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Updated: 10:56 p.m. Tuesday, Jan. 3, 2012 | Posted: 10:52 p.m. Tuesday, Jan. 3, 2012

Kettering Health Network seeks $7M for proton therapy center

By Ben Sutherly

Staff Writer

DAYTON — Kettering Health Network is seeking $7 million in federal funding to build the region’s first proton beam therapy center, which network officials say would create 74 clinical jobs.

In a Dec. 2 application to the Dayton Development Coalition, KHN said the $74.4 million project also would create 1,000 temporary construction jobs over the next five years, including 300 jobs in the first year.

The Dayton Development Coalition received 66 applications for federal funding from across the region for a variety of local projects.

Five review panels, which include both coalition and community members, will hold meetings to gather public response, likely by the end of February, a coalition spokeswoman said.

Prioritized recommendations will be sent to legislators in Washington, D.C., in May.

KHN’s application states that $35 million for the project would come from its project partner, San Francisco-based American Shared Hospital Services.

KHN anticipates another $10 million would come from undisclosed philanthropic sources.

“This project will potentially impact all of Ohio as well as surrounding states,” the application states. “We anticipate people from these jurisdictions will seek proton therapy treatment at our facility.”

The application continues: “The average stay for treatment is six weeks, which will help local businesses, such as the hospitality industry.”

A KHN spokeswoman declined comment on the application’s details on Tuesday. The specific source of the federal funding has not been identified.

The new details about the project’s potential economic impact emerged as financing remains in flux for both the KHN project and another proton beam therapy project planned for the Interstate 75-Austin Boulevard interchange in Montgomery County’s Miami Twp.

That project, planned by California-based Optivus Proton Therapy, would involve an investment of $100 million to $125 million, and would employ 123 clinical workers, Optivus CEO Jon Slater said Tuesday. He plans to update township officials on the project before the end of March.

Proton therapy helps doctors better control doses of radiation directed at a tumor, thereby minimizing damage to the surrounding healthy tissue and vital organs. This lets oncologists blast cancers with higher radiation dosages, possibly improving the effectiveness of treatment. But it is about twice as expensive as traditional treatments, and questions remain about its effectiveness in treating some cancers, such as prostate cancer.

KHN has been under financial pressure recently. Last month, a network executive acknowledged revenues were not at projected levels. And Moody’s Investors Service in April expressed concern about the extent of KHN’s borrowing, noting its bond rating could be downgraded if the health system didn’t meet cash flow projections. Another ratings agency, Standard & Poor’s, did not share that concern.

Unlike past years, the applications for federal funding submitted to the coalition are available online for public comment through Jan. 13, and may be viewed at: www.daytonregion.com/ regional-advocacy/priority- process/project-review- public-input.

Contact this reporter at (937) 225-7457 or bsutherly@ DaytonDailyNews.com.

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