New York hospital misses grant aimed at eliminating debt ahead of nonprofit conversion

Massena (N.Y.) Memorial Hospital aimed to use money from a state grant to pay off its debt before a planned nonprofit conversion; however, it missed out on the funds, according to the Watertown Daily Times.

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The hospital’s interim CEO, Charles Gijanto, told board members in November how Massena Memorial planned to use the funds if awarded: “Basically, the whole premise is that, assuming we get the grant, the hospital comes out of debt so there is no liability left with the town should the hospital become a 501(c)(3),” he said. “Basically, the grant goes to cover the debts of the hospital,” according to the publication.

Mr. Gijanto noted Feb. 5 that the hospital will apply for another round of funding from the state in May. That funding initiative totals $300 million for the state.

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