Updated 9:29 a.m. Nov. 2 to include additional comment from Steve O'Shaughnessy

MASSENA -- The Democrat and Republican town supervisor candidates are trading jabs over their perceptions of the Massena Memorial Hospital privatization issue.

Democrat Steve O’Shaughnessy is challenging Republican incumbent Joseph Gray, who is seeking a third term. O’Shaughnessy is currently a town councilman.

Massena Memorial Hospital, which is now owned by the town, is going through the process of becoming a private, non-profit entity. Once the hospital goes through its processes and they finalize an asset transfer deal with the town, the Town Council will vote to determine which way MMH goes.

“Mr. O’Shaughnessy seems to be waffling as MMH proceeds with its conversion from municipal hospital to not-for-profit status. His vote may end up costing millions of dollars on Town tax bills for years to come,” Gray wrote in a Nov. 1 statement. “When the Town Council voted several years ago, it was a 4-1 vote to allow the Hospital Board of Managers pursue not-for-profit status – identical to the vast majority of New York State hospitals. Councilman Sam Carbone was the sole vote against, with Al Nicola, Tom Miller, John Macaulay, and Gray voting in favor.

“Voters know where Al, Tom, Sam and I stand on the vote that may well determine whether the hospital closes or stays open. But no one knows how Steve will vote. If I’m not re-elected, there will be a vacancy on the Town Council. Whoever is appointed to fill that seat may vote against conversion and put Massena Memorial in jeopardy of closing, so Steve’s vote will be pivotal.”

O’Shaughnessy issued a written reply later the same day, and an addendum the following morning.

"I agree with the council’s decision to proceed with private/not-for-profit status, and based on what I know today, I would vote to proceed, however the final details have not been worked out, and I plan to reserve judgment until the process is complete," the candidate wrote in an email on the morning of Nov. 2.

“I am surprised by the comments of my Republican opponent regarding the hospital because both hospital staff and town council have promised not to discuss the status of the hospital transfer except within joint releases. This is just another example where he can’t be trusted to do what is right. We are a crucial point of negotiations and he wants to discuss the transfer process out in public,” O’Shaughnessy said in his original Nov. 1 statement. I am really surprised that he would put those particular thoughts into my mouth. He and I are the town’s liaisons to the hospital and have been working together on this project since my election two years ago. We’ve spent time together at board meetings, meeting with attorneys from the hospital and the town and he and I traveled to Albany to meet with the Department of Health Deputy Commissioner and staff regarding the transfer agreement and the fate of the hospital. The hospital staff has provided me with a list of former board of managers and I’ve talked to them about history and their perception of what should take place. Unless he hasn’t been paying attention to any of that, he should know exactly where I stand regarding the placement of the hospital.”

The two also traded shots over CSEA’s recent endorsement of O’Shaughnessy.

“I noticed the hospital’s CSEA union just endorsed Mr. O’Shaughnessy’s candidacy. Does that mean Steve is obligated to support the union and the millions of dollars the hospital pumps into to the union’s pension every year? One has to wonder if he is compromised by seeking and accepting that endorsement,” Gray said in his release. “Once he realized MMH cannot keep paying millions of dollars into the unions’ pension fund as a Town-owned hospital, there seemed to be a subtle change in Steve’s attitude toward the need to convert to not-for-profit status. I really thought he was starting to grasp the concept that Massena Memorial will close if it continues as a municipal hospital … However, it appears that is no longer the case. Even with taxpayers poised to have to pay $8-10 million in hospital debt this year alone, Steve apparently refuses to understand the reality of MMH closing if no change is made. He seems to be wavering back and forth. As much as he’d like to, Steve can’t ignore the facts and have it both ways.

“MMH has lost more than $2 million through the first nine months of 2017, and will owe another $4 million-plus to the state pension fund in December. Hospital officials have said they will not be able to repay either debt, or any further losses that will likely occur before the end of the year. So that bill will fall to Town taxpayers, just like it did 30 years ago. Older residents may remember an additional line on their tax bills in the late 1980s to pay off the hospital’s previous debt for employees’ pensions. Was some kind of deal struck behind the scenes for Steve’s CSEA endorsement? Voters need to know. We can’t afford to turn back the clock 30 years and force taxpayers to pay off another huge bill for hospital employees’ pensions,” Gray wrote.

O’Shaughnessy said he does not believe there was a quid pro quo in exchange for union endorsement.

“As far as receiving CSEA union endorsement, my Republican opponent and I must have different perceptions of that process. I believe that I have earned the support and trust of their union membership as well as several other unions. I don’t believe they expect me to be beholding to them and I wouldn’t do it. Maybe that is why my opponent hasn’t received any endorsements of his own,” O’Shaughnessy said. Gray has received an endorsement from Rep. Elise Stefanik, also a Republican. “My Republican opponent should desist from trying to bully people and attributing untruths to others like me and town councilmen. He should be more willing to develop a significant change in this town and not settle for continuity and complacency.”

Below are Gray and O’Shaughnessy’s statements in their entirety.

Gray:

With Town of Massena taxpayers possibly having to pay a multi-million bill to cover Massena Memorial Hospital’s mounting pension and operating debts, voters need to know exactly how Steve O’Shaughnessy will vote when the time comes to determine the hospital’s status.

