Massachusetts Governor, Maura Healey, revealed on Friday that agreements in principle have been made to transfer the operations of four hospitals run by Steward Health Care to new operators. The government will take over a fifth hospital through eminent domain to aid in its transition to a new owner. It was disclosed that the Texas-based company had declared bankruptcy on May 6. Two other hospitals managed by Steward are still scheduled to close by the end of the month.
New operators have been identified for several hospitals, including Saint Anne’s Hospital in Fall River, Good Samaritan Medical Center in Brockton, the Holy Family Hospitals in Methuen and Haverhill, and Morton Hospital in Taunton, according to Healey.
Healey mentioned that the state will assume control of Saint Elizabeth’s Hospital in Boston to ensure its continued operation until the transition to a new owner is finalized. She stated, “Our administration is going to seize control of Saint Elizabeth’s through eminent domain so that we can facilitate a transition to a new owner and keep this hospital open.”
If the agreements are formalized, Lawrence General Hospital will take over both campuses of Holy Family in Haverhill and Methuen. Lifespan will assume operations of Morton and Saint Anne’s hospitals, and Boston Medical Center is set to take over Good Samaritan Hospital as well as Saint Elizabeth’s post the takeover process, Healey explained.
The closures of Carney Hospital in Boston and Nashoba Valley Medical Center in Ayer, as planned by Steward, will not be impacted by these actions. Steward initially announced its bankruptcy on May 6 and declared its intention to sell off its 30 hospitals nationwide two days later.
A bankruptcy judge had previously approved Steward’s decision to shut down two hospitals in Massachusetts, Carney Hospital and Nashoba Valley, by or around August 31 due to the lack of qualified bids for either facility. Massachusetts has also pledged approximately $30 million to support the operations of the hospitals being transferred to new owners. These payments represent advances on Medicaid funds owed to Steward by the state.