Steward Health Care to Close Two Massachusetts Hospitals Amid Bankruptcy

BOSTON (AP) — Steward Health Care announced the impending closure of Carney Hospital and Nashoba Valley Medical Center in Massachusetts, following a lack of qualified bids for the facilities after the company declared bankruptcy earlier this year. The closures are set to take place on or around August 31, as Steward continues negotiations to sell six other hospitals in the state. The company operates approximately 30 hospitals across eight states and is coordinating with state and federal agencies during this transition. Massachusetts Governor Maura Healey criticized the closures, attributing them to the "greed and mismanagement" of Steward Health Care and its CEO, Ralph de la Torre. She assured residents that the state is prepared to facilitate a smooth transition for affected patients and employees. Healey noted that bids have been received for the remaining hospitals, aimed at maintaining and improving their operations. In June, occupancy rates at Carney and Nashoba were notably low, with only 13 of 83 beds and 11 of 46 beds filled, respectively. The state Department of Public Health will oversee the transition process following Steward's formal notice of closure. Additionally, a Senate committee has initiated an investigation into Steward's bankruptcy, with plans to subpoena de la Torre. Senator Bernie Sanders highlighted the risks associated with private equity in healthcare, emphasizing the detrimental impact on community hospitals. Senator Ed Markey echoed these concerns, urging Steward to prioritize the sustainability of its remaining facilities.