Valle, Hayashi Set Course For A Battle Over St. Rose Hospital

ELECTION ‘12//ALCO SUPERVISOR DIST 2 | The fate of St. Rose Hospital may be entwined with Supervisor Richard Valle’s bid to retain his seat on the Alameda County Board of Supervisors this November. Following a decade on its Board of Directors, the hospital now sees itself teetering on the verge of bankruptcy. For Valle, its resolution could also be his greatest short-term accomplishment since replacing Nadia Lockyer on the board last June. Especially, if a suitable owner is found before Election Day.

With all of the Alameda County’s problems, from crime to high rates of obesity and under performing schools to high unemployment and underwater mortgages, the issue most likely to decide the Board of Supervisors District 2 race resides at a small community hospital just off Winton Avenue in Hayward.

However, the precipitous decline of St. Rose in the past year and not its potential for saving, for Assemblywoman Mary Hayashi, is quickly becoming a point of contention in this race, one of the most watched in the Bay Area.

On Friday in Hayward, Hayashi raised the issue of the county’s inability to manage the situation at St. Rose, which now includes Valle among its membership. “For over a year now, the county Board of Supervisors and Supervisor Wilma Chan has expressed strong concerns about St. Rose Hospital’s serious financial mismanagement that has cost Alameda County taxpayers millions of dollars and taxpayers need to see a strong plan for long term viability,” Hayashi said.

Earlier this year, the Board of Supervisors came down hard on former CEO Michael Mahoney for misleading the group about the hospital’s mounting debt. Alameda County Supervisor Keith Carson, at one point, said Mahoney lied to the board. Following the resignation of Mahoney, who is now reportedly working for Valle’s Union City non-profit recycling company, Tri-CED, a rescue plan for St. Rose including a short term infusion of $12 million was approved.

Funding for the hospital came from the county, Kaiser Permanente and nearby Washington Hospital, but Valle says Kaiser recently pulled up stakes on its $3 million contribution. “We are publicly asking Kaiser, at some point, if that $3 million is needed,” said Valle, “we want them to provide that grant to St. Rose because we sincerely believe they owe that to the community.”

There may be a significant amount of political ammunition available for Hayashi to use against Valle since St. Rose’s dire financial condition was publicly acknowledged in August 2011. As part of a brief flirtation with the nearby Eden Township Healthcare District, St. Rose obtained a $3 million loan to keep it afloat. However, in December, it nearly defaulted on its payments. Earlier this year, St. Rose publicly shopped the idea of merging its facility with San Leandro Hospital, but that plan withered as the Washington Township Health Care District hoped to merge with St. Rose. Hovering over both deals were discussions of Prime Healthcare swooping in to purchase the hospital, although, many at the time viewed the talk as opportunity to gain leverage by the St. Rose Board of Directors over the county. At times, in fact, it has appeared like nobody at any level of local government has a handle on resuscitating the hospital.

Valle blames St. Rose’s chronic struggles on the state of health care in the state and insurance providers, who typically ramp up hospital costs. He also said the board has kept its promise to the Catholic founders of St. Rose. “As health care has spun out of control, out of no fault of St. Rose, no control of the Board of Directors of St. Rose, we would up in a deficit situation because we cannot control–Blue cross, Blue Shield and all of those expensive health care providers,” says Valle. “That’s how we arrived at this situation. We kept our commitment to the sisters and did what the sisters wanted us to do and we continue to do that today.”

It would appear like Valle is playing with a losing hand by basing his campaign on St. Rose, unless the issue can be sufficiently resolved before election day. A sort of October Surprise, maybe? After Friday’s candidates forum in Hayward, Valle confirmed St. Rose Board of Directors are currently in discussion with Lex Reddy, a Southern California businessman with ties to Prime Health, a controversial health provider. Valle added talks between Reddy, who was once Prime’s CEO, are doing well. Recently, Reddy has been meeting with doctors, nurses, Teamsters associated with the hospital, Valle said. “From what I’m hearing, the hospital is beginning to know him and they’re beginning to know each other. So, I’m not hearing anything negative.”

Reddy’s connections to Prime and their controversial business practices such as terminating union contracts and relying on emergency room visits to boost profit margins have come under fire by health care experts who say the practice worsens the state’s overall function of health care. Valle, though, believes any potential deal with Reddy will be thoroughly vetted. “I have confidence in Kamala Harris,” he said. “The attorney general is going to do due diligence and the supervisors are going to weigh in,” said Valle. “There are a lot of eyes in that deal and I believe it is going to get consummated before the election.”

