Albany Med Health System First Choice 2030

By: Molly English-Bowers

It didn’t take long for newly named President and CEO Daniel T. Pickett III to begin transforming Albany Med Health System into his vision for the future. Pickett was appointed to the position in December 2025 and recently launched First Choice 2030.

“It’s very simple,” Pickett said of First Choice 2030. “It’s to be the first choice for patient experience, quality and clinical excellence.” The initiative will retain the System’s strengths while honing them to navigate the years ahead. “First Choice 2030 is about Albany Med continuing to be Albany Med and building on its history,” Pickett said. “It’s about positioning Albany Med Health System as the region’s trusted, connected and transformative academic health system.”

Albany Med Health System is the largest and only academic health system in northeastern New York and western New England. It includes Albany Medical Center, Albany Medical College, Columbia Memorial Health, Glens Falls Hospital, Saratoga Hospital, and Visiting Nurses.

It comprises 1,520 hospital beds, more than 900 physicians, and the region’s only Level 1 trauma center and children’s hospital. It is the Capital Region’s largest private employer with more than 16,000 employees and more than $6 billion in economic impact.

Pickett has been a part of the Albany Med Health System since 2012, serving on the boards of the Medical Center and Health System, including as the System Board chair.

“Our first focus is on what’s not going to change,” he said of the First Choice 2030 initiative. “Right now, we have four hospitals, a college, an outpatient practice, visiting nurses. We’ve got almost 1,000 doctors that operate across 100 different points of care. What’s not going to change is our passion for making sure we are operating as effectively as we can. “At the end of the day, if you’re focused on those things and doing them in an efficient way with increasing movement from volume to value, you’ll be a winner, and you’ll be first choice that’s what we’re working toward.”

Structured for Success

Albany Med Health System’s structure, including those 100 different points of care, ensures top-notch care. “We have three priorities,” said Pickett. “Patient experience, the quality and the clinical excellence.” Keeping those in mind, the system has been structured so that:

  • High-acuity specialty services are centered at Albany Medical Center Hospital.
  • Community hospitals, located in Glens Falls, Hudson and Saratoga Springs, provide strong local access and bring clinical specialization.
  • Patients can receive high-quality care very close to home, with seamless connection to Albany Medical Center when advanced or complex care is required.
  • Subspeciality programs are expanded based on regional demand and community need.

There always will be room for improvement to optimize patient satisfaction and outcomes. As part of introducing himself to staff, Pickett spent hours listening to their feedback about improving the quality of care throughout the Albany Med Health System.

“I’ve been to all of our communities,” he said. “I’ve talked with our team from the executive level right down to all the different places we support that provide care. My job is to help staff do more of what’s working and unblock the things that aren’t so they can do what they invested an incredible amount of time to do.”

When all these medical professionals work as a team, first-rate healthcare is the result. For example, Albany Med is the region’s only academic health system. That means the System cares for the most complex and high-risk patients, cases that other hospitals are not equipped to manage.

In addition, the demand for emergency services continues to grow in the Capital Region. As a result, Albany Medical Center Hospital is responding with plans to expand and enhance its adult trauma center. The project marks the first expansion of the hospital’s adult emergency department in 20 years.

“At the time of our last expansion, we saw an average of 57,000 patients per year,” said Denis Pauze, MD, chair of Albany Medical Center’s Department of Emergency Medicine. “Now, we are approaching 85,000. Growing our emergency department allows us to continue meeting that need for our patients, and the other hospitals who rely on us as well.”

Announced in July 2025, the $25 million project aims to add 7,000 square feet, increasing its footprint by nearly 25 percent and direct patient care space by 50 percent.

Albany Medical Center is the busiest trauma center in New York state, and the region’s only Level 1 adult and pediatric trauma center. The expansion project is expected to include:

  • More than 20 patient care rooms and an additional care zone for the most critically ill and complex patients, allowing for more seamless and appropriate care.
  • A redesigned triage area allowing faster assessment and prioritization of patients based on the severity of their conditions, resulting in enhanced patient safety.
  • An increase from two trauma bays to five, increasing capacity, improving efficiency, and enabling teams to concurrently treat multiple trauma patients.
  • Plans for dedicated geriatric care space.

