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Town supervisor says making Massena Memorial Hospital a public benefit corporation is not a viable option

Posted 12/15/15

By JIMMY LAWTON MASSENA -- Massena’s town supervisor says Assemblywoman Addie J. Russell’s proposal to make Massena Memorial Hospital a public benefit corporation is not the best option. In a …

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Town supervisor says making Massena Memorial Hospital a public benefit corporation is not a viable option

Posted

By JIMMY LAWTON

MASSENA -- Massena’s town supervisor says Assemblywoman Addie J. Russell’s proposal to make Massena Memorial Hospital a public benefit corporation is not the best option.

In a prepared statement, Russell said she was working on legislation that would allow the hospital to become public benefit corporation, rather than a non-profit, as is currently proposed by the board of managers.

Russell’s proposal comes on the eve of the town’s vote to decide if it will allow the hospital to become a non-profit company.

Town Supervisor Joseph Gray says Massena Memorial Hospital’s Board of Managers has explored the public benefit corporation option and determined it would not be the best move for the organization.

“I think there are still limitations that don’t allow for same flexibility as a non-profit,” he said.

Gray said Clifton-Fine Hospital had attempted the public benefit corporation route, but later transitioned into a non-profit after finding the public benefit corporation didn’t suit its needs.

Russell’s plan would allow the hospital to raise money and affiliate with other hospitals, two things that are currently restricted due to MMH’s public status.

The proposal would also allow the employees to retain their membership in the Civil Service Employees Union and retain their public employee benefits.

Russell’s plan is being modeled after the Erie County Medical Center, which went through a similar transition in 2003.

Gray said he couldn’t speak for the entire council, but said he did not believe a public benefit corporation would be a viable option for the town.

In the Erie County model, the corporation also has the power to acquire to issue bonds and notes to finance the costs of operations.

Although Russell’s plan is not supported by the board of managers or town council, it is receiving praise from the union.

“Our workers have always been in support of any method that would maintain community control and accountability for our hospital’s healthcare services. We believe conversion to a public benefit corporation would secure Massena Memorial’s future,” said CSEA Central Region President Colleen Wheaton said in the prepared statement.

Russell represents the 116th Assembly District. It includes all St. Lawrence County communities along the St. Lawrence River, from Massena to Hammond, including Ogdensburg, Canton and Potsdam. It also covers parts of Jefferson County, including Watertown.