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Massena Memorial Hospital soliciting affiliation proposals from 17 different health systems

Posted 7/18/16

By ANDY GARDNER MASSENA -- Massena Memorial Hospital has contacted 17 health systems soliciting interest in affiliating once they privatize, CEO Robert Wolleben told the Board of Managers on Monday. …

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Massena Memorial Hospital soliciting affiliation proposals from 17 different health systems

Posted

By ANDY GARDNER

MASSENA -- Massena Memorial Hospital has contacted 17 health systems soliciting interest in affiliating once they privatize, CEO Robert Wolleben told the Board of Managers on Monday.

“The ultimate goal is sometime in October to make a decision … select a potential affiliate,” Wolleben said.

He would not say who they have contacted.

“We’re not going to discuss that in open session,” he said.

He expects a three-month process of hearing offers and negotiating.

“For the next three months … we’ll evaluate proposals and negotiate with select a select partner or partners,” according to Wolleben. “We haven’t picked anybody yet. We are five months away from determining what an affiliation would look like.”

He says the Department of Health has received their application for a new Certificate of Need, which will allow them to operate as the new entity.

“I know they’ve look at it because they’ve sent several questions,” Wolleben said. “They are preparing for a September or October approval of the new corporation the DOH will allow the new license to be held by.”

He says the asset transfer agreement with the town is still under development.

“Nothing’s been finalized yet. It depends on several activities,” Wolleben told the board.

He expects a valuation to be done in the near future.

“We’re expecting valuation consultants to be on site in the next several weeks to do a visual inspection. It’s like a house appraisal,” he said.

MMH is under consideration for a $5.8 million loan to take care of their long-term debt. Wolleben said this is contingent upon affiliating, which in turn is contingent on privatization.

“One of the conditions was we had to tell them by the end of the year who we’re going to be affiliated with … they just want us to give them a name,” Wolleben said, adding that the state will demand reimbursement if MMH remains independent.

“They would take $5.8 million back … probably take it from Medicaid reimbursements,” Wolleben said.

“We’re just waiting for the state to get back to us,” MMH CFO Pat Facteau said.