GOUVERNEUR -- After decades of financial difficulties, a $4.5 million loss in 2012 and a temporary shutdown, E.J. Noble Hosptial will disolve and reform as a new entity under the leadership of Canton-Potsdam Hospital.

Canton-Potsdam Hospital plans to disolve E.J. Noble Hospital and create a two-hospital system, which would serve both the Gouverneur and Canton-Potsdam communities.

“Nationally, small hospitals are struggling financially in the face of sweeping healthcare reforms and changes to reimbursement models,” said Margaret E. Madden, Chair of CPH’s board of directors.

Michael Burgess, chair of the EJN Hospital board of directors, agreed saying, “We looked at every option. Sale and dissolution, in conjunction with formation of the new Gouverneur Hospital, is the most appropriate step to ensure there will be a hospital serving our community for the long term,” he said.

E. J. Noble has experienced decades of financial difficulties. In 2012, the hospital lost $4.5 million. Last year, the hospital was temporarily shutdown due to irregularities in its laboratory.

This hospital entity, to be named Gouverneur Hospital, would provide high-quality, financially sustainable healthcare services to the Gouverneur area over the long term. Under the plan, a new parent corporation, St. Lawrence Health System (SLHS), will oversee the two-hospital system

Burgess praised the NYSDOH, saying that the state has provided support since March, but also noting that support will end in December. “EJN Hospital simply does not have the resources to continue to operate thereafter,” he said.

“It is anticipated that the majority of services now available will be offered by the new Gouverneur Hospital,” said Burgess. “With assistance from CPH, we made significant strides toward building the foundation for quality, which is a pre-requisite for the operation of healthcare services.”

E. J. Noble Hospital is expected to shortly file a petition for a judicial dissolution, which would entail the sale of substantially all of its assets to the Gouverneur Hospital. The plan is now under review by the New York State Department of Health.