Massena hospital affiliation process in 'suspended animation' says CEO
MASSENA -- Massena Memorial Hospital’s affiliation process is “basically in suspended animation,” the CEO told the Board of Managers on Monday.
MMH is in the process of switching from a town-owned hospital to a private, non-profit entity.They have received IRS approval to form a not-for-profit corporation.
Right now, they are hashing out an asset transfer deal with the town, which will decide what assets and liabilities stay and which will go when the hospital changes hands.
“Not much has changed. We are still focused on the asset transfer negotiation and we are still in active negotiations with the town,” MMH CEO Bob Wolleben said at the meeting. “We’re doing some background work related to operationalizing the non-profit corporation.”
He said they are talking to two larger health networks about affiliating, and officials have not publically named them beyond Wolleben saying one is in eastern New York and one in the western part of the state.
“We keep the two institutions that were finalists … on the telephone call list and we talk casually with them on occasion to keep them updated. Nothing has happened with affiliation for at least a month, month and a half,” Wolleben said.
MMH’s privatization process comes amid growing monthly losses and dwindling government reimbursements.
They took an $800,000 hit this year from Medicare eliminating their Low Volume Adjustment.
They have reported losses upwards of $750,000 in November and October, and $600,000 or more in September and October.