Memorial Hospital saga continues… Attorney General Neronha steps back in

In a stunning example of investigative journalism, the Boston Globe’s Amanda Milkovits, has detailed in a series of front page reports, the involvement of Rhode Island entrepreneur, Michael Mota in several Rhode Island projects – the most recent, and most stunning, that of Memorial Hospital. The articles which have come one after the other filled with fact, pebbled with Mota’s own acknowledgements, and as quoted by Milkovits in her last story, “people are going on the record” regaling the reporter with deals gone bad, and Mota slipping away from any legal entanglement. The articles connect storied claims of money owed, deals misrepresented, and narcissistic revelations of how to protect yourself by forming LLCs to keep personal assets in the shadows when involved in “iffy” deals, so you maintain your home and assets.

Most recently, Housing Director Stefan Pryor has said “all ideas were on the table” regarding Memorial Hospital and its use to house the homeless – following an initial plan for Lockwood Developments to convert part of the hospital campus to housing and services for veterans in need. It appears as no development of any kind ever happened on the campus.

The slow demise of Memorial Hospital

It began with the closure of maternity services – then the emergency department – and in fast succession, inpatient services. Care New England’s ownership issued this statement to the community at that time:

“CARE NEW ENGLAND IS COMMITTED TO SERVING PATIENTS AND MEETING COMMUNITY NEEDS IN THE BLACKSTONE VALLEY. That commitment is not ending with the closure of inpatient and emergency services. It endures as we seek to reshape the future of health care both in this region and throughout the state, and ensure unrestricted access to needed services for the patients and families of the Memorial service area.”

A primary care clinic stayed at back buildings to the rear of the campus. Sophisticated, in-hospital tests were taken not to the closest hospital to the patient – but to Kent Hospital, the closest general hospital owned by the Care New England system. Patients had the right to insist on more local testing – such as is available in Lifespan facilities on School Street 2 blocks away, but only if they knew they could request that. In the early days, Memorial Hospital records did not communicate with Care New England records, leaving faxing going on in medical offices.

In a 2018 analysis of the demise of the hospital, a Providence Journal article noted: “The financial decline accelerated after mismanagement by Care New England after they acquired the hospital in 2013. This was worsened by the creation of new ambulatory CNE practices within the traditional catchment area of MHRI that funneled patients away from Memorial and to CNE’s other member hospitals. This enabled CNE to create a situation in which patient volume decreased at Memorial Hospital, which in turn could be used as an excuse to further downsize. In the summer of 2016, the maternity ward was closed. The hospital’s intensive care unit was closed in December 2017 and its emergency room was closed on January 1, 2018.”

Memorial Hospital Foundation – for the people of Pawtucket and the Blackstone Valley

When Memorial Hospital was first closed and Care New England took over its assets, still running a primary care clinic in the rear of the campus, there was an issue of an existing charitable foundation established by the founders of the hospital and how it would be dispersed. The hospital was founded in 1894 and closed, effectively, in 2018.

In 2018, the Memorial Hospital Foundation had assets of just over $2 million. By 2019 all assets had been transferred to “The Memorial Hospital” – now under the ownership of Care New England.

The foundation was to be used for the benefit of the health of local residents of Pawtucket and the Blackstone Valley. In 2021 Pawtucket Mayor Grebien formed a committee and issued an RFP for applications to benefit the health of area residents. The Mayor’s office has not responded to the next steps of this committee or if any grants were ever made.

Efforts to find out what happened to the $2+ million balance after the nonprofit was transferred to the hospital owned by CNE have been repeatedly responded to that they cannot find the information but they are “working on it”. Queries to Pawtucket Mayor Grebien’s office if the city knew what happened to the foundation have had the same response.

RI Attorney General Neronha moves to intervene

In a release from the AG’s office on March 31, 2023:

Office of the Attorney General Moves to Intervene in Proposed Memorial Hospital Development

Today Attorney General Peter F. Neronha moved to intervene as an interested party in a matter related to the ongoing and proposed development of Memorial Hospital. A court order on November 12, 2020, permitted Lockwood or its designee to purchase a portion of the Memorial Hospital property, subject to specific and binding conditions. One of those conditions was that the property was not to be conveyed without express permission of the Attorney General. Because a foreclosure proceeding potentially involves conveyance of the property, the Attorney General has now moved to intervene in that proceeding. This is an ongoing matter and the Attorney General will work to ensure that not only the law, but the public interest, are protected.

This is a developing story