Ogdensburg, N.Y.-based North Star Health Alliance is expecting additional short-term funding from the New York State Department of Health “in the coming week” to meet payroll.
The news comes after the health system sought bankruptcy protection in early February and reduced its workforce in late January by more than 100 positions, including management.
North Star has worked closely with the state’s DOH, including its Financially Distressed Hospital Bureau, to help stabilize its operations and improve financial performance. The expected funds will also help ensure care continuity.
“North Star Health Alliance remains committed to maintaining access to essential healthcare services across the North Country while we undertake the necessary steps to strengthen our financial foundation,” Andy Manzer, interim CEO, North Star Health Alliance, said in a March 13 news release shared with Becker’s. “We appreciate the ongoing engagement and support from the Department of Health as we work through this complex but important transition.”
Mr. Manzer was appointed interim CEO in early March after three system leaders: Brandon Bowline, COO; Randy Fipps, chief administrator of behavioral health; and Peter Sinagra, executive director of the North Star Foundation, were dismissed.
New York does not have plans to assign a temporary operator or receiver to oversee North Star Health’s facilities at this time, and the system will maintain operations under its existing governance and management structure, the release said. North Star is also reviewing operations and exploring possible partnerships with regional healthcare organizations to strengthen care delivery and support long-term sustainability.
The state’s DOH has provided North Star with more than $170 million since fiscal year 2022 to support payroll and additional needs, a spokesperson for the DOH said in a statement shared with Becker’s.
“Our teams have met daily as we work with them through this transition, with the primary focus being preserving patient access and safety,” the spokesperson said. “All facilities remain open and operational and patients should continue to seek care as usual.”
North Star has also mutually agreed to conclude its formal contractual relationship with consulting group Wintergreen as part of the restructuring, with transition and advisory support to be maintained for an additional 30 days, according to another March 13 news release shared with Becker’s.
“Wintergreen and [chief restructuring officer] Rob Bloom have provided valuable professionalism, guidance, and support during a critical period for our organization,” Mr. Manzer said. “We appreciate their partnership and the work they have done to help position North Star Health Alliance for continued progress. We wish them every success moving forward.”
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