Charitable Trusts Unit Report Regarding North Country Healthcare, Inc.

Concord, NH - Attorney General John M. Formella announces that the New Hampshire Department of Justice Charitable Trusts Unit (CTU) has completed its review of North Country Healthcare, Inc. (NCH) and released the attached report.

In November 2025, the Charitable Trusts Unit (CTU) informed NCH that it was conducting a review into five areas: (1) the accuracy of information NCH provided regarding NCH's notice to patients about the termination of NCH's relationship with Dr. Elizabeth Cooley and NCH's recruitment efforts for primary care healthcare providers; (2) NCH's compliance with governing documents relative to proposed changes to the composition of affiliated hospital boards; (3) NCH's contracting process for revenue cycle management services; (4) the substantial turnover on the WMC Board; and (5) the NCH board's process in determining compensation for executive officers.

CTU found that NCH's governing board and management breached their fiduciary duties insofar as they failed to follow the appropriate bylaw process for terminating the employment of former WMC Affiliate President and in failing to recruit and appoint a full-time, permanent replacement WMC Affiliate President. CTU did not find legal violations as to the other issues reviewed.

CTU presented its findings to NCH, and NCH has agreed to abide by a series of CTU imposed requirements including the appointment of an Independent Board Governance Consultant to be chosen by the New Hampshire Department of Justice (DOJ). The Independent Consultant will oversee, among other duties, NCH's recruitment of new Weeks Medical Center (WMC) board members, public listening sessions over the next year to be held quarterly by NCH, and NCH's recruitment of a WMC Affiliate President. The Independent Consultant will provide DOJ with quarterly reports that will be posted on DOJ's website.

"Ongoing communication with stakeholders within our nonprofit healthcare systems, together with full compliance with charitable trust laws, is critical to maintaining public trust that decisions are being made in the best interests of the communities served," said Attorney General Formella. "NCH must work diligently with the Independent Board Consultant to prove to the North Country community that NCH is committed to improving relations with the affiliate boards and the community. We appreciate NCH's willingness to come to the table, and we stand ready to ensure compliance with the terms of this agreement."