OGDENSBURG — Calling the proposed restructuring contract “absurd,” state Assemblyman Scott Gray is urging state officials to intervene as the financial crisis surrounding North Star Health Alliance continues to affect employees and healthcare access in the North Country.
In letters to the New York State Department of Labor and the New York State Department of Health, Gray raised concerns about the hospital system’s treatment of workers following recent layoffs and warned that operational problems are already affecting patient care across Jefferson and St. Lawrence counties.
“Against that backdrop, awarding Wintergreen an estimated $240,000 each month, with professionals billing at rates up to $450 per hour, is irresponsible, tone-deaf, and absurd when every dollar of operating cash is critical and the system reportedly cannot afford to repair an essential CT scanner,” Gray wrote.
Hochul on Hospital
Gray’s letters come on the heels of a visit from Gov. Kathy Hochul, who fielded questions but provided few answers following the announcement of a $10 million Downtown Revitalization Initiative grant for the city of Ogdensburg.
Hochul said discussions regarding receivership of North Star Health Alliance are still ongoing as the health system navigates Chapter 11 bankruptcy, but she provided no timeline or details.
“I’m committed to ensuring that the people of the North Country have access to affordable health insurance with quality services locally. That’s my commitment to the North Country,” Hochul said.
When asked if the state intended to disburse Medicaid payments to hospitals in rural districts, including the North Country, following months of intercepted federal funds, Hochul said, “those discussions are ongoing.”
Hochul declined to offer more details, instead pointing to Congressional members such as Rep. Elise Stefanik.
“What we need is our Congressional representatives, including Elise Stefanik and Claudia Tenney, to step up and advocate for the state and their districts. We need the federal government to provide aid to the state and ensure we have the funds to maintain services at our rural hospitals,” she said.
Call for Intervention
Gray, however, has taken a more aggressive approach.
In a letter to Labor Commissioner Roberta Reardon, Gray asked the state to review whether North Star is complying with employment agreements after several employees and professional staff members reported that contractual notice provisions were not honored when their positions were eliminated.
According to Gray, some workers were told their jobs were ending immediately, while others lost access to internal systems and communications before notice periods in their contracts had expired. Employees have also raised concerns that compensation tied to those notice periods, along with accrued paid time off and earned productivity bonuses, may not be paid.
“Bankruptcy should not be treated as a license to disregard valid contractual obligations,” Gray wrote, asking the department to clarify what obligations remain under New York law and what recourse workers have if they believe those obligations are not being met.
Gray isn’t alone in his dissatisfaction with North Star’s plan.
The decision to put Wintergreen at the helm has raised alarms for employees, both current and former, as Wintergreen appears to have been providing financial guidance to North Star during its financial decline.
Local Impact
Gray also warned state health officials that North Star’s financial problems are already affecting care across the region. The system operates several facilities, including Claxton-Hepburn Medical Center in Ogdensburg and Carthage Area Hospital.
His concerns were shared by Ogdensburg Volunteer Rescue Squad Chief Ken Gardner who said that the CT scanner at Claxton-Hepburn has been out of service for nearly two weeks and that the system reportedly cannot afford repairs.
He also told council Monday that MRI services are also reportedly limited to daytime hours because overnight staffing cannot be secured.
Gardner said patients requiring CT imaging must be transported to another facility roughly 40 minutes away, a process he said can tie up ambulance crews for hours.
Gray echoed Gardner’s concerns in his letter and pointed to the closure or destabilization of clinics in communities such as Hammond, Waddington, and Philadelphia, which he said has forced some residents to travel farther for care.
Financial projections filed in the bankruptcy case show the system’s cash position continuing to deteriorate. A 13-week cash flow forecast indicates North Star could run negative by the week ending March 20, with the deficit now expected to reach roughly $17 million, Gray said.
He urged the Health Department to intervene, suggesting options including providing funding to repair the CT scanner, deploying a portable CT scanner trailer at Claxton-Hepburn, or supporting additional advanced life support staffing and an ambulance for the Ogdensburg rescue squad.
He also called for the state to expedite a management or operational solution to stabilize healthcare access in Jefferson and St. Lawrence counties.
Bankruptcy procedures are scheduled to continue tomorrow.
Jeff Chudzinski contributed to this story.
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