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A state Health Department panel on Thursday denied permission to a partnership between Kaleida Health and a group of doctors to build a $2.66 million ambulatory surgery center in Orchard Park.

Members of the department’s Public Health and Health Planning Council voted against issuing the certificate of need, or CON, required for the project, which would have seen a 16,082-square-foot facility go up at 5959 Big Tree Road.

The project was strongly opposed by Catholic Health System, Lake Shore Health Care Center in Irving and Bertrand Chaffee Hospital in Springville, all of whom argued the surgery center wasn’t needed and their neighboring hospitals would lose patient revenue if it were built, according to documents filed with the council.

The surgery center partners plan to appeal the panel’s decision, according to Kaleida Health spokesman Michael J. Hughes.

The center would be part of a $30 million, 167,000-square-foot medical complex developed by Peter L. Krog and now under construction at the Big Tree Road site, which sits near the Route 219 interchange.

Also Thursday, the Health Department planning council approved a revised certificate of need application for construction of the John R. Oishei Children’s Hospital on the Buffalo Niagara Medical Campus and approved the expansion of the Visiting Nursing Association of Western New York into Livingston County.

email: swatson@buffnews.com