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Mohawk Valley Health System Awarded $300 Million Health Care Facility Transformation Grant to Build Integrated Healthcare Campus

UTICA, N.Y. – On Monday, April 3, 2017, Governor Andrew M. Cuomo announced the passage of the Fiscal Year 2018 State Budget Extender, which funds all government operations through May 31 and advances key priority infrastructure, economic development and environmental projects across New York. In the Budget Extender, it was announced that the Mohawk Valley Health System (MVHS) has been awarded the $300 million Health Care Facility Transformation grant to create an integrated healthcare delivery system in Oneida County.

“This is the announcement that we’ve been waiting for,” said Scott H. Perra, FACHE, president/CEO of MVHS.“It has been quite the journey from the time Governor Cuomo specifically cited our project in the 2015 State of the State address as part of his proposed $700 million to support Upstate New York hospitals. Once the Governor and the legislators adopt the final version of the 2018 New York State budget, we will work with the New York State Department of Health (NYSDOH) on the contract agreement for the $300 million grant. When it is in place we will be able to move forward with the development of an integrated health campus for our community. I am grateful that we are given the chance to improve the healthcare in our community with a new, state of the art facility.”

The cost projection for the integrated health campus is estimated to be $480 million for a 750,000-square-foot facility. The remaining $180 million will come from MVHS capital, bonds and fundraising.

“The journey to get to this point has taken more than two years,” stated Norman Siegel, chairman of the MVHS Board of Directors. “Now we can really begin to create the vision of a new healthcare future for the Mohawk Valley and make it a reality. It’s an exciting time for our community, our board and our healthcare family.”

Following budget approval, MVHS will work with the Governor’s office and the NYSDOH on next steps and the disposition of how the grant will be paid. MVHS will then fully engage its selected architect and construction firms and begin moving forward with the design process.

This will also include developing the Certificate of Need (CON) application for the NYSDOH. Development of the new integrated healthcare campus will include input from a number of resources including members of the hospital family, medical staff, board members, donors and the community. The process will include the development of a Community Advisory Board that will work with healthcare administrators, the architects from NBBJ, Turner Construction and the Hammes Company.

Throughout this process, MVHS continues to work with the Mohawk Valley EDGE and property owners. Once the grant is secured, it is anticipated that meetings will take place with property owners in the second and third quarters of 2017 with the intent to offer one year options to purchase the properties into 2018.

“We recognize that the time spent waiting for all of the many details of the funding for the new hospital to be finalized has been very difficult for the property owners,” commented Perra. “Several have told us that while they are willing to move, they are looking for a more solid time frame on when the moving process will need to begin. We will be working on that when we begin our engagement with the architects and construction manager.”

“Now that this much-anticipated funding has been awarded, the vision of a modern state of the art healthcare facility can move one step closer to reality for the people of the Mohawk Valley,” said NYS Senator Joseph A. Griffo. “I have been committed from the start to advocate for this funding until it has been secured and ultimately delivered, so now I look forward to witnessing the progress of this facility and the outstanding services it will soon bring our community.”

“This grant represents a once in a lifetime opportunity to transform the Mohawk Valley’s healthcare system,”noted Assemblyman Anthony Brindisi. “Two aging hospitals will be replaced by a state of the art health care campus that will provide a variety of inpatient and outpatient healthcare in one convenient location. Patients will finally have the comfort of a private hospital room, and many of the medical specialists who treat them will have offices in the hospital. It will bring several thousand workers into downtown Utica every day, and will continue the rebirth of downtown Utica.”

“This is the next step in the process of taking our community’s healthcare delivery system to the next level,”said Oneida County Executive Anthony J. Picente, Jr. “Oneida County will continue to support the Mohawk Valley Health System’s vision of bringing a next generation hospital to downtown Utica and creating a thriving health district in our county seat.”

“Today’s announcement is a major step forward in the process of constructing a state of the art medical facility in the City of Utica,” commented City of Utica Mayor Robert M. Palmieri. “I thank Governor Cuomo for his commitment and understanding of the transformational change that will come with a project of this magnitude. I commend Scott Perra, Steve DiMeo and their respective staffs, as well as, my colleagues as this project could not move forward without everyone working together.”

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Media Contact: 
Grace Fernandez
Communications Specialist