HOUSTON — A federal bankruptcy judge on Wednesday approved the sale of six Massachusetts hospitals — including Good Samaritan in Brockton, Morton in Taunton and Saint Anne's in Fall River.
The last hurdle to getting Steward Health Care out of the Bay State were lenders who said the proposed deal "eviscerates" their rights. So-called "First In First Out" (FILO) lenders will get no money even though they hold liens on the millions of dollars of assets at stake.
Attorney Michael W. Price, speaking for the FILO lenders, argued his clients' collateral would be used to pay other claims, such as employee salaries.
"We don't want this sale to blow up unless it absolutely has to," Price told Judge Christopher M. Lopez of the Southern Texas federal bankruptcy court. Dallas-based Steward, a for-profit company, declared bankruptcy in May.
Deal on the table is for $343 million
About 330 people called in from across the country to the hearing, the judge said. That's in addition to advocates for the various parties present in his courtroom. The hearing had been rescheduled multiple times as various creditors fought to make sure they get paid.
A lawyer for Steward said the deals on the table provide "no net proceeds" for Steward or the FILO lenders. The upside of completing the sales and keeping the hospitals open outweighs those concerns, argued Candace M. Arthur.
"We are not dealing with widgets," Arthur said.
The aggregate total price for all the hospitals is $343 million, she said.
Lopez said he understood both sides' arguments and would make a ruling Wednesday afternoon.
"I'm leaning toward approval," the judge said, saying the sales process has been "robust" and that there's real risk as patients are sitting in beds right now.
After about an hour, Lopez came back to court to approve the sales.
How much taxpayer money is being used to save hospitals?
The Commonwealth has pledged major tax dollars to the deal. The state recently announced that, in addition to an initial infusion of $30 million, it would provide another $42 million during the transition away from Steward.
Who is buying Brockton, Taunton, Fall River hospitals?
The deal the judge approved Wednesday means Lifespan will be purchase Morton Hospital in Taunton and Saint Anne’s Hospital in Fall River, Lawrence General Hospital is set to purchase Holy Family Hospital in Methuen and Haverhill and Boston Medical Center is set to purchase Good Samaritan Medical Center in Brockton and St. Elizabeth’s Medical Center.
Brockton and Fall River hospitals could lose their Catholic names
Steward began as a way to rescue a failing network of Catholic hospitals. The 2010 sale of Caritas Christi facilities to Steward included an agreement that if Steward ever sold, religious items like crosses and statues of saints would be returned to the church.
That also goes for the names.
Within 18 months of a sale, the agreement calls for renaming of Good Samaritan Medical Center in Brockton, Saint Anne's in Fall River, St. Elizabeth's Medical Center in Brighton and Holy Family Hospital in Haverhill and Methuen.
Roman Catholic authorities say they approve the deal on the table, as long as the agreement about religious items and names is honored.
Send your news tips to reporter Chris Helms by email at CHelms@enterprisenews.com or connect on X at @HelmsNews .
This article originally appeared on The Enterprise: Bankruptcy judge OKs deal to save Brockton, Taunton, Fall River hospitals. What we know
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