CHICAGO – Among a large list of fraud and corruption allegations brought against newly-arrested Gov. Rod Blagojevich (D-Ill.) is a charge that he sought campaign finances as kickbacks for $8 million in state funding for Children's Memorial Hospital of Chicago.

The hospital responded to news of Blagojevich's Tuesday arrest with a statement expressing its disappointment that the funds, provided for pediatric care for needy children, were tied to the Governor's alleged healthcare-related bribery schemes.

"Children's Memorial is very disappointed that the $8 million in Illinois funding that the pediatric providers of Illinois believed would enable them to care for Illinois' neediest children has been tied to an alleged pay-to-play scheme," the statement reads. "Neither Children's Memorial nor any of its personnel participated in such a scheme. If such allegations are true, Children's Memorial, pediatric physicians and the children of Illinois have been victimized."

The statement, dated Dec. 9, also maintains that, during 2008, the hospital and other Chicago providers of sub-specialty services "provided testimony in Springfield and otherwise worked diligently to obtain funding from the State of Illinois that would adequately reimburse pediatric sub-specialists for the costs of providing much needed services to children covered by Medicaid." Such physicians are now paid approximately 33 cents on every dollar of costs, according to the statement.

"Children's Memorial is cooperating fully with federal authorities on this matter," the hospital's statement concludes.

News broke Tuesday morning that Blagojevich and his chief of staff, John Harris, had been taken into custody by the FBI and would be charged with federal offenses related to "pay-to-play politics."

Blagojevich also allegedly attempted to use his power to fill President-elect Barack Obama's vacant U.S. Senate seat to win himself political gains, including the post of Health and Human Services Secretary within the Obama administration, according to the complaint document filed against him.

"I had no contact with the governor or his office, and so we were not - I was not aware of what was happening, and as I said it is a sad day for Illinois. Beyond that I don't think it's appropriate to comment," said Obama in an official statement on Blagojevich's arrest.