Bids close on BRMC property, Condo taxes remain unpaid
Published on October 27th, 1999
STONEHAM, MA - The Southern New England Conference Association of the Seventh-day Adventists, which led the Boston Regional Medical Center into Chapter 11 bankruptcy in Feb. 1999, owes $128,533.89 in back taxes to Stoneham.
The hospital owes millions to creditors including the town for a long list of loans and unpaid bills. But the property tax issue is relevant because rents are still being collected.
The Adventist organization under several names (New England Sanatarium, New England Sanatarium and Benevolent Association and Medteam Management Services, Inc.) owns 17 non-tax exempt units at 3 Woodland Road and the Medical Arts Building on a parcel abutting the hospital on 5 Woodland Road.
According to Dr. Wilson Horsley, an Adventist and ophthalmologist who continues to work on the hospital campus now in private practice, the removal of chief administrator Wolfgang Von Mack in 1990 was the beginning of the end.
Successive managers were a disaster (see story, page 1,) and, instantly following Von Mack's dismissal, the hospital could not fill the new 3 Woodland Road medical building. Half of the units were sold as condos, but the hospital retained ownership of the other units, which were subsequently rented to doctors separate from the hospital.
At times some of these medical practices would decide to work in conjunction with the hospital.
When they did, according to Stoneham Director of Assessments Elaine Moore, specific requests were made to the Office of the Assessors for tax exempt status. But Moore said this status was never made permanent to run with the property.
Rent has been flowing from these properties to groups under the Adventist umbrella, but tax payments to Stoneham have run dry.
What about the doctors?
For the doctors who own space in the 3 Woodland Road building the future is uncertain.
Dr. Horsley talks about a 99 year lease the building's owner — the defunct Boston Regional Medical Center — has with the town for the land. But the hospital is bankrupt, and the lease may be void.
"We don't know what's going to happen," Horsley said.
Messages left with the Southern New England Conference were not returned nor were inquiries made to the law offices of Riemer and Braunstein, attorneys for the hospital, and Hanify and King, attorneys for the creditors.
Most of the doctors remaining on Woodland Road have formed affiliations with other area hospitals, such as Winchester or the Hallmark Health group.
More problems for employees
Collection agencies are coming after former Boston Regional doctors and staff for unpaid medical bills. Sometime around January 1999 the hospital discontinued health benefit co-payments without letting employees know.
"We're all being sued," said Diana Gould, a former Boston Regional endowment official. "I was paying my half..."
Gould was part of a development team which raised more than $300,000 for the hospital.
(And..."We were asked to turn this money over before bankruptcy was declared, and it disappeared," Gould said.)
With all the money the hospital owes everyone it looks as if an everything-must-go approach may be taken to satisfy creditors. But if the doctors go, what happens to the people of Stoneham who depend on local healthcare?
A hope for the future
The Burlington based Gutierrez Company has been persistent in not naming any definite use for the 42 acre site.
Bids closed on Oct. 22, with a bid of $20 million from Gutierrez remaining the only offer.
Gutierrez has stated an intent to work with the town and has yet to make any request for zoning changes. The hospital property is currently zoned for hospital use only.
Doctors and prospective patients around town have expressed hope that another hospital will rise from the Boston Regional ashes.
But the dust has not yet settled as the Greater Boston Academy and Adventist church on the property challenge a bankruptcy court decision to liquidate them.
Subscribe and get Home Delivery of The Independent
Save 36% off the newstand price — that's like 18 FREE issues!