Steward to close Carney Hospital and Nashoba Valley Medical Center in Massachusetts
BOSTON - Steward Health Care, which filed for bankruptcy and put all of its U.S. hospitals up for sale, this year said Friday it is closing two hospitals in Massachusetts. Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer will close on or around Aug. 31, Steward said.
Reacting to the news, Gov. Maura Healey said "this is not over" and demanded that Steward complete deals to sell its remaining hospitals that are open in Massachusetts.
"It is time for Steward and their real estate partners to finally put the communities they serve over their own selfish greed," Healey said in a statement. "They need to finalize these deals that are in their best interest and the best interest of patients and workers."
Steward said in a statement that it has been trying to sell all its Massachusetts hospitals, but there were "no qualified bids" for Carney or Nashoba Valley. The company said it would work with patients to find care alternatives.
"This is a challenging and unfortunate situation, and the effect it will have on our patients, our employees, and the communities we serve is regrettable," Steward said. "We will do all we can to ensure a smooth transition for those affected while continuing to provide quality care to the patients we will continue to serve."
Carney Hospital has 83 medical beds and serves a large immigrant community and many people of color in Boston, but in June only an average of 13 of its beds were filled. At Nashoba Valley Medical Center, just 11 of 46 beds were filled last month, according to the governor's office.
The Massachusetts Nurses Association said closing the hospitals with less than 120 days notice would violate state law.
"The loss of these hospitals will not only impact these patients and communities, but will also compromise the care for patients served by other hospitals in the region, hospitals that are already overwhelmed and will now be forced to absorb those patients abandoned as a result of these closures," the union said in a statement.
Steward hospitals in Massachusetts
Besides Carney and Nashoba Valley, the Steward hospitals in Massachusetts are Good Samaritan Medical Center in Brockton, Holy Family Hospital in Haverhill and Methuen, Morton Hospital in Taunton, Saint Anne's Hospital in Fall River, and St. Elizabeth's Medical Center in Brighton.
Steward's Norwood Hospital has been closed ever since it was flooded in June 2020 by heavy rains. Rep. Stephen Lynch of Massachusetts said earlier this year that Steward wants to abandon plans to ever re-open the hospital.
Back in February, Healey sent a letter to Steward telling the company to get out of the Massachusetts hospital business.
Senators subpoena Steward CEO Ralph de la Torre
CBS News reported recently that federal authorities in Boston have opened a criminal investigation into the Dallas-based Steward, according to sources. The investigation is based on allegations that include fraud and possible violations of a law that prohibits corrupt activities while operating overseas.
And on Thursday, a bipartisan group of senators voted to subpoena Steward CEO Ralph de la Torre. He's accused of profiting at the expense of patients
Federal filings from 2021 show Steward's owners paid themselves millions in dividends. Around that time, de la Torre acquired a 190-foot yacht that's estimated to be worth $40 million.
"This is a story of private equity with no constraints taking over a massive hospital system and looting it for its wealth," Sen. Ed Markey said. "All I can say to Ralph de la Torre is you cannot treat communities as expendable. You are accountable, your day of reckoning is arriving."