32 thoughts on “Valle, Hayashi Set Course For A Battle Over St. Rose Hospital

  1. Tried to use this place. Treated so badly regarding my health insurance which is Blue Cross. I guess they don't accept it. Clerk raised her voice to me in a condescending tone telling me IT IS YOUR FINANCIAL RESPONIBILITY! I guess I'll find out when I get yhe bill. Interesting place. Seems like the money collecting clerks are the ones in charge of everything. My mistake to go here because it was close and convenient. No use complaining they'll be out of business by the end of the year by the looks of thimgs.


  2. Lex Reddy 's to do list:
    1. Bring new and competent leaders to the C-Suite
    2. Fire all poor performing/incompetent managers. Abandon seniority favoritism. This has damaged St Rose operation for years. Here some suggestions
    – med /surg director
    – surgery director
    – quality dept manager
    – Vp of facility management
    – case management manager
    3. Bring good, competent and compassionate doctors who care about our patient
    population. Marciano is ineffective . All he cares is his own pocket. His dirty politics has alienated many good doctors from st rose


  3. Here's your story…how is it that the Attorney General's office still has not “approved” Reddy's appointment as CEO, yet he is parading around St. Rose Hospital, telling department heads that they need to lay off nurses and other key employees? Watch what you wish for St. Rose employees…you don't survive a $75,000,000 sinkhole without getting a lot of blood on a few hands! If they start cutting at the top, there's this concept called “The Trickle Down Effect!” Do your research before you play all hail to the new leader! Y'all loved Mahoney until he screwed you over!


  4. Mahoney still have Mariellen Faria at St Rose to protect and cover up all his illegal mismanagement. It's a common practice at St Rose for incompetent sons & daughters, friends to get hired and promoted. Most recent one is the Hiring/promotion of a 26 yr old as a Director.
    Mr Rex Reddy needs to get rid of these bozos hovering around him these days while assessing hospital's operation & financials.
    Mr Valle appears to be an opportunist that only cares about his own pocket and reputation at any price.


  5. Hayashi is 100% correct in stating St. Rose has been mismanaged. Mahoney had no clue what to do except hire his friends and give each other raises while the hospital was burning to the ground. St. Rose has stayed afloat all these years because of county funding and should stay a public not-for-profit hospital. Valle stated no one has objected to Reddy taking the hospital. I OBJECT Valle and so do most of the employees at St. Rose that NOBODY ASKS!!


  6. Hayashi is going to blame Valle for St Rose problems. Valle is not impressive when discussing St Rose- at his town hall he said he would rely on the Teamster vetting of Reddy. How about he and county staff investigate him? Hayashi of course did not nothing to help SL hospital. She's a big phony and needs to be stopped.


  7. I rather vote fro Mary Hayashi than Valle.
    The St. Rose Hospital is a big mess. I don't think Hayashi would have let it get that way, even if she shoplifted before.


  8. 9:47, thanks for the confirmation. Team Hayashi is clearly fully operational.
    Just like her legal team was when they declared her crime to be entirely caused by a brain tumor.

    No wait, lets give the exact quote of her lawyer, Douglass Rappaport, from January 6th, moments after leaving the courtroom and hugging Mary in front of the assembled press. He then walks to the microphones and says about the brain tumor,
    “there is no other reason she would have taken the merchandise”

    Of course, 6 months later, on July 21, Mary tells Josh Richmond of the Oakland Tribune, that the brain tumor had nothing to do with her shoplifting crime.
    She blames the lawyer for even suggesting such.
    (completely overlooking the January 9th statement from her, stating that her “medical condition” may have been the cause.)

    Mary, a classic manipulator, thinking the public will never keep track of her statements.


  9. Glad you love. Happy to call a 'spade a spade.'

    Like I said, no fan of the shoplifter. If she gets in, I lose my cushy job. I want to stay on the Valle gravy train. Otherwise, I'll be left at the station!


  10. 8:02, I love all this posts ending with items like
    “Hey, no fan of the shoplifter”…

    Kind of like wearing a badge saying “Hey, I'm probably really part of Hayashi's team”, trashing everyone, throwing up smoke, hoping she'll sneak in during the chaos.


  11. Rumor is cash-strapped St. Rose had to pay Mahoney a million dollar buyout. Then Valle turns around and hires Mahoney as CEO OF Tri-CED. Must be nice to misinform and still get paid top dollar!


