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Sunday, January 6, 2013

Former St. Rose CEO Received $1.2 Million Severance After Being Pushed Out

>>COUNTY FOUND FUNDING TO MEET PAYROLL AFTER MAHONEY’S EXIT
>>”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.

25 comments :

Dick Valley and Boss Mahoney, two crooks of the same stripe!

It should be noted that Valle was on the St. Rose Board of Directors while Mahoney was CEO there.

That's it I need to get out of this area. Corruptions wins. I give up. All school boards, city councils, chamber of commerce, all county hospital boards, state and city emplyee unions, teachers union, cops union, etc.. they are all corrupt.

Mahoney is and always has been a snake in the grass
Unbelievable he gets rewarded for running St Rose in the ground
Maybe Eden township should go after Mahoney for the million he borrowed

Correct above regarding Valle being on the St. Rose Board of Directors while Mahoney was at the helm. Mahoney is also a part of the Hayward Chamber of Commerce as was there when they allowed school board member Jesus Armas to grill prospective candidates for the board last fall during endorsement interviews.

the st rose board obviously screwed up and has not been held accountable. under these conditions, why did ETHD loan st rose $3 million? and county involvement, even that of miley and chan and others now under suspect-why did they loan or give st rose basically county money to continue operations as they had been and where is the hayward city council on this situation. is it time for da to get involved? tony santos

So Mahoney runs St Rose into the ground, tells county it's a computer glitch and once fixed they can repay, misrepresents the hospital's finances, forced out after hospital can't make payroll - county and ETHD loans hospital millions - Mahoney takes a $1.2 million golden parachute (our tax dollars), ETHD and county may not get repaid from this private hospital. If they forgive loan- gift of public funds, if hospital can't pay back, it will have to go bankrupt.

Meantime - Mahoney takes CEO Position of Tri-CED, a private non-profit mostly funded by trash rates of those living in Union City and Hayward.

Supervisor Valle's hands all over this. He is on the board of St. Rose knew or should have known the real finances, hires Mahoney to run Tri-CED, Mahoney secures chamber endorsements and possible continued compensation from Tri-CED. Is Supervisor Valle still getting paid from Tri-CED? Tony Santos is right - DA should get involved through a grand jury investigation.

Couldnt of said it better!!!

How can St. Rose pay Mahoney, if they are borrowing money for payroll.

I dont know how Mahoney can live with himself he
's a piece of shit

Wonder why the cost of healthcare is so high?

Try this at your job and see how quickly your out the door. Rob the poor and give to the rich. When are we going to learn?

The board f ed up, the c suite f ed up, past players like Mike Taylor and friends f ed up. They all slithered out, with their pocket books full and left the workers and innocent, dedicated staff to take the hit. One year before all this exploded - they mandated a 3 percent payroll deduction from each employee to "fund" the retirement plan, which we now know was in the black. The staff who were union fought it and didn't have to pay into that scam but the rest have had their money swiped right from their paycheck and wisked into a retirement account that is now frozen and probably will be taken over by the PBGC. How can any of thiS be legal??? It's all disgusting.

Get rid of all boards period. Abolish school boards, city councils, hospital boards, fire boards, water boards, transportation boards,..etc..
Too much corruption

By MW:

After screwing up virtually everything he touched, running the place into the ground, and destroying the hospital financially, they only gave him slightly over 1.2 million dollars as a going away present. That is disgraceful and the people who decided on such a small, piddling, insulting, and chintzy going away present for him should be ashamed of themselves.

For example if instead he had worked as a lawyer for Hewlett Packard and had authorized, approved, and presided over an illegal wiretapping program, undoubtedly the going away present they would have given him would have been many times as much.

And PG & E, and in honor of its various "safety" programs, and one of which resulted in several of its San Bruno customers being killed in a big explosion, fairly recently gave one of its high ranking executives a going away present of approx thirty four million dollars, and it has also awarded beyond outrageously high sums to some of its other bigshots for the "excellent" work, and including in regard to "safety," they have done.

So by comparison with a going away present of slightly less than 1.3 million dollars, Mahoney Baloney might barely even be able to afford baloney sandwiches. I hereby demand fairness and equity for Mahoney Baloney, and so that he will easily be able to afford filet mignon and lobster three meals a day and all seven days a week, and also a a different and fancy Rolls Royce for each of the seven days of the week.

In fact and still furthermore, I demand that we give him a still additional fifty million dollars on top of the just mentioned items, since we insulted him, and possibly also hurt his feelings, for having awarded him ONLY approx 1.3 million dollars for having screwed up and destroyed virtually everything he touched.

FAIRNESS AND JUSTICE FOR MAHONEY BALONEY

Mahoney should be sued by the city,county,and state to recover all the funds he stole from the hospital. Cal Morgage wants to replace one crook with another by hiring Lex "Luther" Reddy and all of his southern cal cronies.

I'll be sure to make a donation to the hospital foundation, they probably really need the cash now.

More unfounded attacks against community leaders.
You people don't realize that because rain makers like Hayward City Manger Armas and St Rose CEO Mahoney is what makes the community flourish. So give them a break as they did the best they could with what they had. Yes both did get paid a fair salary going out because they produced. Move on people.

Mahoney produced alot of lies and bull shit.

I am one of the employees who lost their job under new ownership. Yes, he ( Mahoney) caused a huge avalanche of screwing up the laid off employees' households as well as the hospital's books. Lex Reddy is out to cut more. My job was offshored to India to cut costs and he does not care if it takes several layers of QA to get the work back. Cheaper is not aways better, especially in patient care! From what I have read, yes, he is the only game in town but truly a shame for our community.

Sadly outsourcing seems to b the American way

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