Dallas-based Steward Health Care must present a "responsible closure plan" for its two Massachusetts hospitals that follows the state's 120-day closure process, state Secretary of Health and Human Services Kate Walsh said in an Aug.1 statement shared with Becker's.
"What they need to do now is present a responsible closure plan that follows the 120-day process, outlines how they will protect patient safety and provides for robust community engagement," Ms. Walsh said.
Steward, which sought Chapter 11 protection May 6, shared plans July 26 to close Dorchester, Mass.-based Carney Hospital and Ayer, Mass.-based Nashoba Valley Medical Center by Aug. 31.
U.S. Bankruptcy Judge Christopher Lopez approved the closure of the hospitals during a July 31 hearing.
"There's no question that business judgment has been satisfied today, as painful as that is, to whether they should close these hospitals, the debtors are going to be authorized to close the hospitals," Mr. Lopez said during the hearing. "The legal standard has been met. My job is to enforce the law. I hope people understand how to keep those hospitals open based upon the evidence before me, threatens the entire hospital system in Massachusetts."
The for-profit health system is also looking to offload the rest of its hospitals and physician group, Stewardship Health.
Steward did not have an immediate comment for Becker's.