  12. Gosh Miley, two folks from the same family, living off the taxpayers.
    You mean like Mary Hayashi and her husband Dennis?
    (a sweet $300,000 between them)

    Thus far Chris Miley hasn't been caught shoplifting.
    Seems he and Nate have learned how to live and dress without needing to swipe $1,000 pairs of leather pants to impress the common folks of the district.


  13. Chris Miley here. Please elect Richard so that I can keep my cushy job that pop first arranged with the Lockyers and then Valle. It's a big, bad world out there, and I don't want to have to actually look for a job and get hired based on my qualifications! Much easier to slack on the taxpayers' dime!!


  14. Richard Valley or Richard Valle – missed an opportunity to change his first name to simply “Rich” because he has gotten RICH off of the recycling fees in Union City. His salary as CEO of Tri-CED in 2005 was $122,769. By 2010, just 5 years later, his salary as CEO increased nearly 150% to $304,176.

    Who gives themselves a 150% salary increase in this economy to do the same damn job?

    How did Tri-CED afford the salary increase? Recycling fee increases that you paid for! Recycling fee hikes from Union City alone have increased 58% since 2007.

    He touts his work on St. Rose Hospital Board which oversaw the management of St. Rose Hospital. After Michael Mahoney was forced to resign after misleading the County Board of Supervisors about the cause of its dire finances and mismanagement of taxpayer loans and grants, RICH Valle thinks it’s a great idea to hire Michael Mahoney as the Interim CEO at Tri-CED.

    Really! RICH Valle watched Mahoney tank St. Rose Hospital, but thinks he should run Tri-CED? “You’re doing one heck of a job there, Mahoney!”

    Haven’t seen such bad decision making since George Bush!

    Of course there’s always a reason! Mahoney just happens to lead the government relations committee at the Hayward Chamber of Commerce – which provided RICH Valle with a sole endorsement. Talk about quid pro quo – here’s a job during your down time Mahoney, how about a little endorsement for me?

    Speaking of jobs – anyone notice that Supervisor Nate Miley’s son, Chris Miley, happened to get a promotion to Deputy Chief of Staff working for RICH Valle? Wonder if the promotion, and I’m sure salary increase, had anything to do with an endorsement from Nate Miley?

    NOW – RICH Valle wants to have the former CEO (former by a few months) of Prime Health to take over St. Rose Hospital. The SAME Prime Health under numerous investigations for Medicare fraud, violations of federal privacy rights of showing patient medical records to the press, and a history of union busting and price gouging. Look out Seniors!

    If this is the type of leadership and decision making RICH Valle extols now – heaven help us if he wins! Vote Mark Green or write-in Gail Steele


  15. BY MW:

    According to the last paragraph in this article, Valle has confidence in Kamala Harris. However I myself would trust the word of even Al Capone and Lucky Luciano to be honest and ethical before I would trust Kamala Harris.


  16. St. Rose Hospital is going to go down in bankruptcy without the support of a cash cow. Let's hold Lex Reddy's feet to the fire and hold him responsible to his word that he will run SRH as a community hospital without all of the baggage that hung onto Prime Health. He swears he is his own man with a different drummer, from what I hear from hospital employee meetings.


  17. Actually, anyone who knows Richard, as I do, is aware that his father was of German ancestry and mother Latina. It is a fact that he changed the spelling of his surname–long, long ago–to both reflect his maternal ethnic pride but also as a way to curry favor with the Hispanic vote. If you ask him this, about changing the spelling of his last name, he'll readily tell you so. Nothing to do with 'birther.' Just a different spelling; Barbra Streisand did the same with her first name, though for show business purposes.


  18. Let's hope the Reddy deal is a go. Change has to happen. By serving the poor and underinsured got us in the predicament we are in. Keeping the promise to the sisters look where it got us. If the sisters were committed then why did they bail on us
    Hopefully he'll clean house. Anyone associated with getting us in this predicament needs to go


  19. After reading 7:12, it looks like the “Obama birther” types are now working for Mary Hayashi's campaign.


  20. Valley, his German name before changing it to sound Hispanic, is reaping what he sewed. He couldn't wipe his behind with any promises he and St. Rose commit to paper. A used ass-wipe has more value than his word. As much as it pains me, either Green or the shoplifter would do a better job. What a $#%&* world we live in!


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