UAMS Acquires Proton Center of Arkansas, Securing Long-Term Access to Advanced Cancer Therapy
Key Insights
UAMS has reached an agreement with bondholders to purchase the Proton Center of Arkansas, becoming the sole owner of the proton therapy facility.
The acquisition allows UAMS to immediately resume treating new patients starting August 1, with day-to-day management transitioning to the university.
The center had faced significant financial difficulties, including a $58 million debt service on a $35 million machine and nearly $5 million owed to UAMS in unpaid rent and salary costs.
The University of Arkansas for Medical Sciences (UAMS) announced Thursday that it is purchasing the Proton Center of Arkansas, a move that will allow the institution to immediately resume offering proton therapy to all Arkansans and secure the long-term future of advanced cancer (search) radiation treatment in the state.
UAMS Chancellor Dr. C. Lowry Barnes confirmed that bondholders for the debt on Proton International Arkansas have accepted the university's offer to purchase the facility. "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," Barnes said.
UAMS will begin managing day-to-day operations on August 1 and will start actively treating new patients immediately. The deal remains subject to approval by the University of Arkansas Board of Trustees, with the transaction closing date scheduled for November 15.
Financial Restructuring Addresses Center's Challenges
The Proton Center of Arkansas, which opened in September 2023 as the first proton therapy center in the state and only the 43rd in the nation, has experienced significant financial difficulties since its launch. UAMS had been a 20% minority owner in a joint venture with Proton International, which managed the facility.
Barnes detailed the structural financial problems that plagued the center: "The machine costs about $35 million, and we had a $58 million debt service." He further characterized the original arrangement as "a joint venture flawed from the start with too much debt, excessive volume expectations, and poor reimbursements."
Earlier this year, UAMS reported it was owed nearly $5 million by Proton International Arkansas — comprising nearly $4 million in unpaid rent and more than $1 million in employee salary costs. In May, UAMS terminated its Ancillary Personnel and Support Service Agreement with Proton International Arkansas, LLC (search) (PIA), due to nonpayment of fees. PIA had also filed covenant compliance disclosures addressing liquidity issues and missed debt service coverage metrics.
Under the new ownership structure, Barnes said the financial outlook is substantially improved: "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."
Clinical Significance of Proton Therapy
Proton therapy is an advanced form of radiation that uses positively charged proton particles to destroy tumors with greater precision and significantly less damage to healthy organs and tissues compared to conventional X-ray radiation. Patients receiving proton therapy experience less severe and fewer side effects, which improves their recovery time and quality of life.
The therapy is used to treat a wide range of cancers in both children and adults, including brain, spine, breast, esophageal, head and neck, liver, lung, lymphomas, eye, pancreatic, prostate, and sarcomas. It is the preferred treatment for children, who face risks from unnecessary radiation exposure that adults do not, such as developmental delays, hormone deficiencies, effects on bone growth, and potential long-term effects of secondary cancers in exposed tissues.
Impact on Patient Access
As uncertainty grew over the center's future, UAMS had reduced the number of patients receiving treatment, accepting only those who could complete their therapy before the end of August. With the acquisition now proceeding, Barnes confirmed: "Now that we know that we're open, we'll continue how we have been, but UAMS will be the managing partner starting this Saturday, Aug. 1."
Because proton therapy treatment often requires several weeks of therapy, keeping the service available in Arkansas spares patients and their families the burden of traveling out of state for care.
Dr. Michael Birrer, director of the UAMS Winthrop P. Rockefeller Cancer (search) Institute and vice chancellor of UAMS, emphasized the importance of the acquisition: "This is a great day for cancer patients in Arkansas and the surrounding area. 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."
Chris Chandler, CEO of Proton International, also expressed support: "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. We wish UAMS and the Center much success in the future."
UAMS noted that the acquisition strengthens the university's long-term plans to expand cancer (search) care and pursue National Cancer Institute designation, ensuring Arkansans have access to advanced cancer treatments close to home.