Dallas-based Steward Health Care has shared plans to lay off a total of 1,243 employees due to the closure of two of its Massachusetts hospitals, Dorchester, Mass.-based Carney Hospital and Ayer, Mass.-based Nashoba Valley Medical Center, by Aug. 31.
The for-profit health system filed two WARN notices July 29 to lay off 753 employees at Carney Hospital and 490 employees at Nashoba Valley Medical Center, both effective Aug. 31.
"The decision to close both Carney and Nashoba hospitals is one we deeply regret having to make," a spokesperson for Steward said in an Aug. 4 statement shared with Becker's. "Steward is acutely aware of the difficulties this will impose on our dedicated and hardworking employees."
The spokesperson said that Steward's other state hospitals have more than 1,000 job openings and that Steward encouraging those affected by the layoffs to apply.
"We are holding job fairs to facilitate transfers for our employees and will communicate more details with them shortly," the statement said.
Steward sought Chapter 11 protection May 6 and has been working to auction off its hospitals and physician group, Stewardship Health.
The health system's decision to close the two hospitals in Massachusetts — where the health system also has five other hospitals up for auction — has been met with backlash from state leaders.
"These nurses and health care workers have come to work day after day amid all of this uncertainty and selflessly served their patients," a spokesperson for Massachusetts Gov. Maura Healey said in an Aug. 4 statement shared with Becker's. "We are prepared for this and have been working with our partners in labor to make sure all impacted workers are hired elsewhere, including at the five hospitals we intend to save. We expect they will all get new jobs, and many already have. Steward, their lenders and real estate partners need to finalize deals on the remaining hospitals immediately."
While the health system received approval from U.S. Bankruptcy Judge Chris Lopez to close both hospitals by Aug. 31, state Secretary of Health and Human Services Kate Walsh said in an Aug. 1 statement shared with Becker's that Steward must provide a "responsible closure plan" that follows the state's 120-day closure process. The plan must outline how Steward plans to protect patient safety and provide "robust community engagement."
Deeming the coming days and weeks crucial to avoid a "public health disaster," the Massachusetts Nurses Association has called on Ms. Healey's office to help prevent the closure of the two hospitals.
"We, along with a growing number of community members and policy makers, call on the Governor and local Mayors to declare a public health emergency and exercise state and municipal power under that declaration to prevent closures while viable bidders for all the Steward facilities are found and secured," MNA said in an Aug. 5 news release.