Steward Healthcare Chief Executive Officer Ralph de la Torre was on vacation two weeks ago when the company revealed plans to close two Massachusetts hospitals, but he was not involved in the decision and had no say in the timing of the announcement, a spokesman for the CEO in question said Thursday.
Steward announced July 26 that it had not received bids that could be approved in bankruptcy court for Kearney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer and would close both hospitals at the end of August, earlier than generally allowed under state rules. Boston Globe columnist Brian McGrory reported: On Wednesday night, de la Torre was in France attending the Olympic dressage events at the particularly lavish Palace of Versailles, when stewards filed court papers officially allowing the hospital to close.
A spokesman for De La Torre told the News Service on Thursday that he was on vacation with his family at the time and was not involved in the decision or announcement to close the hospital. Although De La Torre is Steward’s CEO, he is not a member of the company’s “transformation committee,” which has the “sole and exclusive authority” to decide whether to sell or close the hospital through the U.S. Bankruptcy Court process, according to court documents.
“Per the terms of the bankruptcy, Dr. de la Torre does not have the authority to make any decisions regarding sales or closures during the bankruptcy proceedings, including the announcement that the bids from Kearney and Nashoba were not accepted and the hospitals may be forced to close. In fact, that announcement was made during the course of the bankruptcy court proceedings and was due, at least in part, to the Commonwealth of Massachusetts’ refusal to assist the Debtors with respect to bids that were actually received. These facts are clear in the court record,” a spokesperson for de la Torre said in response to a question about the CEO’s Olympic trip. “Unfortunately, given that he did not have authority over that decision and was not aware of the specific date that it would be decided or announced, he was on a family vacation that had been planned and paid for last year.”
The spokesman added: “Despite what the media continues to say, Dr. de la Torre remains focused on managing the situation and has worked to keep the hospital running and patients well cared for for as long as the bankruptcy proceedings will allow.”
A statement from de la Torre’s personal spokesman further confirms that bids were made for Kearney and Nashoba Valley (although they were not viable) and suggests that the Massachusetts government could have done something to make them viable. Health and Human Services Secretary Kate Walsh said on the day Steward announced the facilities would close that the bids for Nashoba and Kearney “were not acceptable to Steward or its creditors.”
Sen. Jamie Eldridge, R-Marlboro, whose constituents serve Nashoba Valley Medical Center, told The News Service on Thursday that he’s heard from “reliable sources” in labor unions, local government and the medical community that “they keep getting the message that there are legitimate bidders in Nashoba Valley, but that the administration really has no interest in keeping these hospitals open. I think that’s an absolute outrage.”
Eldridge said he is “pleading” with Gov. Maura Healey to get the message out to the public that the state is interested in bidders for Nashoba Valley Hospital and is also interested in “bridge funding to keep these hospitals open while negotiations may take place.”
Since Steward filed for bankruptcy in early May, patient volumes have fallen at Kearney and Nashoba Valley Medical Center as patients seek care elsewhere. An average of 13 of Kearney’s 83 beds were filled in June, while an average of 11 of Nashoba’s 46 beds were filled, Healey administration officials said.
The senator contacted the news service, SHNS Article In it, Healey emphasized his focus on “saving five area hospitals” and ensuring the state provides resources for patients and staff who would be forced to evacuate if Kearney and Nashoba Valley hospitals were to close.
Steward plans to lay off 753 employees in Kearney and 490 employees in Nashoba effective Aug. 31, according to a state filing the company filed last week under the federal Worker Adjustment and Retraining Notification Act.
A bankruptcy court judge is scheduled to hold a hearing Tuesday on the proposed sale of Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton, St. Ann’s Hospital in Fall River, St. Elizabeth Hospital in Brighton and Holy Family Hospital, which has campuses in Methuen and Haverhill.
Steward’s lawyer He said in court this week “Significant progress has been made on both commercial terms and purchase agreements regarding the sale of the hospital real estate and operations to Massachusetts hospital bidders, all of which are high-quality local operators.”
Michael P. Norton contributed reporting.
