An $18 million state grant will help keep bankrupt Eastern Niagara Hospital afloat while helping Catholic Health purchase technology for its planned new Lockport hospital.
The grant, announced Tuesday, includes $4 million for Eastern Niagara, which signed a management agreement with Catholic Health after filing for Chapter 11 bankruptcy protection in November 2019.
Eastern Niagara is to close in 2023, upon the opening of the new $66 million Lockport Memorial Campus of Mount St. Mary's Hospital, to be built off Shimer Drive in the Town of Lockport.
The grant came from the state Health Department's Vital Access Provider funding program.
"It really is a testament to the new model," Catholic Health CEO Mark A. Sullivan said in an interview. "We're going to be able to sustain health care for over 80,000 people while we're building the new hospital."
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Construction is scheduled to begin in October on the 22-acre site that will include a medical office building, an emergency helipad, 278 parking spaces and the 60,000-square-foot hospital.
