State budget includes $300 million for new Mohawk Valley hospital

UTICA, N.Y. — The Mohawk Valley Health System (MVHS) will use $300 million in the newly approved state budget as it explores the possibility of a new hospital.

The new hospital would replace the inpatient care currently provided at the St. Luke’s campus of Faxton St. Luke’s Healthcare (FSLH) and at St. Elizabeth Medical Center (SEMC).

MVHS announced the approved funding in a news release issued Wednesday.

MVHS is an affiliation of Faxton St. Luke’s Healthcare and St. Elizabeth Medical Center, both of Utica. The two organizations teamed up in March 2014.

Gov. Andrew Cuomo had proposed $300 million to help “create an integrated health-care delivery system in Oneida County,” MVHS said in the news release.

The proposal was part of a $700 million recommendation to support upstate New York hospitals.

“This is an incredible opportunity for our community and we are extremely grateful to the governor and our legislators,” Scott Perra, president and CEO of the Mohawk Valley Health System, said in the news release. “Last fall we began exploring the concept of a new, free-standing hospital. To be able to move forward with this concept changes healthcare in our community and enhances what we are able to do for the region.”

MVHS estimates a new hospital would cost between $460 million and $500 million. The state-approved $300 million “helps to lay the foundation for funding,” the organization added.

Besides Cuomo’s recommendation in early January, MVHS had submitted a proposal in December under the delivery-system reform incentive-payment (DSRIP) program.

DSRIP is a federal and state initiative designed to “improve and coordinate care for Medicaid recipients and those without insurance,” MVHS said.

The funding for the DSRIP project has not yet been announced, the organization added.

MVHS would also need additional financial support from federal and state governments, lending institutions, and philanthropic support from the community, according to the news release.

MVHS estimates the project will take four to six years to complete with a “number of steps” that need to happen even before the first shovels are in the ground.

“One of the most frequently asked questions is ‘where would we build a new hospital?’ and we don’t know yet,” said Perra. “We are working with Steve DiMeo and Mohawk Valley EDGE to look for potential sites in our area. EDGE has tremendous resources and their support is invaluable. It will take time, research and planning to determine the best location.”

DiMeo is president of Mohawk Valley EDGE, an economic-development organization.

The MVHS board of directors will make the final determination for the site, according to the news release.

MVHS needs to develop a plan for the hospital, structure, location, services, and staffing in the next 12 to 18 months.

The board of directors and administration also need to devise a transition for the current FSLH and SEMC buildings. MVHS will work with the New York State Department of Health to complete a certificate-of-need application for the new project.

“This is the beginning of a long and important journey,” said Perra. “We are excited and we recognize what an enormous responsibility this is for our board of directors, medical staffs, and employees. We only have one chance to get this right and that is what we intend to do. We want to build a new hospital for the families that we serve, one that will make a difference for generations to come.”  

Contact Reinhardt at ereinhardt@cnybj.com