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Massena Memorial Hospital to inform public of its options into becoming non-profit entity at April 10 meeting

Posted 3/20/14

By ANDY GARDNER MASSENA -- Town Councilman John Macaulay said at Wednesday’s town board meeting that Massena Memorial Hospital’s Board of Managers will share with the public detailed findings of …

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Massena Memorial Hospital to inform public of its options into becoming non-profit entity at April 10 meeting

Posted

By ANDY GARDNER

MASSENA -- Town Councilman John Macaulay said at Wednesday’s town board meeting that Massena Memorial Hospital’s Board of Managers will share with the public detailed findings of its study into becoming a non-profit entity on April 10.

He said that after Wayne Lincoln, a vice president of the local CSEA chapter, said hospital leadership is refusing to give them documents made public in February. He said the entire union is frustrated because they feel the administration is shutting them out.

“We’ve told them we want to be part of the solution, we’ll do anything … but there’s been nothing,” Lincoln said.

Councilman Albert Nicola reminded Lincoln that no matter what the MMH board decides, the ultimate decision rests with the Town Council and the state Department of Health.

“We’re not going to make any decisions until we’re satisfied we have all the information,” Nicola told the room of about 25.

Councilman Samuel Carbone said he won’t feel confident casting a vote until he learns more than what was shared with town officials in a February 24 executive session. He wants to see a list of all employees, who is in what state retirement tier and potential downfalls of privitization.

In the February meeting, FreedMaxick CPAs gave the results of their look into the hospital’s future under three scenarios: status quo, becoming a private non-profit and becoming a public benefit corporation.

A limited amount of their findings were made public. By remaining a town entity, MMH will be $3.2 million in the red by 2017, the study suggested.

“If your going to go bankrupt, none of you are going to have jobs,” Macaulay told the MMH contingent.

If they privatize, they could have $7.4 million on-hand by that same year. The numbers were based on projections based on 2010 – 2013.

According to Macaulay’s calculations, the town would have to grossly inflate the tax rate to make up the $3.2 million deficit.

“Every person would pay triple their town taxes,” he said.

At the February meeting, Fahd said another option would be to cut about $4 million from their current operations.

Lincoln said he thinks it could be done because MMH is “spending money like crazy. If we’re in dire straits, why are we spending so much money?”

Many hospital employees are worried about losing their state retirement benefits. Some are only a year or two away from being able to get the maximum payout when they hang up their scrubs.

Heather Gardner, an obstetrical and nursery RN said the state retirement is part of what makes hospital jobs so attractive and some may seek employment out of the area to stay in the system.

“The New York state retirement is so important for us, some of us would have to move,” she said.

Gardner is concerned that hundreds of people that were making decent money, paying taxes and helping fuel the local economy could hurt Massena.

“What are we going to have left? What is our community going to be?” she said.

The town board and the hospital workers all agreed on one thing – no matter what happens, the hospital must remain open.

“When people talk to us on the street, that’s the first question – ‘Are we going to have a hospital?’” he said.