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Agreement With New York University on Behalf of New York University Medical Center (NYU)
12 Months Ended
Dec. 31, 2011
Agreement With University on Behalf of University Medical Center (NYU) [Abstract]  
Agreement With New York University on Behalf of New York University Medical Center (NYU)
Note E - Agreement With New York University on Behalf of New York University Medical Center (NYU)

During November 1996, USN entered into a neuroradiosurgery equipment agreement (NYU agreement) with NYU for a period of seven years (the term), with an option for NYU to extend the term for successive three-year periods or to purchase the gamma knife equipment at an appraised market value price.  USN may negotiate the purchase price and upon failure of the parties to agree may request that the facility be closed.  All costs associated with closing and restoring the facility to its original condition are the responsibility of USN.  The equipment agreement, among other matters, requires USN to provide (i) the use of the gamma knife equipment to NYU, (ii) training necessary for the proper operation of the gamma knife equipment, (iii) sufficient supplies for the equipment, (iv) the repair and maintenance of the equipment, (v) all basic hardware and software upgrades to the equipment and, (vi) an uptime guarantee.  In return, NYU pays USN a scheduled fee based on the number of patient procedures performed.  The Company derived patient revenue from the NYU center of $2,029,000, $1,907,000 and $1,464,000, for 2011, 2010 and 2009, respectively.
 
In 2004, the NYU agreement was extended through March 2009.  In 2008, the NYU agreement was extended for an additional 12 years through March 2021.  To secure this extension, USN agreed to install a new gamma knife PERFEXION model.  The new equipment and certain space improvements, costing approximately $3,742,000 in total, was financed through a seven-year lease arrangement.  The amendment provides for a payment to USN of a flat fee for each patient procedure performed.