Massachusetts Allocates $30 Million to Support Steward Health Care Hospitals Amid Bankruptcy
- Massachusetts has committed approximately $30 million to support six hospitals under Steward Health Care, which is undergoing bankruptcy proceedings.
- The funding aims to stabilize hospital operations while the company seeks new ownership.
- Despite the state's intervention, the governor acknowledges that she cannot prevent the closure of two additional hospitals, indicating ongoing challenges in the healthcare sector.
BOSTON — In a significant move to stabilize healthcare services, Massachusetts has committed approximately $30 million to support the operations of six hospitals under Steward Health Care, which is in the process of transitioning ownership following its recent bankruptcy declaration. This funding comes as Steward announced the closure of Carney Hospital and Nashoba Valley Medical Center due to a lack of qualified bids for these facilities. The financial assistance is intended to ensure that Steward's hospitals can continue functioning through the end of August, allowing patients to access care and employees to retain their jobs during this transitional period. According to Governor Maura Healey's administration, the funds are advances on Medicaid payments owed to Steward and are contingent upon a smooth transition to new ownership. However, the funding cannot be used for rental payments, debt service, or management fees. Governor Healey emphasized that the decision to close the two hospitals lies with Steward and its CEO, Ralph de la Torre, stating that the state has limited power to intervene. She expressed frustration over the situation, attributing it to the actions of Steward's management. Healey reiterated the state's commitment to healthcare, focusing on the remaining six hospitals that have potential bidders. In a related development, a Senate committee has voted to investigate Steward's bankruptcy, with plans to subpoena de la Torre to testify at a hearing scheduled for September 12. This inquiry aims to shed light on the circumstances surrounding the hospital closures and the company's financial practices.