CEO of bankrupt Steward Health Care was at Paris Olympics as hospital closure announced
Steward Health Care CEO Ralph de la Torre was on vacation two weeks ago when his company revealed it planned to close two hospitals in Massachusetts, but he did not participate in the decision or comment on the timing. of publication. the spokesperson of the concerned president said Thursday.
Steward announced on July 26 that it could not find bids acceptable in bankruptcy court for Carney Hospital in Dorchester or Nashoba Valley Medical Center in Ayer, and that the hospitals will close by the end of August, sooner than state law allows. in general. Boston Globe reporter Brian McGrory reported Wednesday night that de la Torre was in France — and specifically at the Olympic dressage events held at the Palace of Versailles — when Steward filed court papers to make that the closure of the hospital be legal.
A spokesman for de la Torre told the News Service on Thursday that while the CEO was on vacation with his family at the time, he was not involved in the closing and announcement decisions. Although he is the CEO of Steward, de la Torre is not part of the company’s “transition committee” which, according to court documents, “has the sole exclusive authority” to make decisions about the sale of hospital or foreclosure through US Bankruptcy Court proceedings.
“According to the terms of the bankruptcy, Dr. de la Torre does not have the authority to make decisions regarding the sale or closing of the financial operation, including the declaration that the requests of Carney and Nashoba are not acceptable and that hospitals may be forced to close In fact, this announcement was made during bankruptcy court proceedings, which resulted in the refusal of the Commonwealth of Massachusetts to provide its support to the debtors regarding the requests that were accepted are clear in the text of the court,” the spokesman for de la Torre said in response to a question about the CEO’s trip to the Olympics. “Due to his lack of control over the decision, and the fact that he did not know the exact date on which the decision would be made or announced, he was unfortunately on leave. of the family that was planned and paid last year.”
The spokesperson added, “Despite what the media has been saying, Dr. de la Torre is focused on managing the situation, and to the extent that bankruptcy cases allow him, to keep hospitals open and patients fully cared for.”
A statement from de la Torre’s personal representative provides further confirmation that there have been requests – albeit unsuccessful – for Carney and Nashoba Valley and suggests that the state of Massachusetts is you should have done something to make them work. Health and Human Services Secretary Kate Walsh said the day Steward announced the facilities would close that Nashoba and Carney’s requests were not “considered acceptable to Steward or the creditors.”
Sen. Jamie Eldridge of Marlborough, whose members use Nashoba Valley Medical Center, told the News Service on Thursday that “reliable sources” in the union, municipal and health care organizations told him “there are representatives of law in Nashoba Valley but the message they keep. To find that the administration has no real interest in keeping these hospitals open, I think is an absolute outrage.”
Eldridge said he “begged” Gov. Maura Healey to send a public message that the state is interested in Nashoba Valley consumers and is interested in “bridge funding to keep these hospitals open while potential negotiations take place.”
Patient volume has been declining at Carney and Nashoba Valley Medical Center since Steward filed for bankruptcy in early May, as people sought care at non-Steward hospitals. In June, an average of 13 of Carney’s 83 medical beds were filled and Nashoba had an average of 11 of 46 beds filled, Healey administration officials said.
The senator contacted the News Service after reading an article by SHNS in which Healey emphasized his desire to “save five public hospitals” and ensure that the government provides resources to displaced patients and workers if Carney and Nashoba Valley are closing.
Steward plans to cut 753 Carney and 490 Nashoba jobs in Aug. 31, according to government reports the company made last week in accordance with the Federal Worker Adjustment and Retraining Notification Act.
A bankruptcy court judge is expected to hold a hearing Tuesday on the pending sale of Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton, St. Anne in Fall River, St. Elizabeth in Brighton, and Holy Family Hospital with campuses in Methuen and Haverhill.
Steward’s attorney said in court this week that “significant progress has been made toward commercial terms and purchase agreements regarding the sale of real hospital assets and operations to Massachusetts hospital customers, which every one of them is a local high-level worker.”
Michael P. Norton contributed reporting.
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