An article in today’s Boston Globe announces that new Joslin Diabetes Center CEO Ranch Kimball has canceled plans to build a $225 million expansion and is instead selling the parcel of land where it was planning to build.
Kimball declined to discuss what he saw as the project’s flaws or why Joslin had not yet started construction in four years since winning approval. He said he scrapped the plan “to get all of us a clean start.”
The article then summarizes Kimball’s resume without providing any insight into the reasons behind the decision. So here’s a little hint: Joslin financial position isn’t strong enough to support the project. The balance sheet isn’t particularly robust, and diabetes treatment isn’t well enough reimbursed to allow Joslin to generate a positive margin on patient care.April 30, 2007