Gately earmarks $2M for hospital: Waltham mayor wants state to match funds; developer offers help
By Patrick Golden
Friday, February 8, 2002

WALTHAM, Mass.—Mayor David Gately has asked the City Council to approve a $2 million grant for Deaconess-Waltham Hospital, but only if the state matches the contribution.

Another bid to save the hospital from closing has come from a local developer who told city and hospital officials he's willing to make a significant financial investment, allegedly $2 million, toward keeping the hospital open, according to a hospital official.

But state officials cautioned getting the Legislature and governor to agree to a $2 million match is a shaky proposition.

"We are being pro-active in stepping forward with creative financing to save the community's hospital," said Gately.
The mayor wants to transfer about $1.2 million from unreserved funds and another $800,000 from accounts designated for undeveloped land acquisition, community and historical site preservation.

"There will be no expenditure of any city funds without a match from the state," said Gately.

Under the mayor's proposal, the city's portion would not have to be paid back. Since the mayor want to expend city funds to assist a private institution, the state Legislature's approval is needed.

The council could debate the matter Monday night, during its meeting in the Waltham High School cafeteria. The council has changed its venue so the members can attend the state Department of Public Health's hearing on the hospital's impending closure.

Local lawmakers said yesterday the state's deteriorating finance  will make a $2 million contribution to Deaconess-Waltham a tough sell on Beacon Hill.

"Getting a grant from the City of Waltham is a much more expeditious process than it is from the state," said state Rep. Peter Koutoujian, D-Newton, last night before the Coalition to Save Waltham Hospital.

The state had set aside $15 million in its current budget for distressed hospitals, but acting Gov. Jane Swift froze $13 million of that amount this week. The state has chipped in to help ailing hospitals, but that has been through loans and not grants.

Koutoujian said the State House would be more impressed if the  city agreed to spend its $2 million regardless of a state match. He added the lack of a recovery plan for the hospital is also likely to make the Legislature less receptive to approving financial help.

Gately said $4 million is needed to keep the hospital open past April 11, when its 90 day closure notice is set to expire. The mayor and the City Council last week asked the Legislature to approve legislation that forces the hospital to remain upon for 270 days. The mayor said $2 million from the city and a match from the state would buy the hospital more time.

State Rep. Tom Stanley, D-Waltham, agreed state help would not likely be made soon available. The state angle could be moot if the council doesn't agree to appropriate the $2 million requested by Gately. Stanley, who also serves as the council's president, said he wants to know more about the city's financial outlook before deciding whether or not granting $2 million to Deaconess-Waltham is a good plan.

State Sen. Susan Fargo, D-Lincoln, told the hospital coalition she's been lobbying Senate President Thomas Birmingham, D-Chelsea, to support a financial aid package for the hospital.

"It's a mess at the State House right now," she said, calling for the solicitation of financial held from the Rte. 128 business community.

The bid to raise the millions of dollars needed picked up this week with the arrival of a local developer who has reportedly committed $2 million toward a plan to save the hospital.

"There's a local businessman sticking his neck and wallet out as far as they will go," said Dr. William Mulroy, the hospital's chief of orthopedics.

Officials won't say publicly who the businessman is and insist an  plans are still in the conceptual stages.

"The amount of money we need to turn this thing around is staggering," said Mulroy.