Even before construction is complete, Albany Medical Center has implemented changes to care, including decreased wait times. “Not only are we growing to meet our mission—we continuously strive to improve upon how we deliver our mission,” said Jason Mouzakes, MD, president and CEO of Albany Medical Center Hospital. “Rethinking the blueprint for our emergency department and how patients move from arrival through discharge or hospital admission will allow us to transform the patient
experience.”

Other innovative changes to care delivery include a tiered triage response system deploying hospital-wide nurses and doctors during peak volumes, and a strengthened workforce through strategic recruitment and retention efforts with local nursing schools.

Farther north, Glens Falls Hospital’s Emergency Department will undergo its own expansion to  improve patient experience, patient flow, and patient outcomes. Construction is already underway to the Sheridan Emergency Department.

Enhancements include an additional 7,000 square feet, a dedicated CT scanner to help providers diagnose and treat patients faster and nearly double the number of rooms for the most seriously ill and behavioral health patients. Patients with more minor illnesses and injuries will have a dedicated treatment area, helping all patients receive the most efficient care possible.

“The Glens Falls Hospital Emergency Department is a truly invaluable regional resource, but in the three decades since the department was last renovated, the needs and expectations of patients—and the best practices and technologies of emergency medicine—have changed greatly,”said Paul Scimeca, president and CEO of Glens Falls Hospital. “This transformation will create the optimal physical space for our staff’s diagnostic and treatment expertise and skills while also enhancing our patients’ comfort, privacy, and personalized experience.”

Construction on both facilities is expected to be completed by the end of 2026.

Providing Pediatric Care

Albany Medical Center Hospital recognizes the importance of caring for children who are ill, at risk or in need of acute care. Albany Med operates the region’s only children’s hospital, pediatric emergency department, childhood cancer center, pediatric intensive care unit, and Level IV NICU.

Established in 1986, the Bernard & Millie Duker Children’s Hospital contains 125 beds devoted exclusively to the medical needs of patients under 18 years of age. It is the referral center for all seriously ill and injured children from 25 counties across upstate New York and western New England.

The children’s hospital is staffed by more than 140 physicians trained in 40 subspecialties, and more than 400 pediatric nurses, therapists, social workers, and child-life specialists. “The Bernard & Millie Duker Children’s Hospital, the region’s only children’s hospital, is a place we hope you never have to visit,” said Barbara E. Ostrov, MD, chief of service at the children’s hospital. “We take tremendous pride in knowing we are here in case your child should ever need world-class care, close to home.”

Implementing First Choice 2030 will require a leadership team well-versed in healthcare strategies. In January 2026, Tony James was named executive vice president of strategy, transformation, and corporate development.

“The Albany Med Health System is renowned in the Capital Region and beyond for its quality of care and the clinical expertise of its providers,” James said. “As the system continues to evolve and mature, I’m looking forward to developing and implementing strategies and solutions that will ensure we can continue to offer the highest quality and most efficient care to best serve the people of our communities and everyone who needs our services.”

In March, Jason Mouzakes, MD, was named president of Albany Medical Center Hospital. As such, he will oversee hospital operations, clinical strategy, workforce development, and quality and safety performance. He will be pivotal in advancing First Choice 2030.

“I am inspired every day by the talent, dedication and compassion of our teams,” Mouzakes said. “Together, we will advance First Choice 2030 by delivering exceptional quality, improving the patient and family experience, and ensuring access to the most advanced academic and specialty care for the communities we serve.”

The next step for First Choice 2030 is to align System hospitals around the new shared vision, mission, and strategy. That includes operating as one coordinated enterprise across all hospitals, while standardizing best practices in safety, quality, and patient experience.

For example, plans call for service line integration to improve referral pathways and connect patients with Albany Medical Center for complex and high-acuity care.

“Our goal is clear: To become the region’s trusted, connected and transformative academic health system — where excellence is measurable, access is seamless and alignment drives results,” Pickett said. 

From Service to Strategy Dr. Martin Stallone’s Path to Transforming Community Health

By: Kimberly Graf

A Lifelong Commitment to Service

For as long as he can remember, Dr. Martin “Marty” Stallone has held two unwavering truths: he wanted to be a physician, and he wanted to serve his country. Both were anchored by clear purpose.

