By ANDY GARDNER

MASSENA -- On the heels of rumors in the community, members of the Massena Memorial Hospital Board of Managers on Monday said the hospital will not be sold to an outside entity once they privatize.

MMH is owned by the Town of Massena but they are in the process of becoming a private non-profit entity with hopes of affiliating with a larger healthcare system.

“It’s not a sale, it’s an affiliation or a partnership,” MMH board chairman Scott Wilson said.

“We’re trying to get in a bigger system that has resources,” Wolleben said, adding that they are trying “to maintain a vibrant hospital and vibrant medical staff that we are financially not able to do … It’s not about selling the hospital.”

He said being part of a larger network means they could use the affiliate’s credit rating to borrow money, which they can’t do now because of their recent financial performance. MMH finished 2017 at a deficit of more than $5 million.

“Our financial statements are not sufficiently strong enough to go out and borrow money,” Wolleben said. “Being in with a bigger system gives us the ability to use their credit rating, potentially, to borrow money.”

The new town supervisor took issue with Wilson and Wolleben’s characterization that the hospital is not being sold. He said since part of the privatization process includes an asset transfer between the town and hospital, which is under negotiation, there will technically be a sale to the new non-profit corporation, which officials are tentatively calling “Newco” until they find a permanent name.

“I must disagree,” O’Shaughnessy said in response to Wilson and Wolleben’s comments.

“This is not a public portion,” Wilson answered. Former supervisor Joe Gray during his time in office would sit at the table with the board during meetings, and then give his input and ask questions at the end during comment from public and press.

“I thought I was part of the board,” O’Shaughnessy said.

“You’re at the big table,” Councilman Sam Carbone chimed in from the audience.

“I’m at the big table,” O’Shaughnessy then said. “The town is selling the hospital to Newco … so we’re selling the hospital.”

“You are correct, if we proceed along the current path, it’s a transfer of assets and liabilities to the new corporation,” Wolleben responded. “Is the Newco … going to be owned by some other hospital system? It’s not likely at this point.”

MMH’s privatization process is “in a holding pattern” until hospital and town officials reach consensus on the asset transfer. Those talks are ongoing, the CEO said.