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.

Advertisement

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.

More articles on healthcare industry transactions:
Merger creates $2.4B health system with hospitals in New York, Connecticut
Advocate Aurora Health acquires Wisconsin hospital
CHS to sell Tennessee hospital

Advertisement

Next Up in Financial Management

  • Healthcare leaders are often expected to compartmentalize emotion to make difficult decisions, drive results, and maintain operational focus. For many years, I led…

  • Chicago-based CommonSpirit recorded an operating income of $2 million (0% operating margin) in the second quarter of fiscal 2026, down…

  • Amy Assenmacher, RN, senior vice president of revenue cycle at Grand Rapids, Mich.-based Corewell Health, is confident that healthcare is…

Advertisement

Comments are closed.