Healthcare Reform, The Aging Baby Boomer Population, Stroke Treatment And Stem Cell Therapy

Athersys, Inc.

By Dr. Gil Van Bokkelen, Chairman & CEO

Let´s face it – we´re getting older. Not just individually, but as a nation. According to U.S. Census Bureau estimates, between 2010 and 2030 there will be a substantial increase in the size of our elderly population (age 65 and over). Specifically, this age group is expected to roughly double in size within twenty years (representing an increase from 13% of our expanding population to more than 20%). As we get older, we spend increasingly more on healthcare. As we age, our bodies are more susceptible to problems like obesity/diabetes, heart disease, vascular disease, stroke, cancer, arthritis, and a range of neurological conditions including Alzheimer´s, Parkinson´s and others. According to healthcare economists, individuals over the age of 65 spend ~3 to 6 times as much on healthcare as individuals under the age of 65 – because they need it.

What does this mean in terms of our national healthcare bill? Right now we spend about $2.5 trillion annually on healthcare as a nation. If there is a significant increase in the number of individuals age 65 and older, and such individuals spend substantially more on healthcare, logic suggests total healthcare spending will increase dramatically in the coming years. But how big of an overall impact will it have? More importantly, what do we do about it?

The impact will be enormous – no doubt about it. The 65 and older age group currently accounts for nearly $980 Billion of our national healthcare expenses (39% of total). The group under the age of 65 currently accounts for about $1.52 trillion (61% of total).

However, even if we assume zero inflation in healthcare costs over a twenty year period, the impact is considerable as the 65 and older age group swells. By 2030, the population 65 years and older will account for ~$2 trillion in annual healthcares costs, while expenses for the population under the age of 65 will account for ~$1.8 trillion.

As a result, total healthcare costs by 2030 would increase by roughly 50% - ASSUMING NO INFLATION IN HEALTHCARE COSTS OVER A TWENTY YEAR PERIOD. This is simply a reflection of an aging population. With even modest inflation, the numbers will escalate.

So what can we do about it? Right now there is enormous focus and debate regarding expanding healthcare coverage to many individuals that have limited or no medical coverage, while simultaneously limiting healthcare expenses. These are noble and important goals. They are, however, inherently in conflict with one another. Basic economics tells us if a large group requires greater healthcare (i.e. the aging population) and we increase the number of individuals that receive subsidized medical care while simultaneously limiting expenses, it will undoubtedly create a system of healthcare rationing – it´s unavoidable. You can´t slice a pie into ever smaller slices and expect everyone to get what they want, or need.

However, there is another option - we can invest in technology that has the potential to both substantially improve the quality of healthcare while also reducing the need for long term hospitalization or institutional care, thereby enabling our limited resources to go further (i.e. expand the pie). New technologies such as stem cell therapy can help us more effectively treat diseases associated with aging, such as heart disease, stroke, vascular disease, and progressive neurological conditions. Typically, these conditions carry a high burden in terms of institutional care or assisted living, not to mention the dramatically impaired quality of life, and the strain on families that suffer both financially and emotionally.

For some conditions, such as stroke, the economic burden is enormous. Stroke represents the leading cause of disability and the third leading cause of mortality, and represents an estimated $65 Billion annual burden on our healthcare system. According to the American Heart Association, there were ~800,000 individuals that suffered a stroke in the U.S. in 2008, with about 87% suffering an ischemic stroke (i.e. caused by a blocked artery).

Unfortunately, current therapy does little to improve the quality of life for many individuals that have suffered the debilitating effects of a stroke. Current drug therapy available for an ischemic stroke, the clot dissolver tPA, isn´t given to most stroke patients. It can only be administered within ~3 hours after a stroke has occurred, which limits treatment to a small percent of stroke victims. If the patient doesn´t spontaneously recover or respond to physical therapy, they typically require expensive institutionalization or constant home care.

Stem cell therapy could profoundly change the way stroke is treated by expanding the treatment window, and by aiding the body´s ability to heal in multiple ways. As we consider ways to expand healthcare coverage, let´s also commit to improving it through incentivizing and accelerating development of innovative new medicines.

For more information on the potential for stem cell therapy to treat ischemic stroke, go here.

Dr. Gil Van Bokkelen is Chairman and CEO of Athersys, Inc. a biotechnology company committed to the development of stem cell therapy and other innovative medicines designed to treat significant and life threatening diseases. He has a Ph.D. in Genetics from Stanford University Medical School, degrees in Economics and Molecular Biology from the University of California at Berkeley, and is the Chairman of the Center for Stem Cells and Regenerative Medicine Board of Governors.