[HISTORY: Adopted by the County Legislature
of the County of Ulster 3-11-2004 by L.L. No. 1-2004. Amendments noted where
applicable.]
A.
The area of the Village of Ellenville ("Ellenville
area") is located in an economically depressed area of the County.
The Village is located in the Town of Wawarsing and its economic base
had declined significantly since the 1980s. Numerous employers have
entirely ceased operations (such as Channel Master Corporation), the
hotel and hospitality industry has shrunk, and, most recently, Imperial-Shrade
Cutlery has eliminated jobs. It is one of a few areas in the country
which are part of a rural economic area partnership zone. Ellenville
and Wawarsing are in lower income zones than the rest of the County.
Census data from 2000 indicates that the median household income for
Ellenville was 64.6% of the median income for the whole of the County
and that of Wawarsing was about 84%. Twenty-three percent of households
were below the poverty level in Ellenville and 17% in Wawarsing, compared
with 10.5% of households in the County as a whole. Significant numbers
of children are included in those percentages.
B.
The needs of the Ellenville area for basic emergency
and local community hospital care are presently met by the Ellenville
Regional Hospital (hereinafter "Ellenville Hospital" or "Hospital"),
a facility licensed for 51 beds but which generally operates at less
than 25% of that capacity.
C.
The Ellenville Hospital is an assumed name for the
Westchester-Ellenville Hospital, a nonprofit corporation, which is
a wholly controlled subsidiary (through another nonprofit corporation)
of Westchester County Health Care Corporation, a public benefit corporation
organized and existing pursuant to Chapter 11 of the Laws of 1997.
D.
The Ellenville Hospital is presently operating under
the protection of the bankruptcy statutes, having initiated a voluntary
proceeding in the fall of 2003, and its operations over the last several
years have produced significant deficits, amounting to $6.8 million
in 2002 and $1.9 million in 2003.
E.
The Hospital has applied for and expects to receive
later in 2004 a designation as a critical access hospital (CAH), which
will improve its allowable reimbursement charges, and expects that
this change, coupled with renegotiations of rates paid by health maintenance
organizations and insurers and, eventually, the reorganization of
the Hospital's operations and services so that they are more reflective
of the actual demands and needs of the area served ("reorganization"),
will eliminate future deficits.
F.
At the present time, and until the changes outlined
in the preceding subsection are implemented, the Hospital continues
to operate at a deficit and will close completely and cease operations
in March 2004 unless it secures additional revenue.
G.
The unplanned and unexpectedly sudden closure of this
Hospital will create an immediate gap in the availability of medical
services in the Ellenville area, as there is no other hospital within
about 40 to 45 minutes driving time from this Hospital and no other
existing resource for needed hospital care, emergency care and auxiliary
care in the form of outpatient services, such as radiology, in the
Ellenville area. In 2003, there were 219 inpatient Medicaid visits
to the Hospital and 6,010 outpatient visits paid for by the County,
according to County records. In addition, the Hospital provides a
substantial level of care which is paid for by the bad debt and charity
care pool, the recipients of which are largely unable to pay for care.
H.
The Hospital has been pursuing and will continue to
pursue all other sources of funds to remain open, both public and
private.
For the purposes of ensuring the temporary continuation
of hospital care, associated emergency care and other auxiliary services,
such as radiology, for the benefit of the needy and children of the
Ellenville area, in particular, and to prevent closure of the Ellenville
Hospital without other provision for continuation of such services,
the County, acting through its Legislative Chairperson or Purchasing
Agent, may contract with the Westchester County Health Care Corporation
and the Hospital for the hospital care, emergency care, and related
auxiliary medical services, such as radiology, as are now provided
and as will be provided pursuant to such contract by the Ellenville
Regional Hospital, within the limits of appropriations provided for
such purpose by and as authorized by resolution of the Ulster County
Legislature, subject to the conditions of this local law.
Any such contract entered into under the provisions
of this local law:
A.
Shall provide that any moneys payable hereunder shall
be expended for the provision of current medical care and services
during the period thereof and shall not be used to pay any creditors
of the Hospital in its pending bankruptcy, nor to pay any past or
current charges for use by the Hospital of the facilities and/or land
in and upon which the Hospital is located, nor to reimburse or repay
any person or entity for any moneys or services advanced to the Hospital
prior to such contract, except as the County Legislature shall specifically
approve by resolution.
B.
Shall provide that the Hospital present to the County
Legislature, within 90 days, a detailed plan for obtaining funds from
other public and private sources and for its reorganization and the
redeployment of its resources as a critical access hospital, which
shall allow the continuation of hospital care, emergency care and
related auxiliary medical services in the Ellenville area without
the necessity of contracting for services under the authority of this
local law. Such plan shall be subject to the review and approval of
the County Legislature.
C.
Shall not allow for advance payments for services
to be provided but may provide for payment on a weekly basis after
rendition thereof.
D.
Shall be approved by the bankruptcy court having jurisdiction
over the Hospital's proceedings in bankruptcy within 30 days, but
this provision shall not prevent the making of payments for services
prior to such approval.
E.
Shall be for an initial period which shall not be less than four months nor greater than six months but may be extended, renewed, or renegotiated for a greater or different period or with different levels of service within the amount of appropriations provided and upon a specific finding by the County Legislature that substantially the same factual conditions as described in § A400-1 are then in existence and continuing.
F.
May be terminated by the County by resolution of its
Legislature on at least 10 days' notice.
Any agreement authorized hereunder and the payment
of any funds pursuant thereto shall be contingent upon the existence
of substantially similar agreements between both the Town of Wawarsing
and the Village of Ellenville and the Hospital and Westchester Health
Care Corporation which will each provide substantially the same revenues
and payments to prevent closure of the Hospital as any agreement authorized
hereunder, or such other or different level and proportion of revenues
and payments as may be approved by resolution of the County Legislature.
This local law shall take effect immediately.
