HealthAlliance of the Hudson Valley says it’s in serious financial trouble and requires a three-year state bailout until its projections show it will reach breakeven. Otherwise. HAHV, with 162 beds the only hospital in Kingston and operator of the 15-bed critical access hospital and the 82-bed Mountainside Residential Care Center in Margaretville, says it’ll have to institute major cuts and eliminate services to close a 2024 budget gap of $24 million. It warns of difficulties being able to make employee payrolls without financial help.
In 2019, WMCHealth officials agreed to a five-year plan for HealthAlliance to achieve financial sustainability by consolidating and modernizing the two Kingston hospitals. That sustainability plan had not anticipated the Covid epidemic, the impact of construction delays, and changes in demand for its services.
“The global pandemic and other significant unanticipated challenges have made it impossible to achieve financial sustainability on the original timeline and placed an unsustainable strain on WMCHealth’s finances,” spokesperson John Brand said in a statement
“Ignoring this reality, New York State has steadfastly refused to revisit the terms of this agreement and extend the deadline of our healthcare advancement plan.”
Gubernatorial press secretary Avi Small said the state will continue engaging with the health system on its financial sustainability plan. But he put the onus of decision making on HealthAlliance’s parent company, WMCHealth,
“The state values the critical care that HealthAlliance provides to the Kingston community, and expects WMCHealth to prioritize the needs of its patients and nearly 1000 employees,” Small told Politico on Thursday. “However, in a difficult budget year we need to ensure taxpayer dollars fund the most pressing healthcare needs throughout the state.”
In lieu of state payments, WAMC Health has been subsidizing operating losses at HealthAlliance this year. Brand said the parent company was now also experiencing cash-flow problems and would no longer be in a position to do so.
Brand said the recovery plan of increased use of HealthAlliance services was now as had been planned.
The two-year extension of state payments which HealthAlliance is requesting would amount to about $90 million.
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