The potential imminent closure of the North Star Health Alliance, including Claxton-Hepburn Medical Center and Carthage Area Hospital, announced today threatens basic access to care for thousands of North Country residents and the livelihoods of roughly 1,700 healthcare workers.

Under a State-directed transformation, North Star has been restructuring to a Critical Access Hospital/Safety Net model. The Department of Health (DOH) has been fully aware that this transition would temporarily disrupt billing and require close coordination and timely financial support. Instead, the system now faces more than $120 million in unpaid charges and nearly $90 million in accounts payable, with no clear path to resolve the backlog.

In a detailed letter sent November 20 to DOH Commissioner McDonald and Department of Financial Services Superintendent Asrow, Assemblyman Gray outlined the scope of the unpaid claims, the impact of the mandated transition, and pleaded for a prompt resolution so the hospitals could remain viable. Despite that appeal, significant administrative barriers and reimbursement delays remain unresolved.

North Star reports having sufficient cash on hand only through this week. The Governor’s office has indicated that the system has enough cash through the end of January. Whether the horizon is days or weeks, such a statement is, in effect, an acknowledgment that the hospitals are in imminent danger without decisive State action.

Gray stated, “The North Country is watching a state-approved transformation plan pushed to the brink of collapse because the Department of Health failed to follow through. This is not the result of federal changes. This is the direct consequence of New York State’s Department of Health choosing not to resolve problems it has known about for months.”

The loss or significant curtailment of services at Claxton-Hepburn and Carthage would be a serious setback for the entire region, including Fort Drum families, rural residents across Jefferson and St. Lawrence Counties, and medically underserved communities that already struggle to access basic care. “This is a recurring problem,” said Gray. “We saw it most recently earlier this year with Claxton, when the DOH withheld funds until the last hour. We’ve also had to deal with this exact issue twice before involving Clifton-Fine Hospital and Samaritan Summit Village and Sam Keep .”

Gray calls on Governor Kathy Hochul to immediately and personally engage, direct the Department of Health to engage in resolutions and remove the remaining administrative roadblocks, and ensure that reimbursements and necessary bridge support flow without further delay so that no additional degradation of healthcare services occurs in the North Country.

Gray continued, “The community did not create this crisis. The health system complied with the rules set by the State. The Department of Health must assist to fix these unproductive delays before the North Country loses a vital healthcare lifeline.”

This Assembly office will continue working with the Governor, NYS DOH, North Star Health Alliance, local governments, hospital workers and federal partners to press for immediate relief and a sustainable long-term solution that keeps essential healthcare services available in the North Country.