North Star Health Alliance faces drastic cost-cutting measures

The organization says it needs state help to make payroll and vendor payments, as it ends contract with outside consultant

Mar. 16, 2026 at 4:03pm

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The North Star Health Alliance, which operates a nursing home and hospitals in Carthage and Ogdensburg, New York, is running out of money for weekly operating expenses. Officials say the organization will have to take 'drastic cost-cutting measures' at its facilities without state assistance, and have already submitted plans to the State Department of Health outlining the cuts they would have to make. North Star has also announced it is ending its contractual relationship with an outside consulting group called Wintergreen.

Why it matters

The potential collapse of the North Star Health Alliance would leave the Ogdensburg and Carthage communities without access to critical healthcare services provided by the nursing home and hospitals. Local officials are urging the state to intervene and provide the necessary funding to keep the organization afloat.

The details

North Star officials said they have communicated to the New York State Department of Health that they are in need of additional funding, not only to make payroll but also to make vendor payments. Without this state assistance, North Star says it will have to take 'drastic cost-cutting measures' at its facilities. The organization has already submitted plans to the DOH outlining the cuts it would have to make, some of which require state approval. North Star has also announced it is mutually ending its contractual relationship with an outside consulting group called Wintergreen, less than two weeks after asking a bankruptcy court to validate an agreement to pay Wintergreen up to $240,000 a month for restructuring advice.

  • On March 16, 2026, North Star officials appeared in US Bankruptcy Court and laid out the organization's need for state assistance.
  • On March 15, 2026, North Star announced it was ending its relationship with the consulting group Wintergreen.

The players

North Star Health Alliance

A healthcare organization that operates a nursing home and hospitals in Carthage and Ogdensburg, New York.

Janice Grubin

A member of North Star Health Alliance's legal counsel.

Scott Gray

A New York State Assemblyman who has been urging the state to intervene and provide assistance to North Star.

Michael Tooley

The Mayor of Ogdensburg, New York, who has also been calling for state action to support North Star.

Jim McDonald

The New York State Health Commissioner, who said the Department of Health does not have a role in determining North Star's future.

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What they’re saying

“We have communicated to the DOH that we are in need of additional funding for next week, not only to make payroll but to make vendor payments. Absent that, it is not a very positive picture, your honor, I will be blunt.”

— Janice Grubin, Member of North Star Health Alliance's legal counsel

“Gov. Hochul must intervene now and direct the DOH toward a resolution that safeguards patient care, workers and essential community services.”

— Scott Gray, New York State Assemblyman

“The Department of Health doesn't have a role at this point in choosing what happens. This will be determined by the bankruptcy court, and to some extent, how North Star puts its restructuring together.”

— Jim McDonald, New York State Health Commissioner

What’s next

North Star officials said there was potential for a face-to-face meeting with Department of Health officials on Monday, March 16, which Judge Wendy Kinsella said should be a top priority.

The takeaway

The potential collapse of the North Star Health Alliance highlights the financial challenges facing rural healthcare providers and the need for state intervention to ensure communities have access to critical medical services. The situation also raises questions about the role of outside consultants in healthcare restructuring efforts.