Ogdensburg, N.Y.-based North Star Health Alliance and three of its operating affiliates have sought Chapter 11 protection as part of a restructuring process to help stabilize the health system’s finances.
The filing includes North Star Health, Carthage (N.Y.) Area Hospital, Ogdensburg-based Claxton-Hepburn Medical Center and Medical Campus and Meadowbrook Terrace Assisted Living Facility in Carthage, according to a Feb. 10 news release.
All of North Star Health’s facilities will remain open amid the process.
“The decision by NSHA to file for Chapter 11 protection is driven by a number of complex events, which generated a gap between the cost of services rendered and revenue received,” the release said. “This gap was caused by, among other things, delays in payments while transitioning to a critical access hospital reimbursement model, increased operating expenses, a challenging legacy model of revenue collection at Claxton-Hepburn Medical Center, and other external pressures such as multiple cyber attacks.”
The filing comes after North Star Health received state assistance the week of Feb. 2 to complete payroll for its salaried employees. The system also shared plans in late January to cut more than 100 roles, including clinical, nonclinical and management positions, to ensure long-term sustainability.
“This court‑supervised restructuring puts us on a path to stabilize our finances while preserving essential services and protecting our workforce,” Chet Truskowski, chairman of the North Star Health Alliance board, said in the release. “Providing for our patients and their families, caregivers and our staff that make up our community, is central to our mission. This process is designed to ensure we can continue serving our neighbors for years to come.”
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