Governor Maura Healey made a significant announcement on Friday regarding the Steward Health Care hospitals that are up for sale. She revealed that new owners have been lined up for the bankrupt hospitals, and the state will provide assistance in the transitions with financing and, in one case, the use of its property-taking powers.
The governor stated that deals in principle have been made to transition four Steward hospitals on five campuses to new owners. Lawrence General Hospital will acquire the Holy Family Hospital facilities in Methuen and Haverhill, Lifespan will take over Morton Hospital in Taunton and Saint Anne’s Hospital in Fall River, and Boston Medical Center will purchase Good Samaritan Medical Center in Brockton. Additionally, the Massachusetts state government will take St. Elizabeth’s Medical Center in Brighton by eminent domain to ensure it remains open before being transitioned under BMC’s control.
The plan announced by Governor Healey is expected to require significant involvement from the Legislature. The governor’s office has been working with lawmakers to develop a fiscally responsible financing plan to support the transition to new operators. Healey emphasized the importance of saving and operating the five remaining Steward Hospitals to protect access to care in those communities and preserve jobs.
The announcement also highlighted the role of Health and Human Services Secretary Kate Walsh and Public Health Commissioner Robbie Goldstein in securing new operators for the hospitals. Walsh, a former president and CEO of BMC, has been instrumental in the negotiations with Steward. St. Elizabeth’s, a mid-size teaching hospital with over 1,700 full-time equivalent employees, will be added to BMC’s portfolio through eminent domain.
The Fifth Amendment of the Constitution allows the government to take private property by eminent domain for public use, provided that the owner is compensated fairly. Legislative approval may be required for the taking of private property. Steward’s lawyer reported significant progress in signing purchase agreements for the for-sale hospital campuses in Massachusetts, with hopes of finalizing the deals soon.
The announcement clarified that the news does not affect Carney Hospital in Dorchester or Nashoba Valley Medical Center in Ayer, which will close after not receiving qualified bids. Supporters of Nashoba Valley and Carney hospitals have been urging the state to intervene and save these facilities. Governor Healey’s actions aim to ensure the continued operation of essential healthcare services in the affected communities.
