>>”Mahoney moved on to work for Tri CED, non-profit recycling center founded by Alameda County Supervisor Richard Valle.”
HEALTH CARE | Sometime in March 2012, the then-CEO of Hayward’s St. Rose Hospital saw the writing on the wall after two Alameda County supervisors slammed his stewardship of the safety net facility. A week later, he resigned, but not before collected a severance package worth over $1.2 million.

Details of Mahoney’s deal were not readily-known, however, the figure was disclosed in the asset purchase agreement offered by Alecto Health care Services to the St. Rose Board of Directors, which approved the deal last November, pending approval by the state’s attorney general. Alecto hopes to not absorb Mahoney’s severance package, according to its proposed purchase agreement.

Mahoney’s tenure at St. Rose began to sour in recent years as the hospital encountered many of the same problems other facilities in the state have grappled with. A low payer mix of uninsured patients and those relying on Medicare have made it increasingly difficult to run a financially healthy enterprise at St. Rose.

The extent of St. Rose’s demise, however, was not clearly expressed by Mahoney, according to Alameda County Supervisors Keith Carson and Wilma Chan, who in March 2012, sharply criticized his handling of the institution. At a supervisors meeting in March, Carson said Mahoney had lied about the hospital’s financial health, while the director of Alameda County Healthcare Services added it was Mahoney who personally reached out to the notorious Southern California health care operator, Prime Healthcare, a group many in the county had previously stated as unacceptable to run St. Rose, or any other East Bay facility. Mahoney resigned a week later, but not before the county scrambled to find money to keep St. Rose afloat.

While Mahoney eventually walked away with the large severance package, the county cobbled together $12 million in temporary funding for St. Rose to meet payroll and pay receivables to keep the facility in daily operation. Incidentally, Mahoney moved on to work for Tri CED, the Union City non-profit recycling center, founded by newly-elected Alameda County Supervisor Richard Valle, who was appointed last June to replace Nadia Lockyer in District 2.

St. Rose’s future, though, is still far from resolved; as it awaits approval from the state attorney general for Alecto’s purchase and even then some in the county are reticent the potential new owner will either flip the stripped down St. Rose or run it as a for-profit safety net hospital—two scenarios unlikely to provide a neat and final solution.