All NSHA facilities remain open as the North Country non-profit healthcare system commences voluntary reorganization to stabilize its finances and ensure long‑term stability.

The North Star Health Alliance, Inc. (NSHA), a trusted, rural non-profit health system delivering community‑centered healthcare services to the North Country region, today announced it has commenced a bankruptcy court restructuring process for itself and three of its affiliates, Carthage Area Hospital, Inc., Claxton-Hepburn Medical Center, Inc. and Meadowbrook Terrace, Inc., through the filing of voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.

The Chapter 11 process will stabilize NSHA’s finances which is necessary to ensure access to quality care for communities throughout the North Country, including Fort Drum service members, families, and retirees. NSHA plans to continue its day-to-day operations throughout the court process.

Patients and their families can expect normal operations, access to appointments, and continuity of all essential medical, surgical, behavioral health, and assisted living services. Employees will continue to receive their regular pay and benefits throughout the Chapter 11 process.

The decision by NSHA to file for Chapter 11 protection is driven by a number of complex events, which generated a gap between the cost of services rendered and revenue received. This gap was caused by, among other things, delays in payments while transitioning to a critical access hospital reimbursement model, increased operating expenses, a challenging legacy model of revenue collection at Claxton-Hepburn Medical Center, and other external pressures such as multiple cyber attacks.

NSHA is undertaking the Chapter 11 process as a voluntary, strategic and proactive action to realign financial obligations, ensure long‑term sustainability, and preserve the system’s deep community roots and ability to provide quality health care.

“We are taking this step to safeguard what matters most - quality driven care available close to home and the preservation of essential healthcare careers that support local families and anchor our North Country economy,” said Chet Truskowski, Chairman of the NSHA Board. “This court‑supervised restructuring puts us on a path to stabilize our finances while preserving essential services and protecting our workforce. Providing for our patients and their families, caregivers and our staff that make up our community, is central to our mission. This process is designed to ensure we can continue serving our neighbors for years to come.”

Additional details regarding the Chapter 11 process will be shared as they become available.

About North Star Health Alliance

The North Star Health Alliance is a collaborative system of healthcare provider organizations in Northern New York, committed to elevating community health and well-being. Members of the NSHA include Carthage Area Hospital, Claxton-Hepburn Medical Center, Claxton-Hepburn Medical Campus (Claxton Campus), North Country Orthopaedic Group, and Meadowbrook Terrace Assisted Living Facility. By working together, we aim to enhance accessibility and affordability of care close to home, deliver exceptional medical services, and strengthen our local health infrastructure. United in our efforts, we are committed to keeping healthcare local, to ensure sustainable patient centered healthcare solutions for our communities.

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