Group Working To Help Save Cherry Valley Health Center

By DARLA M. YOUNGS
CHERRY VALLEY

A committee formed at the suggestion of Cherry Valley Town Supervisor Thomas Garretson began work in January to identify solutions that would allow Cherry Valley Community Health Center services to continue. Lisa Hershey, tapped to lead the committee, indicated in an e-mail on Monday, April 21 that Garretson, who is also the chair of the health center’s Board of Directors, is collaborating with committee members on potential solutions to ensure that the health center remains open.

The problem? The health center’s annual revenue is less than the annual costs for the services. The gap is estimated to be $150,000.00-$250,000.00. In February 2025, the health center’s expenses totaled $82,613.00, with just $58,094.00 in revenue, according to the Town Board meeting minutes of March 13, 2025.

According to Hershey, the Town of Cherry Valley owns the health center building at 2 Main Street, maintains it and holds the Article 28 certification as a diagnostic facility from the New York State Department of Health. Article 28 of the New York State Public Health Law establishes the framework for the state’s healthcare facilities.

Operation of the health center is tricky, though, according to Hershey.

“This is complicated and was set up a long time ago,” she explained. “The town operates and manages the health center, does the billing and receives payments for the services. Bassett Healthcare Network ‘leases’ the town the staff—two nurse practitioners, two nurses and two medical office assistants.”

One person is employed by the town to handle the health center billing.

“The town takes in the revenue for services and Bassett bills the town for the staff,” Hershey said.

Over the past three or four years, the health center has accrued a significant debt to Bassett, which Hershey largely attributes to billing issues at the health center and invoicing issues at Bassett.

“The town taxes covered the loss, resulting in an approximately 20 percent increase in 2025 to property taxes in Cherry Valley on top of the tax dollars already covering the annual gap. It is not viable for the taxpayers of the Town of Cherry Valley to continue to cover the gap. The health center does not receive any outside funding or funding from any of the surrounding towns,” Hershey said.

The committee’s first step was to evaluate financials and services, in order to determine the viability of the health center, which services nearly 5,000 patients annually. According to Supervisor Garretson, in the Town Board organization meeting minutes of January 09, 2025, the health center costs “roughly $800,000.00” annually, representing close to a third of the town’s $2.2 million budget.

“This is relatively a very reasonable budget to take care of 4,800 patients,” Hershey commented. “Outside of the numbers, the value of the care is not measurable. Multiple generations rely on the healthcare they receive here. In this day and age, to have the same provider who knows you and your family year after year is literally lifesaving.

“There are too many stories to share. It is so comforting to have the same person answering the phone and knowing who you are year after year,” she continued. “The staff is part of the community, attending community events, birthday parties, weddings, graduation parties, funerals, and more.”

Ultimately, the committee’s goal is to find a partner that will help support rural healthcare and take the burden off the taxpayers of the Town of Cherry Valley, who Hershey said cannot continue to fund the center. The town’s annual budget is more than 60 percent higher than neighboring towns, she added.

“Our biggest concern is where will patients go to get healthcare? They wait for Prime Care, and a physical at the Bassett network is up to six months, and the providers are not on long-term agreements,” she contends. “Bassett absorbing 4,800 new patients would seem to be overwhelming, especially given that they are currently receiving healthcare.”

And yet, committee members believe Bassett Healthcare Network—the mission of which is “improving the health of our patients and the well-being of our communities”—would be the logical choice for a partner in keeping the Cherry Valley Community Health Center operational.

“The Bassett network surrounds Cherry Valley geographically,” Hershey said, and given the nature of rural healthcare, there are not many other options.

“Most of the health center patients go to Bassett for their specialty services, so there is a strong relationship,” she added.

The Bureau of Project Management at the New York State Department of Health has suggested a solution whereby the town could enter into a management agreement with Bassett, retain ownership of the health center and maintain its Article 28 certification.

“Bassett Medical Center would not be the owners or maintain the building, but would be 100 percent responsible for the health center’s management, staff and billing,” Hershey explained. “The New York State Department of Health is very committed to supporting rural healthcare and has developed a process for this type of situation. A Certificate of Need application from Bassett Medical Center on behalf of the Cherry Valley Community Health Center would allow us to move forward. The Certificate of Need application is meant to overcome any obstacle in place to enable exceptions to any barrier.”

