The University of Arkansas for Medical Sciences has purchased the Proton Center of Arkansas, school officials announced Thursday.
The change in ownership of the center, located on the UAMS campus in Little Rock, will enable UAMS to immediately resume offering proton therapy treatments, according to a press release.
“I am excited to share with you all that the bondholders for the debt on Proton International Arkansas have accepted our offer to purchase the Proton Center,” said UAMS Chancellor C. Lowry Barnes, M.D. “UAMS will become the sole owner of the proton machine, and our proton therapy will be managed by UAMS just like our photon therapy in the UAMS Radiation Oncology Center. UAMS will begin managing day-to-day operations on Aug. 1, and will start actively treating new patients.”
The deal is subject to approval by the University of Arkansas Board of Trustees, with the closing date for the transaction scheduled for Nov. 15.
The Proton Center of Arkansas opened in September 2023, becoming the first proton therapy center in the state and only the 43rd in the nation to provide the most advanced cancer radiation treatment in the world, but soon began experiencing financial difficulties.
Earlier in July, UAMS announced that it was owed nearly $4 million in rent and more than $1 million in salary costs for Proton Center employees. In May, UAMS terminated its Ancillary Personnel and Support Service Agreement with Proton International Arkansas, LLC, due to nonpayment of fees. Earlier in the year, PIA filed covenant compliance disclosures on the Electronic Municipal Market Access system, addressing liquidity and missed debt service coverage metrics. The bond documents governing PIA provide an established process for review and corrective action in these circumstances, according to the release.
UAMS had been actively working for months to save the center.
“This is a great day for cancer patients in Arkansas and the surrounding area,” said Michael Birrer, M.D., Ph.D., director of the UAMS Winthrop P. Rockefeller Cancer Institute and vice chancellor of UAMS. “Throughout this entire process, UAMS and the Winthrop P. Rockefeller Cancer Institute have remained committed to providing this cutting-edge — and often lifesaving — therapy for our patients.”
Barnes said the deal fundamentally restructures UAMS’ position in proton therapy.
“It moves us out of a joint venture flawed from the start with too much debt, excessive volume expectations and poor reimbursements,” Barnes said. “Our new deal is expected to result in much lower debt and a better reimbursement rate. Financial success will be defined as a proton therapy business that breaks even while providing this very special treatment to Arkansans.”
Proton therapy is a cutting-edge form of radiation that uses positively charged proton particles to destroy tumors, often in hard-to-reach areas, with greater precision and significantly less damage to healthy organs and tissues. Patients receiving proton therapy have less severe and fewer side effects than conventional X-ray radiation, which improves their recovery time and quality of life, the release stated.
“Proton International is pleased to hear that UAMS has reached an agreement with the bondholders, and that proton services will continue to be available for Arkansans,” said Chris Chandler, CEO of Proton International. “We wish UAMS and the center much success in the future.”
READ ALSO: Stage 13, ACT Announce Settlement in Lawsuit
