Encompass Health Rehabilitation Hospital PR Dept. would not answer the phone for comment about this story.
Encompass Health Rehabilitation Hospital of Lakeland took down its Facebook post about Richard Duvall — Here it is:
History
North Star Health Alliance’s President and CEO, Richard Duvall, resigned from the healthcare group, which runs Carthage Area Hospital and Claxton-Hepburn Medical Center/Campus, among other healthcare groups and clinics across St. Lawrence and Jefferson counties, in New York
In a press release, NSHA said Duvall resigned at a Jan. 22, 2026, board meeting, but it did not provide a specific reason. It comes after months of financial uncertainty for the healthcare group.
Officials, including CEO Duvall, have blamed the New York State Department of Health for a serious budget shortfall, claiming it has not delivered promised funds as Claxton-Hepburn Hospital in Ogdensburg transitioned into two co-located facilities.
North Star Health Alliance is a non-profit healthcare system in Northern New York that filed for Chapter 11 bankruptcy in February 2026.
System Overview & Member Facilities
- Parent Organization: North Star Health Alliance (NSHA)
- Member Facilities:
- Claxton-Hepburn Medical Center (115-bed regional referral center in Ogdensburg, N.Y.)
- Carthage Area Hospital (25-bed Critical Access Hospital in Carthage, N.Y.)
- Meadowbrook Terrace (Assisted living facility near West Carthage, N.Y.)
- North Country Orthopedic Group / Ambulatory Surgery Center (Watertown, N.Y.)
Financial & Restructuring Status (2026)
- Chapter 11 Bankruptcy: Filed on February 10, 2026, to stabilize finances amid a gap between service costs and revenues.
- Leadership Changes: Former CEO Richard Duvall resigned in January 2026.
- Service & Staff Reductions:
- Laid off approximately 120 employees in January 2026.
- Announced plans in June 2026 to close the North Country Orthopedic Ambulatory Surgery Center and North Country Orthopedic Group.
- Announced the closure of labor and delivery services at Claxton-Hepburn Medical Center.
- Partnership Talks: NSHA explored potential system partnerships (including discussions involving Rochester Regional Health) while coordinating with the New York State Department of Health and Governor Kathy Hochul’s office regarding safety-net support and state funding.
North Star Health Alliance
Financial Status: Under joint Chapter 11 bankruptcy administration (Case No. 26-60099) overseen by Judge Wendy A. Kinsella in the Northern District of New York.
- Case Costs: Administrative and professional legal fees have surpassed $6 million.
- Financing: Backed up to $45 million in authorized state financing under a final debtor-in-possession (DIP) order to stabilize operations.
- Workforce Downsizing: Full-time equivalents (FTEs) decreased from roughly 1,221 to 1,048 due to restructuring and natural attrition.
Claxton-Hepburn Medical Center
Medical Center
Open · Ogdensburg, NY
Operational Status: Remains open for medical care during bankruptcy restructuring.
- Service Closures: Restructuring plans filed to shut down labor and delivery services (maternity care), shifting obstetrical services into the regional Women’s Health Clinic despite vocal community pushback.
- Care Quality: An independent court assessment noted overall patient care quality remained very good despite localized financial holds, such as a paused pediatric behavioral health expansion grant.
Carthage Area Hospital
Hospital
Open · Carthage, NY
Operational Status: Active and operating under court-approved asset protection.
- Service Impact: Faced rolling shortages of equipment and medical supplies that forced some minor procedural rescheduling.
- Facility Reductions: Filed closures with the New York State Department of Health for its dedicated sleep center, alongside the closure of primary care and physical therapy wings at the associated Philadelphia (N.Y.) Health Center.
Meadowbrook Terrace
Assisted living facility
Open · Carthage, NY
Operational Status: Open and functional.
- Performance: Evaluated alongside the main hospitals by a court-appointed monitor, which recorded positive staff morale and highly rated residential care standards during the restructuring phase.
Restructuring & Consolidation Actions
- Clinic Shuttering: The network completely dissolved the North Country Orthopedic Ambulatory Surgery Center and North Country Orthopedic Group in Watertown, N.Y., ending local endocrinology, physical therapy, and outpatient orthopedic operations.
- Lease Restructuring: The alliance went before the court in late October 2026 to systematically review real estate holdings—withdrawing from some local properties (like the Madrid Health Center lease) while attempting to modify and maintain crucial clinical space for Carthage Area Hospital.
- State Relations: While daily operations continue via state safety-net funding and court-approved cash collateral, funding from the New York Department of Health (DOH) is evaluated incrementally with zero long-term procedural guarantees.
What do citizens of those communities have to say?
By KA, Since he’s so “transparent” with everything, here’s a little tip….he ran our local hospital into the ground! Foundation and all the money….wiped clean! Him and his little cronies!! We’re trying to warn that business and community of what they did to us, and they’re taking down our posts!
By MPC, Check out NYS bankruptcy court Syracuse or Omni Solutions for details. Only took him and his “crew” five years to bankrupt three organizations, bamboozled 3 boards of directors, the NYS DOH, 2 medical staffs, 2 unions, and an entire region. It’s all out there.