Massachusetts has agreed to provide approximately $30 million to assist in the operations of six hospitals previously owned by Steward Health Care, after the company declared bankruptcy earlier this year. As part of the transition process to new owners, Steward announced the closure of Carney Hospital and Nashoba Valley Medical Center as no qualified bids were received for these facilities.
In a recent court filing on Friday, Steward mentioned a commitment from Massachusetts for financial support towards the hospitals’ operations during the transition to new operators. The company stated its dedication to maintaining the operations of its 31 hospitals across eight states. This decision followed Steward’s plan in May to sell off all its hospitals after initiating bankruptcy proceedings.
The allocated $30 million is intended to ensure the continued operation of Steward’s hospitals in Massachusetts until the end of August. The funding, confirmed by Gov. Maura Healey’s administration, aims to sustain patient care and job security until Carney and Nashoba Valley Medical Center cease operations and the remaining five hospitals find new owners.
These payments are in advance of Medicaid funds owed to Steward by the state, provided under the condition of an orderly transition to new ownership. The funding cannot be utilized for rental payments, debt servicing, or management fees, and Healey emphasized that none of the $30 million will go to Steward but will facilitate a smooth shift to new ownership.
Regarding the decision to close Carney Hospital and Nashoba Valley Medical Center, Healey emphasized that it was solely Steward’s choice, and the state had limited power to intervene, attributing the situation to the actions of Steward’s CEO, Ralph de la Torre. A Senate committee has voted to probe into Steward’s bankruptcy and subpoena de la Torre to testify at a hearing on September 12.
Additionally, a group of Democratic Congress members, led by Sen. Edward Markey, is seeking guarantees to protect the health care and retirement benefits of workers at hospitals previously owned by Steward.
