Ellis Medicine says finances stabilizing, seeks merger with St. Peter’s to secure services including reproductive care access

Paul Milton, president and CEO of Ellis Medicine, told the Schenectady County Legislature’s Committee on Health, Housing and Human Services on May 2025 that Ellis is approaching a break-even financial position for the first time in five years and is pursuing a full merger with St. Peter’s Health Partners to ensure access to care and physician recruitment.

Milton said Ellis currently has about "21 days" cash on hand and expects the organization to reach break-even by the end of the calendar year. "We're working our way to a break even position this year, which will be the first time in 5 years," Milton said. He described Ellis as an approximately "$500,000,000 business" with about 70% of revenue tied to government payors ("50% is Medicare, primarily the seniors, and 20% is Medicaid").

Milton described a management relationship with St. Peter’s that began during the pandemic and said the ultimate goal is a full merger to provide scale for physician recruitment. "Physicians now coming out of some of the top residency programs...are looking for scale," Milton said, adding that St. Peter’s offers "good quality, good financial standing, and a good partner for us." He said Albany Med was not an option for prior discussions.

On reproductive services, Milton said that under a fully merged arrangement with the Catholic-affiliated partner there are limits defined by the partner’s ethical directives: "the only thing we would not be able to do would be abortions, a termination of a pregnancy." He said Ellis has a written agreement, dated to February 2020, with Planned Parenthood to provide access for about "50 terminations" that Ellis would not perform. Milton added that other women’s services, including tubal ligations and D&C procedures, would remain available and that revenue from any prohibited procedures would be gifted to a local nonprofit under the agreement he described.

Milton listed recruiting and workforce as ongoing challenges and described workforce initiatives tied to local education: the Belanger School of Nursing will graduate about 75 students this May, roughly 45% from Schenectady; a program called The Promise aims to recruit local high-school students into hospital careers; and partnerships with SUNY Schenectady are expanding. He also described community partnerships and programs: a Roswell Park oncology partnership now in its fourth year; mental-health urgent-care spaces at Ellis’s State Street outpatient site called the "family room" and the "living room"; and neighborhood outreach such as clergy breakfasts.

Milton warned of federal policy headwinds: prospective cuts to Medicaid matching funds, proposals for "site neutrality" in federal payment rates, and scrutiny of the 340B drug discount program. "Those are primarily the 3 things. Medicaid cuts, site neutrality, 340B are our headwinds going forward," he said.

In Q&A, legislators pressed Milton about specifics. When asked whether Bellevue Hospital would close, Milton replied there is "no plan to close Bellevue by any means" and described Bellevue as a core component of Ellis’s services and training programs. He confirmed the existing management services agreement places operational direction and liability with Ellis and that two St. Peter’s staff (a chief operating officer and a chief medical officer) are working under the management services agreement. Milton said a definitive certificate of need (CON) and related documents would be part of the public record when submitted to the state.

Milton sought legislative support for progress toward a merger while stressing continued local access: "Ellis cannot be be a stand alone hospital...it wouldn't be viable in the long run," he said. He asked the Legislature to support work to "stay focused on making sure that we serve this community and serve everyone to the best of our abilities."