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Thursday, Jan. 08, 2009

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State delays decision on new Kennewick hospital

By the Herald staff

A state decision on whether Kennewick General Hospital can move forward with its proposed $95 million hospital in the Southridge area has been delayed a month.

The state's regulatory board that oversees health facilities expansions and service increases extended its decision on KGH's project by 30 days to catch up with other decisions, the state Certificate of Need program told the Herald.

A decision was expected this week, but is now set for Feb. 5.

After a levy to pay for a new $132 million, 101-bed hospital at Southridge failed in November 2007, KGH's board moved forward with the assumption that taxpayers won't help foot the bill.

The hospital's new expansion plan to build a 74-bed hospital at Southridge includes keeping some services at the existing hospital and medical mall campuses.

The hospital plans to pay for the project -- which will probably total $113 million with financing costs and capitalized interest -- with a combination of federal funding, selling assets, cash reserves and a fundraising campaign.

The delayed decision from the state means the hospital has to continue to wait to move forward with its financing plan, a KGH spokeswoman said.



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