Assemblyman Urges Action Amid North Star Health Alliance Crisis

Assemblyman Scott Gray has raised significant concerns regarding the financial and operational instability of North Star Health Alliance, which is currently navigating Chapter 11 bankruptcy. Gray has described the proposed retention of Wintergreen, Inc. as the restructuring advisor as "absurd," particularly in light of the health system's ongoing issues with employee layoffs and patient care access in Jefferson and St. Lawrence counties.

Gray calls for immediate action to protect north country health care access, demands accountability in North Star collapse

North Star Health Alliance is facing a severe cash flow crisis, with projections indicating a potential deficit of approximately $17 million by March 20, 2026. Gray has highlighted that the health system's financial troubles are already affecting patient care, as evidenced by the malfunctioning CT scanner at Claxton-Hepburn Medical Center, which has been out of service for nearly two weeks. This has forced patients to be transported to facilities up to 40 minutes away, straining emergency medical services (EMS) and delaying care.

Gray calls for immediate action to protect north country health care access, demands accountability in North Star collapse

Gray's letters to the New York State Department of Labor and the New York State Department of Health emphasize the need for state intervention. He has called for an examination of North Star's compliance with employment agreements, particularly regarding the treatment of employees during layoffs. Reports indicate that some employees were terminated without proper notice, raising concerns about unpaid compensation tied to their contracts.

Assemblyman Gray calls North Star’s plan to put Wintergreen at helm 'absurd;' Hochul says discussions for receivership are underway

The decision to appoint Wintergreen, which has been involved in North Star's financial management during its decline, has drawn criticism from various stakeholders. Carthage Area Hospital CEO Walter Becker likened the situation to "appointing the fox to guard the hen house," questioning the appropriateness of giving Wintergreen's Rob Bloom a more prominent role while the health system struggles financially. Gray has echoed these sentiments, arguing that the same management team responsible for the current crisis should not lead the recovery efforts.

Assemblyman Gray calls North Star’s plan to put Wintergreen at helm 'absurd;' Hochul says discussions for receivership are underway

Governor Kathy Hochul has acknowledged the ongoing discussions regarding North Star's receivership but has not provided a clear timeline for resolution. She emphasized the importance of federal support for rural hospitals and called on Congressional representatives, including Rep. Elise Stefanik and Claudia Tenney, to advocate for necessary funding.

Assemblyman Gray calls North Star’s plan to put Wintergreen at helm 'absurd;' Hochul says discussions for receivership are underway

Gray has urged the state to take immediate action to restore critical imaging capabilities at Claxton-Hepburn, enhance local EMS resources, and ensure that rural clinics remain operational. He insists that the community deserves a healthcare system that meets its needs and treats its workforce fairly.

Gray calls for immediate action to protect north country health care access, demands accountability in North Star collapse

• “North Country families are being asked to accept less care, longer delays, and more uncertainty while the system continues to sink. That is not good enough,” — Scott Gray, New York State Assemblyman

Gray calls for immediate action to protect north country health care access, demands accountability in North Star collapse

• “Bankruptcy should not be treated as a license to disregard valid contractual obligations,” — Scott Gray, New York State Assemblyman

Assemblyman Gray calls North Star’s plan to put Wintergreen at helm 'absurd;' Hochul says discussions for receivership are underway

• “Rural health care is not a side issue. It is a basic public need,” — Scott Gray, New York State Assemblyman

Gray calls for immediate action to protect north country health care access, demands accountability in North Star collapse

As North Star Health Alliance continues to grapple with its financial difficulties, the call for state intervention and accountability grows louder. The situation remains fluid, with bankruptcy proceedings ongoing and stakeholders advocating for immediate solutions to ensure the stability of healthcare access in the North Country.

Assemblyman Gray calls North Star’s plan to put Wintergreen at helm 'absurd;' Hochul says discussions for receivership are underway