Foundation Grant Provides Key Funding to Unify Hospitals

A $250,000 grant from The Schenectady Foundation will provide significant support to St. Clare's and Ellis Hospitals' efforts to create a single, stronger and more effective health care system for Schenectady County and surrounding communities, as mandated by New York State.

"We all see this as a positive opportunity for Schenectady County," said Robert A. Carreau, Foundation Administrator of The Schenectady Foundation. "Bringing these well-regarded institutions together should result in more efficient and effective health care services, and that is a great benefit to the community. The Foundation enthusiastically supports this effort to establish a financially stable combined system that delivers quality health care to the people in our community, on both the Ellis and St. Clare's campuses."

The Foundation's grant will be used to enable the complicated work of creating a unified governance structure. The New York State Department of Health has mandated that a binding agreement to unify be completed by the end of this year. The hospitals have estimated that joint costs to implement the unification will exceed $1 million.

"The Schenectady community and The Schenectady Foundation have been exceptionally generous in supporting the mission of our hospitals. We will continue to honor their confidence by working together to ensure that the very best in modern, compassionate care remains accessible to all the people of Schenectady," said Robert Perry, President and CEO of St. Clare's Hospital.

The Schenectady Foundation has previously provided funding to each hospital, including significant grants to Ellis Hospital for its Intensive Care Unit, Emergency Room renovations and the C.W. Carl Jr. Stroke Center; and to St. Clare's for a Diagnostic Imaging Center, computerized medication system and other capital fund drives.

Carreau emphasized that The Schenectady Foundation fully expects this latest grant to pay off in terms of future reduced costs and more efficient services. "The return on investment of a grant like this – the millions of dollars that can be saved by unifying the hospitals – is far in excess of any grant this Foundation could provide to help buy new equipment, renovate rooms or construct new facilities. It also reflects our commitment to meeting pressing needs in Schenectady County as well as investing in efforts that will have a lasting impact."

A steering committee formed by the Board of Directors of both hospitals has been working diligently to comply with the law enacted by the New York State Legislature requiring Ellis and St. Clare's to create a joint governance structure. The steering committee, composed of community and civic leaders who voluntarily serve on their respective hospital boards, as well as physicians and senior hospital staff, has been seeking advice from consultants for a more global perspective. The committee has developed a vision for the hospitals to work together while maintaining, and in some cases enhancing, all health care services currently provided in Schenectady County.

"The changes that New York State is requiring in health care present challenges for our hospitals and for our community, but we believe that by working together, we can create a stronger health care system that ensures a full range of services for the people who count on us for care, for generations to come," said Ellis Hospital President and CEO James Connolly.