BY JIMMY LAWTONNorth Country This Week

OGDENSBURG — As Claxton-Hepburn Medical Center continues to wait for stalled state funding to keep its doors open, Gov. Kathy Hochul has announced that a $4.9 million cybersecurity grant has been awarded to the hospital.

While the news is welcome, it still leaves many hospital employees wondering whether they will have jobs going into the new year. North Star Health Alliance CEO Richard Duvall said in a Dec. 3 letter to the state Department of Health that the hospital was on the brink of failing to make payroll.

Although the hospital remains open, employees who contacted North Country This Week expressed concerns about the lack of updates on the situation. The state appears to want to reach an agreement, though few details have been released.

As of Dec. 12, Assemblyman Scott Gray, R-Watertown, who has been working with both sides throuhgout the dispute, said  protecting employees and patients remains a priority for all parties.

"As of this afternoon (Dec. 12), my office has contacted the New York State Department of Health and received confirmation that the DOH is actively communicating with North Star Alliance Claxton-Hepburn Medical Center," he said. "The department is still working on exchanging information. DOH officials are fully aware of the upcoming payroll date. The priority remains keeping the facility open, protecting patients and staff, and developing a credible plan for long-term sustainability."

The situation became public last week after reports that the Vital Access Provider Assurance Program, or VAPAP, stopped funding North Star Alliance around July.

As part of a state-directed transformation, North Star has been restructuring into a critical access hospital/safety net model. The Department of Health was aware the transition could temporarily disrupt billing and require close coordination and timely financial support. However, 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 clearing the backlog.

State officials say the problems are tied to spending disclosures, with the health department requesting detailed tracking of funds issued to date. Duvall says he has provided all requested information.

Locally, many hope the new grant signals that the state intends to keep the hospital open. However, employees who spoke with the paper said supplies appear to be dwindling. North Country This Week reached out to Duvall for comment but has not received a response.

Meanwhile, the state appears to be operating under the assumption that the hospital will continue serving patients.

A press release from Hochul’s office said an unrelated $4.9 million grant was awarded to Claxton-Hepburn. 

“By modernizing our hospitals’ IT infrastructure and protecting patients’ information, we’re strengthening the foundation of health care in New York State,” Hochul said. “These investments will help ensure that hospitals have the tools they need to safeguard patient data, expand telehealth services and deliver a healthier future for all New Yorkers.”

The release also included comments from the Department of Health.

“With these investments, we are focused on developing safe, reliable and connected patient-centered care,” state Health Commissioner Dr. James McDonald said. “By expanding data capabilities and improving cybersecurity defenses, we’re enhancing clinical decision-making across the state’s health care network.”

According to the release, funding was made through the Statewide Health Care Facility Transformation Program IV and V to improve health information technology by expanding electronic medical records, strengthening cybersecurity and patient information security, and expanding telehealth services.

Gray said the grant award is a good indication that the DOH is not abandoning CHMC.