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Developer eyes Waltham hospital
by Jennifer Heldt Powell
Saturday, February 16, 2002
A Waltham developer has pledged $8 million of his own money and offered
to help raise an additional $10 million to help save Deaconess-Waltham
Hospital under a plan that has caught the attention of owner CareGroup
Inc.
Roy MacDowell, a developer credited with reviving the city's downtown,
said he would put up the money in exchange for the hospital property.
He plans to use some of the land for apartments, while leasing back
the hospital.
"It's not the best real estate deal I've ever done, but it's justifiable
to save the hospital," said MacDowell. He was born at the suburban
hospital, where about 1,200 people work.
CareGroup plans to close the 163-bed operation in April because of
annual losses that have mounted to about $9 million.
But doctors, community leaders and others have argued to keep it open.
MacDowell's plan, proposed to CareGroup by the Coalition to Save Waltham
Hospital, includes raising money from the city and state and setting
up a clinical partnership with New England Medical Center.
CareGroup and the coalition plan to hire a turnaround consultant to
spend the next two weeks evaluating whether the hospital can be saved
and what it will take.
Under the plan, MacDowell, who owns Boulder Capital LLC in Weston,
would put $5.5 million into the hospital's coffers for ongoing expenses.
CareGroup would get an additional $2 million to compensate for what
it would lose in keeping the hospital open for a few more months.
Another $500,000 would be spent to hire a consultant to develop a
turnaround plan.
In addition, the coalition hopes the city will put in $2 million as
a loan or grant and that the state will contribute up to $2 million.
MacDowell and others also plan to launch a capital campaign to raise
another $10 million for operating expenses.
A key component of the plan is a partnership with New England Medical
Center.
"We feel there are a lot of programs that could be enhanced at that
site,"
said Dr. Thomas O'Donnell, chief executive of NEMC. "I think there
is a lot of chance of improving revenue."
The unique deal was proposed earlier this week, but came together
only in the last few days.
"The future of health care in Massachusetts is represented by this
effort," said Ellen Lutch Bender, a Boston health care consultant
who has worked on the proposal. "We have to stand up and we have to
look at unusual combinations of organizations in a commitment to keep
health care in communities," she said.
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