City, Mercy officials discuss prospects

City Hall, meet Mercy of Northern New York.

Mercy's chief operating officer, Ann M. Belcher, and Service Employees International Union Local 1199 Vice President Kathleen M. Tucker met with city officials Thursday at City Hall.

Their topic of discussion: the fate of the Stone Street facility.

"The impression that I got, quite simply, is that they're here to play," Mayor Jeffrey E. Graham said. "They need to get some things squared away, but it looks like they're ready to operate the hospital."

Mercy has traveled a rough road since November, when a U.S. Bankruptcy Court judge ruled the court no longer will oversee the hospital's financial reorganization. Mercy's principal shareholder, Anthony Salerno, also died that month.

Less than two weeks ago, Suzanne B. Steinau resigned as Mercy's chief executive officer. Healthcare Associates, which took over Mercy in 1997, has since named Ms. Belcher as the lead facilitator for Mercy, the mayor said.

The Lake Katrine company owns a network of service companies and nursing facilities throughout the state.

Mercy has 270 unionized employees and more than 200 beds. It provides mental health, dialysis, dental, podiatry and occupational services, along with operating a nursing home.

"As far as changes in leadership, I think it's a very positive move for the facility, for the patients and for the community," Ms. Tucker. "We are willing to work together for positive changes. I think they can hit the ground running; the folks we've dealt with look like they've been involved in the delivery of health care for a long time."

The meeting is expected to quell concerns Jefferson County officials had with the change in leadership at Mercy. Directly after Ms. Steinau's resignation, a point of contact did not exist for the hospital.

Attempts to call Ms. Belcher on Thursday were unsuccessful.

The mayor said the hospital is in arrears with its utility bills and county tax bill, but his opinion of its future is brighter. At the time of the judge's decision, the mayor said he expected the hospital to remain open for another two to three years.

"I feel like they're moving in the right direction. Right now, they're going to work on public image issues," Mr. Graham said. "They need to lay out a road map. I'm not an expert in organizing finances, but I know a few things about image rehab. I feel pretty positive about this."

Ms. Tucker echoed his sentiment about the hospital's future.

"I think the steps that need to be taken are just to forge relationships and make some positive changes in Mercy that put the facility in a better light," she said. "Things are starting to look up."

Times staff writer Rebecca Madden contributed to this report.