New Orleans-based University Medical Center's ambitious plans to create a $100 million proton beam therapy cancer center have fallen through, according to The New Orleans Advocate.
Here are four things to know:
1. Knoxville, Tenn.-based Provision Healthcare revealed plans to build the 30,000-square-foot Louisiana Proton Therapy Center at UMC's campus in April 2017, the report states. Construction on the facility, which was slated to begin last year, was expected to last two years.
2. The deal — which involved several organizations, including UMC and its nonprofit operator, New Orleans-based LCMC Health, among others — reportedly collapsed in recent weeks as the state works to stabilize its fiscal crisis, according to the report. A Provision Healthcare executive confirmed to The New Orleans Advocate the state budget crisis' role in the project's restructuring.
"Some complexities were added to the project based on the current situation with the state budget," the Provision Healthcare executive said. "The dynamics of the project, a year ago, were different than what the dynamics of the project were today. That certainly contributed to the need to reassess the structure of the project."
3. To secure the $100 million cancer center, state officials offered Provision Healthcare an incentive package comprising a $1 million performance-based grant to be paid in five installments beginning in 2020, as well as job training and a payroll rebate of up to 6 percent for up to 10 years, The New Orleans Advocate reports. UMC received $388 million from the state for the cancer center during fiscal year 2018, and requested the same amount for next year. However, as state officials continue budget negotiations, it is unclear how deep of a funding cut UMC may end up receiving.
"We would recommend contacting the company and its partners directly for an explanation of why the financial arrangements were not structured in a way that would allow the project to move forward," an LCMC spokesperson told The New Orleans Advocate in a June 22 statement.
4. State officials also reportedly stressed last week that no tax dollars were spent on the project prior to its collapse.
To access the full report, click here.