HealthAlliance decides it can no longer go it alone

David Lundquist, now former CEO of HealthAlliance. (photo by Dan Barton)

David Lundquist, now former CEO of HealthAlliance. (photo by Dan Barton)

After a year of virtual silence about its long-term plans, HealthAlliance of the Hudson Valley late last week accepted the resignation of its CEO, David Lundquist, and disclosed that it’s been having affiliation talks for several months with potential merger partners. It appears that HealthAlliance of the Hudson Valley, the Kingston-based integrated healthcare system which operates the two Kingston hospitals, Margaretville Hospital and Mountainside Care Center in Margaretville, and Woodland Pond, a continuing care community in New Paltz, has definitively decided that in the present dynamic healthcare environment, it can no longer go it alone.

David Scarpino, chief financial officer and a veteran financial administrator who has served at several Hudson Valley hospitals, was named acting president and chief executive officer.


For the past year, now-former HealthAlliance president and CEO Lundquist has maintained that talks with the state health department regarding funding for its transformation plan to renovate the Mary’s Avenue facility formerly occupied by Benedictine Hospital and to relocate hospital services to that facility, including the emergency room considerably expanded at Kingston Hospital just a few years ago, were going well. Funding was not yet in place, Lundquist told a breakfast meeting of the Ulster County Regional Chamber of Commerce last month. Until it was, he said, details of what was being discussed could not be made public.

Behind the scenes, it had become obvious that the original approximately $46.5 million funding request submitted by HealthAlliance to the state needed to be scaled back. That was not unexpected.

At press time, an inquiry to the state health department about the situation had not been returned.

HealthAlliance has been working with the design-build firm HBE Corporation to assess current infrastructure and determine necessary renovations. Those “conceptuals,” as Lundquist called them at the chamber breakfast, have not been made public.

According to HealthAlliance board president Kevin Ryan, $8 million of state money has been set aside for the Kingston project — available once an acceptable plan is approved by the state.

It’s now been over a year since the application was filed. There’s no time deadline for a state decision.


$20 million needed

The lowest amount for even a scaled-back project would be not less than $20 million, Ryan said last Thursday. And that’s likely to be a lowball figure. Lundquist has estimated that the relocation of the emergency room to the Mary’s Avenue facility would alone cost about $12 million.