Governor Hochul Announces Agreement With Kaleida Health and Brooks-TLC Health Systems 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 Health Systems 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 Brooks-TLC in the City of Dunkirk. Today’s announcement will be enabled by the newly established Health Care 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. The project will be supported by $74 million from the State that was previously committed. Kaleida and Brooks-TLC 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 3 years of approval.

“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 current Brooks-TLC Hospital is the county's sole community hospital and is a participant in the rural State Directed Payment program and the Vital Access Provider Assurance Program (VAPAP), which are supplemental funding programs to support financially distressed hospitals. As a hospital receiving State financial support, it was required to develop restructuring plans that would lead it to sustainability. In the course of its restructuring efforts, Brooks merged with TLC Network, and the combined entity affiliated with Kaleida Health in Buffalo.

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 300 hospital personnel and further help 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-TLC Hospital, and once it opens will serve as the active parent and sole member of the new hospital.

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

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 health care safety net and transform the health care 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-TLC was established under this new program.

New York also became the first state in the nation to create paid prenatal leave for pregnant moms. The Budget also eliminated out-of-pocket medical costs for pregnancy-related benefits for New Yorkers enrolled in the Essential Plan; protects consumers by eliminating co-pays for insulin for any New Yorker on state-regulated health insurance plans; and combats medical debt by banning hospitals from suing patients earning less than 400 percent of federal poverty level.

Governor Hochul has been committed to spurring economic development and growth in the City of Dunkirk and Chautauqua County. Earlier this month, Governor Hochul announced the projects chosen for the City of Dunkirk’s $9.7 million Downtown Revitalization Initiative award. The Governor previously announced a significant investment by Wells Enterprises’ in the expansion of its ice cream manufacturing facility retaining 401 jobs and create more than 200 new jobs. That was followed by the $13 million expansion of Refresco Beverages to expand warehousing and distribution capabilities.

New York State Health Commissioner Dr. James McDonald said, “Today’s announcement is a reflection of Governor Hochul’s commitment to delivering first-class, equitable, and accessible health care in New York State. Through our collective commitment and partnerships with the hospital leaders and elected officials, county officials and the unions, those living in Chautauqua County will have expanded access to top-tier health care right in their community.”

Kaleida Health President and CEO Don Boyd said, “The commitment to build a new hospital will benefit patients and generations for years to come. Today’s announcement is also a testament to what partnerships and passion can do for a community. Partnerships like Governor Hochul’s team, Kaleida Health and Brooks/TLC. And passion from everyone in Northern Chautauqua County who worked so hard to see this day come to fruition. To make this vision a reality, you have to have a solid plan. By harnessing the strengths of Kaleida Health and by bringing Brooks/TLC into our organization, we have a defined plan for the future. That brings certainty for not only the patients and residents here, but for the doctors and employees as well. In closing, I want to say thank you to Governor Hochul. We thank her for her leadership and commitment to building a new Brooks-TLC. There is no doubt that today’s announcement will be part of her legacy in Western New York – and we can rest assured this announcement today will have a tangible impact on patient care for years to come.”

Brooks/TLC Health System Inc. CEO Ken Morris said, “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. Perhaps the more exciting take-away from today, is the preservation of access to healthcare for our communities in and around northern Chautauqua and western Cattaraugus Counties. We owe our gratitude to Gov. Kathy Hochul, Kaleida Health, our union partners and our local elected officials, who become 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.”

New York State Nurses Association President Nancy Hagans said, “NYSNA nurses talked to community members, held public town halls, and lobbied elected officials alongside our union siblings at 1199SEIU to ensure New York State kept its commitment to fund a new modern hospital for the Northern Chautauqua County community. We are thrilled to hear that funding for a new, state-of-the-art healthcare facility is finally secured and that the dedicated healthcare workers at Brooks Memorial Hospital will be able to continue providing high-quality healthcare to their community right where they live. Thank you, Governor Hochul, for listening to the nurses and caregivers, and ensuring that rural New Yorkers continue to have access to quality care.”

AFL-CIO WNY Area Labor Federation President Peter De Jesús Jr. said, “The announced approval of a new Brooks-TLC Hospital, a state-of-the-art facility that will serve the Chautauqua County community for generations to come is an exciting victory for the residents and stakeholders who've advocated for this moment. This milestone would not have been possible without the unwavering support and tireless efforts of Governor Hochul, the dedicated members of 1199SEIU, the New York State Nurses Association (NYSNA), and our resilient community. Together, we have fought for and secured a brighter future for healthcare in our region. Thank you for standing with us and making this vision a reality.”

State Senator George Borrello said, “It is immensely exciting to see our vision of a new, state-of-the-art hospital for our community becoming a reality. With this commitment of funding from the state, plans to bring a new Brooks Hospital to northern Chautauqua County are set to move forward after years of planning and advocacy by myself and other state and local partners. With greatly enhanced technology and capabilities, the hospital will be a true game changer for local health care and a boost to our quality of life and economy. This is a once-in-a-lifetime opportunity, and my thanks go out to Governor Hochul and her team at the Department of Health for their integral support.”

Chautauqua County Executive Paul M. Wendel Jr. said, “Embracing the future of healthcare in our community is paramount to securing a thriving tomorrow. Governor Kathy Hochul's announcement of the collaboration between Kaleida Health and Brooks-TLC Health Systems to construct a new hospital in the Village of Fredonia signifies a monumental victory for Chautauqua County. This strategic partnership not only underscores our unwavering commitment to accessible, top-tier healthcare but also heralds a transformative era of growth and progress in our region. I extend profound gratitude to Governor Hochul, as well as to Kaleida and Brooks-TLC for their steadfast dedication to advancing healthcare excellence in our county.”

Dunkirk Mayor Kate Wdowiasz said, “Thank you Governor Hochul, your faith in our community is a gift. Today, we do not just celebrate funding; we celebrate hope renewed, possibility, and the knowledge that our best days are ahead. We toast to a future where healthcare is a right, not a privilege, where our streets buzz with life, and where every family has a place to call home. This is the promise of today's announcement, and we are forever grateful.”

Fredonia Mayor Michael Ferguson said, “The people of Fredonia, and Chautauqua County are eternally grateful to Governor Hochul and her staff for releasing the funds to build our new hospital. This is a major step in the revitalization of our community. Current residents, SUNY students, parents and those looking to move into our area can rest assured that world class healthcare will continue to be an essential part of lives.”