The state’s Public Health and Health Planning Council describes the Certificate of Need process as follows:

“The Certificate of Need is the process set forth in Article 28 of the NYS Public Health Law in which the Public Health and Health Planning Council (PHHPC), the Commissioner of Health and the Department of Health (the Department) authorize individuals or business entities to build and/or operate certain healthcare facilities or health care services. The objectives of the CON process are to promote delivery of high quality health care and ensure that services are aligned with community need. The CON provides the Department of Health oversight in limiting investment in duplicate beds, services and medical equipment which, in turn, limits associated health care costs.”

According to Hershey, the town has had limited conversations with Bassett leadership in hopes of support, but those talks have not been successful thus far. Bassett’s hesitation to go this route may be due to the fact that the Cherry Valley Community Health Center’s financial woes are nothing new.

An audit report submitted to Town of Cherry Valley officials in August 2016 by the office of New York State Comptroller Thomas P. DiNapoli found the health center operating deficit to be $110,559.00 in 2015 and stated the following:

“Town officials told us that recent operating deficits were caused by the significant costs to upgrade medical records to an electronic system in 2013 and the retirement of a long-time medical provider in 2015, which resulted in a decrease in revenue from fewer patients being served while the position was vacant. Town officials do not anticipate similar conditions to occur in the future. However, without planning for unexpected additional expenditures, the ability to continue operating the health center may be significantly hampered because of the Town’s current fiscal condition. In fact, the lack of planning is already impacting the Town. Town officials issued a $125,000 revenue anticipation note at the end of each of the last two years because they did not have any fund balance or reserves to sustain Town operations through to the following year when real property tax collections started.”

The two recommendations made by the comptroller’s office were: “1) The Supervisor should segregate the accounting records for the health center and allocate direct and indirect costs so the Board can properly evaluate the impact of the health center on the Town’s financial condition, and; 2) The Board should assess the future operation of the health center and develop long-term plans to ensure the health center functions in the best interests of the Town’s residents.”

Dr. Henry Weil, senior vice president, chief clinical and academic officer of Bassett Healthcare Network and president of Bassett Medical Center, praised the Town of Cherry Valley and its citizens in a statement on Monday, April 21.

“Cherry Valley Town-ship was a pioneer with the establishment of the Cherry Valley Health Center more than 40 years ago. It is a wonderful example that has stood the test of time. It’s incredible that a small community has done this, and I have the deepest respect for the Cherry Valley Township and the citizens who have passionately worked to ensure Cherry Valley Health Center’s continued services,” said.

“Bassett has participated with the Center for many, many years. It was one of the first locations where Bassett practitioners cared for patients at a site outside of Cooperstown, and we are proud to have done so. We are not now, nor have we ever wavered on this commitment. We would be honored to continue to supply clinical resources to the Center. It is our sincerest hope that the Township can find a solution to maintain the Center.”

Mount Vision resident Jarrett Hotaling is not a resident of Cherry Valley, but the health center there is the primary source for his healthcare, as well as that of his wife and mother-in-law. Hotaling wrote a letter to the Town Board dated March 28 to express his concerns regarding the future of the health center.

“The [center] provides many people an accessible and convenient location to have their healthcare and concerns addressed. All of this being done without the overwhelming and daunting feel of a traditional hospital,” he wrote. “To lose such a valuable resource would be very unfortunate and disheartening for many…I know finances play a large role in this topic, but I hope that whatever avenue is taken, it does not leave anyone going without.”

Supervisor Garretson said residents who are pushing to close the health center, “a few people,” do not realize the impacts of rising costs. Liability insurance, for instance, has risen 15 percent this year.

He said he recognized the tax hike is especially tough for taxpayers to digest, knowing that folks from other towns rely on the services of the health center but the municipalties in which they live are not sharing the load.

Garretson also praised the work of Hershey, who is a longtime Cherry Valley resident.

“Lisa is great, and she gave a beautiful presentation at the March Town Board meeting,” Garretson said.