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Governor Healey takes urgent steps to save what’s left of Steward hospitals

CTN News

Governor Maura Healey announced today that the Healey-Driscoll administration has reached agreements in principle to transfer ownership of four Steward hospitals to new operators, with the goal of preserving essential health services and protecting jobs.
The hospitals – Ste. Anne’s, Good Samaritan Medical Center, Holy Family Hospital and Morton Hospital – will continue to operate under new management, ensuring that the communities they serve will not lose access to essential medical care. In addition, the administration will take control of Saint Elizabeth’s Medical Center through eminent domain, easing the transition to new ownership and allowing the hospital to remain open.
The move underscores the administration’s commitment to preserving access to healthcare for Massachusetts residents, particularly in areas where hospital closures could have devastating effects, according to the Governor’s office, which provided further details on these developments. “Today, we are taking action to save and keep the five remaining Steward hospitals operating, protecting access to care in these communities and preserving the jobs of the hard-working women and men who work at these hospitals,” said Governor Healey. ”Our team, led by Secretary Kate Walsh, has worked day in and day out to find new, responsible and qualified operators who will protect and improve care in their communities. We are grateful to the legislature for working closely together to develop a fiscally responsible funding plan to support these transitions.”
The Governor’s announcement marks an important intervention in the crisis facing Steward Health Care, the largest private hospital operator in the United States. Steward, which has struggled financially, has fought to keep its Massachusetts hospitals in operation. The decision to transfer these hospitals to new owners is an essential step in ensuring that healthcare services remain available to the communities they serve. “When it comes to finalizing a deal for Saint Elizabeth, MPT, Macquarie and Apollo have repeatedly chosen to put their own interests ahead of the health and well-being of the people of Massachusetts,” Governor Healey emphatically stated. ”Enough is enough. Our administration will take control of Saint Elizabeth Hospital through eminent domain to facilitate the transition to new ownership and allow the hospital to remain open.”
This forceful action reflects the administration’s frustration with the current management of the situation at Saint Elizabeth Hospital, which has been a cornerstone of healthcare in its community. By invoking expropriation, the Healey-Driscoll administration intends to circumvent the impasse in negotiations and ensure that the hospital remains operational under new, more reliable management.
If these agreements are finalized, Lawrence General Hospital will take over operations at Holy Family’s two campuses in Haverhill and Methuen. Lifespan, a Rhode Island-based healthcare system, is set to take control of Morton Hospital in Taunton and St. Anne’s Hospital in Fall River. Boston Medical Center, one of Massachusetts’ leading healthcare providers, will take over Good Samaritan Medical Center in Brockton and, following the expropriation process, Saint Elizabeth’s Hospital in Brighton.
These transitions are crucial to maintaining healthcare services in the areas concerned. The administration has worked closely with the legislature to develop a fiscally responsible financing plan to support these new operators. This plan includes cash advances, capital support and leveraging of federal funds so that hospitals can continue to provide high-quality care during the transition.
However, not all Steward hospitals are included in the transition plan. Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer are slated for closure after failing to attract qualified bids. The administration is committed to supporting workers affected by these closures and ensuring a safe transition of care for patients.
To this end, Governor Healey has allocated $30 million to keep hospitals open until the end of the month. This funding is intended to act as a buffer while the administration works to finalize transitions and avoid any disruption of care.
In addition, the Governor demanded that Steward Health Care fulfill its obligation to pay severance packages to employees affected by the sale of the hospitals. This request is part of a broader effort to ensure that workers, who have dedicated themselves to serving their communities, are treated fairly during the change of ownership.
The administration is also actively working to help displaced workers find new employment. MassHire’s rapid response team visited hospitals in Nashoba Valley and Carney, where they met hundreds of workers to offer placement services and put them in touch with available job offers. Over the next two weeks, MassHire will be holding job fairs at Carney Hospital on August 23 and at Nashoba Valley on August 27. These job fairs will host more than 40 healthcare employers from across Massachusetts, all eager to recruit qualified healthcare professionals.
The swift action taken by Governor Healey and her administration underscores the critical importance of maintaining access to healthcare in the face of financial instability and ownership disputes. The proactive approach to finding new operators for Steward Hospitals and the decision to take control of Saint Elizabeth’s through eminent domain demonstrate the administration’s commitment to the health and well-being of Massachusetts residents.
As the situation continues to evolve, the focus is on ensuring that transitions are smooth and that the communities served by these hospitals do not experience disruptions in care. The involvement of new, experienced and reputable operators is a positive sign that the administration’s efforts will result in positive outcomes for patients, employees and the community as a whole, according to the Governor’s office.