Ogdensburg officials urge Hochul to intervene as hospital faces financial 'brick wall'; Mayor backs public's concerns about Wintergreen

BY JIMMY LAWTONNorth Country This Week

OGDENSBURG — City officials are calling on Gov. Kathy Hochul to intervene as the future of Claxton-Hepburn Medical Center is in jeopardy following warnings in federal bankruptcy court that health services could face drastic cuts within days.

A letter penned by Ogdensburg Mayor Michael Tooley also raises concerns about North Star Health Alliance decision to hire Wintergreen to steer the restructuring, as the same company appears to have been helping steer it during the decline.

During a March 11 hearing, representatives for North Star Health Alliance told U.S. Bankruptcy Judge Wendy Kinsella that without additional state funding within a week, operations at several facilities, including Claxton-Hepburn, could face significant reductions or potential closures.

 Tooley says the warning heightens the urgency for North Star Health Alliance and the New York State Department of Health to reach an agreement on a transition plan that would provide immediate financial support to keep facilities operating.

Tooley said that while recent reports indicate negotiations between NSHA and the Department of Health have improved in recent weeks, the pace of discussions must accelerate to avoid what they say could be a devastating impact on health care access in the region.

During the hearing, Judge Kinsella also acknowledged concerns raised by attorneys regarding the urgency of the situation, warning delays could lead to a sudden crisis affecting health care across the North Country.

City Council members commended the judge for encouraging the parties to meet in person and bring negotiations to a resolution, citing Kinsella’s warning that the system could hit “a brick wall” within the next week if progress is not made.

The concerns come just days after Hochul visited the North Country to announce major economic development funding for the region.

The City of Ogdensburg was recently awarded $10 million through the Downtown Revitalization Initiative, while the nearby Village of Heuvelton received $4.5 million through the NY Forward.

In a statement announcing the awards, Hochul said North Country communities are vital to the fabric of New York and the state remains committed to providing the resources they need to thrive.

Tooley said that vitality could be severely impacted if services at Claxton-Hepburn are reduced or eliminated.

He acknowledged that New York state has already contributed more than $170 million over the past three years to keep North Star Health Alliance facilities operating, but added that an additional infusion of funding, even in the form of a loan, is needed immediately to maintain services beyond next week.

The city is asking Hochul to guide the Department of Health toward a timely agreement with North Star Health Alliance that would provide a financial solution and prevent disruption to local health care services.

Tooley said citizens have raised concerns about the system’s request in bankruptcy court to retain Wintergreen Inc. as its financial and restructuring advisor, following conflicts first reported by North Country This Week.

In a recent statement, Scott Gray questioned that proposal, saying leadership involved in decisions that led to the system’s financial situation should not play a role in the recovery process. Similar concerns were shared by former Carthage Area Hospital CEO  Walter Becker, who likened the plan to appointing a fox to guard the hen house in an email to Wintergreen.

City Council members said they agree with Gray’s stance, calling for accountability and leadership focused on patient care as the system works through its restructuring.

North Star Health Alliance laid off 120 employees in February and has lost dozens more since.

The company is projecting a $16 million negative balance in mid-May.

North Country This Week has issued questions to the Department of Health regarding plans for affiliation and clarification on plans for intervention or meeting. The paper has also submitted an information request to the Department of Health for communications between the DOH ,Wintergreen and North Star officials. The request has not yet been granted.

In an interview with WWNY New York State Department of Health  Comissioner Jim McDonald, it appears the DOH is washing its hands of the situation and telling North Star to come up with a plan to fix the situation.