Massachusetts Governor Maura Healey's administration has shared that deals "in principle" have been reached for four hospitals run by Dallas-based Steward Health Care to be taken over by new operators.
Providence, R.I.-based Lifespan will operate Taunton, Mass.-based Morton Hospital and Fall River, Mass.-based St. Anne's Hospital, Boston Medical Center will take control of Brockton, Mass.-based Good Samaritan, and Lawrence (Mass.) General Hospital will operate Holy Family Hospital in Methuen (Mass.) and Holy Family Hospital in Haverhill (Mass.) should the deals move forward, according to an Aug. 16 news release shared with Becker's.
"Once the bid is finalized and Steward and Apollo, owners of the hospital properties, designate the bid as the best bid, it will then be filed with the bankruptcy court, since the terms of our purchase are subject to the court’s approval," a spokesperson for Lifespan said in an Aug. 16 statement shared with Becker's. "Furthermore, the transaction will also require state and federal regulatory approvals, as well as satisfaction of sale contingencies."
Abha Agrawal, MD, president and CEO of Lawrence General told Becker's in an Aug. 16 statement that the organization looks forward to signing and finalizing an agreement for the two Holy Family Hospitals with support from the state.
The Healey administration will also take over Steward's Brighton, Mass.-based St. Elizabeth's Medical Center through "eminent domain to facilitate the transition to a new owner and keep the hospital open," with the new owner also slated to be Boston Medical Center once the takeover is complete.
"St. Elizabeth's also received a highly qualified bid from an excellent hospital operation," Ms. Healey said during an Aug. 16 press conference. "Unfortunately, after endless go arounds, back and forth and negotiations, the landlord has refused to move. 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."
A spokesperson for Boston Medical Center said in an Aug. 16 statement shared with Becker's that the health system is continuing to work with the state to eventually take on both Good Samaritan and St. Elizabeth's.
"If approved, BMC Health System looks forward to working with the highly skilled clinicians and staff at each hospital to revitalize clinical services and help the communities they serve thrive," the spokesperson said.
Steward sought Chapter 11 bankruptcy May 6 and has been working to offload its hospitals and physician group, Stewardship Health. It also received approval to close Boston-based Carney Hospital and Ayer-based Nashoba Valley Medical Center, by Aug. 31.
"These actions do not impact Carney or Nashoba Valley hospitals, which will close after not receiving qualified bids," the release said. "The administration is focused on supporting workers and connecting them to new jobs while also safely transitioning care."
The state has also committed $30 million to Steward's hospitals which will be provided in two installments to be used to fund operations at its state hospitals.
"I'm pleased to say we're closing the book on Steward once and for all in Massachusetts," Ms. Healey said during the conference. "Good riddance and goodbye. It's a long time coming. We're here. It's a new chapter, starting today."
Looking at Steward's other assets, Orlando (Fla.) Health entered into a binding asset purchase agreement for $439.42 million in cash in mid-August for Steward's northern Florida assets.
During an Aug. 16 bankruptcy hearing, U.S. Bankruptcy Judge Christopher Lopez also approved the $245 million cash sale of Stewardship Health to Nashville, Tenn.-based Rural Healthcare Group, part of private equity firm Kinderhook Industries.
Steward did not provide Becker's with an immediate comment regarding the news in Massachusetts.