Health Care Shock: North Star Announces Major Layoffs Across North Country
Watertown, N.Y. — A major North Country health care provider is preparing to lay off more than 100 employees as it navigates an ongoing funding dispute with New York State and restructures services at one of its hospitals.
North Star Health Alliance confirmed Monday that approximately 120 positions will be eliminated across its two hospital campuses. The cuts are expected to be split nearly evenly between Claxton-Hepburn Medical Center in Ogdensburg and Carthage Area Hospital. Affected roles include management, clinical, and non-clinical positions.
“We understand behind every position is a person, behind that person is a family,” said Richard Duvall, president and CEO of North Star Health Alliance. “Obviously, these decisions affect all of those folks.”
Funding dispute at the center
The layoffs come amid a standoff between North Star and the New York State Department of Health over funding tied to Claxton-Hepburn’s transition to a new business and care-delivery model. In December, the state cut off transition funding that had been intended to help stabilize and restructure the Ogdensburg hospital.
State officials say the funding was halted because North Star did not sufficiently answer questions about how the money was being spent. North Star disputes that claim, saying it has been transparent and continues to work with the state to resolve outstanding information requests.
“There’s still a delta between what the Department of Health is requesting for information and all the information that’s been provided,” said Scott Gray, whose district includes Ogdensburg. “So we’re still trying to work through that.”
Gray said he is actively working with the Department of Health and hopes the layoffs will be temporary.
Lawmakers react
Assemblyman Ken Blankenbush, who represents Carthage, said in a statement that he has “been in regular communication with hospital leadership and other elected offices to work collaboratively in support of the hospital workforce.”
A spokesperson for the New York State Department of Health said it is North Star’s responsibility to operate its facilities, but added that the state “will continue to talk with North Star to support continuity of care for patients in the community.”
Clinics and services under review
North Star officials say the health system is evaluating all aspects of its operations, including outpatient clinics. However, they emphasized that any service closures or discontinuations would require state review and approval.
“Any changes that involve discontinuing or closing a service must follow required State review and approval processes,” said Jessica Bowline, director of marketing and public relations. “If any such changes occur, affected patients will be notified directly and supported with referrals as needed, access to medical records, and care transition planning.”
For now, North Star says it remains focused on maintaining patient care while continuing negotiations with the state in hopes of stabilizing its Ogdensburg operations and preserving services across the North Country.
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