New resignations at top unsettle Caritas hospital chain

Reprinted from early editions of yesterday's Globe

Three months after the president of the state's largest Catholic hospital chain was ousted over allegations of sexually harassing employees, the president of the group's Methuen hospital and the surgeon who has been the organization's public face are resigning.

Peter Holden, president of Caritas Holy Family Hospital in Methuen, soon will step down, according to an internal Caritas Christi Health Care System e-mail sent Tuesday. Holden's report that Dr. Robert Haddad ``was observed to be winking and leering" at one of the four women who lodged complaints was cited in an investigation that led to Haddad's forced resignation in May as Caritas chief executive.

And Dr. William Morgan, the former Red Sox team doctor who became a local hero for stitching Curt Schilling's bloody ankle during the 2004 American League Championship Series, plans to leave his position as chairman of orthopedics at Caritas St. Elizabeth's Medical Center on Oct. 2, he said Wednesday. Morgan has been one of Caritas's most familiar faces in recent years, advertising St. Elizabeth's bone and joint center on television. He will become chairman of orthopedic surgery at the Fallon Clinic in Worcester, a position he described as a better opportunity. He said his departure is not related to Haddad's ouster.

The resignations are described in an internal Caritas e-mail outlining a communications strategy for avoiding more negative media coverage for the beleaguered healthcare system, which has a history of financial trouble and turnover at the top.

``One objective here is to communicate these messages internally without a paper/e-mail trail for as long as possible, thus minimizing the chance the news can easily be forwarded externally to the media," wrote Steve Danehy, marketing and communications director for the hospital chain. The Globe was given a copy of the e-mail.

The e-mail says Holden's resignation ``is likely to generate substantial media interest due to Holden's role in the recent sexual harassment situation."

Helen Drinan, the Caritas human resources director who brought the allegations of sexual harassment to leaders of the Catholic Archdiocese of Boston and sought Haddad's termination, called Holden's report of Haddad's alleged behavior toward one of the victims evidence that Haddad continued the harassment even after the women filed complaints with her.

Holden did not return several phone calls to his office Wednesday . But Danehy said that Holden was not asked to resign and that his departure is not related to the Haddad case. ``He's resigned to pursue other opportunities," Danehy said in an interview Wednesday. He said his reference to the Haddad case in the e-mail was intended to suggest that the media might take more notice of Holden's departure because he had been connected to the case.

Another Caritas orthopedic surgeon, Dr. William Balcom, is quitting to join Fallon Clinic as well, and Sister Catherine O'Connor, Caritas senior vice president for organizational development, resigned about a month ago. Danehy said he did not know why she left.

Danehy's e-mail to executives, including Caritas interim president Dr. John Chessare, shows concern about public perceptions during a difficult time for the system's hospitals.

The departures, Danehy wrote, ``require careful communication efforts to both external and internal audiences."

The memo says a news release announcing Holden's resignation has been drafted and is tentatively scheduled to be released today. ``Fortunately, this story is likely to be printed on Saturday over the holiday weekend when readership is traditionally very low," Danehy wrote.

Danehy said Wednesday that the organization later decided to announce Holden's departure yesterday because internal notifications were made more quickly than expected. Martha McDrury, Holy Family's chief operating officer, will take over as interim president.

Morgan, 53, said one factor in his departure is that he lives in Boylston, an hour west of St. Elizabeth's. ``I was sorry to see Bob [Haddad] go. I thought he was a tremendous leader. The political problems he experienced were not involved in my decision."

Morgan, who was hired by Caritas four years ago, was brought in to build the orthopedic surgery business, and Danehy said he did just that. Balcom said orthopedic surgery cases at St. Elizabeth's doubled to about 2,000 a year over the four years.

Fallon Clinic, which has an office at Worcester Medical Center, has a base of 250,000 patients. Because Fallon does not now have an orthopedic surgery department, its doctors refer many patients to surgeons outside the system for joint replacement alone, Balcom said. He does about 200 cases a year at Caritas and expects to be able to quickly build his business.

Morgan said he performs about 600 surgeries a year, mostly on pitchers from Massachusetts and surrounding states with elbow problems. The departures will be a loss of business for Caritas.

``It will be a bump in the road for us. But we will be fine," Danehy said.