Gov. Maura Healey announced deals in principle were struck to transition operations at the other four for-sale Steward Health Care hospitals — Saint Anne’s Hospital in Fall River, Good Samaritan Medical Center in Brockton, the Holy Family Hospitals in Methuen and Haverhill and Morton Hospital in Taunton — to new operators.
Lifespan would take over Morton and Saint Anne’s, and Boston Medical Center would take over Good Samaritan and Saint Elizabeth’s after the taking process is complete, as long as the deals are finalized. The governor's office said it has been working with the Legislature on "a fiscally responsible financing plan that includes cash advances, capital support and maximizing federal matches" to support the transition to new operators.
Lawrence General Hospital would become the operator for both Holy Family campuses.
"Today, we are taking steps to save and keep operating the five remaining Steward Hospitals, protecting access to care in those communities and preserving the jobs of the hard-working women and men who work at those hospitals," Healey said. "Our team under Secretary Kate Walsh worked day in and day out to secure new, responsible, qualified operators who will protect and improve care for their communities. We’re grateful for the close collaboration of the Legislature to develop a fiscally responsible financing plan to support these transitions."
Fall River mayor says it's 'welcome news'
Fall River Mayor Paul Coogan said it was welcome news that Saint Anne's will be taken over by Lifespan hospital system, which currently owns Rhode Island Hospital as well as Miriam, Newport and Bradley hospitals.
"I think it will be a very good addition to the city of Fall River. We already have another very strong hospital in the city (Charlton Memorial) and St. Anne's was always equal and just as good, no doubt about it," Coogan said. "Now we have someone who will bring back stability to that hospital."
Unlike Steward, a for-profit organization that was the third highest taxpayer in the city, Lifespan is a not-for-profit hospital system.
The annual real estate tax of approximately $1.4 million is from several properties associated with Saint Anne’s, in particular from the Saint Anne’s Hospital facility at 795 Middle St. Steward no longer owns the properties, having sold it and other hospitals it owns in Massachusetts in 2016 to Alabama-based company Medical Properties Trust.
To make up the lost revenue, the city's other commercial taxpayers will have to make up the shortfall in their taxes.
"My goal would be to find a way to work with Lifespan and to try to generate some funds for the city to offset that loss. I know Lifespan will be a good partner, and I'm sure we will sit down and work out some resolutions together to make it work for both parties," Coogan said.
Senator Elizabeth Warren reacts
“Thousands of health care workers and patients are breathing a sigh of relief thanks to the Healey administration’s efforts to save the remaining Steward hospitals,” Senator Elizabeth Warren said in a written statement.
Warren and fellow Senator Ed Markey have been outspoken critics of the leadership of Steward Health. They are pushing for federal regulations.
“Good riddance to disgraced CEO Ralph de la Torre who leaves behind a legacy of ruin, including two hospital closures. He must still be held accountable, as should greedy landlords MPT, Macquarie, and Apollo, who've lined their pockets at the expense of Massachusetts communities. I’ll continue fighting to prevent corporate interests from looting the Massachusetts health care system ever again."
How many people does Saint Anne's employ?
According toa 2023 Saint Anne's Hospital fact sheet, the hospital employs 1,500 people.
What hospitals does Lifespan already own?
Lifespan was founded in 1994 by Rhode Island Hospital and The Miriam Hospital. According to its website, it is an integrated, academic health system with The Warren Alpert Medical School of Brown University, and its partners include Rhode Island Hospital's pediatric division, Hasbro Children's Hospital; Bradley Hospital; Newport Hospital; Gateway Healthcare; Lifespan Physician Group; and Coastal Medical.
Lifespan already operates a Hasbro Children's Specialty Practice in Fall River.
Lifespan 'finalizing the terms of a bid'
“Lifespan continues to work on finalizing the terms of a bid to purchase St. Anne’s Hospital in Fall River, MA, and Morton Hospital in Taunton, MA, both owned by Steward Health Care System, LLC, a for-profit corporation based in Dallas, Texas.Once the bid is finalized and Steward and Apollo (owners of the hospital properties) designate the bid as the best bid it will then be filed with the bankruptcy court, since the terms of our purchase are subject to the court’s approval. Furthermore, the transaction will also require state and federal regulatory approvals, as well as satisfaction of sale contingencies,”reads a statement provided by Jessica Wharton, a spokesperson for Lifespan.
Steward Health announced sale of doctor network to a Nashville company
Earlier this week, it was announced that Steward Health Carehas agreed to sell its physician network to private-equity backed Rural Healthcare Group for $245 million in cash.
It is unclear whether this sale will still be going through and what impact it will have.
Steward's physician group, known asStewardship, serves more than 800,000 patients nationwide via roughly 3,250 affiliates, according to a Monday court filing. The group directly employs more than 290 doctors.
TheNashville-based RHGsaid Monday it plans "significant investments in Stewardship’s infrastructure, which will allow providers to continue seeing patients in existing clinics across the Stewardship network."
Health care workers union responds
Tim Foley, 1199SEIU executive vice president, released the following statement in response to the State of Massachusetts seizing St. Elizabeth's Medical Center in Boston by eminent domain, and the planned sale of five other Steward hospitals to new buyers with state support.
“This is the exact kind of aggressive action that the healthcare workers of 1199SEIU have been demanding from our state leaders. Steward’s hospitals are essential to Massachusetts’ healthcare system, and this bold step will keep them open to serve our patients despite the outrageous financial brinksmanship of Apollo Global Management, Medical Properties Trust, and Steward Health Care.
“Thanks to Governor Healey and her administration, six Steward hospitals will be saved. Steward’s investors spent years draining resources from these hospitals to fuel their profits, and they own the blame and responsibility for this crisis. We will not rest until they are held fully accountable for their misconduct and greed."
Steward Health Care Systems debts: Here’s what they owe
The for-profit companydeclared bankruptcy in May, here were a few of the jaw-dropping discoveries
- Steward owes money to more than 100,000 creditors.
- The largest single unsecured claim in the filing is $71 million owed toChange Healthcare, a healthcare technology company itself owned by Optum. That's the healthcare giant Steward has beentrying to sell its physicians' practice to.
- The company's unsecured debts include $28 million to the Internal Revenue Service. This includes debt connected to the CARES Act, in which the federal government gave out $2 trillion in COVID relief.
- Medical device providers figure prominently in the list of largest unsecured creditors, including $50 million owed to Philips North America.
- Among Massachusetts companies who are now in line asking to be repaid is Boston Scientific in Marlborough (owed $5.4 million) and Lexington's ProMedical (which has a claim for $5.2 million.)
- Steward indicated its debts range between $1 billion and $10 billion. The company checked a box saying its assets are in that same wide range.
