ALBANY COUNTY — The county announced Friday that a deal had been struck allowing for the creation of a coalition that will lower the healthcare costs of participating municipalities. 

But this is just the first step needed for six municipalities and three school districts that are considering being part of the consortium if, indeed, the costs turn out to be lower.

County spokeswoman Mary Rozak explained that the nine bodies — which locally includes Altamont, New Scotland, Guilderland, and the Berne-Knox-Westerlo Central School District — have signed on for further discussions, which is needed in order for the legislature to authorize the county to create the consortium. 

Having interested parties is essential to the process, Rozak said. 

Rozak explained the “municipalities [that] have signed onto the program” did so by opting into the consortium as part of the county’s broader shared services plan, which is an annual vote that each municipality conducts for the following year. “There are a number of other shared services,” Rozak said, like the county’s Stormwater Coalition, its shared information technology and cybersecurity services, and its records digitization.

Once a healthcare consortium plan is solidified, Rozak said, each participating municipality must pass its own resolution opting into the program.

When asked the reasoning behind New Scotland’s decision to sign on to the consortium, Supervisor Doug LaGrange said, “It’s the same as it’s always been: If they can offer us the same level of health coverage for an equal or lesser price — or better coverage for the same or less — that’s been the premise since this started … If they can deliver on that, we’re interested.”

But LaGrange reiterated Rozak’s earlier explanation of opting into the consortium, stating: Signing up essentially means we’re saying, “Yes, we’re still interested,” but it has to meet our expectations.

Altamont Mayor Kerry Dineen echoed LaGrange’s wait-and-see sentiment, adding that, “We have not had the opportunity to see their numbers or plans to consider joining the program. I anticipate we will do that in the near future to see if there is a cost savings for our Village.”

Long-in-the-works savings

The creation of a county health consortium would be one of the biggest cost savers that shared services offer, said Tom Cetrino of SUNY New Paltz’s Benjamin Center in 2018. 

At the time, it was estimated that a consortium of municipalities could yield $3 million in annual savings, which Cetrino said may be on the low side. Annual savings, Cetrino said, could be as much as $5 million to $6 million, but the plan’s architects wanted a conservative estimate.

But the 2018 consortium had a lot more buy-in with every municipality and school district in Albany County, save the village of Ravena and the school districts of Bethlehem, Guilderland, Menands, and Ravena-Coeymans-Selkirk signing on. Some of the schools already saw, and continue to see, savings through consortiums with other districts.

Asked about fewer municipalities and school districts looking to join the consortium, Rozak said, “We had a whole different world back in 2018,” referring in part to the world before COVID-19, but also said that there had been a “changing of the guard and that time has passed.”