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Gouverneur's E. J. Noble Hospital to dissolve, but services to continue through arrangement with Canton-Potsdam Hospital

Posted 9/3/13

GOUVERNEUR – Struggling E. J. Noble Hospital announced today it will dissolve but hospital services will still be provided by the parent corporation of Canton-Potsdam Hospital. The E. J. Noble …

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Gouverneur's E. J. Noble Hospital to dissolve, but services to continue through arrangement with Canton-Potsdam Hospital

Posted

GOUVERNEUR – Struggling E. J. Noble Hospital announced today it will dissolve but hospital services will still be provided by the parent corporation of Canton-Potsdam Hospital.

The E. J. Noble board of directors has approved a plan to create a new organization, Gouverneur Hospital, hospital officials said in a prepared statement released late this afternoon.

Creation of the new hospital would occur through an establishment certificate of need application currently before the state Department of Health.

The certificate of need would establish Gouverneur Hospital and St. Lawrence Health System (SLHS), a parent corporation that will also oversee Canton-Potsdam Hospital.

Under the plan, E. J. Noble Hospital will shortly file a petition for judicial dissolution and sale of substantially all of its assets to the Gouverneur Hospital.

"The formation of the Gouverneur Hospital will provide high-quality, financially sustainable healthcare to the people of Gouverneur over the long term," said Michael Burgess, Chair of the EJN board of directors.

"Hospitals all over the country have experienced significant financial losses, with rural hospitals being especially hard hit," said Burgess.

"Couple this with wholesale changes to our healthcare system, and you have hospitals that are in very vulnerable positions," he said.

"As a result, many small hospitals are struggling to stay viable, and consolidation is what we're seeing," he added.

Mr. Burgess noted that E. J. Noble has experienced decades of financial difficulties. In 2012, the hospital lost $4.5 million.

"In just the first seven months of 2013, EJN has lost $3.2 million. EJN Hospital has received NYSDOH support since March, 2013, but that support will end in December," he noted.

"EJN Hospital simply doesn't have the resources to continue to operate thereafter. The conclusion is that this hospital is unsustainable in its current form," said Burgess.

"It's high time for a new beginning."

The decision to seek a judicial dissolution came following an extensive analysis by the EJN Board, with the assistance of a global turnaround and restructuring firm, which concluded that a sale and dissolution would be best for EJN and the Gouverneur community.

"This step avoids a debilitating bankruptcy and provides a clean slate on which to build a new, sustainable organization," said Burgess.

"The new Gouverneur Hospital will be well-positioned to build on what we've started," he said.

"EJN Hospital achieved many milestones with assistance from the State and from CPH," said Burgess.

He cited the expansion of laboratory testing performed in-house, the achievement of critical access designation allowing for higher Medicare reimbursements, recruitment of new practitioners, establishment of a primary care center to be operated by the Community Health Center of the North Country, reopening of the operating room, and improvement in quality, safety, and the patient experience as just a few examples.

"We know that healthcare can be sustained only with commitment to the highest quality standards; that's why we put so much effort into achieving these milestones," said Burgess.

Burgess praised the work of staff over the previous months. "These achievements wouldn't have occurred without the hard work of our employees, and I know the entire Gouverneur community is grateful," Burgess said.

"I'm confident that a new organization will create financial stability, provide strong local primary care access, and lend the support needed to deliver high quality and an improved patient experience," said Burgess.

"This new beginning also builds on the Gouverneur community's reputation for resilience and innovation," he said. "It's a reason for great optimism about the future of healthcare in Gouverneur."