Clifton-Fine (N.Y.) Hospital is exploring an affiliation with a larger hospital or health system after being denied non-profit status, according to a Watertown Daily News report.
According to the report, Clifton-Fine is interested in an affiliation to improve and expand services. However, it could also be a way to strengthen the hospital's operations in the face of high pension payments.
According to a separate Watertown Daily News report, Clifton-Fine paid $290,000 in pension payments in 2009. Its projected payment for 2012 is $735,000, and a state audit notes that the hospital's annual contributions to the state retirement system could exceed $1 million in two years. According to the report, bankruptcy is not imminent for Clifton-Fine, but the estimated 250 percent increase in pension costs from 2009 to 2014 is unsustainable.
The hospital recently petitioned the state legislature to convert from a public benefit corporation to a non-profit organization, which would allow the hospital to leave the state retirement system. Although the petition passed the state Senate, the Civil Service Employees Association blocked the legislation from progressing further, according to the report.
Hospital officials plan to continue pursuing the legislation.
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According to the report, Clifton-Fine is interested in an affiliation to improve and expand services. However, it could also be a way to strengthen the hospital's operations in the face of high pension payments.
According to a separate Watertown Daily News report, Clifton-Fine paid $290,000 in pension payments in 2009. Its projected payment for 2012 is $735,000, and a state audit notes that the hospital's annual contributions to the state retirement system could exceed $1 million in two years. According to the report, bankruptcy is not imminent for Clifton-Fine, but the estimated 250 percent increase in pension costs from 2009 to 2014 is unsustainable.
The hospital recently petitioned the state legislature to convert from a public benefit corporation to a non-profit organization, which would allow the hospital to leave the state retirement system. Although the petition passed the state Senate, the Civil Service Employees Association blocked the legislation from progressing further, according to the report.
Hospital officials plan to continue pursuing the legislation.
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