Beverly Hospital chief may step down

Resignation would end tension between Laverty and staff doctors, nurses

Stephen R. Laverty, the embattled chief executive of Beverly Hospital, could resign as soon as today, according to physicians and healthcare executives with close ties to the hospital's parent organization, Northeast Health System Inc.

Laverty, 56, came to Beverly in 2000 and has been under fire for most of this year. In April, the hospital's doctors took a vote of no confidence in him, and nurses took a similar vote last month.

Dr. Jonathan Schreiber, chief medical officer of Beverly Hospital, said the board of trustees has been interviewing doctors in recent days to gauge their sentiments and to decide what action to take.

"They're doing their due diligence," said Schreiber. "They're working very hard to come up with a solution."

Schreiber said a decision is expected "shortly."

Laverty, who is known for his combative management style at Beverly and other hospitals where he worked, has disparaged some doctors, according to physicians at Beverly Hospital.

Hospital officials did not respond to a request for comment yesterday. And Laverty did not answer a message left at his home.

Members of Northeast's board of trustees - known internally as the "big board" - have spent months interviewing doctors at the hospital in an attempt to understand the complaints about Laverty.

At a special meeting last Thursday, the board, chaired by David St. Laurent, discussed giving Laverty an opportunity to resign, which could net him a substantial severance package, but it did not make a formal decision.

If Laverty does step down, Beverly Hospital may hire an interim chief executive while a search for a replacement is conducted. Northeast has already hired Witt/Kiefer, a national executive search firm that specializes in healthcare. The board is also looking at former executives and trustees who might return as interim chief executive.

Doctors at the hospital said they are anxious for the leadership crisis to be resolved.

"This whole thing has been damaging to the morale of the staff and our reputation in the community, both of which are vital to us," said William J. Otto, a radiologist who has practiced at Beverly Hospital since 1969. "This has to get settled."

Marie Freeman, vice chair of the Massachusetts Nurses Association unit that represents about 600 nurses at Beverly, Addison Gilbert Hospital in Gloucester, and other Northeast facilities, said of Laverty, "We'd be overjoyed to see him go. With new management, it would be possible to develop a working relationship between managers, nurses, and doctors that doesn't exist now. We need a culture change."

The current situation comes after years of increasing resentment between Laverty and hospital staff. His internal relationships at the hospital were also damaged by his longstanding association with Paul G. Galzerano, Beverly's former associate vice president for support services. Galzerano sometimes argued with staff members, according to longtime employees, and often threatened them based on his close association with Laverty, according to former nurses.

Galzerano, who left the hospital last year, was arrested in October by Groveland police, who alleged he stole paintings, a grandfather clock, and furniture from Beverly Hospital. The items were found in his home, according to police, who alleged they were stolen when the hospital was undergoing renovations. Galzerano could not be reached for comment yesterday.

In an e-mail to Northeast Health employees Oct. 8, Laverty called the arrest "a very serious issue."

"I understand that Mr. Galzerano's actions and behavior were offensive to many when he was employed here," Laverty wrote. "I now have the same perspective."

But Laverty also led the hospital through difficult times. When Partners Community Healthcare Inc. removed Beverly doctors from its network in 2007, Laverty claimed it was a retaliatory move because the physicians had made referrals outside of the Partners network. Laverty eventually helped win a three-year contract for doctors at substantially higher rates than they were earning before from Partners.

Laverty was chief executive of Winchester Hospital for six years, ending in 1998. He then became president and chief operating officer of Children's Hospital Boston, but resigned in 1999.

Jeffrey Krasner can be reached at krasner@globe.com.