New York hospital deal jeopardized by insufficient state funding

A pending deal between Lockport, N.Y.-based Eastern Niagara Hospital and Kaleida Health in Buffalo, N.Y., is facing challenges after losing grants from the New York State Department of Health, according to Buffalo Business First.

Kaleida and Eastern Niagara signed a loose agreement to affiliate in 2016. The deal, which would make Kaleida the parent of Eastern Niagara, was approved in 2018 by the state health department. The hospitals applied for grants from the state to fund the project.

However, when the $204 million in grants were awarded in February, Kaleida and Eastern Niagara didn't receive any of the allocated funding.

As a result, the deal could be affected, according to Buffalo Business First.

Editor's note: This article was updated April 12 at 10:36 a.m.

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