STATEMENT FROM SENATOR WALCZYK DEMANDING IMMEDIATE ACTIONS AS HEALTHCARE FUNDING IS WITHHELD FROM NORTH COUNTRY HOSPITALS
December 4, 2025
"The proposed transition plan for Claxton-Hepburn is not just a bureaucratic responsibility; it’s a lifeline for thousands of North Country residents. Yet this opportunity for essential restructuring is being brutally thwarted by the Hochul Administration's incompetence. Despite being backed by a solid strategy developed in June 2022—an effort led by Northstar Health Alliance, which has been tirelessly working with the NYS Department of Health on the approved release of the New York State Vital Access Provider Assurance Program (VAPAP) funding to help facilitate this transition—we find ourselves ensnared in an administrative nightmare. The DOH has managed to turn a straightforward transition into a web of confusion filled with arbitrary requirements and absurd delays.
The VAPAP aims to provide discretionary, short-term financial assistance to hospitals and nursing homes in severe distress using funds entirely from the State's General Fund. Once the healthcare facility is on track, they’ll often switch to a lesser funding level and, if located in critical areas, apply for the VAPAP program which does have a federal match.
The North Star Health Alliance is a collaborative system that was invented to become a parent company for Carthage Area Hospital, Claxton-Hepburn Medical Center, North Country Orthopedic Group, and Meadowbrook Terrace Assisted Living Facility. The mission statement is simple and noble: keep healthcare local and accessible in rural communities by sharing resources and coordinating efforts.
The transformation was going smoothly until earlier this year when Gov. Kathy Hochul’s Department of Health abruptly ended VAPAP payments and stopped showing up for the weekly scheduled video conference with Northstar. The bureaucracy says Northstar hasn’t answered all the questions required for VAPAP. Northstar says some of the questions are legally tricky to answer and others are literally impossible. Northstar has been making a good-faith effort to provide the information that has been requested. The state’s health department has been less than cooperative in providing the clarity Northstar has asked. From where I sit, it looks like the Department of Health is being purposefully obstructive.
The transformation was going smoothly until earlier this year when Gov. Kathy Hochul’s Department of Health abruptly ended VAPAP payments and stopped showing up for the weekly scheduled video conference with Northstar. The bureaucracy says Northstar hasn’t answered all the questions required for VAPAP. Northstar says some of the questions are legally tricky to answer and others are literally impossible. Northstar has been making a good-faith effort to provide the information that has been requested. The state’s health department has been less than cooperative in providing the clarity Northstar has asked. From where I sit, it looks like the Department of Health is being purposefully obstructive.
The situation has reached a critical point. Claxton-Hepburn is facing a threat of closure. That’s 1700 employees and countless patients that are currently receiving care. These are the people that will take in on the chin if the facility closes its doors. But setting aside the “he said” “she said” of red tape, there’s absolutely no reason to bring these healthcare systems to the brink of closure. The communities need to know the state is committed to seeing these major employers transition to becoming self-sustaining again. Residents and patients need to know they have access to critical care that’s not hours away from home. The employees need to know their paycheck is coming at Christmas time.
On July 18th, the Governor said ‘If that hospital (Claxton), perhaps one of five in the north country, closes, you and your family don’t have anywhere to go.’ Additionally, the Executive also stressed earlier this afternoon at a press event the importance of having access to healthcare. Ironic, huh?
Well Madame Governor, you’re right. You have the power to fix this. Do what’s right. Release the VAPAP funding and hold up the State’s end of the bargain.”
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