News alert: Tennessee firm to develop $100M cancer treatment center in New Orleans
Knoxville, Tennessee-based Provision Healthcare plans to build a $100 million proton therapy center on the University Medical Center campus on Canal Street in New Orleans.
Gov. John Bel Edwards joined Provision Healthcare CEO Terry Douglass in announcing the project, saying the 30,000-square-foot Louisiana Proton Therapy Center will deploy advanced technology that aims to produce fewer side effects than traditional radiation treatment. Partners who will develop the not-for-profit center with Provision include the University Medical Center, LCMC Health and LSU Health Sciences Center New Orleans. Louisiana Economic Development estimates the project will create 60 new direct jobs with average annual salaries of $100,000, plus benefits, as well as 63 new indirect jobs in the New Orleans area.
To secure the project, LED is providing the company an incentive package that includes a $1 million performance-based grant, payable over five years, and workforce training through LED FastStart. Provision is also expected to use Louisiana’s Quality Jobs program, which provides up to a 6% cash rebate on 80% of gross payroll for new direct jobs for up to 10 years. It also provides a state sales/use rebate on capital expenditures, or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items. Provision and the Louisiana Proton Therapy Center are also pursuing federal New Markets Tax Credits.
With just two dozen proton therapy centers operating in the U.S.—with the nearest ones being in Houston and Shreveport—Edwards says the project will help New Orleans become a stronger “healthcare magnet.”
Provision plans to break ground on the facility before the end of 2017. Following a two-year construction phase, the center will begin seeing patients by late 2019.