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Judge: Hospital agreement required 'remarkable' effort

Mon, Aug 25th 2008 12:00 am
BY TRACEY DRURY
Business First

Most of the time, state Supreme Court Judge Hon. John Curran sits on the bench, gavel in hand, and works to keep order in his courtroom when commercial deals go bad and end up in litigation.

Curran spent 20 years on the other side of the bench, arguing on behalf of his clients.

But despite his years of experience on both sides of the bench, Curran found himself in somewhat unfamiliar territory this June when he was assigned to handle an injunction application filed by Erie County Medical Center and Erie County against the State of New York. The case, which he had been following in the local media, was tied to the ongoing battle between ECMC and Kaleida Health over a state-mandated consolidation.

Rarely are such battles carried out so publicly and contentiously as this one, which included everything from lawsuits and media campaigns to "Save ECMC" lawn signs planted throughout Western New York.

As is typical in commercial cases, Curran offered to serve as mediator, a move that only works if all parties agree. It was a move that in this case seemed unlikely, given the tenor of the battle and resulting sore feelings. But to his surprise, the attorneys and executives all agreed, paving the way for a weekend-long session with 60 participants and resulting in an agreement that came through just days before the state's June 30 deadline.

"I got the sense that yeah, they were willing to do it, but with a June 30 deadline, it was too late. Essentially, we were starting with me as a newbie to the process, but everyone said, ‘Yes, let's give it a shot,' " Curran says. "The truth was, everyone wanted the deal if they could get it. The community aspect was what drove this."

First appointed to the bench by Gov. George Pataki in June 2004, Curran was elected to a full 14-year term the following fall. A native of Buffalo, he spent several years in the commercial litigation department of a Miami, Fla., firm before returning to Buffalo in 1987 to join the trial department at Phillips Lytle LLP. He also teaches at Canisius College as an adjunct lecturer.

Both sides had plenty of reason for concern: ECMC worried about being swallowed up by Kaleida and about having the Buffalo campus shut down, while Kaleida didn't want to get stuck with ECMC's public-employee union issues and history of debt. Also at the table were executives appointed to a parent organization formed to oversee both, a joint board chaired by Robert Gioia.

After several days of oral arguments, Curran could tell that no settlement was near and began formulating his decision. But he also left the door open for any other ideas that could help drive the process. That's what led to bringing in a 10-member panel of physicians to make recommendations on how to structure services.

By Friday, June 20, with one business week left before the state deadline, Curran agreed to continue conversations into the weekend, leading to a two-day marathon with up to 60 players, including executives and board members from ECMC and Kaleida, County Executive Chris Collins, University at Buffalo President John Simpson, the dean of UB's medical school and the county attorneys. The state commissioner of health even made himself available by cell phone.

"It sounds corny, but the parties were all dedicated to getting it all done. They were people of character. They had strongly held perceptions and principles, and a little compromise was necessary, but they were all committed to leadership for the betterment of the community," he says. "It was the most remarkable thing, professionally, I've ever been involved in."

Now, with a binding agreement in place and the lawsuits resolved, Curran hopes the relationships formed during that marathon stick - and grow.

"I don't know anything about the future of health care in Western New York, but I think the relationships began to be established that had not previously and respect and trust started to be instilled," he says.

"I think we all had the feeling that we might possibly be involved in something pretty important for the community," Curran says. "I think everyone was driven. The expression I heard was, everyone was driven to build a bridge in a month - the concept that we can show Buffalo we can make it work. That we Buffalonians can make a deal that's going to move the ball forward economically."