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St. Clare's sued for overdue bills
Albany Med seeks $248,008 for staffing and lab services

By LAUREN STANFORTH, Staff writer
First published: Friday, January 25, 2008

SCHENECTADY -- Albany Medical Center Hospital and Albany Medical College are suing St. Clare's Hospital for $248,008, saying they're owed for medical staff and lab services provided to St. Clare's over a two-year period.
Representatives from the Albany sites said it's a routine bill collection. St. Clare's said other vendors have been more patient considering the Catholic hospital is millions of dollars in the red.
     
The complaint, filed on Jan. 7 in state Supreme Court in Schenectady County, said Albany Medical Center entered into an agreement with St. Clare's to provide medical personnel in exchange for payment of salary and fringe benefits for each month staff were provided.
Albany Med says St. Clare's made some payments but still owes $142,040 for services provided between August 2005 to June 2007 for what the complaint calls, "house officers," which are medical personnel.
Another $6,300 is being sought for consulting costs that St. Clare's was supposed to share with Albany Med. Albany Medical College is also seeking $99,668 for nonpayment for laboratory tests done for St. Clare's patients.
The complaint also references another $40,299 owed for lab services, but it's unclear if that is part of the $99,668.
St. Clare's spokeswoman Ceil Mack said the hospital worked out a payment schedule with Albany Med but was unable to meet it.
"Our bills do get paid, they simply take a long time to pay them," said Mack, referencing the hospital's continuing financial problems. St. Clare's posted a nearly $6 million deficit in 2007.
Mack said St. Clare's services to the uninsured and indigent population has made keeping up with bills difficult. "We're very fortunate that we are truly blessed that the vast majority of our vendors understand who and what St. Clare's does with the community," she said.
Stanley D. Russell, a lawyer representing Albany Medical Center, said the lawsuit is just a mechanism for bill collection. Russell didn't know if Albany Med is still providing such services for St. Clare's.
"It doesn't have to do with any major dispute between Albany and St. Clare's. It's a routine business matter," Russell said.
St. Clare's will soon be handing over operations to nearby Ellis Hospital, after the state Berger Commission ruled that Schenectady couldn't support two hospitals. The state Department of Health said it will give the hospitals $50 million, which will help offset St. Clare's $28.5 million pension deficit and assist in merger costs.