ORGANIZATION AND BUSINESS

12 Months Ended

Dec. 31, 2012

ORGANIZATION AND BUSINESS [Abstract]

ORGANIZATION AND BUSINESS

Note A – Organization and Business

U.S. NeuroSurgical, Inc. ("USN" or the "Company"), a Delaware corporation, was organized in July 1993 for the purpose of owning and operating stereotactic radiosurgery centers, utilizing the gamma knife technology.  USN owned one gamma knife center on the premises of New York University Medical Center ("NYU") in New York, New York.  Management continues to explore opportunities to organize and participate in additional gamma knife centers. USN's business strategy is to provide a mechanism whereby hospitals, physicians, and patients can have access to gamma knife treatment capability, a high capital cost item.  USN provides the gamma knife to medical facilities on a "cost per treatment" basis.  USN owns the gamma knife units, and is reimbursed by the facility where it is housed, based on utilization.

During the fourth quarter of 2007, USN formed a wholly-owned subsidiary, USN Corona, Inc. ("USNC"), to carry investments in Corona Gamma Knife, LLC and Neuro Partners, LLC. Those investments were formed to develop and manage a gamma knife center at San Antonio Community Hospital in Upland, California. (See Note C[1])

During 2010, USN expanded its market strategy to include opportunities to develop cancer centers featuring radiation therapy. These centers will utilize linear accelerators with IMRT (Intensity Modulated Radiation Therapy) and IGRT (Image Guided Radiation Therapy) capabilities. In 2010, the Company formed Florida Oncology Partners in partnership with local physicians and other investors. USNC owns a 20% interest in the venture. The center is located in Miami and opened in the second quarter of 2011. (See Note C[2])

In 2011, the Company formed Boca Oncology Partners, in partnership with local physicians and other investors. USNC initially owned a 22.5% interest in the venture. The center is located in Boca Raton, Florida, and was opened in the third quarter of 2012. (See Note C[3])

In April 2011, the Company finalized certain transactions and agreements with Midwest Division – RMC, LLC ("RMC"), which owns the property and operates the medical facilities in Kansas City at which one of the Company's gamma knife centers was located.  The Company sold to RMC the Leksell Gamma Knife radiosurgery equipment, along with related supplies and inventory, located at the Kansas City center for an aggregate purchase price of $250,000.  (See Note D)

On October 29, 2012, the Company's facility at NYU was totally destroyed as a result of flooding from Hurricane Sandy. As of this filing, the Company is in negotiations to reopen the facility. (See Note E)