NY-Based Rural Health System, Three Affiliates File For Bankruptcy
Business Wire
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Contributed by: Kate Gamble
Summary
North Star Health Alliance (NSHA), a rural non-profit healthcare system serving Northern New York, announced that it and three of its affiliates—Carthage Area Hospital, Claxton-Hepburn Medical Center, and Meadowbrook Terrace—have filed voluntary Chapter 11 petitions to begin a court-supervised financial restructuring aimed at stabilizing their finances and ensuring long-term sustainability, while keeping all facilities open and maintaining normal operations, services, and employee pay throughout the process; the decision follows a gap between operating costs and revenue driven by factors such as reimbursement changes, higher expenses, legacy revenue collection issues, and external pressures like cyber attacks, and is intended to preserve access to quality care and protect the system’s workforce and community role.
