Ogdensburg, N.Y.-based North Star Health Alliance has strengthened its partnership with the New York State Department of Health and selected a new financial advisory firm to help with restructuring efforts.
The health system, which sought bankruptcy protection in early February, has received $1.3 million in short-term financial support from the state’s DOH and is finalizing a broader operational support framework. The agreement is expected to provide up to $15 million over the next few months to help with restructuring and stabilize operations, according to a March 25 news release shared with Becker’s.
“These developments represent meaningful progress as we work to build a more sustainable
healthcare system for the communities we serve,” Andy Manzer, interim CEO of North Star Health Alliance, said in the release. “We remain focused on stabilizing operations, supporting our teams and strengthening our ability to care for the North Country.”
Accordion, a financial and operational consulting firm, has also been selected to advise North Star throughout its financial restructuring. Firm leaders will work with the health system to support federal bankruptcy court engagement and help implement a long-term operational restructuring plan.
The news comes after North Star shared plans to further reduce its workforce in late March after eliminating more than 100 clinical, nonclinical and management positions in late January.
The health system has been working with the state DOH to stabilize its finances, and said it expected the state DOH to help with payroll for the week of March 16. DOH has provided North Star with more than $170 million since fiscal year 2022 to support payroll and other needs.
North Star Health Alliance comprises Carthage (N.Y.) Area Hospital, Ogdensburg, N.Y.-based Claxton-Hepburn Medical Center, Claxton-Hepburn Medical Campus in Ogdensburg, Watertown, N.Y.-based North Country Orthopaedic Group and Carthage-based Meadowbrook Terrace Assisted Living Facility, according to the system’s LinkedIn page.
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