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H-TOWN DAY 2011The Houston Association

of RealtorsOctober 20, 2011

A Historical JourneyThe Texas Medical Center in the Making

Giants In Vision

■ Houston Business Monroe Dunaway Anderson creates a business legacy based on cotton trading thanks to Houston’s new found leadership as a trading/shipping center (Anderson Clayton Company)

A Historical JourneyThe Texas Medical Center in the Making

Giants In Vision

M.D. Anderson creates the MD Anderson Foundation for the betterment of mankind (1936) on his death in 1939, the foundation is funded to approximately $19 million (valued at $293 million in 2010)

M.D. Anderson Foundation:

■ Morris D. Anderson■ Colonel William Bates (Fulbright & Jaworski)■ John H. Freeman (General Counsel of Anderson Clayton—Fulbright &

Jaworski)

■ Horace Wilkins (Banker)

Texas Medical Center Chartered in 1945

■ Ernst William Bertner, M.D.—First Texas Medical Center President

A Historical JourneyThe Texas Medical Center in the Making

Houston in the 1940’s ■ 1940’s Houston had shortage

of board certified MD’s, acute shortage of hospital beds and no medical schools for a population of 450,000

A Historical JourneyThe Texas Medical Center in the Making

Partnering with the State

■ 1942: M.D. Anderson Foundation provides a $500,000 gift to the State of Texas to establish the M.D. Anderson Cancer Hospital and Tumor Institute in Houston

■ M.D Anderson Cancer Hospital and Tumor Institute finds its first home converting the residence of James A. Baker

A Historical JourneyThe Texas Medical Center in the Making

City of Houston Steps Forward

■ 1943: City of Houston passes

referendum creating the Texas Medical Center providing 134 acres next to the Hermann Hospital to develop a “city of health”

■ 1945: Texas Medical Center is officially chartered on October 8 and filed with the State of Texas on November 1. First board meeting is held at the Houston Club

A Historical JourneyThe Texas Medical Center in the Making

Dallas’s Loss = Houston’s Gain

■ 1943: Baylor College of Medicine

relocates from Dallas to Houston. M.D. Anderson Foundation provides a $1 million contribution to the school plus $1 million for faculty and research (to be paid over a 10-year period). Houston Chamber of Commerce provides $500 thousand.

■ Baylor College of Medicine finds its first home in a Sears warehouse at the intersection of Alan Parkway and South Shepherd drive

A Historical JourneyThe Texas Medical Center in the Making

Visions Become Reality

■ By 1954, the Texas Medical Center had eleven institutions: four hospitals; two children's hospitals; a university; a library; a speech and hearing center; a dental school; and an overall planning and coordinating group.

Baylor College of Medicine under construction, 1946

The largest concentration of medical assets in the world Hosts more than 6.0 million patient visits annually 1,000+ Acres 49 Member Institutions, all “not for profit” 93,500 Employees $1.8bResearch funding 20,000 MD, PhD researchers & advanced degree

professionals 71,500 Students, including 5,600 international

students 6,800 Hospital beds 16,000+ International patients annually 3000Ongoing clinical trials

Facts and Figures (2011)

Of the 49 Member Institutions

21 Academic institutions 16 Hospitals 3 Medical schools 3 Public health organizations 1 Dental school 6 Nursing schools 2 Schools of pharmacy 25 Agencies of government

Campuses

Main Campus Historic core of Texas

Medical Center Main Street CorridorAn important bridge between TMC and Rice University

Mid Campus Brings together emerging

large land development areas  

South Campus The University of Texas

campus dedicated to patient care, research, education and administration/parking

W. Leland Anderson Campus

High school for health professions, a psychiatric center and child-care center

Rice University Campus Unprecedented opportunity

to expand teaching and research initiatives  

Additional Campuses

■ West Campus

■ University of Houston

■ UT-Health Galveston (UTMB Galveston)

Commercial Office Space* Commercial Office Space*Market Market

*National Office Statistics. Excludes small retail buildings, residences, government buildings, parking and lodging facilities.

