Boston Medical Center has reached agreements with Dallas-based Steward Health Care to acquire and run both Brockton-based Good Samaritan Hospital and St. Elizabeth's Medical Center.
The news comes after Steward signed definitive agreements with Providence, R.I.-based Lifespan to acquire Taunton, Mass.-based Morton Hospital and Fall River, Mass.-based St. Anne's Hospital for $175 million and with Lawrence (Mass.) General Hospital to purchase Holy Family Hospital in Methuen (Mass.) and Holy Family Hospital in Haverhill (Mass.).
In mid-August, Massachusetts Gov. Maura Healey shared that deals "in principle" had been reached for the Steward hospitals to be taken over, with the state planning to take over St. Elizabeth's Medical Center through eminent domain and transfer it to Boston Medical Center.
New York City-based Apollo Global Management, an alternative investment manager and mortgage lender for St. Elizabeth's, declined the state's $4.5 million proposal for the hospital, according to an Aug. 20 letter obtained by Becker's. The letter claimed the offer undervalued the property, which is worth more than $200 million in tax-assessed value.
"As our attention turns towards finalizing the transaction, integration planning, and efforts to support both organizations, we await the resolution of the eminent domain process between the Commonwealth and Apollo on the St. Elizabeth's campus," a spokesperson for Boston Medical Center said in an Aug. 31 statement shared with Becker's.
Steward, which sought Chapter 11 protection May 6, closed two of its Massachusetts hospitals, Boston-based Carney Hospital and Ayer-based Nashoba Valley Medical Center, on Aug. 31, resulting in 1,243 layoffs.
"We recognize the pain and concern caused by Steward's closures of Nashoba Valley and Carney, and we want to assure their communities and staff that we are doing everything we can to support them through this transition," Ms. Healey said in an Aug. 30 news release shared with Becker's.
News of the hospital sale agreements comes as Steward representative Ray Schrock shared during an Aug. 30 hearing that the for-profit health system's landlord Medical Properties Trust would be picking up the operational hospital expenses that constitute Master Lease I, moving to work with interim operators to get the hospitals transitioned.
Master Lease I includes Steward hospitals in Pennsylvania, Ohio, Louisiana, Arkansas, Arizona, Texas and Florida.
For Steward's Pennsylvania and two Ohio hospitals, Medical Properties Trust shared with Steward that those deals are not complete, however, Steward is hopeful that all of the hospitals will remain open.
On Aug. 21 Steward shared plans to close its two Ohio hospitals, Trumbull Regional Medical Center and Hillside Rehabilitation Hospital, on or around Sept. 20, which would result in 944 total layoffs.
A spokesperson for Steward confirmed with Becker's on Sept. 3 that the two Ohio hospitals have reopened patient admissions amid ongoing negotiations with Medical Properties Trust.
"While the potential agreement between Steward Health and MPT to keep Hillside Rehabilitation Hospital and Trumbull Regional Medical Center is a positive development, it is only a small step in the right direction," said Rick Lucas, BSN, RN, president and executive director of the Ohio Nurses Association, said in an Aug. 30 news release shared with Becker's. "For these hospitals to remain viable and effectively serve the community, Steward Health must resume full operations immediately."