By Mark Scott
Buffalo, NY – There may be new life for the financially struggling Sheehan Memorial Hospital in Buffalo. The hospital's board of directors and CEO resigned Wednesday following a week of intense pressure for them to leave.
Hospital staff had been joined by community leaders in accusing the board and CEO Joseph Peeler of mismanagement. Several clinics were closed in recent days, and there was speculation the hospital itself would close.
A hearing was scheduled in US Bankruptcy Court Wednesday at which staff was seeking the appointment of a trustee to protect their interests. Then came word of the resignations.
Some new directors are already in place. There is expected to be union representation on the board. David Gentner of the Grace Manor Health Care Facility in Buffalo has been appointed temporary CEO.
President of the hospital Medical Staff, Dr. Michael Cesar, said he thinks a turn-around is possible.
"We had some doctors who really loved our institution, and they had left over the past year because of what they perceived to be problems," Cesar said. "They've promised that they will start to come back and bring their patients back. That's the first and most important thing we can do."
Still, Sheehan Memorial faces an uncertain future. It exists in a healthcare market dominated by Kaleida Health and the Catholic Health System. But Cesar said Sheehan can compete.
"I believe this community institution is unique," Cesar continued. "It can stand alone with all the Goliath's around us -- this little 'David' is going to stand."
Sheehan has been under bankruptcy protection since 2002. Another hearing is scheduled for Bankruptcy Court next Monday.