North Star Health Alliance has entered voluntary Chapter 11 bankruptcy, seeking breathing room after mounting financial strain threatened its ability to operate.
The health system announced Tuesday that it initiated court-supervised restructuring proceedings, just days after it required assistance from the state to meet payroll obligations. The filing covers North Star Health Alliance and three affiliated entities: Carthage Area Hospital Inc., Claxton-Hepburn Medical Center Inc., and Meadowbrook Terrace Inc.
A Financial Lifeline After Mounting Pressure
According to a press release, North Star cited a series of complex challenges that widened the gap between the cost of delivering care and the revenue received. Among the external pressures were multiple cyberattacks, which compounded existing financial headwinds.
The Chapter 11 process, the organization said, is designed to stabilize its finances and safeguard access to health services across the North Country — including for Fort Drum service members, military families and retirees.
Like a hospital patient placed under careful monitoring, the system now enters a structured recovery plan aimed at restoring stability without halting operations.
