Massachusetts to "seize control" of St. Elizabeth's from Steward; deals reached on 4 other hospitals
BOSTON - Gov. Maura Healey announced Friday that the state will "seize control" of St. Elizabeth's Medical Center in Brighton by using eminent domain, and her administration has deals in place to save four other Steward Health Care hospitals in Massachusetts from closure.
"We're closing the book on Steward, once and for all, in Massachusetts," Healey said in a news conference. "In doing so, we are protecting access to care in those communities and preserving jobs, jobs of thousands of hard-working women and men who work at these hospitals."
Deals have been reached "in principle" to give Saint Anne's Hospital in Fall River, Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton and Holy Family hospitals in Haverhill and Methuen to new owners. But Healey said the private equity firms managing Steward's bankruptcy are not acting in the best interests of Massachusetts residents when it comes to a deal for St. Elizabeth's. Steward declared bankruptcy in May and said it would put all its U.S. hospitals up for sale.
"Enough is enough," the governor said in a statement. "Our administration is going to seize control of Saint Elizabeth's through eminent domain so that we can facilitate a transition to a new owner and keep this hospital open."
Eminent domain refers to the power of the government to take private property for public use.
New owners for Steward hospitals
Lawrence General Hospital will operate the Holy Family hospitals if the deals are approved. Rhode Island-based Lifespan would take over Morton and Saint Anne's.
Boston Medical Center would assume control of Good Samaritan and Saint Elizabeth's once the state's eminent domain process is complete, Healey said.
Steward did not issue an immediate comment on the state's announcement when contacted by WBZ-TV.
Healey said her administration is working with lawmakers to come up with a "fiscally responsible financing plan that includes cash advances, capital support and maximizing federal matches" for the transfer of hospital ownership.
Steward CEO Ralph de la Torre has been accused for years of putting profits before patients and has been subpoenaed to testify before the U.S. Senate. Senators Ed Markey of Massachusetts and Bernie Sanders of Vermont have labeled him "the poster child" for corporate greed.
"I think it's a win for Massachusetts because we got rid of a really bad operator," Healey said about Steward.
Carney Hospital, Nashoba Valley Medical Center still closing
The new announcement from Healey does not affect the planned closures of Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer that Steward announced last month after no qualifying bids were made.
State and local health officials told Carney employees Tuesday that there are no plans to take over the facility using eminent domain. Healey said her administration is focused on getting workers there new jobs and transferring patients to new hospitals.
"It's an incredibly upsetting reality," Healey said about those hospitals' impending closure. "Know that our administration will continue to work with those communities to do the best we can in bringing the urgency to safely transitioning care and supporting our workers."
So what makes a qualified bidder?
"Unfortunately, the way this process has worked is that Steward has gotten to decide who the qualified bidders are, which is kind of like having a fox in the hen house," said John Fitzgerald, the city councilor for Dorchester. He is trying to save Carney hospital, and he's wondering if eminent domain is the answer.
"I learned today it is because Carney doesn't have a qualified bidder. Are we actively working to get a qualified bidder to the table? Is having a qualified bidder a legal necessity to use eminent domain? Because if it's not, then eminent domain can be used. And if it is, what are we doing to create the environment to get a qualified bidder to the table?" Fitzgerald asked.
He will now be calling state and city leaders to answer that question.
Steward's eighth hospital in Massachusetts, Norwood Hospital, has been closed since it was flooded by heavy rain in June 2020.