GLOUCESTER, Mass. -- For more than 100 years, the 45,000 year-round residents of Gloucester and Cape Ann have relied on Addison Gilbert Hospital to take care of all their medical needs.

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Cape Ann And Gloucester Residents May Lose Their 100-Year-Old Hospital

NewsCenter 5's Amalia Barreda reported that after a 1995 merger with Beverly Hospital and Northeast Health Systems, Addison Gilbert had its maternity ward and its psychiatric services shut down. Most recently, a whole patient floor was closed.

The story about what is really happening is very different, depending on whom you talk to.

"The people who are really running Addison Gilbert into the ground are Northeast Health Systems," said Peg O'Malley, a nurse and member of Partners of the Addison Gilbert.

For years, O'Malley has been leading a citizen fight to undo the merger, gathering more than 4,000 petition signatures to support her cause. O'Malley alleges since the transfer of Addison Gilbert's assets to the new parent corporation, Beverly Hospital has used the money to expand itself.

"That money being taken away from Addison Gilbert and being used to make Beverly Hospital stronger is just plain wrong," said O'Malley.

"All assets have been utilized in strict accordance with the donor's wishes," said Pauline Pike of Northeast Health Systems.

"I think they're lying. I'm just that straight out with it," said Dr. Stanley Schwartz from Partners of the Addison Gilbert.

"People really hate change, particularly when it comes to healthcare," said Pike

Pike calls it unfortunate that more than two dozen Addison Gilbert doctors signed a letter to Northeast published in the Gloucester Daily Times. In it, the physicians complain...."our input has barely been sought, and when given it has been ignored." Northeast officials say it is because of doctors' complaints that the in-patient floor that was closed was re-opened despite an average daily patient census occupying only 23 out of 58 licensed beds.

Officials claim they are doing everything possible to keep a hospital in decline open and they dispute assertions that their intent was always to shut Addison Gilbert down.

"The trustees are working very hard to review every option for health care services right here on Cape Ann," Pike said.

Given Cape Ann's distance from Beverly, there is mounting concern among residents, should their worst fears come true about their century old hospital.

"What's going to happen to a cardiac patient, to a pregnant lady or any other disease. Even a diabetic. They're not going to be able to handle it," said O'Malley.