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Thu May 2, 2013
Spending On Southland Clinic Halted As Financial Woes Mount
LEXINGTON, Ky. - Plans for a new health clinic on Southland Drive took a major blow Wednesday, as members of the finance and budget committees for HealthFirst voted to halt spending on the project in light of mounting costs.
HealthFirst executive director William North was ordered by the committees to stop all payments on the construction project, which is relying on an $11.7M dollar federal grant.
The HealthFirst plans included a primary care clinic that could handle twice the patient load of their current Newtown Pike facility. But now those plans are in doubt, as a report Wednesday showed deficits from cuts in federal spending and local tax dollars. An internal audit also showed HealthFirst losses doubled in 2013.
The Lexington Herald-Leader reports hundreds of thousands of dollars’ worth of contracts have already been bid on the project, including $15,000 a month being paid to developer Ted Mims for work as project manager.