North Star Health Alliance (NSHA), along with three of its operating affiliates, has filed for voluntary bankruptcy process. The move will help stabilize finances while keeping care available to patients across the North Country. All NSHA facilities will continue providing care throughout the court-supervised process.
North Star Health Alliance Seeks Chapter 11 Protection With Three Affiliates
According to the latest court records on PACER, North Star Health Alliance filed for Chapter 11 on February 10. Filing details indicate that the voluntary petition was filed at the U.S. Bankruptcy Court for the Northern District of New York.
In addition, three affiliates of NSHA, including Carthage Area Hospital, Inc., Meadowbrook Terrace, Inc., and Claxton-Hepburn Medical Center, Inc., are a part of the restructuring process.
Attorney Janice B. Grubin of Barclay Damon LLP is representing NSHA in court. Chet Truskowski is the authorised representative of North Star Health Alliance, according to the filing details.
Healthcare Operations to Continue Normally
According to a Businesswire release, NSHA will continue normal operations during the court-supervised process. Patients and their families across the North Country will still be able to schedule appointments. Additionally, essential medical, surgical, assisted living, and behavioral services will continue at the facilities for Fort Drum service members, families, and retirees.
Employees of NSHA will continue to receive their normal payroll and benefits during the Chapter 11 proceedings.
Chet Truskowski, Chairman of the NSHA Board, said, “We are taking this step to safeguard what matters most – quality-driven care available close to home and the preservation of essential healthcare careers that support local families and anchor our North Country economy.”
“This court‑supervised restructuring puts us on a path to stabilize our finances while preserving essential services and protecting our workforce. Providing for our patients and their families, caregivers, and our staff that make up our community, is central to our mission. This process is designed to ensure we can continue serving our neighbors for years to come,” Truskowski added.
Reasons That Have Prompted the Bankruptcy
The latest bankruptcy filing by NSHA is driven by several factors that have resulted in a significant difference between revenue received and costs incurred in delivering care. One key factor was the delay in payments during the shift to a critical access hospital funding model.
Other complex factors include rising operating costs and Claxton-Hepburn Medical Centre’s challenging legacy revenue-collection model. Increased external pressures, including multiple cyberattacks, also led to financial disruptions at NSHA and pushed it towards bankruptcy.
Company Background
The North Star Health Alliance is a healthcare provider system in Northern New York. The nonprofit collaborative system works toward enhancing community health services. Its members include Claxton-Hepburn Medical Center, Carthage Area Hospital, North Country Orthopaedic Group, Meadowbrook Terrace Assisted Living Facility, and Claxton-Hepburn Medical Campus (Claxton Campus)
Case Related Details
According to court records, North Star Health Alliance currently owes approximately 49 creditors. Additional details in the Chapter 11 case are given below:
- Filing Date: February 10, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of New York
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-60099-6-wak
- Estimated Assets: $500,001 – $1 million
- Estimated Liabilities: $500,001 – $1 million
- Reason for Filing: Restructure business under court supervision
Court filings indicate that funds will be available for distribution to the unsecured creditors of the nonprofit healthcare system.
The latest Chapter 11 filing by NSHA marks a notable step toward addressing its increased financial troubles and realigning operations. Its restructuring process is now set to take shape under the court supervision.
