On the home page of Kaleida Health’s website six hospitals are featured: Buffalo General/Gates Vascular Center, DeGraff Medical Park in North Tonawanda, John R. Oishei Children’s Hospital in Buffalo, Millard Fillmore Suburban Hospital in Amherst, Olean General Hospital and Bradford Regional Medical Center in Pennsylvania.

There is no prominent mention of the Brooks-TLC Hospital System Inc., which continues to be a stand-alone operation. But Kaleida, with hopes that a new state-of-the-art facility will be built in Fredonia in the coming year, maintains a close connection to the Dunkirk operation.

While the construction timeline for the new location has likely expired for this year, there seems to be some momentum regarding the more than $70 million in funding set aside in 2016 and 2017. State officials could be closer to releasing those dollars to get the ball rolling on a new micro hospital facility. It would include emergency services with 12 bays, 15 medical and surgical beds, four surgical suites and two rooms for procedure, imaging with CT scans, MRI and ultrasound, stat lab services, a pharmacy, support services and a helipad.

Once that property becomes reality, Brooks-TLC could then become an affiliate of Kaleida. For now, the two entities are separate, but working as partners.

Don Boyd, chief executive officer of Kaleida, offered some insight into the current agreement with Brooks-TLC. First and foremost is the management agreement, which provides Ken Morris, Brooks-TLC chief executive officer, to work with the board of directors.

Boyd also discussed Kaleida’s assistance in the upgrades to technology at the Dunkirk location. “It was done at a significantly lower cost than it would have been if they had gone and purchased it on their own, which they didn’t have the capital to do at that time given their financial challenges,” he said.

Additionally, the largest healthcare provider in Western New York has assisted in recruitment of physicians in primary care, specialists and general surgery and the emergency services contract. All are small steps in awaiting the larger plan.

“We’ll take the next step …. when Brooks is ready and in the postion to,” said Michael P. Hughes, senior vice president and chief administrative officer. “We’re not going to come in … and take over the market and strip the hospital and the community. This is something that has to be a win-win.”

While financial issues have been well documented for Brooks-TLC, which lost $55 million from 2018 to 2021, Kaleida has recently faced large deficits due to the COVID-19 pandemic. Last year, The Buffalo News reported the system lost $231 million.

This prompted a major refocus for the organization. “We are in the midst of our own $300 million cost and transformation plan focused on growing revenue and focused on improvement and efficiencies in the health system,” Boyd said. “We have great confidence in what we control and the plan that we have implemented. … It is showing great traction and significant improvement in our own financial performance.”

If a new Brooks-TLC is built, Kaleida would be heavily relied upon. A report done by a commission of local health care leaders, led by former Brooks CEO Richard Ketcham, noted a new hospital could reduce annual deficits to $3 million annually. Those losses, to satisfy New York state, would have to be absorbed by Kaleida.

Boyd says if his organization’s fiscal plan continues on the right path, Kaleida could support the new facility. “That would put us in a position, after the hospital opens with some additional time, to be able to be responsible for that ongoing performance of Brooks, including that financial loss,” Boyd said. “That’s the vision we have shared with the state.”

This would eliminate a large amount of subsidies from Albany, which totaled more than $40 million over a four-year period. “Our commitment has not wavered and we want to do everything we can to preserve health care,” Hughes said.

If the state does release funding, one other dilemma could arise for the future site to be located off East Main Street. Work on the $1.7 billion new stadium for the Buffalo Bills in Orchard Park is commanding a large portion of the construction workforce in the region.

Nevertheless, Kaleida remains committed to working with Albany to see to it that Dunkirk-Fredonia maintains a hospital. “We are in constant communication with them as is the Brooks board about our vision for the project and the need for access to care,” Boyd said. “The community deserves an answer.”