Steward Health Care to ask for $30M in advance funds at Tuesday bankruptcy hearing

Embattled Steward Health Care will face a bankruptcy hearing in Texas on Tuesday as the push to keep a pair of Massachusetts hospitals open beyond August continues.

In late July, the private for-profit health system announced plans to shutter Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer after no qualified bids emerged for the healthcare facilities during its bankruptcy proceedings.

A physician-owned health system, Insight, out of Michigan and Illinois made an offer to buy all the Steward hospitals in the state, but couldn’t reach an agreement on Carney and Nashoba.

Steward said the two hospitals would close on or around August 31, calling the decision a “challenging and unfortunate situation.”

At the very least, local lawmakers are working to ensure Steward’s other six hospitals don’t close down.

Steward is hoping the bankruptcy judge will allow them to tap into $30 million in future Medicaid funds the state owes to Steward to help them continue to operate. But Massachusetts is looking to delay access to that money, claiming Steward is not far enough along in the sales process of its other hospitals.

Steward says if it doesn’t get that money, patients will be forced to go to other hospitals. Steward already plans to close Carney and Nashoba Valley hospitals at the end of the month, laying off more than 1,200 workers .

Local leaders and hospital staff held a rally at Carney on Monday , demanding that Steward keep the doors open. Boston 25 News talked to a nurse who says 70% of the patients are on Medicaid.

“This hospital is one of the oldest hospitals,” says Stephen Wood, a nurse at Carney Hospital. “It started as a charity and it should remain a charity. We provide probably one of the most important services for these marginalized communities in Dorchester, Roxbury, Mattapan, and Quincy. People come from all over because they know the care here is great and that we’re going to do the right thing for them.”

A spokesperson for the Massachusetts Department of Health and Human Services says the state is pressing Steward to follow the 120-day closure process at Carney and Nashoba, but also recognizes patient levels are low and the hospitals are out of money.

The state is doing what it can now to save Steward’s remaining six hospitals.

This is a developing story. Check back for updates as more information becomes available.

Download the FREE Boston 25 News app for breaking news alerts.

Follow Boston 25 News on Facebook and Twitter . | Watch Boston 25 News NOW