By Marion Davis
Contributing Writer
An R.I. Superior Court judge today authorized a special master to hire health-care industry experts from the Albany office of PricewaterhouseCoopers LLP to help him turn around Landmark Medical Center in Woonsocket and secure the community hospital’s future.
In the same order today, Judge Michael A. Silverstein appointed the interim special master – John N. Savage, a partner at Schechtman, Halperin and Savage LLP in Pawtucket – as permanent special master to oversee the operations of the hospital. Savage had been serving as the nonprofit’s temporary overseer since June 26 (READ MORE).
Per Silverstein’s order, Savage is to engage the Albany firm to help him assess the current state of Landmark’s operations, including its leadership structure, management, patient care and other core activities; financial and operational performance; and compliance with previously ordered corrective measures.
PricewaterhouseCoopers has worked with Landmark before; in March of last year, the hospital hired the firm to evaluate its operations after failing to meet a bond covenant in the fiscal year ending Sept. 30, 2006, and the firm made several specific recommendations for improvement in a consultant letter submitted two months later.
One of the Albany team’s tasks now will be to see how well Landmark has followed those recommendations. It also will assist Savage with identifying “other potential opportunities for operational and financial improvement,” according to a letter of engagement with Savage, and advise and assist him “with any affiliation or merger transaction” the hospital enters into.
Four experts from PricewaterhouseCoopers will work with Savage. The engagement letter does not list their specific hourly rates, but offers ranges by rank that indicate the cost will range from $325 to $355 per hour, for the most junior member of the team, to $545 to $640, for the two most senior members.
PricewaterhouseCoopers was chosen from among 27 candidates for the job. Silverstein himself evaluated the group and came up with six finalists, then brought in Savage; Dr. David R. Gifford, the state health director; and R.I. Assistant Attorney General Maureen G. Glynn, of the state Office of Health Care Advocate, to participate in interviews.
Earlier this week, Landmark’s CEO, Gary J. Gaube, announced that he would step down at the end of the year. (READ MORE) Until then, however, he will remain at the hospital and assist Savage in his work.
Landmark Medical Center – a division of the nonprofit Landmark Health Systems Inc. – is a regional hospital with specialties in cancer and cardiac care. Its cardiac program and emergency department are affiliated with Harvard Medical Faculty Physicians at Beth Israel Deaconess Medical Center in Boston. Additional information is available at www.LandmarkMedical.org.
For more information about PricewaterhouseCoopers LLP – a global accounting, human resources business consulting firm that has its U.S. headquarters in New York City – go to www.pwc.com.
