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Ellis-St. Peter’s: What partnership means for our community, an update

Wednesday, February 11, 2026

Ellis Medicine’s priority is simple: ensuring that high-quality health care remains available in Schenectady and surrounding communities for decades to come. Our ongoing partnership with St. Peter’s Health Partners is part of that effort.

Below you’ll find answers to common questions about the partnership, the progress already underway, and what would happen if a full merger is pursued. We continue to update this page as new information becomes available.

Q: Is this partnership new?

A: No. Ellis has been formally working with St. Peter’s Health Partners since 2022 under a Management Services Agreement. In that time, our collaboration has helped Ellis improve quality scores, strengthen physician and nurse recruitment, stabilize finances, and expand services.

Our work together has been productive, and it is positioning both organizations to evaluate a potential full merger—the intent being, we can build on that progress together.

Q: Why does Ellis need a partner?

A: Health care continues to change dramatically. Independent hospitals like Ellis face rising labor costs, unpredictable reimbursement, ever-changing and complex regulations, and declining inpatient volumes as surgeries shift to private, for-profit outpatient surgery centers.

Even in this environment, Ellis has made major financial progress in recent years, overcoming significant financial losses following the pandemic. Despite these gains, we are budgeting to break even in 2026. Breaking even is not enough to remain strong long term. Sustainable growth requires regional coordination, scale, and investment in facilities and technology. A merger provides that path forward.

Q: What improvements have already happened under the partnership?

A: Since working with St. Peter’s:

• Quality metrics have improved: Ellis achieved a major milestone in 2025 with an upgrade from 2 stars to 3 stars from the Centers for Medicare and Medicaid Services (CMS)
  • Additional quality metrics — including safety, readmissions, and patient experience — continue to trend upward.

• Physician and nurse recruitment and retention have strengthened
• Contract labor costs (e.g. traveling nurse expenses) have dropped significantly
• Ellis has launched or planned new growth initiatives in OB-GYN, primary care, oncology, and other specialty services

These gains reflect what collaboration makes possible.

Q: What about concerns related to a secular and Catholic organization coming together?

A: We understand why this is an important issue for some community members. If the merger proceeds, some services governed by the church’s Ethical and Religious Directives may be provided through other trusted providers in the region not affiliated with Ellis or St. Peter’s.

Ellis is actively working with community partners and state leaders to ensure patients have access to the care they need into the future. Our priority remains on preserving access to care — not reducing it.

Q: Has Ellis engaged with the community about this?

A: Yes. Ellis has met with community groups, elected officials, staff, and regional partners over several years to discuss the partnership and provide regular updates. We remain committed to transparency and will continue to share information as it becomes available.

Q: Why St. Peter’s? Were other partners considered?

A: Ellis explored multiple options over several years. At this time, St. Peter’s is the only organization that has demonstrated both the willingness and the capacity to invest in Ellis and sustaining care in Schenectady.

Q: Who decides whether the merger happens?

A: The proposed merger must be reviewed by New York State Department of Health and the Federal Trade Commission. This process ensures that access to care, public health impacts, and community needs are carefully evaluated before any decision is made.

Ellis Medicine | Newsroom

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All official communications regarding Ellis Medicine are arranged through the Communications Department. We look forward to working with members of the public and media organizations to provide accurate, up-to-date information about Ellis Medicine.

Contact:

Communications
Ellis Medicine
1101 Nott Street
Schenectady, NY 12308
518.232.9288