The Chapter 11 bankruptcy proceedings of North Star Health Alliance, parent of three North Country, N.Y., hospitals, have generated $6 million in administrative and professional costs so far, attorneys told a bankruptcy court judge Sept. 2, according to WWNY.
North Star runs Carthage Area Hospital, Meadowbrook Terrace near West Carthage, N.Y., and Claxton-Hepburn Medical Center in Ogdensburg, N.Y. The system sought bankruptcy protection in February.
Since filing, North Star has continued to operate its hospitals while cutting jobs and closing services as part of its restructuring. The system said June 24 it would close North Country Orthopaedic Ambulatory Surgery Center and North Country Orthopaedic Group, both in Watertown, N.Y., within 30 to 90 days, affecting orthopedic, endocrinology and physical therapy services. It also plans to close maternity care at Claxton-Hepburn, a move facing community pushback. North Star said it has developed a transition plan to ensure care continuity for affected patients.
The system has also shored up its finances with help from New York state, after cash flow projections early in the case showed it losing millions of dollars over the summer.
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