X

Assemblywoman proposes Massena Memorial become public benefit corporation

Posted 12/15/15

By JIMMY LAWTON MASSENA -- As Massena Memorial Hospital eyes becoming a non-profit, Assemblywoman Addie J. Russell is proposing a quasi-government model that she says would protect employees and …

This item is available in full to subscribers.

Please log in to continue

Log in

Assemblywoman proposes Massena Memorial become public benefit corporation

Posted

By JIMMY LAWTON

MASSENA -- As Massena Memorial Hospital eyes becoming a non-profit, Assemblywoman Addie J. Russell is proposing a quasi-government model that she says would protect employees and allow the hospital the freedom it needs to stay afloat.

A spokesman for Russell said she is working on legislation that would allow Massena Memorial Hospital to become a public benefit corporation, rather than a typical non-profit.

The plan is being modeled after the Erie County Medical Center, which went through a similar transition in 2003.

This, according to the spokesman, would allow Massena Memorial Hospital “greater business flexibility while allowing workers to remain in their current bargaining units.”

“I’m skeptical that privatization is in the best interest of the hospital or the town of Massena,” Russell said in a prepared statement. “However, I recognize the financial stress Massena Memorial Hospital faces and I believe the creation of a public benefit would give the hospital and the community a viable path forward.”

The plan would allow the hospital to raise money and affiliate with other hospitals, two things that are currently restricted due to MMH’s public status.

The proposal would also allow the employees to retain their membership in the Civil Service Employees Union and retain their public employee benefits.

In the Erie County model, the corporation also has the power to acquire to issue bonds and notes to finance the costs of operations.

This public benefit corporation plan is not entirely new. It was highlighted as an option in a report presented to the Town Council by Newpoint Consulting earlier in the year. It outlined various paths for MMH’s future.

The public benefit corporation option was not well received by town councilors. It is unclear if that has since changed. Town Supervisor Joseph Gray was not immediately available for comment.

MMH has been moving to become a non-profit after years of struggling to make ends meet as a publicly owned medical center. However, the transition has experienced some some pushback from hospital employees.

Most recently members of the CSEA called on the state to bring the privatization proposal to a public referendum.

See more on that here.

“Our workers have always been in support of any method that would maintain community control and accountability for our hospital’s healthcare services. We believe conversion to a public benefit corporation would secure Massena Memorial’s future,” said CSEA Central Region President Colleen Wheaton said in the prepared statement.

In her prepared statement, Russell says she would move the legislation forward in a timely manner.

“I will advance this legislation so the hospital can get on with the important work of saving lives, caring for the community, and finding innovative solutions to the health care needs of the North Country,” Russell said.