Gov. Hochul touts health care and housing investments during Chautauqua Co. stop

FREDONIA, N.Y. (WKBW) — Governor Kathy Hochul visited Chautauqua County on Thursday for a beam-signing at the new Northern Chautauqua Hospital site in Fredonia and a groundbreaking for an affordable housing development in Dunkirk.

The $223 million hospital project is on schedule and on budget, Hochul said, with the facility expected to open in 2029. New York State has committed $124 million in funding, more than half of the total project costs.

Hochul said the hospital will protect approximately 300 jobs and serve an area that has faced challenges as federal healthcare funding has declined.

"While Washington may be defunding hospitals here in New York, we're building hospitals," Hochul said. "We believe in our hospitals. We build them in big cities, and build them in small towns and build them right here in Chautauqua County."

Adam Beam

The governor noted that between 2010 and 2021, 136 rural hospitals shut their doors, creating dangerous gaps in healthcare access.

According to a recent report, 700 rural hospitals nationwide, one-third of rural hospitals in the country, are at risk of closing due to financial problems, with more than 260 at immediate risk. Among the factors contributing to these risks are losses on patient services, with over 40% of rural hospitals losing money delivering care, and low financial reserves.

"When rural hospitals close, people's lives are in danger," Hochul said. "The nearest hospital can be hours away, at least an hour from here to Buffalo or here to Erie, Pennsylvania. Someone lives in Fredonia, Dunkirk; your lives matter as much as they do in Manhattan and Albany."

Brooks-TLC Hospital System

The new facility is a partnership with Kaleida Health, which CEO Don Boyd said provides a strong system to support the hospital's long-term viability. The hospital will not include a maternity ward or ICU.

Hochul also addressed the financial pressures facing rural hospitals, citing $10 billion in healthcare funding cuts from the federal government over the year that have affected hospitals, nursing homes and prescription drug subsidies. She said the state has worked to stabilize healthcare facilities amid what she described as the federal government "walking away from its responsibilities."

According to a Fiscal Policy Institute report, 470,000 New Yorkers enrolled in the Essential Plan will lose their health insurance coverage this July as a result of federal funding reductions.

Western New York is expected to see 26,000 people lose coverage, including 2,520 in Chautauqua County. The report found that the coverage loss will be distributed throughout the state, with 2.4 percent of New Yorkers set to lose their health insurance, likely the largest and most rapid loss of insurance in the state's history.

WATCH: Gov. Hochul touts health care and housing investments during Chautauqua Co. stop

Hochul also joined local officials and developers to break ground on Homesteads at Dunkirk Landing, a housing project on two brownfield sites that will create affordable homes.

The development includes supportive housing for veterans with disabilities who have experienced homelessness, with services provided by Soldier On. The project also features a childcare center serving families in the development and surrounding communities.

Hochul said housing projects like this are part of a broader effort to revitalize Chautauqua County, referencing the $10 million Downtown Revitalization Initiative awarded to Dunkirk in 2023.

The housing project will include units affordable at different income levels, from 30% to 90% of the median income. The building will be all-electric with no gas service except for an emergency generator, and tenants will receive no-cost basic broadband internet service.

Adam Beam

Hochul also noted the project's proximity to public transportation and shopping in the downtown core.

Developer Larry Regan, president of Regan Development Corp., credited state funding programs including the Brownfield Cleanup Program, Homes and Community Renewal, and the Department of State for helping make the project possible. "We are the tools that help you accomplish that, and we thank you for that and we're proud to serve as that," Regan said.

"We're building a community where young people can afford to stay in the place they grew up, find a home, find the childcare they need, and the family can put down their roots," Hochul said.