BY JIMMY LAWTONNorth Country This Week

OGDENSBURG -- In the wake of mass layoffs and a CEO resignation North Star Health Alliance officials say salaried employees could see pay delays once again.

"We are continuing to manage a fluid financial situation. Consistent with prior pay periods, we are prioritizing union and non-union hourly employees, followed by salaried staff,” North Star Officials said in a prepared statement.

“At this time, payroll for hourly staff is secured, and we are working diligently to secure the remaining balance for salaried employees. We have notified all staff internally and will continue to provide updates as the situation evolves into next week. “

Officials say they are continuing to work with the Department of Health, but gave no indication as to what might happen next.

Looking forward

 North Star Health Alliance maintains that they are sharing what little information is available.

“We also remain in close communication with the Department of Health (DOH) and will continue to work with the DOH as we navigate these evolving circumstances,” North Star said in a prepared statement. “We appreciate your patience as we worked to provide the most updated information. We remain committed to transparency and will continue to provide updates as our situation evolves.”

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. 

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 includesRob 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.

State officials have attributed the delay to spending disclosure concerns, saying the department has requested more detailed tracking of funds already issued.

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