OGDENSBURG, New York (WWNY) – North Star Health Alliance announced Tuesday that it has initiated voluntary Chapter 11 bankruptcy due to growing financial issues.
The announcement comes after North Star was able to make payroll last week with help from the State.
According to a press release from North Star Health Alliance, the bankruptcy is for itself and three of its affiliates, Carthage Area Hospital, Inc., Claxton-Hepburn Medical Center, Inc., and Meadowbrook Terrace, Inc.
The Chapter 11 process will stabilize North Star Health Alliance’s finances, which is necessary to ensure access to quality care for communities throughout the North Country, including Fort Drum service members, families, and retirees. North Star Health Alliance plans to continue its day-to-day operations throughout the court process.
North Star Health Alliance is ensuring that patients and their families can expect normal operations, access to appointments, and continuity of all essential medical, surgical, behavioral health, and assisted living services. Employees will continue to receive their regular pay and benefits throughout the Chapter 11 bankruptcy process.
North Star blames the bankruptcy on a number of complex events, which generated a gap between the cost of services rendered and revenue received, including external pressures such as multiple cyber attacks.
“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 stabilize our finances while preserving essential services and protecting our workforce. Providing for our patients and their families, caregivers, and our staff that make up our community, is central to our mission. This process is designed to ensure we can continue serving our neighbors for years to come,” said Chet Truskowski, Chairman of the North Star Health Alliance Board.
Additional details regarding the Chapter 11 process will be shared as they become available.
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