News - Arkansas Proton Center Faces Financial Deadline

The Proton Center of Arkansas, an essential facility for advanced cancer treatment within the state, is facing a critical financial crossroads with a deadline to reconcile nearly $900,000 owed to the University of Arkansas for Medical Sciences (UAMS). As the only proton therapy center in the state, it risks losing its service agreement with UAMS if these debts are not resolved by May 28. On May 8, UAMS sent a series of communications to Proton International Arkansas LLC, which manages the Proton Center of Arkansas, stressing the significant unpaid invoices and requiring payment within 20 days. The financial issues of the center first emerged when it opened at UAMS' Health Radiation Oncology Center in Little Rock in 2023, being one of only fifty such centers nationwide. Although UAMS, along with entities like Baptist Health and Arkansas Children's, holds a minority stake in the ownership structure, UAMS spokesperson Leslie Taylor emphasized that UAMS does not manage the daily operations of the center. Management and operational duties are handled by Proton International, which operates over ten centers across the U.S. and Europe. According to Taylor, the outstanding balance exceeds $897,521.52 and includes costs related to physician services, ancillary support, and facility lease obligations. UAMS's communications also demanded an additional $597,197.20 from three pending invoices. "As a public institution, UAMS has a commitment to fulfill its contractual obligations while ensuring compliance with regulatory standards, and continued uncompensated service provision is unsustainable," Taylor stated in an email. Although the facility experienced significant disruptions in equipment functionality, impacting patient numbers late in 2025, Taylor reassured that current operations remain uninterrupted. "UAMS strongly supports the proton center as a crucial aspect of cancer care in Arkansas, and we remain committed to exploring viable solutions for this facility and its patients," Taylor affirmed. Attempts to contact the Proton International headquarters in Alpharetta, Georgia, for comment were unsuccessful. The proton center was issued a "notice of default" in March, marking a recurrence since its inception due to noncompliance with financial covenants required by a loan agreement with the Public Finance Authority. This bond issuer, based in Wisconsin, facilitates tax-exempt bond issuances across the U.S. The corrective actions mandated by bond documentation, accessible through the Electronic Municipal Market Access system, are still underway. Bonds associated with the Proton Center and issued by the Public Finance Authority total more than $56.8 million. In communications from April, UAMS confirmed receiving the March 16 default notice, which cited Proton International Arkansas' failure to meet covenant standards necessitating a "debt service coverage ratio" stipulating that "net revenues" must meet at least 130% of debt repayment obligations. This marked consecutive failures in meeting financial covenants during testing periods. Further complicating the situation, the notice explained that Proton International Arkansas' liquidity fell short, with cash reserves and investments covering only five days of expenses, as opposed to the minimum required buffer of 70 days. Combined, these deficiencies qualified as "event of default" conditions, allowing bondholders to take protective actions.