Nov 18, 2013

The Stickman Model – Page 1

Fixing the Business of Cancer

In order to cure cancer you first have to fix the business of cancer.   This is true of all of today’s mainstream diseases.  There is a simple fix though: the people who fund the research for the cure need to own an equal share in the cure.

The Solution: The Stickman Model

Form a not for profit co-operative with the following conditions:
·         The co-operative only funds research and not cancer related programs
·         Two ways to donate: pure donation, or donation including a lifetime membership with one voting share to the cooperative
·         A corporation can only make a pure donation and can never own a voting share
·         An individual can only ever own one voting share no matter how much they donate
·         Memberships cannot be transferred and there are no proxy votes
·         The co-operative only funds research on one drug at a time
·         The co-operative have limited partnerships or ventures with outside entities
·         All research testing is to be completed in-house and the facility funded 100% by donors
·         The co-operative is not for profit.  Donors know in advance of making a donation if a cure is found it will be offered to the public at cost, even to people who did not donate to the co-operative. There is no money to be made. The pure goal of the co-operative to find a cure and not to make a monetary return
·         The co-operative operate as a simple business with simple and transparent banking procedures
·         The co-operative financial statements are audited yearly and made public
·         The co-operative preferably not be deemed a ‘registered charity’….

Support for the Solution

In business the owner takes on the risks and rewards of doing business.  In the current cancer business model donors are not owners.  We donate to societies and not for profit organizations with well-respected board members and business people the world over; however we are not in charge of how the money is spent.
If the people in charge want to spend the money on popcorn and candy the only thing donors can do is stop future donations to the organization.  Of course these wonderful organizations do not waste money on non-cancer related indulgences, but how often do you as a donor check out what they are spending the donated money on?  Never?   If the answer is never then there is a flaw in this business model because you are blindly investing your donations without knowing what you are funding.
Go look at the financial statements of the last cancer charity you donated to.   Here is the trick though: change from dollars to percentages (expense item cost divided by the total dollars spent).   Look at the percent spent on cancer programs and the percent spent on cancer research.   Some charities with the goal of curing cancer are spending more money on cancer programs then they are on cancer research.
Spending a lot of money on cancer programs is not a bad thing.  These programs are a lifeline for those living with cancer.   But then the cancer society’s goal shouldn’t be ‘curing cancer,’ it should be ‘helping those with cancer today.’ 

The first fix to the cancer business model is splitting these two functions up.  Donors can then decide which organizations to donate to: ones purely financing a cure and ones purely financing programs beneficial to those living with cancer.  One might make the argument donors will only spend their money on cancer research and not cancer programs; but it’s the donor’s money, it should be their choice.
Splitting the functions up is a good start to fixing the business model, but the problem is not fixed yet.  We still are not in control of the money we donate.  Control matters because the biggest problem with cancer is how much money the disease makes, and when something makes money there is motivation to maintain and protect it.  Current cancer treatments kill good and bad cells which effectively perpetuates pharmaceutical companies’ profits.  These companies are not only making money off of cancer treatments but also make money off the fallout from killing good cells. 
Also, imagine if cancer was cured… would there be enough resources to support an inflated population?  Would there be enough clean water?  Would Governments be able to manage an increased strain on their countries’ resources even if they collected more tax dollars from an increased population?  Lastly, would a government protect large companies (contributing to their GDP’s) from losing their revenue stream?  This is not the same thing as a bank so these companies wouldn’t be deemed too big to fail in increasingly fragile economies right?
These questions are not based on any real truths; they are just made up questions and scenarios to test how strong the current cancer business model is at preventing some random entity from blocking a cure.  As it turns out the current model isn’t very strong because today’s model cannot stop the following hypothetical scenarios:
·         An entity could persuade a cancer charity to donate more money to cancer programs then cancer research without the majority of donors taking notice by being a large donor or having some other significant influence on the people who run the charity.  The majority of donors would not see this as a cure blocking strategy
 
·         If a university was testing a promising drug an entity could put pressure on the university as a whole.  It could threaten to cut the entire university’s funding, or it could persuade a health authority to put excessive and costly red tape in the way of the promising drug’s testing.  A university might not be able to raise a voice against such an injustice because it has to think of its funding and reputation as a whole

·         The only way a pharmaceutical company would cure a disease is if the cure would make more money than maintaining the disease.  Therefore they are not going to spend millions of dollars testing drugs already in the market (generic drugs) for their cancer fighting applications.  Likewise, they are not going to test natural cures either. If a natural cure is found it would make sense for a pharmaceutical company to create a synthetic version of it, then patent and sell it. They have a duty to their shareholders to make money. The current model ensures the eventual cure will be expensive

·         This example is extremely farfetched and out there (not based in remote reality but included any way):  Insurance companies who pay out huge amounts of money have motivation to test cheap promising drugs and bring them to market, and they have the funds to do so.  If an entity wanted to stop this from happening it could make it illegal for an insurance company to invest in research

The above hypotheticals could only happen in a world where cancer is worth an unimaginable amount of money.  Unimaginable… not millions, not trillions… unimaginable. 
How do we fix this broken business model?  We start by taking the power of money out of the equation. Next, we make it a stand-alone entity. And lastly, we think outside the box.  I am going to name this setup “The Stickman Model.”
The Stickman Model
I defined the stickman model at the beginning of this site.  Here are the reasons for the set conditions:
·         The co-operative only funds research and not cancer related programs
o   For transparency
o   Ensures the mission of finding a cure is not sidetracked
·         Two ways to donate: pure donation, or donation including a lifetime membership with one voting share to the cooperative
·         A corporation can only make a pure donation and can never own a voting share
·         An individual can only ever own one voting share no matter how much they donate
·         Memberships cannot be transferred and there are no proxy votes
o   The above four conditions take the power of money out of the equation
o   No one donor is more powerful than another and all donors have an equal say no matter how much money they donate
o   All donors are individuals
o   Donors are now owners.  They are now vested and if an entity tries to block a cure, like say excessive health authority red tape, than owners can be notified of the injustice and can lobby against it.  This structure gives the potential cure more of ‘voice’ then a university testing facility would have    

The Stickman Model – Continued on Page 2

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