Gov. Maura Healey announced deals in principle were struck to transition operations of the for-sale Steward Health Care hospitals — Saint Anne’s Hospital in Fall River, Good Samaritan Medical Center in Brockton, the Holy Family Hospitals in Methuen and Haverhill and Morton Hospital in Taunton — to new operators.
Boston Medical Center will take over Good Samaritan and Saint Elizabeth’s. First, though, Massachusetts will take St. Elizabeth's Hospital in Brighton by eminent domain in order to keep the hospital open while it transitions to a new owner.
Lifespan will take over Morton and Saint Anne’s in Taunton and Fall River , respectively. Lawrence General Hospital would become the operator for both Holy Family campuses.
"Today, we are taking steps to save and keep operating the five remaining Steward Hospitals, protecting access to care in those communities and preserving the jobs of the hard-working women and men who work at those hospitals," Healey said. "Our team under Secretary Kate Walsh worked day in and day out to secure new, responsible, qualified operators who will protect and improve care for their communities. We’re grateful for the close collaboration of the Legislature to develop a fiscally responsible financing plan to support these transitions."
The governor's office said it has been working with the Legislature on "a fiscally responsible financing plan that includes cash advances, capital support and maximizing federal matches" to support the transition to new operators.
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Brockton mayor 'thrilled' by news of sale
Brockton Mayor Robert F. Sullivan, who has juggled multiple health-care crises during his tenure, including COVID and the loss of Brockton Hospital to a fire, welcomed the news that Boston Medical Center would be taking control of Good Samaritan Medical Center.
“I am thrilled that the Good Samaritan Medical Center will be acquired by Boston Medical Center so that high-quality medical care will continue to be provided within our City," the mayor said in a text message Friday. "With the re-opening of Brockton Hospital/Signature Healthcare, this past Tuesday, our residents and the region will continue to have exceptional healthcare offerings at two phenomenal City medical facilities."
Sullivan, now in his third term, said his administration has already been working with BMC since it took over the old Braemoor Nursing Home on North Pearl Street. He thanked Gov. Maura Healey and her administration as well. "I look forward to continued collaboration and support. I wish to thank Mr. Matt Hesketh (CEO - Good Samaritan) for his steadfast leadership and to all of the Good Samaritan employees who have worked so hard during the pandemic and as a result of the 18-month closure of Brockton Hospital."
Brockton Hospital reopened Tuesday, meaning the city was back to having two emergency departments. The reopening takes pressure off other facilities and improves emergency care access for residents.
Senator Elizabeth Warren reacts
“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,” Senator Elizabeth Warren said in a written statement.
Warren and fellow Senator Ed Markey have been outspoken critics of the leadership of Steward Health. They are pushing for federal regulations.
“Good riddance to disgraced CEO Ralph de la Torre who leaves behind a legacy of ruin, including two hospital closures. He must still be held accountable, as should greedy landlords MPT, Macquarie, and Apollo, who've lined their pockets at the expense of Massachusetts communities. I’ll continue fighting to prevent corporate interests from looting the Massachusetts health care system ever again."
More: Steward Health is selling its doctor network to a Nashville company: What that means
What is Boston Medical Center and what else do they own
Boston Medical Center, often referred to as BMC, is a private, not-for-profit, 487-bed academic medical center located in the South End of Boston, according to its website. Boston Medical Center is the largest safety net hospital in New England, meaning it provides care to patients regardless of their insurance or immigration status or their ability to pay. The hospital provides a full spectrum of pediatric and adult-care services – from primary care and family medicine to advanced specialty care.
Boston Medical Center is a founding partner of the Boston Medical Center Health System, which provides services throughout New England and "is focused on creating a coordinated, equitable, value-based continuum of care to deliver world-class care to both patients and health plan members," the website states.
Clearway Health, WellSense Health Plan, Boston Accountable Care Organization, Boston HealthNet, Boston University Medical Group and Oakwell are all part of the Boston Medical Center Health System.
David Kibbe, senior director of communications for the system, said details remain to be finalized. "If approved, BMC Health System looks forward to working with the highly skilled clinicians and staff at each hospital to revitalize clinical services and help the communities they serve thrive," Kibbe said in a Friday statement. "BMCHS is committed to ensuring access to high quality, equity-led care for all in need."
