Embattled Steward Healthcare announced Friday that it will close two of its eight Massachusetts medical centers next month. Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer are set to close around Aug. 31 after failing to receive qualifying bids for the two facilities, the private, for-profit health care company said. Steward said it is “actively working to sell or transition all of our hospitals in Massachusetts and is in final negotiations to sell six hospitals.” “Despite an extensive divestiture process that involved close coordination with lenders and regulators, we did not receive qualifying bids for two of our hospitals, Carney Hospital and Nashoba Valley Medical Center,” Steward said. Gov. Maura Healey blamed the closures on “greed and mismanagement.” “This is not the end. We regret that (Steward CEO) Ralph de la Torre and Steward’s greed and mismanagement have led to the closure of Kearney Hospital and Nashoba Valley Hospital. These hospitals have served their communities for many years. Their closures are about much more than fewer beds, doctors and nurses,” Healey said. The union called the move “devastating.” “Steward Healthcare’s decision to close Kearney Hospital and Nashoba Valley Medical Center is devastating and will create hospital deserts and exacerbate health disparities in the communities they serve. Patients across Massachusetts will ultimately pay the price for Steward’s mismanagement when care is pushed miles away and emergency room capacity reaches crisis levels. The future of care in Massachusetts is in jeopardy,” 1199SEIU said in a statement. Steward said it would work with both patients and employees affected by the closures. “We will work closely with our patients in Kearney and Nashoba to help them find the best possible care options, and we will work with our valued employees and medical professionals to help them through this very difficult transition,” Steward said. Steward Healthcare filed for Chapter 11 bankruptcy protection on May 6. The company is considering selling all of its hospitals and has received “qualified bids” for some of its Massachusetts facilities, Healy said earlier this week. The company is also accepting bids for other hospitals in Massachusetts, including Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton, St. Ann’s Hospital in Fall River, St. Elizabeth Hospital in Brighton and Holy Family Hospital, which has campuses in Methuen and Haverhill. “These hospitals are necessary for the communities they serve,” Sen. Elizabeth Warren said. “(De la Torre) has done this state enough harm.” “As for the remaining hospitals, we know Steward has received multiple bids to not only maintain but improve five hospitals in three key regions. It is time for Steward and its real estate partners to put the communities they serve above their own selfish desires. They need to close these deals that are in their interest and the interest of their patients and employees,” Healey said. Kearney and Nashoba will remain open Friday and will proceed with “orderly and regulated closures,” Healey’s office said. “Our number one priority must be our patients,” Warren said. “Their callousness to the health and well-being of Massachusetts residents is astonishing,” Sen. Ed Markey said. “Steward Healthcare has knowingly bought safety net hospitals that communities rely on and ruined them for maximum profit.” A bankruptcy judge must approve Steward’s motion to close, after which Steward must send a closure notice to the Department of Public Health and facilitate a transition for affected patients and employees, Healey’s office said. “There is still a process set out in bankruptcy court and by law that Steward Healthcare must follow. To date, Steward has ignored transparency requirements and its obligation to serve patients,” Markey said. On Thursday, a bipartisan group of senators voted to open an investigation into Steward. As part of that, they issued a subpoena for de la Torre to testify before a Senate committee in September. VIDEO: ‘Outrageous’: Senator Warren reacts to closure of two Steward hospitals in Massachusetts.
Struggling Steward Healthcare announced Friday that it will close two of its eight Massachusetts medical centers next month.
The private, for-profit health care company announced it plans to close both its facilities, Kearney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, around Aug. 31 after failing to secure qualifying bids.
“We are actively working to sell or relocate all of our hospitals in Massachusetts and are currently in final negotiations to sell six hospitals,” Steward said in a statement.
“Despite an extensive divestiture process that involved close coordination with lenders and regulators, no qualifying bids were received for the two hospitals, Kearney Hospital and Nashoba Valley Medical Center,” Steward said.
Gov. Maura Healey blamed the closures on “greed and mismanagement.”
“This is not the end. It is unfortunate that (Steward CEO) Ralph de la Torre and Steward’s greed and mismanagement have led to the closure of Kearny Hospital and Nashoba Valley Hospital. These hospitals have served their communities for many years and their closures are about much more than a loss of beds, doctors and nurses,” Healy said.
The union called the move “devastating.”
“Steward Healthcare’s decision to close Kearney Hospital and Nashoba Valley Medical Center is devastating and will create a hospital desert and exacerbate health care disparities in the communities they serve. Patients across Massachusetts will ultimately pay the price for Steward’s mismanagement as care is pushed miles away and emergency room capacity reaches crisis levels. The future of health care in Massachusetts is at risk,” 1199SEIU said in a statement.
Steward said the company will work with both patients and employees affected by the closure.
“We will continue to work closely with our patients in Kearney and Nashoba to help them identify the best treatment options, as well as partner with our valued employees and medical professionals to assist them through this very difficult transition,” Steward said.
Steward Healthcare filed for Chapter 11 bankruptcy protection on May 6. The company is considering selling all of its hospitals. “Qualified Bid” Healey announced the move earlier this week to target some facilities in Massachusetts.
Steward said he is also seeking bids for other Massachusetts hospitals, including Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton, St. Ann’s Hospital in Fall River, St. Elizabeth Hospital in Brighton and Holy Family Hospital, which has campuses in Methuen and Haverhill.
“These hospitals are necessary for these communities,” Sen. Elizabeth Warren said. “(Mr. Dela Torre) has done enough harm to this state.”
“As for the remaining hospitals, we know Steward has received multiple bids to not only maintain but improve five hospitals in three key regions. It is time for Steward and its real estate partners to put the communities they serve above their own selfish desires. They need to close these deals that put their own interests and the interests of their patients and employees first,” Healy said.
Kearney and Nashoba will remain open Friday and will proceed with an “orderly and consistent closure,” Healey’s office said.
“Our number one priority must be the patient,” Warren said.
“Their disregard for the health and well-being of Massachusetts residents is astounding,” said Senator Ed Markey. “Steward Healthcare knowingly bought safety-net hospitals that our communities rely on and then bankrupted them to maximize their profits.”
Healey’s office said a bankruptcy judge must approve Steward Hospital’s motion to close, after which Steward Hospital must send a notice of closure to the Department of Public Health and facilitate the transition for affected patients and employees.
“Steward Health Care must follow the procedures set out in bankruptcy court and by law. So far, Steward has ignored the requirements for transparency and its obligation to serve patients,” Markey said.
On Thursday, a bipartisan group of senators voted to open an investigation into Steward, and as part of that, they issued a subpoena for Dela Torre to testify before a Senate committee in September.
Video: “Outrageous”: Senator Warren responds to closure of two Steward Hospitals in Massachusetts
