Struggling New York hospital secures buyer, $20M in funding

Massena (N.Y.) Memorial Hospital has been awarded a $20 million grant from New York State's Health Care Facility Transformation Fund. Hospital officials say the grant will "help bolster MMH's precarious finances." 

The hospital is facing financial challenges, but officials said the grant will help put it on solid financial footing.

"This grant is essential in our efforts to restructure Massena Memorial and put the hospital on a path to financial sustainability," Massena Memorial Hospital CEO David Bender said in a press release.

The grant is contingent upon Potsdam, N.Y.-based St. Lawrence Health System creating a new nonprofit entity that will acquire Massena Memorial's assets and operate the hospital. Officials signed an agreement July 30 to convert Massena Memorial to a private, nonprofit hospital that is part of St. Lawrence Health System.

Massena Memorial has also applied for critical access hospital status. Officials said converting to a critical access hospital would boost Massena Memorial's net revenue by $2.6 million this year.

More articles on healthcare finance:

CMS pitches 3 sweeping payment rules for 2020: 10 things to know
HCA's revenue climbs to $12.6B in Q2
Hospital profitability declined in June, analysis finds

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months