"Nothing that the state can do" to stop Steward hospital closures, Healey says
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Carney Hospital in Dorchester. Photo: Suzanne Kreiter/The Boston Globe via Getty Images
It's up to a bankruptcy judge to decide whether to let Steward Health Care close two hospitals next month and accept emergency financial relief from Massachusetts.
Why it matters: Residents in Dorchester and Ayer would lose a lifeline if Steward closes Carney Hospital and Nashoba Valley Medical Center, respectively, patient advocates and lawmakers say.
Catch up fast: Steward announced plans Friday to close the two hospitals by Aug. 31 if approved by the judge, after they failed to receive qualified bids.
- Steward got bids from "reputable buyers" for six other hospitals, including Elizabeth's Medical Center in Brighton, per the court filing.
- The company had previously said its hospitals could go up for auction if they still needed bids, NBC Boston reported.
- Steward's owners said it lost $100 million operating the Massachusetts hospitals in the first five months of this year, per court records.
The latest: Steward was due in court Wednesday, but delayed its hospital sale hearing until Aug. 13, two weeks later than planned, the BBJ reported.
- The public will have to wait until then to learn who the buyers are.
Between the lines: Steward's announcement runs counter to state regulations, which say a hospital system must notify the state of its plans to end services at least 120 days before the proposed closure date, U.S. Rep. Stephen Lynch noted.
- The rule also requires the hospital to notify staff, elected officials and others.
State of play: Massachusetts committed $30 million to help Steward as the hospitals "are transitioned to new operators in the near term," per a separate court filing.
- Gov. Maura Healey's office described the payments as "advances" on Medicaid funds the state owes Steward and said they're contingent upon an orderly transition with several milestones, the State House News Service reported.
- The state's proposed relief would start with an initial $11.3 million payment Thursday, followed by $18.7 million on Aug. 15, per court records.
- Asked about any contingency plans to keep the hospitals open, Healey said, "it's Steward's decision to close these hospitals. There's nothing that the state can do."
Flashback: Steward closed New England Sinai Hospital in Stoughton in April.
- Norwood Hospital has been closed since 2020 because of flood damage. It's not part of the sale.
Lawmakers gathered outside Carney Hospital Monday and lambasted Steward and CEO Ralph de la Torre over the accelerated closure plans.
- "Where is your humanity?" asked U.S. Rep. Ayanna Pressley, who has been a patient at Carney. She said the hospital was a lifeline for low-income families, immigrants and veterans.
- "These are the lives that Steward executives have chosen to endanger in their relentless pursuit of profit," she added.
Axios reached out to Steward Health Care for comment.
What's next: Steward faces a congressional investigation over its hospital operations.
- A U.S. Senate panel subpoenaed de la Torre to testify Sept. 12.
- One of its members, U.S. Sen. Ed Markey, is pushing for support for a recently filed bill that would crack down on private equity firms' handling of hospitals.