A group of legislators representing Ulster County, N.Y., have urged Gov. Kathy Hochul to resolve the dispute with Westchester Medical Center Health Network to avoid service cuts at HealthAlliance Hospitals in Kingston and Margaretville, N.Y., which the health system owns, the Daily Freeman reported Dec. 28.
Valhalla, N.Y.-based WMCHealth, a 12-hospital system, plans to significantly reduce services at HealthAlliance Hospital in Kingston, N.Y., unless it secures a state bailout to address a projected $24 million budget gap for 2024.
"As you are aware, we are facing a dire situation regarding the commitment of delivery of healthcare services at the HealthAlliance Hospital locations in Kingston and Margaretville," New York state Sen. Michelle Hinchey wrote in a letter to Ms. Hochul. "It is incumbent upon all partners, Westchester Medical Center Health Network (WMCHealth) and the state, to come to an immediate financial agreement and keep our hospital on track to continue the services currently provided and to continue the expansion of healthcare services promised by both institutions."
WMCHealth claims that it required tax dollars primarily because of unexpected financial challenges during the pandemic, and these challenges exceeded projections outlined in a 2019 government funding deal with the state for consolidating two hospital campuses in Kingston into HealthAlliance Hospital.
Ms. Hochul and her team, which previously accused WMCHealth of waging a "misinformation campaign," argue that the health system has ample funds — including $160 million in state taxpayer dollars over the last five years — to avoid the hospital service cuts.
As of Dec. 28, more than 40 elected officials and over 500 community members have signed similar letters of support to the governor's office calling on the state to maintain its financial commitment to HealthAlliance of the Hudson Valley and to prioritize preserving services at HealthAlliance Hospital, Margaretville Hospital and Mountainside Residential Care Center.
WMCHealth said it is in talks with state officials over a new financial stabilization plan for HealthAlliance of the Hudson Valley to address the challenges that have strained its finances and threatened investments the system has made to improve care quality in the region.
"The last thing we want is to compromise that progress, and the millions of dollars WMCHealth has invested in programs, services and a new hospital," a spokesperson for the health system shared in a statement with Becker's. "If we cannot reach a viable resolution with the state in the immediate future, our responsibility to communities across our entire network will force us to address the budget gap by exploring expense reduction options."
A spokesperson for Ms. Hochul's office told Becker's that WMCHealth received more than $160M in funding from state taxpayers in the last five years — which exceeds the $104.7M commitment made in 2019 — and ended 2023 with $109M in cash.
"We encourage [WMCHealth] to use these resources to serve the Kingston community versus pay their top executives," the spokesperson said in a statement. "We will continue to engage with local elected officials, WMCHealth and HealthAlliance to discuss the system's future path to sustainability, and any changes they are considering making to the organization to achieve that sustainability."