WATERTOWN, New York (WWNY) – North Star has submitted plans to the state, laying out what will happen if it doesn’t get funding next week to keep going.
Rob Bloom, the chief restructuring officer, told a bankruptcy court judge on Wednesday that “very drastic cost-cutting measures will need to be taken immediately.”
If there are no financing options, he said North Star will require “expedited closures” from the health department.
Interim CEO Andrew Manzer told the bankruptcy court that those plans have already been submitted to the DOH.
Judge Wendy Kinsella shared the sense of urgency, saying a Monday meeting between the state and North Star should be a top priority and warning that North Star is about to hit a brick wall.
It was not immediately clear whether that Monday meeting would take place.
NY’s health commissioner weighs in
New York’s health commissioner says North Star Health Alliance is in charge of making decisions for its future, not the state health department.
In an interview with 7 News, Dr. Jim McDonald describes the health department’s role as advisory as North Star navigates bankruptcy proceedings.
“The Department of Health doesn’t have a role at this point in choosing what happens; this will be determined by the bankruptcy court, and to some extent how North Star puts its restructuring together,” McDonald said.
Status quo is not an option
We got the sense from McDonald that North Star needs to come forward with a plan to stand on its own.
“North Star needs to decide what they can do and what they can do well and sustainable. North Star needs to help make that decision-making come together. If they are going to close services, they need the state’s approval on that and that’s where I come in again,” McDonald said.
When asked whether changes are coming, McDonald replied, “I expect there will be changes because when you think about the old expression — if you keep doing the same thing and it’s not working, stop doing the same thing. You’re going to have to do different things here.”
Larger hospital system may offer path forward
It’s likely North Star will need to become part of a larger hospital system, a move that could cost the state tens of millions of dollars.
McDonald said because rural health care is so important to the governor and the health department, there is money to help.
“If you find a partner, or larger system, that can help you, you can have a sustainable future and that’s something North Star needs to consider because we have funding this year in the budget for that. The governor proposed $1 billion and $300 million operating. Obviously, we can’t put all that into North Star, but if North Star wanted to submit an application, we would want to see what they had in mind,” McDonald said.
McDonald made it very clear that he and the state believe the hospitals in Carthage and Ogdensburg, the assisted living facility near West Carthage, and the network’s approximately 1,600 employees are critical to the North Country, but it’s up to North Star and its new leader, Andrew Manzer, to develop a plan for the future.
And it looks like there’s a week to get it done.
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