Thursday, October 22, 2026 | St. Lawrence County, NY
BY JIMMY LAWTONNorth Country This WeekOGDENSBURG — North Star Health Alliance is filing for bankruptcy as it waits for the State Department of Health to move forward with a plan to stabilize the organization.
The Ogdensburg-based nonprofit health system said the filing includes three affiliated organizations: Carthage Area Hospital, Claxton-Hepburn Medical Center and Meadowbrook Terrace. The petitions were filed in U.S. Bankruptcy Court.
North Star officials said patients can expect no disruption in care, including medical, surgical, behavioral health and assisted living services, according to the organization.
it's unlcear how much money is owed to the numerous vendors likely to be impacted by the decision.
They say appointments will continue as scheduled, and employees will continue to receive their regular pay and benefits during the court-supervised process.
North Star Health Alliance cited several factors contributing to its financial challenges, including delays in reimbursement tied to a transition to critical access hospital status, rising operating costs, longstanding revenue collection issues at Claxton-Hepburn Medical Center, and impacts from multiple cyberattacks.
The health system said the bankruptcy filing is a proactive step aimed at addressing those financial pressures while maintaining access to care across the North Country, including services for Fort Drum service members, families and retirees.
“We are taking this step to safeguard what matters most — quality care close to home and the preservation of essential healthcare jobs,” said Chet Truskowski, chairman of the Alliance’s board of directors. “This process puts us on a path to stabilize our finances while protecting our workforce and essential services.”
North Star Health Alliance said additional information about the restructuring will be released as it becomes available.
Looking forward
Despite the silence from the state, signs point toward receivership, likely voluntary, given the CEO’s decision to step down, but no official statements have been provided by the hospital or the Department of Health. That delay is likely what led to the decision to file bankruptcy.
Receivership could come in various forms, but essentially it entails another organization or group coming in to help “right the ship.”
The hospital could be taken over by another organization or “right-sized” by a temporary team, as has happened at local healthcare facilities in the past. It is also possible that receivership could involve a permanent takeover by another organization and complete rebranding.
Attempts to obtain a timeline for when or if receivership would occur, or whether it would be temporary or permanent, voluntary or involuntary, went unanswered by the Department of Health. Requests for information regarding when an update might be expected also went unanswered.
In St. Lawrence County, Rochester Regional Health is the largest healthcare provider. Other providers include Citizen Advocates and Community Health Center of the North Country.
In Jefferson County, River Hospital and Samaritan Medical Center both provide healthcare.
With no communication from the state, however, it is possible officials could look to providers in Onondaga or Erie County as well. At this time, all options amount to speculation.
North Country This Week has received word that some local clinics operated under North Star have been impacted, but to what degree is not clear.
What’s happening now
Duvall’s resignation was accepted at a Jan. 22 board meeting, according to a press release issued by the hospital board of trustees. The release states the board has taken steps to ensure continuity of operations through interim administrative positions, pending further discussions with the New York State Department of Health and the NSHA Board of Directors.
Truskowski said the Bonadio Group will continue to oversee communications and financial reporting. “Our commitment to accountability remains steadfast,” he said.
Financial and operating officers are overseeing operations until an official plan is laid out by North Star officials and the Department of Health.
That includes Rob Bloom, Jerian O’Dell, and Brandon Bowline will assume interim responsibilities for North Star, Carthage Area Hospital, Meadowbrook Terrace, North Country Orthopedic Group, and Claxton-Hepburn medical facilities.
How it got here
The recent layoffs and the CEO’s departure follow a months-long dispute between North Star Health Alliance and the Department of Health after millions of dollars in payments from the state’s Vital Access Provider Assurance Program were halted in July.
The payments were intended to support the hospital system’s restructuring into a critical access hospital and safety-net model.
The Department of Health had been aware that the transition could temporarily disrupt billing and require close coordination and timely financial support. That support did not materialize, leaving the system with more than $120 million in unpaid charges and nearly $90 million in accounts payable, with no clear path to resolving the backlog.
