St. Rose CEO Resigns As Hospital Searches For A Medical Miracle

Mar. 19, 2012 | The fight to keep St. Rose Hospital afloat will go on without Michael Mahoney. The Hayward hospital’s long-time chief executive offered his resignation last Friday, according to a hospital source.

Despite repeated efforts over the past nine months by Mahoney and the hospital’s board of directors to secure funding and support for keeping the struggling facility open, his ability had been severely questioned as of late by numerous county officials.

As Mahoney’s myriad number of plans had drifted aimlessly of late. Mahoney had asked the Eden Township Healthcare District for a $3 million loan last year before proposing a merger of both entities. Just weeks later, he proposed nearly the same plan to the nearby Washington Township Health Care District in Fremont.

His departure may have also been hastened by disclosure last week that it was Mahoney who first personally reached out to the villifed Prime Healthcare. Many in the county, including Alameda County Supervisor Wilma Chan, have publicly abhorred the inclusion of Prime as a potential suitor for St. Rose, if it were to descend into bankruptcy.

The writing may have also been on the wall last week when Alameda County Supervisor Keith Carson pointedly charged Mahoney with lying to the board of supervisors last year regarding the true health of St. Rose. During the board meeting, the county’s health care services agency had proposed adding county support to the Washington Township plan to rescue St. Rose.

The county approved $2 million in short-term funding Mar. 13 for the hospital. But, the chief turnaround officer appointed by the county to help St. Rose regain stability told the board of supervisors the facility would need nearly $18 million to sustain itself over the next 6 months. Even then, according to the officer, St. Rose would need a monthly subsidy of between $800,000 and $1 million in addition to the initial chunk of funding.

With the county coffers and patience, already stretched thin, it apparently became clear this weekend that the board of supervisors would only begin dealing with the growing St. Rose problem on their terms and starting without Mahoney at the helm of the sinking ship.

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