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Massena Town Board delays decision on whether to privatize financially struggling Massena Memorial Hospital

Posted 8/21/14

By ANDY GARDNER MASSENA -- A decision on whether to privatize financially struggling Massena Memorial Hospital appears to have been delayed for at least several months, following a Town Council …

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Massena Town Board delays decision on whether to privatize financially struggling Massena Memorial Hospital

Posted

By ANDY GARDNER

MASSENA -- A decision on whether to privatize financially struggling Massena Memorial Hospital appears to have been delayed for at least several months, following a Town Council decision Wednesday to spend $50,000 to hire a consultant.

Earlier this summer, Town Supervisor Joseph Gray said he hoped the board would make the decision this month.

But other board members want more information before making the decision and voted to spend $50,000 in casino compact money to hire a consultant to analyze the hospital’s financial situation.

MMH on Aug. 18 reported finishing July with a $304,310 net loss, despite budgeting for a $52,104 gain. Year-to-date, MMH is looking at a $2.4 million loss from operations.

Wednesday’s decision came after village Mayor James Hidy asked, “When do you think you’ll take a vote and what is delaying that vote now?”

Gray responded, “We have to make sure the information we have is as accurate as the hospital’s.”

“The worst decision to be made is one under pressure or duress. We can’t be rushed into a decision without due diligence,” Councilman Albert Nicola said.

The comments came during a nearly hour-long public discussion among town councilmen and approximately 20 in the audience, which included several members of the MMH Board of Managers, employee union representatives and Assemblywoman Addie Russell.

Some in the audience expressed concern over Gray’s suggestion last week that MMH start a consultant relationship with St. Lawrence Health Systems (SLHS), which owns Canton-Potsdam and Gouverneur Hospitals.

Such an arrangement would help address MMH billing problems, staffing issues and increase the number of days the operating room is open as well as respond to changes brought about by the Affordable Care Act, Gray has said.

One area the board, and members of the MMH Board of Managers who attended the meeting, seemed unsure about is the exact limitations the law places on a public hospital merging or collaborating with a private entity.

At one point, Gray asked, “is there actually a law on the books? I want to see this law.” Sitting in the audience, Assemblywoman Russell shook her head from side-to-side in a “no” fashion.

MMH board member Paul Morrow said his understanding of state law is “we can’t mingle our funds with anyone else.”

The MMH board hired the Hancock Eastabrook law firm to research the legal aspects of privatization and said they reported that state law restricted any collaboration, merger or affiliation with a private health care institute.

“It depends on what lawyer you ask,” Gray said. “Four different lawyers will give you four different answers.”

Regarding his suggestion that MMH enter into a consultant relationship with SLHS, Gray said one area they may be able to help with is in the operating room.

He said Massena’s surgical unit is open two days per week, part time. But CPH’s surgical unit works six days per week, part time.

Gray opined that they could allow CPH surgeons to work at Massena Memorial, which although they would be under the auspices of CPH, would give more options for local patients to have surgery.