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Local View From The Daily News Tribune

Bringing CareGroup to the table
By Jeanette McCarthy
Guest Columnist
Re-Printed From The Daily News Tribune January 29, 2002

We are all concerned with the announced closing of the Deaconess-Waltham Hospital. Should it close, It will be a tremendous medical, personal, and financial loss to the patients, employees, doctors, and the Waltham community.

I want to thank you, the other elected officials, the members of the coalition, the doctors, the staff, and the community members for their efforts to save the hospital.

As you are aware, the first issue that I raised to you previously was that there had to be some written agreement between CareGroup, Inc. and the Waltham Hospital when they merged. I thought it was important to have a copy of this agreement because it would spell out the rights and responsibilities of both CareGoup. Inc. and the Waltham Hospital. It might also have given us some direction as to how to or how not to proceed. Your contacts at the Secretary of State's office have expedited my request to locate any public documents regarding the merger.

There are two major assets involved: the "Hospital community" itself and the hospital's real estate.

CareGroup, Inc. "seems" to hold all of the cards. It is imperative, in my opinion, that all groups, i.e. elected officials, employees, coalition members, doctors, and the community work together to bring CareGroup, Inc. to the table.

Who will bring CareGroup, Inc. to the table? What will bring CareGroup, Inc. to the table? What leverage, if any, does each of these groups have to bring CareGroup, Inc. to the table?

State Elected Officials
1. Did CareGroup, Inc. fulfill its original agreement with the Waltham Hospital?

2. Did CareGroup, Inc. fulfill its responsibilities prior to filing notice of intent to close?

3. Has CareGroup, Inc., a nonprofit organization, fulfilled its statutory and fiduciary duties?

4. Have the financial records of CareGroup, Inc. been independently examined and audited?

5. Did CareGroup, Inc. do its best to obtain the maximum reimbursement rates from the government an insurance companies? Did it attract doctors to the Hospital?

6. In the process of procuring potential buyers, did CareGroup, Inc. act in good faith regarding making financial data available, disclosing any potential deed restrictions, leases, liens, etc.?

7. Did CareGroup, Inc. deal in good faith with all potential bidders or is it just going through the motions to dispose of the Waltham property and apply the proceeds of any sale to bailout the massive debts and alleged mismanagement of the parent organization on Longwood Avenue in Boston?

8. Why did CareGroup, Inc. decide not to file a Chapter 11 bankruptcy petition? The automatic stay provision of the bankruptcy code would allow the past debt to be put on hold as long as the Hospital could meet its current obligations. Hence, the hospital may have been able to remain open, allowing time to secure a qualified buyer and prepare a reorganization plan.

9. Has CareGroup, Inc. made any arrangements with other Hospitals to provide health care services for the community? When did these discussions begin?

10. Has CareGroup, Inc made any deals regarding the disposition of the Hospital's real estate? It has been reported in the newspaper that Brandeis University is very interested in the property. Is there any connection or relationship between CareGroup, Inc. and Brandeis?

11. Will the property continue to be used as a Hospital? If so, what type of Hospital will remain? What will happen to patient care and the employees?

The records of the Secretary of State indicate that the Waltham Hospital was chartered on March 20, 1886. Beginning in 1986, the corporation underwent several amendments and name changes. On February 1, 1996, the name of the corporation was changed to Deaconess-Waltham Hospital.

The Attorney General and Secretary of State have jurisdiction over non-profit organizations. It is imperative to collectively ask the attorney general and secretary of state to investigate the operation, efforts at sale, rejected bidders, closing, and the disposition of charitable assets. Seeking an injunction pending an investigation may also be a possibility.

City Elected Officials
An examination of public records at the Middlesex Registry of Deeds indicates that in one old deed dated December 19, 1900, the City of Waltham sold a large tract of land on Hope Avenue to the Waltham Hospital for $50. That deed contained a condition "that the land be used for Hospital purposes only."

1. Is this condition binding on CareGroup, Inc.?

2. Does the City own some of the parking lots?

9. What is the current zoning of the property?

4. Has the City committed any money? Several people have indicated to me that the City has promised to give money to the hospital. Today, I read in the newspaper that the City is studying formulas to match any money the state gives. Under what authority is this done? With this lead to a long-term solution?

6. What entity will the money be given to? CareGroup, Inc. or a committed new owner with a proven track record to guarantee the hospital's survival?

To date, the Waltham City Council has not been up dated on the City's rights, responsibilities or plans with respect to the Waltham Hospital

Doctors, Staff, Coalition
The records at the Registry of Deeds indicate that the hospital entered into a tong-term lease regarding the land upon which the doctors' medical office building was built.

1. What does CareGroup, Inc. intend to do about that lease?

2. What do the doctors intend to do?

The publicity and rallies have been very helpful in keeping the pressure on. Time is of the essence. With each passing day, patient care will suffer, as the hospital will lose employees and business. We cannot sit back and wait to play our own cards. When will we exert the leverage we have to get the main player to the table?

We owe it to our predecessors in the Waltham City Council, the Sanderson, Nichols, Amesbury and DeVincent families, and the countless others whose vision, determination, dedication, money, blood, sweat, and gifts of city land built the institution we know as the "Waltham Hospital" so it would provide medical care for all subsequent generations of Waltham residents.

What will the people of Waltham end up with?

We must use extraordinary measures, to reverse CareGroup's do not resuscitate order order on our hospital.

We must do everything possible to insure that Car Croup, Inc. does the right thing with the two valuable assets that were entrusted to it - our hospital community and its real estate.

Jeannette A. McCarthy, Councilor at large Councilor and former city solicitor McCarthy prepared the questions above for the City Council's special meeting on the hospital last night.


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