CT regulator agrees to settlement allowing $96M proton therapy cancer center in Danbury

Hartford Business Journal – Friday, January 17, 2025
By David Krechevsky

State health regulators said Friday they have reached an agreement that will allow for the development of a second proton beam therapy center in Connecticut.

The Office of Health Strategy said it negotiated the settlement agreement with Danbury Proton LLC to allow the organization to establish a $96 million proton therapy center in Danbury.

Proton beam therapy is a radiation treatment that delivers a precisely targeted beam of protons to disrupt and destroy tumor cells.

While this type of cancer treatment is not yet available in Connecticut, Hartford HealthCare and Yale New Haven Health System broke ground in October on their new, jointly owned, $75 million proton therapy center in Wallingford, which received approval from OHS two years ago. That facility is expected to open by the end of 2026.

According to OHS, the agreement with Danbury Proton allows it to open and operate only a single treatment room, “in order to ensure use of the treatment when supported by the scientific literature,” OHS said.

The settlement agreement states that the anticipated cost of the project will be “approximately $96 million (or $72 million exclusive of financing costs).”

The settlement includes provisions ensuring the center meets the state’s conditions, including licensure, registration and accreditation requirements.

It also requires the center to become credentialed as a Medicaid provider, and to commit at least 5% of net revenue to providing care for the uninsured and/or covering patients’ out-of-pocket expenses.

OHS said a key provision in the agreement holds Danbury Proton accountable for ensuring that annual contract increases with commercial insurers do not exceed the state’s cost growth benchmark for the plan year.

The settlement was reached 11 days after OHS announced it had begun confidential talks with Danbury Proton LLC in hopes of reaching a settlement for its certificate of need (CON) application for the proton therapy center. The confidential talks were a first for a CON application.

Under state law, a CON is required when a healthcare organization seeks to use healthcare technology that is new to the state.

Danbury Proton had filed an application for CON approval for its proton therapy center on Nov. 6 last year. It was the second CON application for the Danbury center; OHS denied the first, citing factors such as the financial feasibility of the project.

“Making advances in cancer care available to Connecticut residents, especially patients with complex cancers when their oncologist determines that proton beam therapy may be an appropriate treatment option, is important,” said Dr. Deidre S. Gifford, OHS commissioner.

She added that the agreement ensures “that this new technology will enter our state’s health system in a manner that aligns with our commitment to healthcare access, affordability, equity and quality.”

Drew Crandall, community engagement director for Danbury Proton, said his organization is excited by the agreement.

“We are thrilled,” he said. “It’s a day of celebration, not only for us, but for the state of Connecticut and surrounding portions of N

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