September 25, 2012 > Alecto to acquire St. Rose Hospital
Alecto to acquire St. Rose Hospital
Submitted By Renee Snyder
The St. Rose Hospital Board of Trustees decided, on September 17, 2012, to execute a letter of intent for the acquisition of St. Rose Hospital by Alecto Healthcare Services LLC.
"October 2012 marks the 50th Anniversary of St. Rose Hospital being a cherished part of the Hayward community but economic conditions and financial realities have put St. Rose at risk. The Board of Directors, in making this decision, relied heavily on two criteria: that St. Rose remains open and that the Mission remains intact. The Board is confident that we have met those criteria and we look forward to a future that continues the high quality of healthcare excellence, safety and compassion for which St. Rose is known," said Kathleen Streeter, Chair, Board of Trustees, St. Rose Hospital.
The proposed transaction includes a commitment by Alecto to keep the mission of St. Rose Hospital the same and to serve the ethnically and economically diverse community with integrity. The Hospital will continue to accept all forms of insurance including Commercial, Medicare, Medi-Cal and members of the community who are uninsured. The valued Medical Staff will remain open and independent as they are currently structured. Alecto has also committed to working collaboratively with employees, current labor unions and management to ensure the best quality patient care experience.
"We at St. Rose are delighted to see a solution to the hospital's challenges and look forward to continuing the mission of providing care to all who come through the hospital's doors," said Mak Nakayama, St. Rose Hospital's Interim President and Chief Executive Officer.
Alecto Healthcare Services LLC is newly formed and managed by President and CEO Lex Reddy. Mr. Reddy has more than 25 years of experience in the hospital industry and worked with more than 15 hospitals across California, each facing significant financial challenges upon acquisition. In each instance, Mr. Reddy improved the hospital's financial performance, ensuring that the hospital stayed open to the community in which it served.
"Alecto is keenly aware of the role St. Rose plays in providing top quality health care to Hayward and the surrounding communities and that its survival is essential to the continuity of care and well-being of all who look to the hospital for care", stated Reddy. "While each hospital has its own set of challenges, the solutions always involve a strong commitment to the hospital's employees, the physicians in the community and the patients whom we serve. That is also my commitment to St Rose Hospital and the Hayward community."