Comparison of Business Districts Gross Sq. Ft. Texas Medical Center (Current & Projected 2014) to Downtown Business Districts (4Q2010)

New York City, NY 392,720,662

Chicago, IL 121,349,638Washington, DC 103,954,190Boston, MA 60,042,762Texas Medical Center (Ultimate

Capacity) 59,000,000San Francisco, CA 49,158,053Philadelphia, PA 43,716,633Seattle, WA 40,844,074Texas Medical Center (Projected YE-

2014) 37,835,094Orange County, CA 36,474,420Houston, TX 36,039,828Texas Medical Center (July -2011) 35,851,950Minneapolis, MN 35,036,521Cleveland, OH 34,631,662Texas Medical Center (YE -2010) 34,219,427Dallas, TX 28,580,098Los Angeles, CA 28,480,147Denver, CO 26,739,949Detroit, MI 25,055,535Pittsburgh, PA 21,869,112Portland, OR 20,908,824Phoenix, AZ 16,471,976Atlanta, GA 15,463,139Baltimore, MD 13,835,403Miami, FL 13,683,468Oakland, CA 13,032,426St. Louis, MO 12,987,327Cincinnati, OH 12,555,791Kansas City, MO 12,516,477

Fort Worth, TX 11,636,934

San Diego, CA 11,087,949

Indianapolis, IN 10,779,774

Milwaukee, WI 10,649,210

Buffalo, NY 10,379,834

Columbus, OH 9,908,630

Austin, TX 8,561,401

Bellevue, WA 8,159,725

Hartford, CT 7,976,010

Tulsa, OK 7,812,870

Jacksonville, FL 7,578,119

Nashville, TN 7,568,727

Orlando, FL 7,519,184

Salt Lake City, UT 7,174,194

Syracuse, NY 6,984,779

Silicon Valley, CA 6,956,526

Fairfield County, CT 6,832,948

Oklahoma City, OK 6,543,020

Tampa, FL 6,374,743

Westchester County, NY 6,307,675

Rochester, NY 6,234,178San Antonio, TX 5,398,502Birmingham, AL 5,165,764

The LoopChicago, Illinois

Texas Medical CenterHouston, Texas

Lower ManhattanNew York, New York

* All maps are to the same scale

TMC Compared to Chicago and Lower Manhattan

According to an updated economic impact

study conducted by the Southwest Business Research Institute, Texas Medical Center: Generates $1.44 in government

revenues for each $1 in pro rated government costs

93,500 direct employment, 121,500 indirect jobs

Direct Expenditures by TMC Institutions greater than $5.7 billion

Secondary Expenditures: more than $8.1 billion

(all institutional expenditures, not personal income related)

Economic Impact

20,000 MD’s, Ph.D.s and Researchers represents the largest concentration of scientific intellectual capital in the world

Generating an average of 15 new start up businesses a year.

190 Companies in the Life Science arena

Averaging a new discovery every other day

New Business Incubator

A Historical JourneyThe Texas Medical Center in the Making

Giants In Patient Care■ Cardiovascular Surgery

A Historical JourneyThe Texas Medical Center in the Making

Giants In Patient Care■Polio

■Rehabilitation

A Historical JourneyThe Texas Medical Center in the Making

Giants In Patient Care■Pediatrics

■Trauma

A Historical JourneyThe Texas Medical Center in the Making

Giants In Research ■Nobel Prize Winners ■Oncology■Nanotechnology■Genomics■Molecular Medicine■Pediatric Neuroscience■Cardiovascular Medicine

Population growth of 2 million estimated between 2011 and 2025 1 million in the city 1 million in surrounding communities

Baby boom generation becoming the “Geritol generation” Increasing need for medical services

The Greater Houston Community is Changing

■ 10 Stakeholders/Landowners Collaborating in Joint Effort■ Mid Campus will be the “heart” of the Texas Medical Center Campuses■ Capitalize on success of main campus and avoid some of the challenges

Creation of Mid and South Campus Conceptual Development Plan

Building Placement and Campus Density

Street Hierarchy

Transit

Ultimate Buildout Potential

Artist rendering of the ultimate buildout potential of the Texas Medical Center Mid and South Campus, view looking south from the Main Campus (for illustrative purposes only)

Relative health of Houston economy enhancing ability to attract top notch researchers

Cancer Prevention & Research Institute of Texas (CPRIT) Bio-Engineering growth

Future Growth Opportunities

More than 100 new research hires in past

year

What started out as a dream is now a stunning reality. Houston has a “city of medicine” unmatched in the world

TMC is now a major business district where planning, infrastructure, transportation and other issues have increased importance

Health care is not just an expense on the income statement and balance sheet of a corporation, it is a significant economic engine for the community

Quality Health Care Services are a huge satisfier and differentiator for a community for enhanced quality of life

TMC concentrates intellectual capital that becomes fertile ground for growth in a number high growth industries, (e.g.: bio tech, nano-technology, genomics, etc.)

Summary thoughts on Texas Medical Center & its Growth