Gov. Maura Healey has seized control of Dallas-based Steward Health Care's St. Elizabeth's Medical Center in Brighton, Mass., through eminent domain to ensure the hospital remains open and transfers operations to Boston Medical Center.
Steward sought Chapter 11 protection May 6 and has since been working to offload its 31 hospitals.
In August, New York City-based Apollo Global Management, an alternative investment manager, rejected a $4.5 million proposal from Ms. Healey's administration to take over the hospital.
"While Apollo continues to put its greed ahead of the health and well-being of the people of Massachusetts, we are taking action to make sure St. Elizabeth’s remains open," Ms. Healey said in a Sept. 27 news release shared with Becker's. "By transferring operations to Boston Medical Center, we will protect access to care for tens of thousands of patients and save thousands of jobs."
U.S. Bankruptcy Court Judge Christopher Lopez approved the sale of St. Elizabeth's and Steward's Good Samaritan Hospital to Boston Medical Center for $140 million on Sept. 4.
Providence, R.I.-based Lifespan was also approved to purchase Steward's Taunton, Mass.-based Morton Hospital and Fall River, Mass.-based St. Anne's Hospital for $175 million. Lawrence (Mass.) General Hospital will purchase Holy Family Hospital in Methuen (Mass.) and Holy Family Hospital in Haverhill (Mass.) for $28 million.
The Steward hospital ownership transfers will occur Oct. 1, Ms. Healey's news release said.
Bill Reid, lawyer at Reid Collins & Tsai and representing Apollo in the matter, said in a Sept. 27 statement shared with Becker's that despite the company's attempts to hold "reasonable negotiations," Ms. Healey has "initiated an unconstitutional use of eminent domain at the expense of Apollo's third-party investors."
"Taking the property for a fraction of the assessed value is theft and everyone in Massachusetts — every business owner and homeowner — should be concerned about this threat. As a fiduciary, Apollo is left with no choice but to continue pursuing litigation aimed at challenging the governor’s unconstitutional use of eminent domain," the spokesperson said.
Steward closed two of its Massachusetts hospitals, Boston-based Carney Hospital and Ayer-based Nashoba Valley Medical Center, on Aug. 31. Ms. Healey has since implemented "working groups" to help stabilize healthcare in the areas affected by the closures.