Massachusetts governor moves to save five hospitals from closing: Questions and answers

After a lengthy battle with Steward Health Care, Massachusetts Gov. Maura Healey has announced plans to save five hospitals from the threat of shutting down.

Massachusetts Gov. Maura Healey has unveiled plans to save five hospitals that had been run by Steward Health Care. However, two other Steward hospitals in the state are slated to close by the end of the month.

The Massachusetts governor unveiled the steps late Friday as the state has wrestled with the company over the fate of the facilities. Steward filed for bankruptcy in the spring and the for-profit company based in Dallas, Texas has said it’s trying to sell its 31 hospitals.

Healey has announced steps to save most of the Steward facilities. Here’s a look at the governor’s plans.

Q: What is the governor planning to do?

A: Healey announced Friday that she is moving to keep five hospitals open. She has lined up new ownership of four hospitals and is planning to take over another hospital before handing that facility off to another owner.

Q: Which hospital is the government taking over?

A: The Healey administration is taking over St. Elizabeth’s Medical Center in Boston via eminent domain. 

“Enough is enough,” Healey said in a statement Friday. “Our administration is going to seize control of Saint Elizabeth’s through eminent domain so that we can facilitate a transition to a new owner and keep this hospital open.”

Q: Which deals are in place for the other four hospitals?

A: The Healey administration says Lawrence General Hospital will take over the operation of Holy Family Hospital, which has campuses in Haverhill and Methuen.

The Lifespan health system, based in Providence, R.I. would manage Morton Hospital in Taunton and Saint Anne’s Hospital in Fall River.

Eventually, Lifespan is slated to take over St. Elizabeth’s Medical Center, after the state takes ownership of the facility.

Q: Are all of the Steward hospitals in Massachusetts going to find new ownership?

A: Apparently not. Healey said the plans do not include Carney Hospital in Dorchester or Nashoba Valley Medical Center in Ayer. Both hospitals are slated to close after Steward said it was unsuccessful in finding qualified bidders for the facilities. The two hospitals are expected to close on or around Aug. 31, WBZ News reported.

“Unlike the other hospitals, there was no hospital operator willing to come forward with a bid to continue operations,” Healey said at a press conference Friday.

Q: How is the state financing its efforts to save the five hospitals?

A: The Healey administration said it has worked with the Massachusetts legislature to help provide enough money to keep the five facilities afloat. Healey’s office credited the legislature for its help in devising a plan that includes “cash advances, capital support and maximizing federal matches.”

“We’re grateful for the close collaboration of the Legislature to develop a fiscally responsible financing plan to support these transitions,” Healey said in a statement.

The administration has also committed $30 million to help support the five hospitals through the end of the month.

Q: What are the reactions to the governor’s plans?

Many in Massachusetts are expressing relief. State Sen. Marc Pacheco, a Democrat from Taunton, told WGBH that Lifespan taking over the facilities in southeastern Massachusetts is “good news” for the region.

“It took a lot of work behind the scenes, with bankruptcy court, with finance entities, you name it,” Pacheco told WGBH.

Some are urging the Healey administration to take steps to preserve the other hospitals.

John Fitzgerald, a Dorchester city councilman, told WBZ-TV in Boston he wants to explore using eminent domain to save Carney Hospital.

Massachusetts State Sen. Jamie Eldridge, a Democrat representing Marlborough, praised Healey for moving to save the five hospitals. But Eldridge also said the state must act to preserve the other facilities, noting the state has enjoyed healthy tax revenues and recently received a $600 million tobacco settlement. “The cost of inaction is too high,” Eldridge said in a statement.

The Massachusetts Nurses Association said the state’s plan to save the hospitals is a “positive development” and pledged to work with the new owners on the transition. But the association said it wanted to evaluate the final agreements, and also urged state officials to work to find ways to save the Carney and Nashoba Valley hospitals.

Q: How did the situation with the Steward hospitals become so dire?

Elected officials in Massachusetts, including Healey and members of the state’s congressional delegation, have long accused Steward of acting irresponsibly and not being transparent with the state. Healey previously implored Steward to transfer ownership of the hospitals to the state.

Steward closed New England Sinai Hospital, a rehabilitation hospital in Stoughton, in April.

Ralph de la Torre, MD, CEO of Steward, said the health system had little choice but to declare bankruptcy.

“Steward Health Care has done everything in its power to operate successfully in a highly challenging health care environment,” he said in a statement in May. “Filing for Chapter 11 restructuring is in the best interests of our patients, physicians, employees, and communities.”

U.S. Sen. Elizabeth Warren, D-Mass., and other lawmakers have hammered Steward’s management and decried the dangers of private equity ownership of hospitals. In a statement Friday, Warren vowed to keep fighting to “prevent corporate interests from looting the Massachusetts health care system ever again."

“Thousands of health care workers and patients are breathing a sigh of relief thanks to the Healey administration’s efforts to save the remaining Steward hospitals,” Warren said. “Good riddance to disgraced CEO Ralph de la Torre who leaves behind a legacy of ruin, including two hospital closures.”

Q: Are the hospitals currently open?

A: The hospitals are open and serving patients.