Letters between Kilmartin, Steward CEO leaked to media

LETTERS regarding the sale of Landmark Medical Center to Steward Health Care were leaked to the media on Monday.
Posted 8/21/12

PROVIDENCE – The pending sale of Landmark Medical Center in Woonsocket to Steward Health Care of Boston took another strange twist on Monday with the leak of private correspondence between Dr. Ralph de la Torres, chairman and CEO of Steward, and R.I. Attorney General Peter F. Kilmartin.

The letters revealed details of private negotiations between Steward and Blue Cross & Blue Shield of Rhode Island that Kilmartin’s office was attempting to facilitate regarding the ongoing contract dispute between the hospital system and the health insurer. Kilmartin’s office was trying to solve the contract dispute outside of the receivership under the jurisdiction of Superior Court Judge Michael A. Silverstein.

The contract dispute is not a condition under the pending asset purchase agreement, according to the parties involved.

At Kilmartin’s request, Steward and Blue Cross met in negotiation sessions in Providence on July 30 and again on Aug. 6, according to the letters, which were leaked to WPRI and published on the station’s website Monday evening.

In a letter dated Aug. 3, Kilmartin wrote to de la Torres and Blue Cross president and CEO Peter Andruszkiewicz saying: “After a week of fits, starts and posturing, it is the observation of this office that both parties have arrived at a position whereupon a true negotiation is underway, albeit belatedly.”

Kilmartin went on in this letter to claim: “It would be irresponsible of me not to state not only what I know and expect, but also what I believe each of you know and, rightfully, cannot state. Failure to create a contract is not an option for either of you or your respective organizations.”

Further, Kilmartin said that both companies “stood to lose professionally in both the short and long term.” Kilmartin warned of potential negative consequences, but added that this should not be interpreted as a “threat” from his office.

However, the Aug. 6 negotiations proved to be disastrous, with Steward’s team walking out on orders from de la Torres.

In an Aug. 7 letter from Kilmartin to de la Torres, Kilmartin detailed a description, from his staff’s opinion, of what occurred in relationship to Steward’s decision to walk out of the negotiations meeting. Kilmartin went on to remind de la Torres of the Aug. 31 deadline to conclude the sale of Landmark, saying that “time is of the essence.”

Next Page
PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News