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Ellis, St. Peter's Announce Conclusion of Strategic Agreements
Friday, June 19, 2026
Schenectady, NY — Ellis Medicine and St. Peter’s Health Partners (SPHP), a member of Trinity Health, today announced that they have mutually agreed to discontinue exploration of a potential integration, and conclude their Management Services Agreement (MSA) and Professional Services Agreement (PSA).
Ellis and SPHP actively explored potential models and plans for integration, in support of their shared interest in sustainable care delivery. While that work was worthwhile, the Ellis Board of Trustees recognized that it has a fiduciary responsibility to reassess the market given the significant changes in healthcare since the original Letter of Intent was signed in 2020. As part of that process, Ellis initiated a formal Request for Proposal (RFP) to re-evaluate the market. After careful consideration, St. Peter's Health Partners chose not to participate in the RFP process, and both organizations have agreed to conclude their current agreements effective August 16, 2026, with a focus on a coordinated and orderly transition.
Much has changed in healthcare over the past six years. Broader industry changes have led healthcare organizations across the country to evaluate different approaches to long-term sustainability and growth. For SPHP, that has meant shifting strategic priorities to focus on expanding ambulatory and outpatient services.
Since 2020, Ellis Medicine and SPHP have worked closely to strengthen healthcare delivery in the region, achieving significant progress in financial performance, operational stability, and quality outcomes.
Together, the organizations:
- Strengthened key service lines, including cardiology, pulmonary and specialty care
- Advanced quality performance, including meeting Leapfrog and CMS Star rating goals
- Strengthened physician and nurse recruitment
- Stabilized operations, reinforcing Ellis Medicine’s role as a vital community provider
- Strengthened and stabilized Ellis Medicine’s financial performance
The decision reflects evolving strategic priorities on both sides and is not a reflection of the performance or success of the partnership, which has delivered measurable and meaningful results.
"We are proud of the work accomplished alongside St. Peter’s over the past several years," said Paul Milton, President and CEO of Ellis Medicine. "Together, we helped strengthen Ellis and improve care for the community we serve. While much has changed in healthcare since 2020, our commitment remains the same: ensuring long-term access to high-quality care for the people of this region. Our Board's responsibility is to evaluate the available options and determine the best path forward."
“Our partnership with Ellis Medicine produced significant, measurable progress in a challenging healthcare environment,” said Dr. Steven Hanks, President and CEO of St. Peter’s Health Partners. “Together, we enhanced quality outcomes, strengthened core service lines, and helped restore financial stability. We are proud of the role our teams played in supporting Ellis and the Schenectady community. As we move forward, SPHP will continue to focus on strategic investments that expand access, improve patient experience, and meet the evolving needs of the communities we serve.”
Commitment to Patients and Colleagues
Both organizations emphasized that:
- They will collaborate and coordinate to ensure continuity of care for patients in Schenectady and the surrounding communities.
- Providers and care teams will continue to deliver high-quality services.
- The transition will be carefully managed to ensure continuity.
- There are no plans to eliminate positions at this time. Over the next 60 days, SPHP will partner with Ellis to evaluate roles, prioritizing opportunities to retain and support our colleagues.
Looking Ahead
Ellis Medicine and SPHP remain committed to serving the Capital Region and strengthening access to high-quality care. Both organizations expressed appreciation for the collaboration and indicated openness to future partnership opportunities should alignment emerge.
Ellis Medicine | Newsroom
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Contact:
Communications
Ellis Medicine
1101 Nott Street
Schenectady, NY 12308
518.232.9288