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St. Rose Hospital Transition

Hayward CA, September 17, 2012 — The St. Rose Hospital Board of Trustees made a decision to execute a letter of intent for the acquisition of St. Rose Hospital by Alecto Healthcare Services LLC. 

“October marks the 50th Anniversary of St. Rose Hospital being a cherished part of this 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 that St. Rose is known for,” 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.

Mak Nakayama, Interim President and Chief Executive Officer, stated: “We at St. Rose are delighted to see a solution to the hospital’s challenges, and are excitedly looking forward to continuing the mission of providing care to all who come through the hospital’s doors.”

Alecto Healthcare Services LLC is newly formed and managed by President and CEO Lex Reddy.  Mr. Reddy has over 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 was able to improve 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 Central County 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 Mr. 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 who we serve.  That is also my commitment to St. Rose Hospital and the community.”