Steward Health Care to Close 2 Massachusetts Hospitals by August

The closures, affecting Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, come after the health system failed to secure qualified bids for the facilities.

Steward Health Care, a Dallas-based health system currently in bankruptcy, will close two of its eight Massachusetts hospitals by the end of August.

The closures, affecting Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, come after the health system failed to secure qualified bids for the facilities.

The closures will take effect on or around August 31, 2024.

In a statement, Steward Health Care described the situation as "challenging and unfortunate," acknowledging the impact on patients, employees, and communities.

The health system is committed to assisting affected individuals and maintaining quality care at its remaining facilities.

Maura Healey, Governor, Massachusetts, condemned the closures, attributing them to "greed and mismanagement" by Steward’s leadership. She has called on Steward to expedite the finalization of deals for its other Massachusetts hospitals.

"These hospitals have long served their communities – their closures are about more than the loss of beds, doctors, and nurses. We want to assure the people of Massachusetts that we have prepared diligently for this moment and will take all available steps to help facilitate a smooth transition for impacted patients and employees," Healey stated.

Bankruptcy Proceedings & Sale Attempts

Reportedly, Steward Health Care filed for Chapter 11 bankruptcy in early May in the Southern District of Texas. The health system has been attempting to sell off its 31 hospitals and physician group, Stewardship Health.

Despite efforts to sell or transition all its Massachusetts hospitals, Steward Health Care received qualified bids for only six out of the eight facilities. As a result, Carney Hospital and Nashoba Valley Medical Center will be shuttered.

Governor Healey had previously indicated that bids were received for all Bay State hospitals. However, only six hospitals are expected to be sold.

"Over the past several months, Steward Health Care has been actively working to sell or transition all its Massachusetts hospitals, and we are in active final negotiations to sell six of them. Despite the extensive sale process, which involved close coordination with lenders and regulators, there were no qualified bids for two hospitals," the health system said in a statement.

Future Plans

The next step involves obtaining court approval for the closures. Steward Health Care must send a notice of closure to the Department of Public Health, which will oversee the transition process for patients and employees.

Steward's financial difficulties extend beyond Massachusetts. The health system recently canceled auctions for its hospitals in Ohio and Pennsylvania after failing to receive qualified bids.

Further, the healthcare system is exploring alternatives for these facilities and is expected to make further announcements.

Additionally, it has also identified potential buyers for hospitals in Arkansas and Louisiana. Pafford Health Systems has bid $200,000 for Wadley Regional Medical Center in Arkansas, while AHS South LLC seeks to acquire Glenwood Regional Medical Center in Louisiana for $500,000.

The health system's struggles have prompted a bipartisan group of lawmakers to call for an investigation into Steward Health Care's financial management.

Additionally, the Senate Health, Education, Labour, and Pensions (HELP) Committee plans to hold a hearing on September 12 to address concerns about mismanagement and its impact on patient care.