BY Fraser Tennant
Following a dispute with the New York State Department of Health over missing financial disclosures, home healthcare agency the North Star Health Alliance (NSHA), and three of its affiliates, has filed for Chapter 11 bankruptcy protection.
The decision to file was driven by complex events that generated a gap between the cost of services rendered and revenue received – a gap caused by, among other things, delays in payments while transitioning to a critical access hospital reimbursement model, increased operating expenses and multiple cyber attacks.
In addition to over 120 job cuts and the inoperability of several local clinics, the severe financial instability experienced by the NSHA in recent months also led to the resignation of its chief executive.
The Chapter 11 filing will allow the NSHA to commence a bankruptcy court restructuring process for itself and affiliates Carthage Area Hospital, Claxton-Hepburn Medical Center in Ogdensburg, and Meadowbrook Terrace, an assisted living facility in Carthage.
The restructuring process is being undertaken as a voluntary, strategic and proactive action to realign financial obligations, ensure long‑term sustainability, and preserve the NSHA’s deep community roots and ability to provide quality healthcare. The NSHA plans to keep its hospitals and clinics open during the restructuring.
“We are taking this step to safeguard what matters most: quality driven care available close to home and the preservation of essential healthcare careers that support local families and anchor our North Country economy,” said Chet Truskowski, chairman of the NSHA board. “This court‑supervised restructuring puts us on a path to stabilise our finances while preserving essential services and protecting our workforce.”
The NHSA has stated that patients and their families can expect normal operations, access to appointments and continuity of all essential medical, surgical, behavioural health and assisted living services. In addition, employees will continue to receive regular pay and benefits throughout the Chapter 11 process.
“Providing for our patients and their families, caregivers and our staff that make up our community, is central to our mission,” concluded Mr Truskowski. “The Chapter 11 process is designed to ensure we can continue serving our neighbours for years to come.”
News: North Star Health Alliance files for Chapter 11 bankruptcy