Health care workers union comments on governor's announcement
Tim Foley, the executive vice president of 1199SEIU United Healthcare Workers East, the union representing nearly 80,000 health care workers throughout Massachusetts, said Friday's announcement is "the exact kind of aggressive action that the healthcare workers of 1199SEIU have been demanding from our state leaders."
"Steward’s hospitals are essential to Massachusetts’ healthcare system, and this bold step will keep them open to serve our patients despite the outrageous financial brinksmanship of Apollo Global Management, Medical Properties Trust, and Steward Health Care," Foley said.
“Thanks to Governor Healey and her administration, six Steward hospitals will be saved. Steward’s investors spent years draining resources from these hospitals to fuel their profits, and they own the blame and responsibility for this crisis. We will not rest until they are held fully accountable for their misconduct and greed."
Foley pointed out that two of Steward's hospitals, Carney Hospital and Nashoba Valley Medical Center, are still slated to close, "leaving thousands of patients and workers to fend for themselves."
"We need the same level of uncompromising commitment to patients and workers at Carney and Nashoba Valley that we’ve seen from the state when it comes to the other Steward hospitals," Foley said.
"Steward and its investors must pay all laid-off workers what they are owed in accumulated PTO and severance pay," he added. "We thank Governor Healey for joining us in insisting that Steward not jettison the very workers who stuck around through years of corporate mismanagement. And the state must begin a community-led process to shape the future of care at these sites and preserve critical services that Carney and Nashoba Valley patients depend on, including emergency services, urgent care, full-service pharmacies, behavioral health services, and primary/preventative care.”
Steward Health announced sale of its doctor network to a Nashville company earlier this week
Earlier this week, it was announced that Steward Health Care has agreed to sell its physician network to private-equity backed Rural Healthcare Group for $245 million in cash.
It is unclear whether this sale will still be going through and what impact it will have.
Steward's physician group, known as Stewardship , serves more than 800,000 patients nationwide via roughly 3,250 affiliates, according to a Monday court filing. The group directly employs more than 290 doctors.
The Nashville-based RHG said Monday it plans "significant investments in Stewardship’s infrastructure, which will allow providers to continue seeing patients in existing clinics across the Stewardship network."
What hospitals does Lifespan already own?
Lifespan was founded in 1994 by Rhode Island Hospital and The Miriam Hospital. According to its website, it is an integrated, academic health system with The Warren Alpert Medical School of Brown University, and its partners include Rhode Island Hospital's pediatric division, Hasbro Children's Hospital; Bradley Hospital; Newport Hospital; Gateway Healthcare; Lifespan Physician Group; and Coastal Medical.
Lifespan already operates a Hasbro Children's Specialty Practice in Fall River.
Closing Nashoba Valley Medical Center in Ayer and Carney Hospital in Dorchester
Steward Health Care System plans to close Nashoba Valley Medical Center and Carney Hospital in Dorchester by the end of August. In July, a federal bankruptcy judge ruled Steward can move ahead with its plans to shutter the hospitals.As these medical centers close 490 Nashoba workers will get pink slips and 753 jobs will be cut when Carney Hospital closes.
The for-profit company declared bankruptcy in May , here were a few of the jaw-dropping discoveries
- Steward owes money to more than 100,000 creditors.
- The largest single unsecured claim in the filing is $71 million owed to Change Healthcare , a healthcare technology company itself owned by Optum. That's the healthcare giant Steward has been trying to sell its physicians' practice to .
- The company's unsecured debts include $28 million to the Internal Revenue Service. This includes debt connected to the CARES Act, in which the federal government gave out $2 trillion in COVID relief.
- Medical device providers figure prominently in the list of largest unsecured creditors, including $50 million owed to Philips North America.
- Among Massachusetts companies who are now in line asking to be repaid is Boston Scientific in Marlborough (owed $5.4 million) and Lexington's ProMedical (which has a claim for $5.2 million.)
- Steward indicated its debts range between $1 billion and $10 billion. The company checked a box saying its assets are in that same wide range.
This article originally appeared on MetroWest Daily News: 'High-quality medical care will continue': Good Sam to be sold to Boston Medical Center
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