This paper presents the use of nanoscale chemistry to synthesize a multilevel, hierarchically built nanoparticle, which we define as a nanoclinic, for targeted diagnostics and therapy. This nanoclinic, produced by multistep chemistry in a nanosize micelle, consists of a thin silica shell encapsulating magnetic (Fe2O3) nanoparticles and fluorescent dyes for enhanced contrast magnetic resonance and optical imaging and magnetic-induced cancer therapy. Furthermore, the surface of these prototype nanoclinics is functionalized with a biotargeting group, luteinizing hormone-releasing hormone (LH−RH). In the work reported here, the LH−RH targets receptor-specific cancer cells for utilization in imaging and investigation of biological effects. The structure and function of these nanoclinics have been characterized using electron and X-ray diffractions, transmission electron microscopy, atomic force and scanning electron microscopy and two-photon laser scanning microscopy. Targeting of the receptor-specific cells h...