Carthage Hospital officials to meet with state officials over financial woes

CARTHAGE – Carthage Area Hospital board members, who on Tuesday told longtime CEO Walter S. Becker to quit or be fired, will meet with state officials next week to sort out the financial mess they are now facing as they try to build Meadowbrook Terrace, a $9.5 million assisted living center.

Just last week, Mr. Becker denied any financial woes surrounding the project, even though the hospital had to get a $3 million low-interest loan from the state Dormitory Authority to help cover the cost of construction before the hospital could be reimbursed by the state Health Department.

Mr. Becker told the Times last week that construction was starting even though a construction contract had not been signed. He also admitted that the hospital continues to have billing issues in which the facility is owed more than $15 million from former patients.

Carthage Area Hospital Board President Brian Scott did not return calls from the Times Wednesday. He did, however, speak with state Sen. Patricia A. Ritchie, R-Heuvelton, regarding a scheduled special meeting Dec. 2 about the hospital’s finances.

“I did talk with the chairman today about the situation at the hospital, and about my concerns regarding financial issues they are facing, and in the meeting on Friday he will be attending, so the meeting is still on,” Mrs. Ritchie said Wednesday. “I’ve also had conversations with the Department of Health today regarding the Meadowbrook project, and was making sure they were aware what was going on because the project itself and the hospital are really important to the community and we want to make sure everything works out. I just want to make sure I know what’s going on with the hospital and the project in particular, and that everything goes forward as it should and to let them know if any other issues come up to let me know so I can help.”

State Health Department Spokesman Peter M. Constantakes said the state Health Department has not received any complaints, nor any other issues the department needs to look into.

“Certainly we were aware there were financial issues related with the hospital, but nothing anyone said about, ‘You need to look into this,’” he said when reached by telephone Wednesday. “We have reached out to the board and said, ‘OK, who’s going to be in charge?’ That’s about all we’ve done.”

Mrs. Ritchie said she, Assemblyman Kenneth D. Blankenbush, R- Black River, Mr. Scott, and Meadowbrook Terrace Administrator Joseph W. Millard will attend various portions of the meeting. An invitation has also been extended for Samaritan Medical Center CEO Thomas H. Carman to attend.

In an email to the Times Wednesday, Samaritan Spokeswoman Krista A. Kittle wrote, “Tom Carman has been invited to attend a portion of the meeting on 12/2, which relates to the HEAL grant for the senior care facilities. He plans on attending that portion of the meeting only.”

Samaritan is the lead on the $34 million Health Care Efficiency and Affordability Law for New Yorkers grant, of which $9 million is to go to Carthage Area Hospital for the construction of Meadowbrook Terrace. The remaining $25 million will help Samaritan construct a 288-bed assisted-living and nursing home complex behind Washington Summit, off of Washington Street, Watertown.

On Wednesday Carthage Area Hospital announced Mr. Becker’s retirement on Dec. 31, although he will use vacation time until then and not return to work.

“The Board of Directors is thankful to Walter for his insight and dedication to building a system of care that supports and enhances the lives of the people in the north country,” according to a statement issued by the hospital Wednesday. “The Board of Directors is also grateful to Walter for his vision, hard work, and dedication to the hospital and the local community.”

His retirement was hastily determined. When reached by cellphone Wednesday morning, Mr. Becker said, “I’m not in a position to talk with you; thank you very much.” He then hung up the phone. When called back a short while later, he told a Times reporter that there was no story to be told, and “We just want everyone to exceed and do the right thing.”

Becker called back about an hour later, and said he wouldn’t answer any questions, but offered the following statement: “I have been at that hospital for 14 years. It is a wonderful organization. It was a wonderful place to work, and I am privileged to have been a part of that organization for all those years. I wish them well, and wish them well in my heart.”

He would not confirm nor deny that he had been fired.

Mr. Becker, a licensed nursing home administrator, joined Carthage Area Hospital in August 1998, after he was credited with reversing financial troubles at a Western New York health care facility. Before joining the Carthage team, he spent six years as president and CEO of the Medina Memorial Health Care system. He also worked in hospitals in Arizona, California and Maine.

In 1997, a year before Mr. Becker arrived, hospital officials announced $300,000 was owed in back payroll taxes to the Internal Revenue Service and $2.5 million to local suppliers. This debt, coupled with cashflow problems and a decline in the number of patients, prompted hospital officials to develop a restructuring plan. That plan included layoffs and an administrative shuffle.

Fourteen years later, the hospital faces similar cash flow and financial problems, and has also recently gone through an administrative shuffle.

Under Mr. Becker’s administration, the hospital added urology services, offered obstetrics and gynecology services at its clinics in Harrisville and Black River, added a medical rehabilitation unit, and the state authorized the hospital to be reimbursed for patients staying in the facility while waiting to go to nursing homes. In 2000, the hospital added a cardiac rehabilitation center; a bone density machine for osteoporosis X- rays; expanded speech, physical and occupational therapy; and radioactive seed therapy for prostates through the urology unit. There have also been community and school-based clinics that have opened and expansions at the hospital.

During Becker’s administration, however, an entire anesthesiology team quit in 2003 after conflict with administration, and the hospital’s billing system spiraled out of control. Then, financial issues arose with Meadowbrook Terrace, the 60-bed assisted living project.

Carthage Area Hospital was required to put up $500,000 toward its $9.5 million project.