Development, Funding, and Operations of Kiski Valley Medical Facilities, Inc., North Apollo, Pa.

The commissioners of Armstrong County, Pennsylvania, received complaints concerning federal funds used in developing and equipping Kiski Valley Medical Facilities, Inc. The complaints alleged that there was a conflict of interest regarding the selection and acquisition of the facility site, area demographic data were misrepresented in applications for federal funds, and there is not a need for the facility. An audit revealed no evidence to support the conflict of interest and data misrepresentation allegations. However, although additional medical services were needed in the Kiski Valley, the size of the facility is beyond the needs of the area. The anticipated patient load has not materialized and, as a result, the facility is experiencing financial difficulties. The facility will probably continue to have difficulty in achieving self-sufficiency.