By ANDY GARDNER

MASSENA -- The Town of Massena and Massena Memorial Hospital have been in affiliation talks with Canton-Potsdam Hospital and other healthcare entities, according to the town supervisor.

“Yes, nothing definite. We’ve talked to a lot of people. I know that was always a big secret before. (Former MMH CEO) Bob (Wolleben) wouldn’t let people know because he was worried about it,” O’Shaughnessy said when asked on Tuesday if they had discussed an MMH-CPH affiliation. “I think before I was on the board, (previous Town Supervisor) Joe Gray and that board, (councilmen) John Macaulay and Sam (Carbone) and Al (Nicola) … they had numerous talks with Canton-Potsdam.”

Wolleben on many occasions had said they were discussing affiliation with two larger health networks after putting out a request to 17 entities in 2016. Officials previously had not publicly named the finalists beyond Wolleben saying one is in the eastern part of New York state and one in the western portion of the state.

Massena Memorial has been in the process of privatizing for years, which comes amid large monthly financial losses and ever-growing contributions to the state pension system. At the June 18 Board of Managers meeting, MMH announced a $436,940 loss for May and $886,112 year-to-date. Wolleben had said at many MMH board meetings that the state and federal governments require affiliation plans as a condition to continue getting grant money.

The hospital and town are in transfer negotiations, with the aim of figuring out how the town will be compensated for the loss of the asset, and which liabilities might stay with the town or go with the hospital. MMH has received IRS approval to form a not-for-profit corporation.

MMH now has a new interim CEO, Ann Gilpin, who was appointed after the June 18 meeting where Wolleben resigned. O’Shaughnessy said Gilpin does not have ties with CPH or David Acker, the CEO of St. Lawrence Health System. SLHS oversees CPH.

Wolleben had been giving regular updates on the affiliation process at monthly Board of Managers meetings. That stopped several months ago after Wolleben declared the affiliation was “in suspended animation.” Affiliation is contingent upon the asset transfer, and the Town Council must approve each.

At the January Board of Managers meeting, there was some debate among board members, O’Shaughnessy and Wolleben about whether an MMH affiliation would mean the hospital would be sold to an outside entity.

“It’s not a sale, it’s an affiliation or a partnership,” MMH board chairman Scott Wilson said at the January meeting.

“We’re trying to get in a bigger system that has resources,” Wolleben said at the time, adding that they are trying “to maintain a vibrant hospital and vibrant medical staff that we are financially not able to do … It’s not about selling the hospital.”

O’Shaughnessy at the January meeting took issue with Wilson and Wolleben’s characterization that the hospital is not being sold. He said since part of the privatization process includes an asset transfer between the town and hospital, which is under negotiation, there will technically be a sale to the new non-profit corporation, which officials are tentatively calling “Newco.” That’s short for “new corporation,” which officials have been using until they pick a permanent name.

“I must disagree,” O’Shaughnessy said at time in response to Wilson and Wolleben’s comments.

“You are correct, if we proceed along the current path, it’s a transfer of assets and liabilities to the new corporation,” Wolleben responded. “Is the Newco … going to be owned by some other hospital system? It’s not likely at this point.”