NEW YORK, NY (April 22, 2025) — New York Attorney General Letitia James announced a landmark settlement with Westchester County Health Care Corporation (WMC) and HealthAlliance, Inc., collectively known as WMCHealth, to improve mental health care in the Hudson Valley. The agreement addresses inadequate treatment of patients in mental health crises at three WMCHealth hospitals: Westchester Medical Center in Valhalla, MidHudson Regional Hospital in Poughkeepsie, and HealthAlliance Hospital in Kingston.
An investigation by the Office of the Attorney General found that the hospitals discharged patients without proper mental health crisis evaluation or stabilization and kept inpatient psychiatric beds closed for years. WMCHealth must now restore these beds, closed during the COVID-19 pandemic, and reform emergency room practices.
“For too long, vulnerable New Yorkers experiencing mental health or substance use crises have been met with inadequate care when they went to an emergency room for help,” James said. “Mental health care is medical care, and mental health crises must be treated as the emergencies they are.”
The settlement, the first of its kind in the nation, addresses violations of the Emergency Medical Treatment and Labor Act, requiring hospitals to screen and stabilize patients with emergency conditions. The investigation revealed issues such as discharging patients with active suicidal ideation without proper stabilization, improperly medicating agitated children, and failing to prevent patients from leaving before discharge, leading to tragedies.
Examples include an adolescent, recently suicidal and recommended for inpatient care, discharged without proper monitoring; a teenager in distress restrained, medicated, and discharged quickly without adequate stabilization; and a patient under monitoring who left the hospital unsupervised and passed away shortly after. The investigation also found that HealthAlliance Hospital kept a 40-bed psychiatric unit closed long after COVID-19 needs subsided, forcing patients to travel up to 90 minutes for care. A WMCHealth nurse testified in 2022 that this closure “eliminated all in-patient psych beds in Ulster County,” leaving patients stuck in emergency rooms for days.
WMCHealth reopened 20 beds at HealthAlliance in December 2024 and plans to add 20 more at MidHudson Regional Hospital. The settlement prohibits closing these beds for three years and mandates improved emergency room screenings, discharge plans, and new protocols for restraints and medication use, particularly for children.
In response, WMCHealth issued a statement: “We strive to provide the highest level of care to every patient who comes through our doors. As the largest provider of inpatient psychiatric services in the Hudson Valley, this treatment is often under difficult and complex circumstances. At a time when most other healthcare organizations in the region have shifted away from investing in psychiatric care and behavioral health, WMCHealth has remained unwavering in our commitment to meeting the needs of patients across our communities. This commitment includes strengthening and expanding behavioral health services across our Network. Any adjustments to the services we provide are always made in consultation and coordination with the appropriate state regulators. Recent examples include the completion of our new inpatient psychiatric unit at HealthAlliance Hospital and our plans to permanently expand inpatient psychiatric beds at MidHudson Regional Hospital as part of our forthcoming Behavioral Health Center of Excellence. Our Network annually treats more than 200,000 patients in emergency departments across our hospitals. Our goal is always to provide the highest quality care for every patient and take immediate action to address any situation where our standard of care has not been met. We also implement any necessary process improvements or operational changes to prevent future issues. We’re pleased to have resolved this matter so we can continue to focus on meeting the diverse healthcare needs of our community.”
“Children experiencing serious psychiatric distress were put in danger by inadequate hospital protocol and procedures,” said Ron Richter, CEO of JCCA. “Now, thanks to Attorney General James, the children in our care and many others in Westchester will be able to get the emergency care they need.”
WMCHealth will pay $400,000 in penalties and fees, face $10,000 per violation for non-compliance, and invest in new behavioral health services, such as peer counselors and post-discharge follow-up calls for at-risk patients.
“This settlement acknowledges the real harm caused by fragmented care and creates a powerful opportunity to reimagine emergency departments as compassionate, clinically competent entry points to healing,” said Stephanie Marquesano, founder of The Harris Project.
Westchester County Executive Ken Jenkins thanked James, noting, “Ultimately, this settlement means that vulnerable patients who are admitted will not be put at risk or discharged prematurely without adequate mental health crisis intervention.”
The settlement was handled by Assistant Attorney General Michael Reisman and Assistant Attorney General Gina Bull, under Health Care Bureau Chief Sudarsana Srinivasan, within the Division for Social Justice.