Massena (N.Y.) Memorial Hospital "faces an imminent financial crisis and possible closure," CEO Charles Fahd II said in a meeting Thursday, according to a Watertown Daily Times report.
In fact, the hospital will run out of money by 2017 if changes aren't made. One option recommended in the past is transitioning from a municipally owned hospital to a nonprofit organization. The hospital's board of managers has recommended making the transition, but the decision must be made by the Town Council, according to the report.
Mr. Fahd also said it is "essential" for the hospital to control major expenses, namely payroll and employee benefits, such as pensions.
Massena Memorial's financial troubles stem from decreased patient volumes and an increasing number of observation visits. Mr. Fahd said the hospital will see 85 observation visits this month, when 10 years ago it would average 18 to 25 observation visits a month, the Watertown Daily Times reported.
Mr. Fahd plans to make more presentations to address questions and concerns of the community. The meeting Thursday was so well-attended, some had to listen in the hallway, according to the report.
Mr. Fahd will retire at the end of this year.
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