Most officials praised Auburn Memorial Hospital for taking a proactive step to put itself back on track, but some have a few concerns.

Cayuga County Legislator Dave Pappert lauded the hospital's Board of Trustees for filing Chapter 11 bankruptcy to improve the facility's future financial standing and said the legislature supports the decision to restructure.

Pappert stated in a press release the voluntary move was a necessary one as part of a “successful turnaround” from the debt accumulated during 2004-2006 fiscal years.

State Sen. Michael Nozzolio said the board has kept him informed every step of the way.

“(Board President Robert) Bergan has reached out to me. I've heard more from (the board) in the last year than the past 10 years, total,” Nozzolio said.

He sees the restructuring plan as a positive step towards a healthy future. Nozzolio has obtained nearly $6 million in the past 13 months for the hospital between grants and most recently, $500,000 in the state budget. Tuesday's announcement does not jeopardize this funding.

The board also told Herb Marshall the restructuring plan was the best solution to stop the bleeding, such as the $13 million the hospital owes in pension funds, he said.

“I don't know enough to say it's not the right way. I hope this ends up (well),” Marshall said.

The hospital “desperately, absolutely” needed to take action to ensure it can operate in the black, Marshall said. He sat on the committee that determined what regional hospitals would close. He also twice served as Cayuga County Legislature chair.

However, he's concerned about the stigma attached to organizations that file bankruptcy, especially when the hospital begins seeking medical personnel.

“I think they had to do something to resolve the pension problem, but I thought there was a possibility in doing it another way,” Marshall said.

Assemblyman Gary Finch also pointed to the millions the hospital owes in pensions as one issue needing focus. Both those employees working and retired need to know they will receive pensions when they retire, Finch said.

“I've been assured by the board this is the only move to be able to continue to operate this institution and I am optimistic that these projections are accurate,” he said.

Nozzolio said the management team's leadership will lead the hospital to financial success.

“AMH is an essential ingredient in the community. We can not afford for the hospital to fail,” Nozzolio said.

Both Marshall and Finch said groups and municipalities have to work together to make sure the community will not lose the central facility.

Auburn Mayor Timothy Lattimore wants to install an incentive plan that would keep employees spending money at Auburn Memorial Hospital.

“Well, we knew this was a possibility,” Lattimore said about the bankruptcy claim. The restructuring plan won't affect the plan to hire a consultant to forge an agreement between the municipality and the facility, he added.

“I think it's even more important with the news to capture the medical dollars the taxpayers pay,” Lattimore said.

Finch agrees the area needs a hospital, particularly to encourage economic growth in Auburn and surrounding towns.

The 700 to 800 employees need to know they have a stable workplace.

“So if reconstruction means it can continue to offer quality care, keep people working, I support that 100 percent,” Finch said.

Staff writer Jessica Soule can be reached at 253-5311, ext 267 or jessica.soule@lee.net