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, The Boston Globe reported Aug. 5; 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.
"We remain interested in being part of the solution to keep the hospitals' doors open," Atif Bawahab, chief strategy officer for Insight Health Systems, told the Globe.
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. Becker's has reached out to Insight Health Systems and will update this story should more information become available.