North Star Health Alliance says it is exploring potential collaboration opportunities with regional health healthcare organizations that “could enhance clinical sustainability, strengthen financial performance, and preserve local access to care well into the future.”
The announcement comes on the heels of statements from Public Health Commissioner Jim McDonald and information shared by the Financially Distressed Hospital Bureau that indicate that, at this time, there is no intent by the State to assign a temporary operator or receiver to oversee NSHA facilities. The organization continues to operate under its current governance and management structure as restructuring efforts progress.
Meanwhile, as creditors raise concerns about a budget projection that shows a $16 million loss by mid-May, it appears North Star will be able to pay employees for one more week with help from the Department of Health. It’s welcome news as the department has been adamant that such payments should not be expected and are not guaranteed.
“Since the initiation of the restructuring process, NSHA leadership and its newly appointed Interim Chief Executive Officer, Andy Manzer, have been working closely with the New York State Department of Health (NYSDOH), including the Department’s Financially Distressed Hospital Bureau, to support the development of a sustainable path forward for the organization and the communities it serves,” the release said.
This collaboration has included regular communication, operational guidance, and financial oversight as NSHA works to reduce operating expenses, improve revenue cycle performance, and position the system for long-term stability.
According to North Star, the Department of Health is expected to provide additional short-term funding assistance in the coming week to help support upcoming payroll obligations and ensure continuity of care during the restructuring process.
“North Star Health Alliance remains committed to maintaining access to essential healthcare services across the North Country while we undertake the necessary steps to strengthen our financial foundation,” Manzer said. “We appreciate the ongoing engagement and support from the Department of Health as we work through this complex but important transition.”
The organization says that throughout this process, all NSHA facilities , including Carthage Area Hospital and Claxton-Hepburn Medical Center, remain open and continue to provide services to patients and families.
North Star Health Alliance says it will continue providing public updates on the situation, a welcome change as the organization has been quiet in recent weeks as it navigates bankruptcy and restructuring.
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