Massachusetts Governor Maura Healey has emphasized the importance of Steward Health Care complying with a state regulation that mandates a 120-day notice period before closing any medical facility in the state. This statement comes in response to a recent decision by a bankruptcy judge allowing Steward to proceed with the closure of two Massachusetts hospitals, Carney Hospital and Nashoba Valley Medical Center, due to the lack of qualified bids.
Steward, a Dallas-based company that declared bankruptcy in May and announced plans to sell off its 30 hospitals nationwide, had received bids for six other hospitals in Massachusetts. Governor Healey has been actively engaged in securing a deal for a smooth transition of ownership from Steward to a responsible operator.
Healey reiterated the necessity for Steward to remain operational for the stipulated 120-day period, despite the company's financial challenges. She criticized Steward's decision to close the hospitals and highlighted the need to address lease payments owed by the company after selling the hospitals' physical properties.
Following the judge's approval to terminate the master lease binding the Massachusetts hospitals, concerns were raised by state lawmakers regarding Steward's compliance with regulations requiring formal notification of hospital closures 120 days in advance.
Massachusetts has agreed to provide approximately $30 million to support the operations of six hospitals that Steward is transitioning to new owners. These funds, advanced from Medicaid payments owed to Steward, are contingent on a smooth transition process and specific operational milestones.
Steward Health Care operates hospitals across eight states and is facing scrutiny from a Senate committee, which recently voted to investigate the company's bankruptcy and subpoena Steward's CEO for testimony at a hearing scheduled for September 12.
