More than 750 hospitals in this country, are being penalized under the Hospital-Acquired Conditions Reduction Program… and more than half of those hospitals are being penalized for the second year in a row. Locally, the news is especially frustrating for South Central Kansas Medical center… one of 11 Kansas hospitals on the list. The local hospital was also penalized last year. Hospitals that serve veterans, children and others, including Critical Access Hospitals, are exempt from the program. That exemption includes William Newton Hospital in Winfield, which is classified as a Critical Access Hospital, and therfore is unaffected by any funding cuts.