At age 13, during recovery from routine orthopedic surgery, he recognized that his passions didn’t always mirror those of peers who spent much of their time playing video games. To thrive, he needed both physical activity and mental rigor—an early awareness that would shape the trajectory of his life. Growing up near the United States Military Academy at West Point, and inspired by his grandfather, a World War II veteran, Stallone was surrounded by examples of service, discipline, and purpose.

That sense of direction was reinforced at home. His parents supported him at every step, instilling the values that would guide him forward. Today, he credits his wife and six children as his “team.” “Nothing I’ve done has been solo,” he says, “and they are always by my side.”

Dr. Stallone pursued both callings through Cornell University’s Air Force ROTC program, earning his Bachelor of Science and beginning a lifelong commitment to service. He went on to earn both an MD and MBA simultaneously from the University of Pennsylvania, and later an MA in National Security Policy Studies from the U.S. Naval War College. He also serves as an Air Force Colonel and has been with the New York Air National Guard for more than 28 years, the past seven as the New York State Air Surgeon. These accomplishments reflect a career built on discipline, leadership, and a breadth of perspective informed by medicine, business, and service.

Building Expertise on the Front Lines

As his career evolved, Dr. Stallone stepped into health system leadership roles, including serving as a hospitalist, physician leader, and former health system CEO, gaining a broader view of how care is delivered and where it often breaks down. He saw firsthand the pressures facing providers, the operational realities behind clinical decisions, and the importance of aligning strategy with real-world practice.

That philosophy continues to guide him: collaboration is essential, and understanding the system from every angle is key to improving outcomes.

Joining CDPHP®

That belief ultimately led him to Capital District Physicians’ Health Plan, Inc. (CDPHP®), a regional, not-for-profit health plan based in Latham, NY, and founded more than 40 years ago by local physicians committed to doing what’s right for the community. Already familiar with – and impressed by – the organization’s long-standing focus on keeping patients at the center of care, Dr. Stallone saw an opportunity to help advance that mission even further.

“You have to understand providers, the community, payors, and the people doing the work,” he explains. “That’s how you design programs that truly make a difference. CDPHP already has a strong foundation; my hope is to help take it to the next level.”

On December 1, 2025, Dr. Stallone joined CDPHP as Executive Vice President and Chief Healthcare Services Officer, bringing with him a rare combination of clinical expertise, operational leadership, and mission-first thinking. In this role, he is responsible for shaping the organization’s healthcare delivery strategy, spanning clinical quality, data-driven program design, and pharmacy management – all with a singular goal: supporting providers and improving outcomes for the members and communities CDPHP serves.

Vision for Partnership and Innovation

At the core of his vision is partnership. Drawing on his experience as both a physician and a former health system CEO, Stallone sees collaboration as the most effective path forward in an increasingly complex healthcare environment. He designs practical, sustainable, and impactful programs by grounding his strategy in the real challenges facing the healthcare system, including rising costs.

His approach focuses on solutions – including care coordination, clinical quality initiatives, and innovative pharmacy programs – that make a measurable difference in care while balancing access, affordability and effectiveness.

Rooted in the Community

Equally central to his leadership is a strong sense of local responsibility. As an employee driven, member-focused, and physician-founded health plan, CDPHP is dedicated to keeping the community healthy, happy, safe, and secure. “Our employees are helping support the health of family, friends, and neighbors,” he says. “That connection matters.” For Dr. Stallone, impact is greatest when everyone involved in care understands and engages with the communities they serve.

Looking Ahead

Dr. Stallone refers to CDPHP as a “true collaborator,” with strong expertise in bringing together providers, health systems, and community partners. A key example of this commitment is the health plan’s integration with the region’s largest independent multi specialty medical practice. In 2022, CDPHP and Community Care Physicians took a bold step to transform care for thousands of Capital Region residents, creating a more seamless, coordinated experience for both patients and their providers.

Dr. Stallone’s focus is on creating pathways that strengthen these existing relationships, while also improving coordination and delivering measurable improvements in care – all while staying true to the CDPHP mission.

From a determined child recovering from surgery to a physician, military leader, and now healthcare executive, Dr. Stallone’s journey reflects a lifetime shaped by curiosity, commitment, and collaboration. Those same principles now guide his work at CDPHP as he looks to the future with a clear goal: building a healthcare system that supports members, engages communities, and collaborates with providers.

