Massachusetts seizes control of Steward hospital while buyers found for 4 others
The state has taken steps to save five Steward hospitals after WARN notice announces closure of two others.
Photo: Andrey Denisyuk/Getty Images
Massachusetts has seized a Steward Health Care hospital in the state, after numerous "go-rounds" with the landlord, according to Gov. Maura Healey.
St. Elizabeth's Medical Center in Boston had received a high-quality bid from a hospital operator but the landlord refused to move, Healey said.
"So as governor I am taking action today to seize control of St. Elizabeth's through an eminent domain proceeding that will facilitate the transition of St. Elizabeth's to a responsible new owner, namely Boston Medical Center," Healey said at a news conference on Friday.
Agreements have been reached for four other Steward hospitals to be purchased and operated, she said.
Boston Medical Center will also be purchasing and taking over operations of Good Samaritan Medical Center in Brockton. Lifespan Health System has taken over Morton Hospital in Taunton and Saint Anne's Hospital in Fall River, Massachusetts.
Lawrence General Hospital will purchase and operate both hospital campuses of Holy Family, in Haverhill and Methuen, Healey said.
This will keep the hospitals open and operating in their communities and save jobs, according to Healey.
Healey said her administration is working with lawmakers to come up with a "fiscally responsible financing plan that includes cash advances, capital support and maximizing federal matches" for the transfer of hospital ownership, according to CBS News.
WHY THIS MATTERS
The governor's announcement comes after Steward Health Care announced in a WARN notice that it planned to close two hospitals in Massachusetts by the end of the month, resulting in over 1,200 layoffs.
On July 29, Steward reported through a Massachusetts Worker Adjustment and Retraining Act (WARN) notice that it would be laying off 753 employees at the Steward Health Care System Carney Hospital in Dorchester, Mass., as of August 31. It also reported 490 layoffs at its Nashoba Valley Medical Center in Ayer, Mass., that will also occur by August 31.
Steward had a potential buyer in Insight Health System that would have bought and taken all of Steward's 31 hospitals out of bankruptcy, according to WBUR. The bid was rejected as not viable, according to the report.
Steward's issues were created by greed, Healey said.
Steward CEO Ralph de la Torre has been subpoenaed to testify before the Senate Committee on Health, Education, Labor, and Pensions (HELP) on September 12.
THE LARGER TREND
In May, Steward Health Care announced plans to sell all of its 31 hospitals across eight states in Massachusetts, Arizona, Ohio, Pennsylvania, Arkansas, Louisiana, Texas and Florida.
However, later that month, the Department of Justice filed an objection to the debtor-in-possession financing terms for Steward Health Care.
Sales were delayed due to a dispute between Steward Health and landlords Medical Properties Trust and Macquarie Asset Management. In another setback, Optum backed out of a deal to buy Steward Health Care physician group in Massachusetts.
Email the writer: SMorse@himss.org
