UMMS buys St. Joseph

( Barbara Haddock Taylor, Baltimore Sun / December 17, 2012 )

St. Joseph Medical Center's sale to the University of Maryland Medical System in December capped a tumultuous several years that put the Towson hospital in the red, its reputation badly damaged.

St. Joseph disclosed in 2009 that federal authorities were investigating its financial relationship with a cardiology practice, prompting three top executives to resign. On top of that, one of its high-profile physicians, Dr. Mark Midei, was accused of implanting stents in hundreds of patients who didn’t need the artery procedure. Midei has maintained he did nothing differently than doctors across the country.

The hospital agreed in 2010 to a $22 million settlement with the federal government, though it admitted no liability. The move resolved claims of kickbacks involving the cardiology practice and included repayment of federal funds received for questionable stent implantation.

But that didn’t resolve St. Joseph’s longer-lasting problem: The scandal hit the hospital in its key specialty — cardiac care. Patients jumped ship. Some sued. And doctors left, too.

Despite those problems, the University of Maryland Medical System had competition for St. Joseph, with its modern facilities, affluent patients and suburban location. Then-owner Catholic Health Initiatives also received bids from Saint Agnes Hospital and LifeBridge Health.

The University of Maryland Medical System wouldn’t disclose terms — other than to say what it didn’t get in the sale. St. Joseph’s debts and liabilities, including any produced by Midei-related lawsuits, are not included.