Economy Delays Penn St. Children's Hospital

Penn State postpones construction of Pa. children's hospital, citing global economy woes

Penn State University's medical center is delaying construction of a new children's hospital in Hershey because of concerns over the global economic crisis.

The center's chief executive officer, Dr. Harold Paz, said Friday the economic climate hampers the hospital's ability to borrow money for the $235 million children's hospital project.

Groundbreaking had been scheduled for January, pending the approval of architectural designs and financing plans by the hospital's board and Penn State's trustees.

Paz says officials are continuing to raise money for the children's hospital. He says they've secured $58 million in private donations so far.

Paz says the delay won't affect several other expansion projects already in progress at the medical center.

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