Efforts to block the state from seizing St. Elizabeth’s Medical Center persist

In a letter to the state, Apollo Global Management, the landlord of St. Elizabeth’s Medical Center in Brighton, rejected the state’s offer to take over the property through eminent domain.

In the letter sent Tuesday, Apollo’s lawyers said it “rejects the Commonwealth’s proposed offer of $4,500,000 which significantly undervalues the real property underlying St. Elizabeth’s.”

Apollo says the tax-assessed value of the property is over $200 million.

“The landlord thinks that what we offered was too low, we don’t think it is, but the point is we’re going to take that property, we’re going to get that hospital under control there at St. E’s,” said Gov. Maura Healey Wednesday night. “As you know I announced agreements last week that were in the works to save the other community hospitals.”

Last week, Governor Healey announced deals to keep five of the seven Steward hospitals open under new ownership, while Carney and Nashoba hospitals still plan on closing by the end of August.

“Months ago, we received news that Steward was going bankrupt and hospitals were going to close all over Massachusetts, and we’re glad we’ve been able to save the mass majority of these hospitals,” said Gov. Healey.

But the legal battle will continue over St. Elizabeth’s.

While the governor tells Boston 25 News Wednesday night that the state will press on taking it over through eminent domain, the landlord says it’ll challenge that move in court.

The lawyers for Apollo say St. Elizabeth’s sits on 14 acres of real estate in a prime location and are looking for ‘fair market value’ before making a deal.

In a news conference last Friday, Governor Healey said after the state takes over St. Elizabeth’s, Boston Medical Center would become the new owner to run that hospital.

The bankruptcy hearing to approve the sale of these five remaining Steward hospitals was supposed to be Thursday in Texas, but that hearing has been postponed until August 27th.

Apollo is the parent company of Cox Media Group which owns Boston 25.

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

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