The participants in the meeting were Urciuoli, Battista, Celona and Thomas Lynch, then Blue Cross’s vice president for government affairs and a former state senator who had had prior contact with Celona regarding the reimbursement issue, according to evidence in the case.

According to Battista, Celona "opened the meeting by saying that he understood the hospital had a serious financial problem, and he was hopeful that the parties in the room could address the problem fairly.’’

Battista said that Urciuoli then detailed his concerns, and the Blue Cross chief laid out a solution whereby an independent audit would examine the hospital’s claim.

Asst. U.S. Atty. Luis Matos asked Battista what consideration he gave to Celona’s role in agreeing to attend the meeting.

"To the best of my recollection – none,’’ said Battista. "The hospital had a problem, and as the CEO of Blue Cross, I had to address it.’’

Battista said that he didn’t know how the meeting came to be arranged, only that he learned from somebody on his staff – possibly Lynch or another executive or his secretary. Battista also testified that he was unaware at the time that there was any financial relationship, direct or indirect, between Blue Cross and Celona.

Battista will be back on the stand tomorrow. The government indicated that it has two more witnesses to call, both executives from United Healthcare about their dealings with Celona and Urciuoli on reimbursement issues. Then, the prosecution will rest and it will be the defense’s turn to call witnesses.

Lawyer advised Urciuoli be 'careful' in use of Celona
Posted 1:23 p.m.

The lawyer for Roger Williams Medical Center testified today that she questioned Robert Urciuoli’s plan to use John Celona to arrange a State House meeting with leaders of Blue Cross & Blue Shield of Rhode Island.

Kimberly O’Connell, Roger Williams’ general counsel and vice president, testified that she went to hospital president Urciuoli in 2002, after receiving a phone call from James McGuirk, the hospital’s outside lawyer, who relayed a conversation he had just had with Urciuoli.

McGuirk thought it "looked strange’’ for Celona, who was on the hospital’s payroll as a consultant, to be setting up a meeting in his capacity as a state senator.

"Jim asked me to talk Bob about it,’’ testified O’Connell.

O’Connell told jurors that she met with Urciuoli, and he was critical of Blue Cross head Ronald A. Battista because Blue Cross owed Roger Williams $3 million in past reimbursements and Battista was "dragging his feet’’ on paying up, refusing to even return Urciuoli’s calls.

Urciuoli assured her that Celona would only be "facilitating’’ a meeting and not negotiating with Blue Cross on the hospital’s behalf. O’Connell said that she concluded that that would be okay, and told Urciuoli to "be careful.’’

Among the charges against Urciuoli is that he stole Celona’s honest services as a state senator by using him for political missions, including pressuring Blue Cross – which had legislation pending before Celona’s Senate committee – to meet with Roger Williams.

Under cross-examination by the defense, O’Connell acknowledged that she did not advise Urciuoli that it would be illegal or unethical for Celona to arrange the meeting.

Celona later resigned from the Senate, was indicted on federal corruption charges, pleaded guilty and has emerged as the government’s central witness in a trial charging Urciuol and two other hospital executives with stealing his honest services.

For more background, read today's Journal story.

-- Journal staff writer Mike Stanton