Parker Hughes Cancer Center closes for good

After eight turbulent years, the Parker Hughes Cancer Center filed for Chapter 7 bankruptcy this week, ending its struggle to stay in business.

The once-popular Roseville clinic was forced to suspend its operations last month after its only remaining physician, Dr. Sanda Morar, took a job in Illinois.

The clinic had hoped to recruit a replacement but ultimately decided that it could no longer afford to remain open, said its founder, Dr. Fatih Uckun, a former University of Minnesota scientist and cancer specialist.

Uckun stepped down as head of the clinic in December, after a two-year battle with the state medical board over allegations of misconduct. The board eventually cleared him of most of the charges and restored his medical license after a 22-month suspension.

But the clinic struggled to stay afloat, even after going through a Chapter 11 bankruptcy reorganization last year.

"It's a sad day," said Alan Eidsness, Uckun's lawyer. "We fought this long battle and we won, but the clinic just wasn't able to keep going."

The clinic lost more than $6 million in the last two years, according to bankruptcy filings. It reported $3.9 million in debts, and $426,000 in assets. Its companion research institute also filed for bankruptcy Monday.

Uckun, who once dreamed of turning Parker Hughes into a national franchise, said his only concern now is for the patients. "They were sad that the clinic of their choice closed," he said. "The most important thing is that the patients ... had their care transferred to other facilities." Uckun said he hopes to continue treating cancer patients, and he is interviewing for a new job.

Built with billionaire's help

Uckun had built the clinic from scratch with funds from a California billionaire, B. Wayne Hughes, whose son, Parker, had been treated by Uckun at the university.

Within a few years of its 2000 opening, the Parker Hughes clinic was a thriving medical center, with 16 physicians and thousands of patients. Armed with a million-dollar advertising budget, the clinic touted itself as one of the leading cancer centers in the world, with state-of-the-art facilities that offered hope to cancer patients.

But by 2003, the medical board, which licenses and oversees doctors, had begun investigating complaints about patient care at the clinic. That same year, the Star Tribune published an investigative report detailing allegations of unnecessary treatment, kickback demands, inflated claims and exorbitant charges at Parker Hughes.

Uckun and the clinic consistently denied any wrongdoing, and dozens of patients rallied to his side, vouching for his compassion and skill as a physician.

In January 2006, the medical board took the unusual step of temporarily suspending his license during an ongoing investigation, saying he posed a "serious risk of harm" to patients.

Board reinstates license

Uckun spent hundreds of thousands of dollars to challenge the board -- the bankruptcy filing shows the clinic reimbursed him $196,000 last year alone, for legal bills, he said. Eventually, an administrative law judge recommended that the board reinstate his license.

It did, as part of a 107-page report in December, which nevertheless found that he had misused advertising and misled patients about the value of certain tests. The ruling means that Uckun can practice medicine again, although only at a clinic approved by the board.

The clinic also agreed to pay $150,000 to settle claims in a federal whistle-blower suit that the clinic had overbilled Medicare and solicited kickbacks.

The clinic also sought protection from creditors in January 2007, as part of a plan to reorganize its finances. It emerged from Chapter 11 bankruptcy last July. It also brought in new board members, including, as of January, the famed University of Minnesota transplant surgeon John Najarian.

This week, the clinic went back to bankruptcy court to liquidate the company.

Maura Lerner • 612-673-7384