The University of California, San Diego will close its Nevada Cancer Institute in Las Vegas by the end of the year, according to a Las Vegas Review-Journal report.
Cost concerns, a change in California tax rules and new leadership at UC San Diego Health System are responsible in part for the decision to close, according to the report.
UCSD paid $18 million for the Nevada Cancer Institute in February after the institute declared bankruptcy with nearly $100 million in debt. Under the acquisition agreement, UCSD would receive $20.8 million in donations over five years from the institute's foundation. UCSD invested in the oncology practice, planning to break even or gain profit in three years, according to the report.
However, tax changes in California that cost UCSD more than $10 million and a San Diego project that went over budget, among other factors, prompted UCSD to change its strategy.
Comprehensive Cancer Centers of Nevada, a Las Vegas-based oncology group, is expected to acquire some parts of the medical practice and lease part of the institute's building, according to the report. CCCN would likely reopen the institute in early February.
Current Nevada Cancer Institute employees who stay until the institute's closing Dec. 31 will receive a three-month bonus. If CCCN acquires part of the practice, employees would have to reapply with no guarantees.
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Cost concerns, a change in California tax rules and new leadership at UC San Diego Health System are responsible in part for the decision to close, according to the report.
UCSD paid $18 million for the Nevada Cancer Institute in February after the institute declared bankruptcy with nearly $100 million in debt. Under the acquisition agreement, UCSD would receive $20.8 million in donations over five years from the institute's foundation. UCSD invested in the oncology practice, planning to break even or gain profit in three years, according to the report.
However, tax changes in California that cost UCSD more than $10 million and a San Diego project that went over budget, among other factors, prompted UCSD to change its strategy.
Comprehensive Cancer Centers of Nevada, a Las Vegas-based oncology group, is expected to acquire some parts of the medical practice and lease part of the institute's building, according to the report. CCCN would likely reopen the institute in early February.
Current Nevada Cancer Institute employees who stay until the institute's closing Dec. 31 will receive a three-month bonus. If CCCN acquires part of the practice, employees would have to reapply with no guarantees.
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