OGDENSBURG, New York (WWNY) – A bankruptcy court gave North Star Health Alliance the go-ahead Wednesday to continue using its cash collateral, money borrowed from lenders, to maintain operations and provide patient care.
The ruling came during a hearing in Syracuse bankruptcy court on Wednesday morning, where the ongoing conversation between North Star and the New York State Department of Health was also confirmed. A DOH representative told the court that honest conversations are continuing, but reiterated that funding provided in the past is both discretionary and temporary.
“Nothing is assured from week to week,” the representative said.
The DOH has consistently contributed to help North Star meet payroll for employees at Claxton-Hepburn Medical Center, Carthage Area Hospital, and Meadowbrook Terrace. Last week, the department contributed $2.6 million.
Lawyers for North Star said the health system continues to work with vendors on payments. Vendors include those who provide medical supplies and food and beverage services.
North Star is scheduled to return to court on Wednesday, two days ahead of the next pay period.
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