Massachusetts Gov. Maura Healey's administration has dedicated $30 million to financially troubled Dallas-based Steward Health Care's hospitals in the state to ensure operations through the end of August.
The financial support comes after bankrupt Steward shared that it plans to close two of its Massachusetts hospitals, Dorchester-based Carney Hospital and Ayer-based Nashoba Valley Medical Center, on or around Aug. 31.
"Because of Steward and Ralph de la Torre's [Steward's CEO] greed and mismanagement, these hospitals are in bankruptcy and starved of the resources needed to keep operating for another month," Karissa Hand, a spokesperson for Ms. Healey, said in a July 29 statement shared with Becker's. "This funding will ensure that patients can continue to access care and workers can keep their jobs until Carney and Nashoba Valley close and the remaining five hospitals are transitioned to new owners."
July 26 bankruptcy court documents obtained by Becker's detail that the payments are advances on Medicaid funds the state owes Steward.
The funding is to help keep the hospitals functional while Steward aims to auction its assets to new ownership. The health system may not use the funding for management fees, debt service or to pay rent to its landlord, Medical Properties Trust, the documents said.
Steward will receive the payment in two installments should it meet certain requirements set by the state. The first payment will come on or around Aug. 1 and will be $11.3 million. The second payment will be on or around Aug. 15 and will be $18.7 million, the court documents said.
Steward did not have an immediate comment to share with Becker's.