BOSTON (AP) — Massachusetts has agreed to provide about $30 million to help support the operations of six hospitals that Steward Health Care is trying to turn over to new owners after declaring bankruptcy earlier this year, according to court filings.
The latest update comes as Steward announced Friday that it was closing two hospitals — Carney Hospital and Nashoba Valley Medical Center — because it received no qualified bids for either facility.
In a court filing late Friday, Steward announced it had received a commitment from Massachusetts “to provide approximately $30 million of funding support for the hospitals’ operations as they are transitioned to new operators in the near-term.”
The Dallas-based company also said in the court filing that the company remains steadfast in their goal of doing everything within their power to keep their 31 hospitals open.
In May, Steward said it planned to sell off all its hospitals after announcing that it had filed for bankruptcy protection. The company's hospitals are scattered across eight states.
The $30 million is meant to ensure that Steward's hospitals in Massachusetts can continue to operate through the end of August, according to Gov. Maura Healey's administration. The funding will help make sure patients can continue to access care and workers can keep their jobs until Carney and Nashoba Valley close and the remaining five hospitals are transitioned to new owners.
Carney Hospital is located in the Dorchester neighborhood of Boston and Nashoba Valley Medical Center is in Ayer, a town about 45 miles (72 kilometers) west of Boston.
The payments are advances on Medicaid funds that the state owes Steward and are being provided contingent upon an orderly movement toward new ownership. The $30 million is also contingent on Steward hitting milestones and cannot be used for rental payments, debt service or management fees.
Healey said “not a dime” of the $30 million will go to Steward but will instead help ensure a smooth transition to new ownership.
Asked if there is anything the state can do to keep Carney Hospital and Nashoba Valley Medical Center open — including state receivership — Healey turned the focus back on Steward and embattled CEO Ralph de la Torre.
“It's Steward's decision to close these hospitals, there's nothing that the state can do, that I can do, that I have to power to do, to keep that from happening,” Healey told reporters. “But I've also said from the beginning that we are focused on health care."
She said that focus includes saving the six Steward hospitals which have bidders.
“We are in this situation, and it's outrageous that we are in this situation, all because of the greed of one individual, Ralph de la Torre, and the management team at Steward,” Healey said. “I know Steward is not trustworthy and that's why I've said from the beginning I want Steward out of Massachusetts yesterday."
On Thursday, a Senate committee voted to authorize an investigation into Steward's bankruptcy and to subpoena de la Torre.
The subpoena would compel de la Torre to testify before the Senate Health, Education, Labor, and Pensions Committee at a hearing on Sept. 12.
A group of Democratic members of Congress, led by Massachusetts Sen. Edward Markey, has also sought reassurances that workers at hospitals owned by Steward will have their health care and retirement benefits protected.
Steve Leblanc, The Associated Press
