X-Message-Number: 2224
Date: 10 May 93 01:21:26 EDT
From: Michael Riskin <>
Subject: CRYONICS: Coldroom Economics

     These are some comments on recent postings by Charles Platt and
Carlos Mondragon.
     Charles expressed concern over the use of existing patient care money
for construction of -130 large coldroom storage. I second that concern
quite vigorously, and never even thought that it was even a consideration
until Charles mentioned it. This money is held in a sacred trust for the
welfare of the existing patients. In addition, this being a first time
experimental effort, there is no history whatsoever to support any good
estimate on the final construction cost. Once again, Brian Wowks support
of a smaller scale initial effort seems to make sense. 
     Carlos is supporting the economies inherent in large coldroom
storage. Carlos...yes, the ultimate economies are great indeed,  but they
are dependent on two unknowns: One, what wil it actually end up costing 
as compared to the initial estimate of $150,000, and two, what will the
real patient population growth be compared to the various estimates being
tossed about? 
     I totally support new and improved methods of suspension and storage.
I hope all Alcor suspension member feel the same. Funding can come from
from many sources other that the existing patient care moneys. Private
investment capital, and the endowment fund are two posssibilities. But,
once again, we have a priority issue, meaning, it can be argued that all
available resourses should first be used to secure a new facility. Anyone
disagree agree that the current Riverside location is inappropriate  to
construct major storage upgrades?  
     The statement was made that the patient care funds would be about
$1,500,000, and that $150,000  coldroom construction is therefore only
only 10%.  Besides the fact that the $150,000 once again is a first guess
figure, there is not $1,500,000 available. As of 12/31/93 , the actual
amount of liquid assets was about $880,000. A lot of new patients will be  
necessary to get an additional $600,000 plus. If coldroom cost is $220,000
instead of $150,000 ( which I believe is a conservative calculation, 
since there are additional expenses not yet included) then the % of the
invested patient funds become leaps from 10% to 25%. This is an
unacceptably high unsecured investment. 
    So, as soon as it appears likely that -130 suspension technology is
forthcoming, I suggest a temporary lower cost -130 storage  until enough
-130 patients can support a full blown large scale coldroom.
    As an aside to all this financial anaysis, can anyone tell me where
abouts the progress towards  -130 suspension sits, and what the guess is as
to when the first such patient might occur?

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