IMO the powers that be of the ORDA board (aka the ole' boy network of hotel owners in LP) knew exactly what they were doing in getting the State to commit to host the Games. The goal of the Games for them and LP was to get the State to upgrade many of the Olympic Venues (Mt Van Ho Sliding, The Ski Jumps, etc) as that would insure to bring World Cup Events to the venues for years to come. And, because they own hotels in LP, they also knew that they would make big $$ on the games. They wanted to have the nostalgia of the "80 Games by shutting down Main St as their hotels are not in that zone.
They got their wish and are already reaping the benefits, as evidenced by the re-emergence of World Cup events now being held in LP.
Could the money have benefitted the Adirondack Medical Center much more, is an easy question. Does the Ole' Boy Network care, I highly doubt it