Middletown Community Health Center, which has been going through a period of turmoil, including the departure of CEO Theresa Butler, has hired Cornerstone Family HealthCare, a nonprofit, federally qualified medical provider with six locations in eastern Orange County, to be its management company for six months.
The announcement was made by Middletown Community Health Center’s interim CEO, Sybil Medina, in a letter to employees. The notification comes a little over a month after Butler, who was CEO for 12 years, departed. At an employee forum June 23, MCHC board member John Klassen said Newburgh-based Cornerstone had been asked to come in and look at MCHC’s finances, federal compliance and board leadership.
MCHC, which has a 40-year history as a safety net for its mostly low-income clientele, has struggled with its finances in recent months – leading to Butler’s departure and the June 23 employee forum. MCHC missed payroll and employees went without health insurance for a brief stretch, though their coverage was retroactively restored.
In her announcement, Medina said Cornerstone will be “providing operational and financial management oversight and providing best practices for us to implement as we continue our journey to financial stability and efficient operations.”
MCHC serves 13,200 annual patients, and it has nearly 200 employees. It operates at nine Orange County locations and one Pennsylvania office and had a $15 million annual budget as of 2014.
Besides operating as a Section 330 Federally Qualified Health Center, Cornerstone is also designated as operating in a medically underserved area, and serving a medically underserved population, its website says.