Bad news for residents of the North Country, especially St. Lawrence and Jefferson counties: The North Star Health Alliance announced Tuesday it is filing for bankruptcy on behalf of itself and two North Country hospitals.
The bankruptcy underscores how precarious health care remains in New York’s rural areas, especially the North Country.
State Senate Health Committee Chair Gustavo Rivera briefly discussed the issue with Capital Tonight on Wednesday.
“Bankruptcy does not necessarily equal closure. [But] we are going to have to see about that particular situation,” Rivera said. “It is a fact that there are many safety net institutions around the entire state that are impacted by the fact that they serve very needy people. In the current system, the way it works, unfortunately, is that it shortchanges these institutions.”
It’s one of the reasons Rivera said he is a proponent of the New York Health Act, which is similar to Medicare for All, but for New York.
Until the bill is passed, Rivera says, “We’re just putting Band-Aids on the situation.”
He continued.
“The reality is, many of these institutions, safety net institutions around the state, basically lose money every time somebody walks through the door because the rates that the state pays are far below the cost of care.”
Rivera also discussed the coming impact of H.R. 1. Effective Jan. 1, 2027, states will be required to establish Medicaid community engagement requirements for certain individuals. Non-exempted Medicaid users will have to log at least 80 hours of work, education or community service per month to maintain eligibility.