By Mark Boshnack
Plans for an affiliation of Bassett Healthcare and A.O. Fox Memorial Hospital, and a new 60-bed adult care facility for Robinson Terrace in Stamford, got a vote of confidence Friday with a state announcement of grant funding.
Overall, the legislature provided $436 million in the budget for Health care Efficiency and Affordability Law, or HEAL, of New York State grants to address the needs of health facilities statewide, according to an announcement by Gov. David Paterson. The funds are provided by the state Department of Health and Dormitory Authority.
A $3.9 million grant was awarded to facilitate the proposed affiliation between Bassett in Cooperstown and Fox Hospital in Oneonta, according to a joint release from the two organizations.
The two have been planning for months to achieve greater operating efficiencies and responsiveness to the community. That could be completed later this year, officials from both organizations said.
The funds will be used, according to the release, as follows: $2 million to Fox Hospital for restructuring existing debt; $400,000 to Fox to undertake a comprehensive master facility planning process; $500,000 to support information technology costs involved in connecting the two facilities; $300,000 to support legal activities; $500,000 to support the establishment of Bassett clinical services at FoxCare Center; and $200,000 to assist in recruiting health care provides to serve the greater Oneonta community.
Bassett President and CEO Dr. William Streck said that the grant is "a real endorsement of the whole approach we are taking," in pursuing the affiliation. "We are all optimistic that this is very much on track."
Fox President and CEO John Remillard, said, "we are very pleased to receive the grant," adding that it is an indication of the state's support for the two hospitals' plans.
Remillard said the debt restructuring is necessary to deal with the "financial challenges" the hospital is facing because of declining reimbursements and an increase in the number of uninsured being treated.
Robinson Terrace Residential and Rehabilitation Facility will receive $9.53 million to construct a 60-bed adult care facility in the village of Stamford, offering adult home and assisted living services, according to a release. The new facility will be on county Route 18, about 11/2 miles from Robinson Terrace, which provides nursing-home services.
Work on the building is expected to start this spring, said Robinson Terrace administrator Pamela Harmon. It will bring 30 to 40 new jobs the area when it opens in 2011, she said.
"We're ecstatic (to receive the funding)," she said. "There is such a tremendous need in the area for this type of facility," she said.
Harmon said the new facility will fill an existing gap in services, and that without this grant, the facility couldn't be built.