Friday, October 23, 2026 | St. Lawrence County, NY
BY JIMMY LAWTONNorth Country This WeekOGDENSBURG — Richard Duvall, the former chief executive of North Star Health Alliance who resigned as the health system faced mounting financial and operational challenges before filing for bankruptcy, has been appointed CEO of an inpatient rehabilitation hospital in Lakeland, Florida.
Encompass Health announced Oct. 21 that Duvall will lead its 50-bed Encompass Health Rehabilitation Hospital of Lakeland. His appointment comes nine months after his resignation from North Star, which operates Claxton-Hepburn Medical Center in Ogdensburg and Carthage Area Hospital.
The announcement has drawn criticism on social media in St. Lawrence County, where residents have questioned Duvall’s leadership during the financial crisis that engulfed North Star.
Duvall’s resignation was accepted at a Jan. 22 meeting of the North Star Health Alliance Board of Directors, following months of turmoil that included widespread job cuts, mounting unpaid bills and a dispute with the New York State Department of Health over funding and financial reporting.
At the time, North Star was struggling to maintain operations after the state halted millions of dollars in payments through its Vital Access Provider Assurance Program in July 2025. The funding had been intended to support the health system’s transition to a critical access hospital and safety-net model.
The funding dispute left North Star facing more than $120 million in unpaid charges and nearly $90 million in accounts payable, according to reporting by North Country This Week in January. State officials cited concerns about spending disclosures and said the Department of Health had requested more detailed accounting of funds already distributed.
The financial strain had immediate consequences for employees and patients. North Star announced plans to eliminate about 120 positions in January, and the system subsequently lost more than 100 additional full-time-equivalent positions. The reductions affected Claxton-Hepburn Medical Center and Carthage Area Hospital, adding pressure to already strained operations.
Following Duvall’s departure, the board established interim leadership arrangements while North Star officials continued discussions with the Department of Health about the organization’s future. The board also said the Bonadio Group would continue overseeing communications and financial reporting as an independent review of the organization’s finances proceeded.
In February, North Star Health Alliance, Claxton-Hepburn Medical Center, Carthage Area Hospital and Meadowbrook Terrace filed for Chapter 11 bankruptcy protection as the organization sought to stabilize its finances and maintain services.
North Star later secured a multimillion-dollar state loan in May as part of its stabilization efforts, but financial and operational challenges have continued. The organization has undergone further workforce reductions and service changes while pursuing a restructuring plan.
Among the most contentious issues has been North Star’s effort to end birthing services at Claxton-Hepburn Medical Center in Ogdensburg, a proposal that has prompted substantial public opposition and renewed concerns about access to health care in the region.
In a press release, Encompass Health said Duvall will lead its rehabilitation hospital at 1201 Oakbridge Parkway in Lakeland. The facility provides inpatient rehabilitation services.
His appointment places him in a new leadership role outside New York as North Star continues working through bankruptcy proceedings and efforts to stabilize its hospital operations in the North Country.
