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Bush Administration Denies $30 Million for Children's

Buffalo, NY – A much heralded deal announced last spring meant to keep Children's Hospital as a free-standing facility may be in jeopardy.

The Bush administration has denied a nearly $31 million application for federal funds considered a key part of the agreement.

The decision is seen by some as political, since its announcement was not made until after this week's elections.

"The decision is both disappointing and no doubt a setback, but by no means a fatal blow to the concept of keeping Children's Hospital at its current location and improving and expanding its services," Assemblyman Sam Hoyt, D-Buffalo, told the Buffalo News.

"This is a bump in the road," Stephen McClellan, Kaleida Health's senior vice president for Public Affairs and Development told the News. "We remain committed to the capital improvement projects at Children's Hospital.

Congressman Jack Quinn, R-Hamburg, has sent a letter to Health and Human Services Secretary Tommy Thompson asking him to reverse the decision made by the Provider Reimbursement Review Board.