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Ogdensburg hospital president says $14 million grant will allow CHMC to pay off debt, reinvest in future

Posted 3/7/16

By JIMMY LAWTON OGDENSBURG -- Claxton-Hepburn Medical Center will use a just-announced $14 million grant from the state to reduce debt and allow the hospital more flexibility for future reinvestment. …

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Ogdensburg hospital president says $14 million grant will allow CHMC to pay off debt, reinvest in future

Posted

By JIMMY LAWTON

OGDENSBURG -- Claxton-Hepburn Medical Center will use a just-announced $14 million grant from the state to reduce debt and allow the hospital more flexibility for future reinvestment.

"Through the application process, we had to prove our value to our community. We demonstrated that value through our Sole Community Provider designation, serving the needs of a population that faces many health challenges, and trying to do those things that create opportunities for affiliations and collaborations with other organizations in the region. We are very thankful for this award, not only for the debt relief it provides but also for the affirmation that we are doing the right things to create a sustainable model of health care for Ogdensburg and the surrounding areas,” CHMC President and CEO Nate Howell said.

The funding is part of $54.8 million in grant awards for 13 projects aimed at improving health care in the North Country. Ogdensburg’s hospital took home the largest share of any facility awarded funding in this round of grants.

The goals of DSRIP include reducing health care costs, improving the health of New Yorkers, reducing avoidable hospital admissions and emergency room visits by 25 percent by 2020, and ensuring the financial sustainability of safety net health care providers.

Claxton-Hepburn spokeswoman Laura Shea CHMC is essential to the community as it provides access to irreplaceable services such as oncology, renal care, primary care, mental health services, and wound care.

Shea said the debt relief will allow CHMC to continue with current and future initiatives, including the North Country Initiative (NCI), Delivery System Reform Incentive Program (DSRIP), and partnerships and collaborations with other healthcare organization.

In 2006, CHMC was issued $20 million in bonds. Payments of $6 million have been made, leaving a balance of approximately $14 million, according to Shea. Deleveraging will help ensure flexibility for careful and thoughtful reinvestment for the future, she said.