NY's funding delay imperils hospital projects

Central New York hospitals and nursing homes might have to cancel $60 million worth of construction projects because New York State was too slow to distribute federal financial aid. Most of the money awarded for the Central New York projects came from a state and federal partnership established in 2006. The federal government awarded $2.5 billion to New York as part of the five-year pilot project. The goal was to reduce the state's healthcare costs by modernizing and consolidating hospitals, nursing homes and outpatient centers. The Federal-State Health Reform Program required construction at some 470 projects across New York to be completed by Sept. 30. But now state officials and Central New York hospital administrators say they will be unable to meet that deadline. State officials acknowledge delays in distributing the aid as New York faced its own budget and financial problems during the recession.