Gouverneur Hospital to Continue E.J. Noble Operations After Dissolution

Canton-Potsdam Hospital in Potsdam, N.Y., has announced plans to create a new two-hospital system — St. Lawrence Health System — that will continue the dissolving Gouverneur, N.Y.-based E.J. Noble Hospital's operations through a new entity, Gouverneur Hospital.

After decades of financial problems, E.J. Noble is expected to file a petition soon for a judicial dissolution, which would involve selling its assets to form Gouverneur Hospital, according to a news release. The New York State Department of Health is currently reviewing the plan.

Under the proposed plan, CPH and Gouverneur Hospital will both be affiliates of St. Lawrence Health System. Each hospital will have its own board of directors and representatives on the St. Lawrence board, according to the release.

The sale and dissolution of E.J. Noble, along with the formation of the new hospital and health system, is the best plan of action to ensure hospital services are available to the community long-term, said Michael Burgess, chair of the E.J. Noble Hospital board of directors, according to the release.

Earlier this year, E.J. Noble and CPH entered into a management agreement under which CPH Vice President Marlinda LaValley was named administrator of E.J. Noble. As part of the arrangement, the Department of Health agreed to provide a $2 million short-term relief loan to E.J. Noble, and CPH agreed to issue and forgive a $300,000 loan and provide a six-month grace period for its management fees.

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