Governor Hochul Announces Agreement with Kaleida Health and Brooks-TLC Hospital System, Inc. to Build New Hospital in Chautauqua County

Governor Kathy Hochul today along with hospital leadership, community stakeholders and organized labor announced an agreement with Kaleida Health and Brooks-TLC Hospital System, Inc. to build a new hospital in the Village of Fredonia in Chautauqua County.

Governor Hochul’s administration has been working with Kaleida Health on terms of an agreement and plan to move forward with construction of the new hospital replacing the current Brooks Hospital in the City of Dunkirk. Today’s announcement will be enabled by the newly established Safety Net Transformation Program included by the Governor in this year's Budget to encourage partnerships that improve the resilience of safety-net institutions by providing strategic capital and operating support, in addition to required regulatory flexibility.

“Every New Yorker deserves to have access to essential health services where and when they need it most, and today’s announcement is a major victory for those living in Chautauqua County and the surrounding community,” Governor Hochul said. “As we continue to invest in downtown revitalization, job creation and economic opportunity all across Chautauqua County, it is important for this community to have a state-of-the-art health care facility to support this growth. The new Brooks-TLC Hospital will provide the quality of care that our residents need, and I commend Kaleida, Brooks and all of our community stakeholders for working hard to make this vision become reality.” 

The project will be supported by $74 million from the State that was previously committed. Kaleida Health and Brooks will submit a revised Certificate of Need application to the Department of Health (DOH), which will expedite approval. The new hospital is expected to open within three years of approval.

Brooks-TLC Hospital, a 65-bed hospital in Dunkirk, has been financially distressed for years, but as a sole community hospital receives considerable State financial support. Brooks-TLC is a participant in the rural Directed Payment Template program and the Vital Access Provider Assistance Program (VAPAP), which are used to keep financially distressed hospitals sustainable.

As a hospital receiving State financial support, recipients were required to develop restructuring plans that would lead them to sustainability. In the course of its restructuring effort, Brooks merged with TLC Network, and the combined entity affiliated with Kaleida Health in Buffalo.

The plan is to bring Brooks-TLC Hospital into the Kaleida Health organization as the new hospital comes online.

“The commitment to building a new hospital will benefit patients and future generations for years to come," said Don Boyd, president and CEO of Kaleida Health. "Today’s announcement exemplifies the power of partnerships and dedication within our community. Collaborations among Governor Hochul’s team, Kaleida Health and Brooks-TLC, along with the tireless efforts of everyone in Northern Chautauqua County, have brought us to this significant moment."

"Creating this vision required a solid plan. By leveraging the strengths of Kaleida Health and integrating Brooks-TLC into our organization, we have established a clear roadmap for the future. This plan ensures stability and certainty not only for our patients and residents, but also for our doctors and employees," Boyd continued.

The new hospital will improve access for emergency, inpatient and outpatient care to residents living in Northern Chautauqua, Cattaraugus and Southern Erie counties. Plans include upgrading medical equipment and technology to deliver advanced health care with a more efficient and sustainable facility to provide care. This will also ensure that the area retains and attract medical professionals in the surrounding communities. Kaleida Health, in concert with the leadership team and board of directors at Brooks-TLC Hospital, will plan, construct and operate the new Brooks Hospital, and once it opens will serve as the active parent and sole member of the new hospital.

“Governor Hochul's announcement today is great news and brings us one step closer to breaking ground on the new hospital off Route 20 in Fredonia,” said Ken Morris, president and CEO of Brooks-TLC Hospital System, Inc. “Perhaps the more exciting take-away from today is the preservation of access to health care for our communities in and around northern Chautauqua and western Cattaraugus counties. We owe our gratitude to Governor Kathy Hochul, Kaleida Health, our union partners and our local elected officials, who became especially unified these past two years to get this done. Our objective from day one has been and remains our unwavering commitment to our community to provide access to health care in the most efficient and fiscally responsible way possible, while attracting and retaining additional talent in this region. We are proud to be able to keep care close to home.”

The proposed new hospital would include:

  • Emergency Services (12 bays)
  • Helipad
  • 15 beds (med/surg)
  • Observation unit
  • Surgical suite (4 rooms)
  • Procedure rooms (2 rooms)
  • Imaging – CT/CTA/MRI/Ultrasound/Rad/Dexa Scan/Nuclear Med/3D Mammography
  • Lab services/pathology
  • Pharmacy
  • Support Services
  • Outpatient Services

Today’s announcement follows significant steps taken by Governor Hochul as part of FY 2025 Enacted Budget to improve New Yorkers’ health. This year’s Budget included a historic $37 billion Medicaid investment to support the healthcare safety net and transform the healthcare delivery system, and established the Safety Net Transformation Program. Through this program, New York will encourage partnerships that improve the resilience of safety net institutions by providing strategic capital and operating support, in addition to required regulatory flexibility. The agreement between Kaleida Health and Brooks was established under this new program.

Boyd added, “I want to express our gratitude to Governor Hochul for her leadership and commitment to building a new Brooks. Today’s announcement will undoubtedly be a part of her enduring legacy in Western New York and will have a lasting, positive impact on patient care for years to come.”

Click HERE to see renderings of the new hospital.

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