Knife delivery reimbursement has increased by 62% from 2005-2007, while reimbursement for linac delivery has decreased. Linac-based stereotactic radiosurgery, including CyberKnife, has decreased by approximately 26% during the same three years, and it has only been bestowed temporary CPT codes. Also, the total reimbursable amount for linac systems is significantly lower than with a Gamma Knife system.

Cost of Ownership

Gamma Knife is consistently ranked in independent studies as being one of the most reliable systems available and leads the industry in fastest repair time should the system experience a problem.

Yet start-up costs aren’t the only consideration when making a purchasing decision. There are a range of service contracts for Leksell Gamma Knife, beginning with an annual contract for $125,000 following the system first-year warranty.

This affordable maintenance doesn’t hold true for some manufacturers. The MD Buyline Industry/Medical Update (July 2006) stated, “Another substantial cost consideration for the CyberKnife is for service. After the first year, this will be a continuous, ongoing portion of the departmental budget. The annual cost for the CyberKnife service ranges from $275,000 to $460,000.”

A History of Strength

Leksell Gamma Knife is manufactured by Elekta, an international medical technology group listed on the Stockholm Stock Exchange. Elekta’s systems and solutions are in use at over 4,000 hospitals around the world and are used to treat cancer and manage clinical operations as well as to diagnose and treat brain disorders.

Unlike Elekta, the manufacturer of CyberKnife has never made a profit in its more than 10 years in business, according to the company’s recent IPO statement.

Choose the Best

There are many reasons Leksell Gamma Knife has become the unequalled standard for radiosurgery. With each generation – including the new state-of-the-art Leksell Gamma Knife Perfexion™ – patients, physicians and investors find more reasons to choose Gamma Knife.