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After months of silence on debate, Massena Memorial Hospital officials to seek town approval to go non-profit

Posted 11/6/15

MASSENA -- After months of silence on the once-heated debate on whether Massena Memorial Hospital should become a private, non-profit entity, MMH officials today said they will once again seek Town …

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After months of silence on debate, Massena Memorial Hospital officials to seek town approval to go non-profit

Posted

MASSENA -- After months of silence on the once-heated debate on whether Massena Memorial Hospital should become a private, non-profit entity, MMH officials today said they will once again seek Town Council approval to do just that.

“Massena Memorial is the only town-owned municipal hospital in New York state and is unable to do the things a hospital has to do to remain competitive and viable as the future of healthcare changes,” MMH CEO Robert G. Wolleben said in a prepared statement released late Friday morning. “Nonprofit status will allow the hospital more flexibility to respond to changes in the healthcare delivery system brought on by local conditions, and state and federal policy.”

In March 2014, the MMH Board of Managers under then-CEO Charles Fahd voted to recommend the town seek federal 501c3 non-profit status.

In December 2013, hired law firm Hancock Eastabrook told the board there were no legal roadblocks to going private.

MMH has been operating in the black for most of 2015, but barely. They broke even last year, but only because of a federal grant that covered their $4 million state pension payment. This year, their margins in the black have been razor-thin, less than $100,000 most months. That compares to some months in 2014 when they were losing roughly $250,000.

The hospital employs 398 people.

"A large employee base also means a large impact on the local economy. In fact, the hospital has a $91 million impact on the local economy in the region,” according to the statement.

“Nonprofit status is the pathway to continued success for Massena Memorial Hospital,” said Tina Buckley, Board of Managers chairperson. “The municipal model is outdated and does not ensure the long-term sustainability of the hospital. This conversion is vital to the health and wellbeing of the Massena community.”

“Municipal hospitals have limitations that prevent them from functioning like other hospitals. With nonprofit status, Massena Memorial Hospital will have access to the necessary capital required to purchase state-of-the-art equipment, upgrade facilities, update outdated rooms, machines and tools and increase research that will allow them to compete with neighboring hospitals,” the statement said. “Additionally, the change will allow the hospital to continue to recruit the best doctors and physicians.”

“We need to be forward-thinking,” Wolleben said. “Looking to the future, conversion to a nonprofit entity is the best option for our hospital and the residents of Massena. As a nonprofit, we can meet the healthcare needs of the community, provide good jobs to our employees and continue to thrive.”