Ogdensburg Faces Payroll Challenges for Healthcare Employees
In Ogdensburg, New York, around 1,700 employees of North Star Health Alliance are due to receive their paychecks this week. However, financial difficulties have caused some uncertainty about when these checks could be issued.
Assemblyman Scott Gray highlighted the stress such issues can create, especially during the holiday season. “Everyone has enough on their plate without worrying about paychecks,” he remarked.
This isn’t the first time North Star Health Alliance has faced payroll issues. Just two weeks prior, management had to defer some employee salaries and relied on community donations and vendor support to cover a $5.5 million payroll. This time, the New York State Department of Health stepped in to provide funding.
“State funding has helped ensure payroll this time,” said Gray. Although the state usually offers financial assistance during changes in healthcare operations, this funding has become critical as North Star works on adjusting its business model at Claxton Hepburn Medical Center. Such transitions can lead to cash-flow problems, making state support essential.
Despite these interventions, North Star has been struggling to secure a promised $50 million from the state. Communication has been rocky, with the Department of Health requiring clearer answers about fund usage. Gray noted that while communication has improved, there’s no guarantee of future support. “These healthcare employees don’t have the same protections as public employees,” he explained.
Senator Mark Walczyk also expressed his gratitude to the state authorities for their role in ensuring employees receive their paychecks during this holiday season.
Beyond payroll challenges, North Star’s situation reflects a broader trend in the healthcare industry, especially as many facilities are increasingly reliant on state funding to manage transitions. According to a recent report from the Healthcare Finance Management Association, nearly 60% of healthcare organizations have faced funding issues this year, highlighting the tenuous financial landscape many facilities operate within.
As North Star prepares for its next payroll cycle in two weeks, employees remain hopeful but cautious. The healthcare landscape continues to evolve, and facilities like North Star must adapt while ensuring their staff’s financial stability.
For more on healthcare funding challenges, visit the Healthcare Finance Management Association here.
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wwny,north star health alliance,Scott Gray,Mark Walczyk,department of health,Claxton Hepburn Medical Center
