Dallas-based Steward Health Care received a bid from Insight Health Systems of Flint, Mich., to acquire all of its Massachusetts hospitals prior to the health system sharing plans to close two state hospitals, however, the two parties could not reach an agreement.
Insight Health Systems is a physician-led health system that runs Michigan- and Illinois-based safety-net hospitals.
"Insight Health System submitted a bid to acquire all eight hospitals currently operated by Steward Health System in Massachusetts," Atif Bawahab, chief strategy officer for Insight Health Systems, said in an Aug. 5 statement shared with Becker's. "[W]e deeply understand how damaging the closure of healthcare facilities can be to local communities. We have proven experience in transforming distressed healthcare facilities into financially stable pillars of community health services with patient care that is second to none [and] something we have done in [Chicago's] Southside [and in] Flint, Mich., and stand ready and able to do here in Massachusetts."
Steward received approval from U.S. Bankruptcy Judge Christopher Lopez during a July 31 hearing to close Boston-based Carney Hospital and Ayer, Mass.-based Nashoba Valley Medical Center by Aug. 31.
The for-profit health system sought Chapter 11 protection May 6 and is working to offload its hospitals and physician group, Stewardship Health.
Massachusetts leaders have also pushed back on Steward's plans to close the two hospitals by the end of August, citing that the health system must provide the state with a 120-day closure plan.
David Cohen, a representative for Steward, shared during the July 31 hearing that both Carney Hospital and Nashoba Valley have received no actionable bids, are serving a limited patient population and are operating at a significant loss.
"Although there were certain parties that indicated an interest in assuming the operations, [there were] really no actionable bids with parties with financial wherewithal or financial support to actually transact and acquire the operation, the underlying real property, let alone to actually operate the hospitals in a manner that would be acceptable to state regulators," Mr. Cohen said during the hearing.
Steward did not have a comment for Becker's at this time.
Editor's note: This article has been updated as of Aug. 6 at 9:14 a.m. CT.