Santa Rosa (Calif.) Memorial Hospital has halted a $68 million expansion project because of financial concerns.
Destabilizing credit markets, an anticipated $6.2 million reduction in Medicaid reimbursements and difficulty raising $10 million from donors during a tightened economy were cited as reasons for the decision.
The project would have doubled the size of the emergency department, from 19 bays to 38, and added 12 beds to the intensive-care unit. The 337-bed hospital broke ground on the project in August. The hospital will reassess the feasibility of the expansion in a year, a spokeswoman said.
Santa Rosa Memorial, in Californias wine country north of San Francisco, is part of not-for-profit, faith-based St. Joseph Health System, headquartered in Orange, Calif. -- by Rebecca Vesely