Mr. O’Shaughnessy seems to be waffling as MMH proceeds with its conversion from municipal hospital to not-for-profit status. His vote may end up costing millions of dollars on Town tax bills for years to come, according to Town Supervisor Joe Gray.

When the Town Council voted several years ago, it was a 4-1 vote to allow the Hospital Board of Managers pursue not-for-profit status – identical to the vast majority of New York State hospitals. Councilman Sam Carbone was the sole vote against, with Al Nicola, Tom Miller, John Macaulay, and Gray voting in favor.

However, the Town Council has changed since then with O’Shaughnessy taking Macaulay’s seat. If Gray is no longer Town Supervisor, the outcome may be very different, Gray said.

“Voters know where Al, Tom, Sam and I stand on the vote that may well determine whether the hospital closes or stays open. But no one knows how Steve will vote. If I’m not re-elected, there will be a vacancy on the Town Council. Whoever is appointed to fill that seat may vote against conversion and put Massena Memorial in jeopardy of closing, so Steve’s vote will be pivotal,” he added.

Even more concerning is a hospital union’s endorsement of O’Shaughnessy.

“I noticed the hospital’s CSEA union just endorsed Mr. O’Shaughnessy’s candidacy. Does that mean Steve is obligated to support the union and the millions of dollars the hospital pumps into to the union’s pension every year? One has to wonder if he is compromised by seeking and accepting that endorsement,” Gray said.

Gray said he and his challenger took a trip to Albany a few weeks ago to meet with the Deputy Commissioner of the New York State Department of Health. It was clearly stated at that meeting by DOH officials that MMH cannot survive as a free-standing, Town-owned hospital, the only one left in the state.

“When he first joined the Town Council two years ago, Steve quickly aligned with Councilman Carbone and supported keeping MMH town-owned, even though expert after expert told us the hospital will close if it is not converted. He went so far as to join Sam in meetings with the hospital’s unions.

“Once he realized MMH cannot keep paying millions of dollars into the unions’ pension fund as a Town-owned hospital, there seemed to be a subtle change in Steve’s attitude toward the need to convert to not-for-profit status. I really thought he was starting to grasp the concept that Massena Memorial will close if it continues as a municipal hospital,” Gray said.

“However, it appears that is no longer the case. Even with taxpayers poised to have to pay $8-10 million in hospital debt this year alone, Steve apparently refuses to understand the reality of MMH closing if no change is made. He seems to be wavering back and forth. As much as he’d like to, Steve can’t ignore the facts and have it both ways,” Gray said.

MMH has lost more than $2 million through the first nine months of 2017, and will owe another $4 million-plus to the state pension fund in December. Hospital officials have said they will not be able to repay either debt, or any further losses that will likely occur before the end of the year. So that bill will fall to Town taxpayers, just like it did 30 years ago. Older residents may remember an additional line on their tax bills in the late 1980s to pay off the hospital’s previous debt for employees’ pensions.

“Was some kind of deal struck behind the scenes for Steve’s CSEA endorsement? Voters need to know. We can’t afford to turn back the clock 30 years and force taxpayers to pay off another huge bill for hospital employees’ pensions,” Gray said.

“Steve should do the right thing and tell everyone how he will vote on the hospital’s conversion, and what he and Sam Carbone promised the union to get its endorsement. The voters need to know these things before they vote for Town Supervisor Nov. 7,” he added.

O’Shaughnessy:

“First and foremost, in chronological order, I believe that the Town of Massena has to have a viable hospital that can take care of the residents; that it should be a strong employer providing good, steady jobs; and that it should fit in with our community development program to promote Massena and be an asset in that development.

But, I am surprised by the comments of my Republican opponent regarding the hospital because both hospital staff and town council have promised not to discuss the status of the hospital transfer except within joint releases. This is just another example where he can’t be trusted to do what is right. We are a crucial point of negotiations and he wants to discuss the transfer process out in public.

I am really surprised that he would put those particular thoughts into my mouth. He and I are the town’s liaisons to the hospital and have been working together on this project since my election two years ago. We’ve spent time together at board meetings, meeting with attorneys from the hospital and the town and he and I traveled to Albany to meet with the Department of Health Deputy Commissioner and staff regarding the transfer agreement and the fate of the hospital. The hospital staff has provided me with a list of former board of managers and I’ve talked to them about history and their perception of what should take place. Unless he hasn’t been paying attention to any of that, he should know exactly where I stand regarding the placement of the hospital.

As far as receiving CSEA union endorsement, my Republican opponent and I must have different perceptions of that process. I believe that I have earned the support and trust of their union membership as well as several other unions. I don’t believe they expect me to be beholding to them and I wouldn’t do it. Maybe that is why my opponent hasn’t received any endorsements of his own.

My Republican opponent should desist from trying to bully people and attributing untruths to others like me and town councilmen. He should be more willing to develop a significant change in this town and not settle for continuity and complacency.

I agree with the council’s decision to proceed with private/not-for-profit status, and based on what I know today, I would vote to proceed, however the final details have not been worked out, and I plan to reserve judgment until the process is complete."