Steward CEO Explains His Vacation At Olympics

By Colin A. YoungState House News ServiceSteward Health Care chief exeuctive officer Ralph de la Torre was on vacation two weeks ago when his company revealed that it planned to close two hospitals in Massachusetts, but he didn't have a hand in the decision or any say in the timing of the announcement, a spokesman for the embattled executive said Thursday..Steward announced July 26 that it did not receive any bids that could be approved in bankruptcy court for Carney Hospital in Dorchester or Nashoba Valley Medical Center in Ayer, and that the hospitals would close at the end of August, sooner than state rules generally allow. Boston Globe columnist Brian McGrory reported Wednesday night that de la Torre was in France — and specifically at the Olympic dressage events being held at the opulent Palace of Versailles — as Steward filed the court papers to make the hospital closures official..A spokesman for de la Torre told State House News Service on Thursday, August 8 that while the CEO was on vacation with his family at the time, he also was not involved in the closure decisions and announcement. Though he is chief executive officer of Steward, de la Torre is not part of the company's "transformation committee" that has, according to court documents, "the sole and exclusive authority" to make decisions about hospital sales or closures through the U.S. Bankruptcy Court process.."According to the terms of the bankruptcy, Dr. de la Torre does not have the authority to make decisions regarding sales or closures in the bankruptcy process, including the announcement that the bids for Carney and Nashoba were not acceptable and that the hospitals may be forced to close. In fact, this announcement was made in the course of the bankruptcy court proceedings, resulting at least in part from the Commonwealth of Massachusetts' refusal to offer its support to the debtors regarding the bids that were in fact received. These facts are clear in the court transcript," the de la Torre spokesman said in response to a question about the de la Torre's trip to the Olympics. "Because of his lack of authority around that decision, and the fact that he was not aware of the specific date it was going to be decided or announced, he was regrettably on a family vacation that was planned and paid for last year.".The spokesman added, "Despite what the press continues to say, Dr. de la Torre has been focused on managing the situation, and to the extent that the bankruptcy proceedings allow him to, keeping hospitals open and patients fully cared for.".The statement from de la Torre's personal spokesman provides even more confirmation that there were bids — though not viable ones — for Carney and Nashoba Valley and suggests that Massachusetts state government could have done something to make them viable. Kate Walsh, the state's Secretary of Health and Human Services, said on the day that Steward announced the facilities would be closing that the bids for Nashoba and Carney were not "deemed acceptable to Steward or their creditors.".State Senator Jamie Eldridge (D-Marlborough), whose constituents use Nashoba Valley Medical Center, told State House News Service on Thursday that "credible sources" in union, municipal, and health care circles have told him "there are legitimate bidders for Nashoba Valley but the message they keep getting is the administration is not truly interested in having these hospitals remain open, which I think is a complete outrage.".Eldridge said he was "pleading" for the governor to send the public message that the state is interested in bidders for Nashoba Valley and interested in "bridge funding to keep these hospitals open while potential negotiations could happen.".Patient volume has been declining at the Carney and Nashoba Valley Medical Center since Steward filed for bankruptcy in early May, as people have 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 out of 46 beds filled, Healey administration officials have said..The state senator contacted State House News Service after reading a State House News Service article in which Healey emphasized her focus on "saving five community hospitals" and ensuring that the state provide resources to displaced patients and workers if Carney and Nashoba Valley close..Steward is planning to lay off 753 workers at Carney and 490 at Nashoba on August 31, according to state filings the company made last week pursuant to the federal Worker Adjustment and Retraining Notification Act..A bankruptcy court judge is expected to hold a hearing Tuesday, August 13 related to the pending sales of Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton, St. Anne's Hospital in Fall River, St. Elizabeth's Hospital in Brighton, and Holy Family Hospital with campuses in Methuen and Haverhill..A lawyer for Steward said in court this week that "significant progress has been made in terms of both the commercial terms and the purchase agreements with respect to the sale of the hospital real property and operations to the bidders for the Massachusetts hospitals, each of which are high-quality local operators.".[Michael P. Norton contributed reporting.].New to NewBostonPost? Discover the difference with content that goes beyond the typical Massachusetts news outlets. Stay informed with news and commentary rooted in conservative values—for just $1 a week. Cancel anytime. Don’t wait—join now and see what you’ve been missing!

Steward CEO Explains His Vacation At Olympics

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