Inside the $223M New York hospital 9 years in the making

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Buffalo, N.Y.-based Kaleida Health and Dunkirk, N.Y.-based Brooks-TLC Hospital System have filed a certificate of need for a new hospital in Fredonia, N.Y., a project nearly a decade in the making.

The organizations submitted a proposal for the $223 million project on Nov. 4. The 133,000-square-foot hospital would be built on a 30-acre site and include medical office space and a helipad. It would also feature a new electronic health record to connect all Kaleida facilities.

The hospital was first proposed nine years ago, but the project stalled during the pandemic. Kaleida President and CEO Don Boyd told Becker’s the need for improved healthcare access in the area has remained constant.

“The need for access has never changed over the nine-year period, but some of the external environment has changed,” Mr. Boyd said. “Each time it was an opportunity to rethink and rework the project, but the commitment on our behalf and on the governor’s behalf, has always been there. That manifested itself in the submission of the certificate of need.”

Mr. Boyd said the certificate of need is expected to be approved with limited contingencies. Kaleida plans to begin site readiness work before the end of 2025 and anticipates full state approval to begin construction in the first quarter of 2026.

Once construction begins, the project is expected to take 32 to 36 months, with a targeted opening in the fourth quarter of 2028. 

New York Gov. Kathy Hochul previously pledged $74 million to support the project, which is a partnership between Kaleida and Brooks-TLC. Additional funding would come from Kaleida and the New York State Department of Health.

A model for regional care

The new hospital would replace the current 65-bed Brooks-TLC Hospital System in Dunkirk. It would increase emergency department capacity from nine bays to 16 and feature 15 medical-surgical beds, five observation beds, three operating rooms and a full imaging suite. Clinical services would include primary care and specialties such as oncology, cardiology, women’s health, orthopedics and urology.

Increasing access is the goal behind the project, Brooks-TLC President and CEO Ken Morris said.

“When we look at the populations we serve, we’re not just serving those that are immediately in the area — we serve a much broader location,” Mr. Morris told Becker’s. “Part of our goal is a model that’s integrated with Kaleida Health and their mission. When you start to work together, there’s a lot of benefits to our community.”

A recruitment and economic engine

Modern facilities and upgraded technology at the new hospital are considered key components in attracting and retaining clinical talent, Mr. Boyd said.

“Having state-of-the-art, modern facilities and technology for your staff, who we rely on every day to provide care to patients, is going to improve their experience and their ability to provide care to patients,” he said. 

Mr. Morris said workforce retention is central to the transition.

“Our intent is to carry over and to expand on the services we have,” he said. “We have a talented group of people, and our intent is to retain the positions that we have.”

The project also holds promise as a regional economic catalyst. Mr. Boyd said access to high-quality healthcare and education are top considerations for businesses evaluating whether to relocate or expand.

“That can also serve as a broader economic engine for businesses that are looking at growing or moving to the area, because now we’ve answered that question: We know what the future of healthcare is in Northern Chautauqua County,” Mr. Boyd said.

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