Your Practice, Their Investment: New York Confronts Private Equity in Healthcare

Natalia R. Beltre

Gregory T. Measer

To safeguard patient care from corporate interference in clinical decisionmaking, New York maintains one of the strictest corporate practice of medicine (“CPOM”) prohibitions in the United States. Under New York law, medical services may be provided only by licensed medical professionals, by professional entities that are owned and controlled exclusively by licensed medical professionals, or by hospitals and other entities expressly authorized under the Public Health Law.

Unlicensed investors typically structure their investments around these restrictions through the management service organization (“MSO”) – friendly professional corporation (“PC”) model. Under this arrangement, a PC contracts with an MSO to handle non-clinical and administrative functions in exchange for a management fee. Because the MSO never delivers clinical care and its fee is not tied to clinical services, investors can profit from the practice without triggering CPOM or fee-splitting prohibitions. Private equity firms have leveraged this model aggressively, investing more than one trillion dollars in healthcare transactions over the past decade.1 This surge of investment has sparked a wave of legislative responses across the country.

Effective this year, California codified its CPOM doctrine and also imposed new reporting obligations on MSOs, private equity groups, and hedge funds involved in material healthcare transactions. Legislators in Illinois, Indiana, Massachusetts, Minnesota, North Carolina, Oregon, Vermont and Washington have either introduced or passed similar bills, seeking to codify their own CPOM prohibitions, require notification of material transactions, or establish moratoriums on private equity investment in healthcare providers. 

New York was ahead of many of these states. In 2023, New York enacted its own Material Transactions Notification Law, requiring certain healthcare entities to notify the New York State Department of Health (the “DOH”) at least thirty days before the closing of any material transaction that would increase its in-state revenue by $25 million or more.

Most recently, New York State Senate Bill S8442 proposes to further codify New York’s CPOM doctrine and, in doing so, reshape the boundary between physician control and outside investment. While the bill’s stated purpose is to safeguard medical decision making from nonphysician interference, its practical effect would be to replace New York’s existing blanket prohibition on non-physician ownership with a statutory framework that, for the first time, permits unlicensed individuals and entities to collectively hold a minority ownership stake in PCs organized to practice medicine.

Under the proposed framework, physicians licensed in New York must hold the majority of each class of voting shares, constitute a majority of the board of directors, and serve in all officer positions except for the secretary and treasurer. These thresholds represent a floor, not a ceiling, as the bill authorizes the DOH to require that physicians hold more than a majority of voting shares and occupy more than a majority of board seats. The bill also amends Section 1508 of the Business Corporation Law to expressly provide that directors and officers of a medical PC “may include individuals who are not licensed to practice medicine in any state,” so long as the majority-physician requirements are satisfied and the president, chairperson of the board, and chief executive officer are licensed physicians.

These ownership concessions, however, come with governance restrictions that would directly affect MSO-PC arrangements. The bill prohibits a PC from transferring control over its “administrative, business, or clinical operations” unless it first executes a shareholder agreement for the benefit of its majority physician shareholders. It also limits the removal of directors and officers to a majority vote of shareholders or directors, or termination for cause (including breach of fiduciary duty, license revocation, fraud, or malfeasance). The bill further prohibits retaliation against licensees who report suspected legal violations to an MSO, a hospital, or a government authority, even if the disclosure violates a nondisclosure or non disparagement agreement. It also carves out exceptions for nonprofit corporations serving medically underserved populations, federally qualified health centers, and certain rural health clinics.

If S8442 becomes law, direct minority ownership may reduce investors’ reliance on the MSO model entirely in New York. Existing MSO-PC arrangements may need restructuring to comply with the new governance and shareholder agreement requirements. Ultimately, New York is one of many states confronting the role of private equity in healthcare, underscoring the importance of a state-by-state compliance strategy for medical practices and investors alike.

If you have questions about these developments, please contact Gregory T. Measer (gmeaser@lippes.com), Natalia R. Beltre (nbeltre@lippes.com), or another one of our qualified Health Care Practice Team members at Lippes Mathias LLP.

Source: Michael D. Goldhaber, Private Equity and Healthcare: Balancing Profit with Wellness, New York University’s Stern Center for Business and Human Rights 1, 6 (March 2026), https://bhr.stern.nyu. edu/wp content/uploads/2026/03/N UCBHR- PE-and Healthcare_Mar-10- FINAL-1.pdf