Friday, October 2, 2026 | St. Lawrence County, NY
BY JIMMY LAWTONNorth Country This WeekSYRACUSE -- North Star Health Alliance had its first positive day in court Wednesday, sharing news it had submitted a short-term plan to the Department of Health for review, developed a long-term plan that includes a partner, and received approval to continue using credit to pay its employees.
The news comes as the organization, which oversees Claxton-Hepburn and Carthage hospitals, continues to navigate bankruptcy.
Still, it appears the organization is working closely with creditors, the Department of Health, and Suzanne Koenig, who was appointed as the patient care ombudsman.
Representatives from the union, the judge, the credit committee, and North Star all seemed to be working together and moving forward after weeks of stagnation, with the agreement that the hospitals must stay open if at all possible.
Janice Grubin, an attorney representing North Star Health Alliance, offered appreciation for the patience of all parties involved before providing an update.
She said a short-term plan for financing operations and stabilizing the hospitals was being reviewed by state officials.
Additionally, she said that “that proposal contemplates, as well, a second piece of longer-term financing to implement a fuller transformation plan, if you will, with an identified partner.”
North Star officials clarified that a partner has not yet been identified, but is working to find an interested party.
She said there had been interest from health officials to install a temporary operator and "I’d like to think that because of Mr. Manzer’s influence as interim CEO… a lot of the DOH’s concerns, and I speak only from my understanding, have been somewhat addressed, and we are moving forward, in my opinion, in a very positive way."
She was clear, though, that North Star is not at all out of the woods, and it’s still facing a negative cash balance within the next week or two.
She asked for and was granted an interim order to use cash as collateral, despite major concerns raised by Northern Credit Union and M&T Bank. However, following a lengthy discussion, all parties agreed that another week of credit was the best path forward.
Grubin had sought to postpone a court appearance until April 1, but that was challenged by creditors, who were unwilling to support cash as collateral for more than one week at a time.
Patient Care Ombudsman Koenig advocated strongly to keep North Star’s facilities open.
“I want to say that I am impressed with everything that I’m seeing here,” she said.
“I would hope and pray that the facility would not close, because the services that are provided in this facility are really one and only. They are the only facility in the entire county that provides late-stage renal care. They are the only facility in the entire county that provides in-house behavioral health services. These are services that this county cannot be without.”
She said she’s gotten herself involved and reached out to her many health care resources that she has put in touch with the debtor. She said that includes lenders and "affiliation people."
She said she believes Interim CEO Andy Manzer appears to know what needs to be done, that with everyone working together a plan can be put together, and that they are “on their way.”
On Monday, March 16, St. Lawrence County Chairman David Forsythe and SLC Operations Committee Chair Rita Curran said they met with Department of Health Commissioner Jim McDonald, who indicated that his department was working daily with North Star officials to ensure continued access to care. Curran, who has a strong healthcare background, described the meeting as positive and was reassured that the DOH was working closely with all parties to ensure access to care is maintained in St. Lawrence County.
The change in atmosphere followed big news last week.
The company had also drawn criticism from employees as well as Assemblyman Scott Gray due to the fact that Wintergreen's Bloom had been involved in the financial management prior to the bankruptcy.
Although North Star is cutting ties with Wintergreen, the company will continue to provide services for the next month. It appears the interim CEO will replace Bloom as restructuring officer, but nothing appears to be official at this point.
Assemblyman Scott Gray (R-Watertown) met with Manzer recently During the meeting, Manzer also outlined early-stage discussions regarding potential collaboration opportunities with other health care providers—not as a means of consolidating or reducing services but as a strategy for proividing stability and high-quality care for North Country residents.
“This is about working with other organizations to ensure viability and access to care close to home,” Gray said. “The CEO understands our partnership is designed to, ultimately, enhance services in our communities, not water them down. The people of the North Country deserve local access to the care they need, and I will continue to advocate firmly for that.”
Assemblyman Gray called on the New York State Department of Health, including the Commissioner, to take a constructive view of the new leadership at NSHA.
“He knows what is at stake. He knows what these communities need. I am asking the department to work collaboratively with him, believe in the process he is building and give him the opportunity to demonstrate what is possible,” he said.
