New York Health System Closes Labor and Delivery Unit Amid Bankruptcy

North Star Health Alliance, based in Ogdensburg, New York, has announced plans to discontinue labor and delivery services at the Claxton-Hepburn Medical Campus. This decision comes as the healthcare system undergoes bankruptcy restructuring. According to a news release from July 14 shared with Becker's, the organization cited a continuing decline in birth volumes in rural areas of New York and the broader nation as a contributing factor to this decision.

“Like many rural communities across New York and the nation, the North Country has experienced a sustained decline in birth volumes over time,” North Star stated. The organization explained that the increasing costs associated with maintaining round-the-clock labor and delivery services have become unfeasible amidst dwindling patient volumes.

North Star Health Alliance filed for bankruptcy protection in February and has since been focused on restructuring efforts to stabilize its operations. Additionally, in late June, they announced plans to close the North Country Orthopaedic Ambulatory Surgery Center and the North Country Orthopaedic Group, both located in Watertown, within the next 30 to 90 days.

Looking ahead, North Star intends to continue providing certain women's health services beyond labor and delivery. They plan to retain gynecological services while exploring a long-term model for prenatal care, as indicated in their release. Meanwhile, they will submit a formal closure plan to the New York State Department of Health, which will review and approve the closure. Labor and delivery services will remain operational throughout this review, which is expected to take at least 90 days.

As part of the health department's review process, a public hearing and comment period will be coordinated. The health system is also collaborating with the agency to ensure a smooth transition for patients impacted by the closure.

“This announcement marks the end of an important chapter in the history of Claxton-Hepburn,” stated interim CEO Andy Manzer. “We recognize the impact this will have throughout our community and understand this was a tough but necessary decision for the long-term future of North Star Health Alliance.”