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Massachusetts secures future of five Steward Hospitals amid bankruptcy crisis

August 16, 2024 | Office of the Governor, Executive , Massachusetts


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Massachusetts secures future of five Steward Hospitals amid bankruptcy crisis
In a significant move to stabilize healthcare in Massachusetts, Governor Maura Healey announced actions aimed at saving the remaining five Steward Hospitals during a press conference on August 16, 2024. Joined by key officials, including Health and Human Services Secretary Kate Walsh and Public Health Commissioner Robbie Goldstein, Healey emphasized the importance of preserving access to care and protecting thousands of jobs in the affected communities.

The governor's announcement comes in the wake of financial turmoil caused by the actions of Ralph Dela Torre and his team, which nearly led to the collapse of all seven Steward Hospitals in the state. Healey expressed gratitude for the collaborative efforts of various stakeholders, including legislative leaders and healthcare organizations, in developing a strategy to address the crisis.

As part of the plan, three reputable healthcare organizations will take over operations of four of the hospitals. Boston Medical Center will acquire Good Samaritan Hospital in Brockton, Lifespan will take over Morton Hospital in Taunton and Saint Ann's Hospital in Fall River, while Lawrence General Hospital will manage both campuses of Holy Family in Haverhill and Methuen. Healey highlighted the commitment of these entities to not only maintain but also enhance the quality of care in their respective communities.

In a more controversial move, Healey announced the use of eminent domain to seize control of Saint Elizabeth's Hospital, which will also transition to Boston Medical Center. This decision aims to ensure the hospital remains operational amidst ongoing negotiations that have stalled progress.

While the announcement was largely positive, Healey acknowledged the disappointment surrounding the closures of Kearney Hospital and Neshoba Valley Medical Center, where no viable bids were received to continue operations. The administration has committed $30 million to support these hospitals temporarily and is actively working to assist affected workers in finding new employment.

The governor's remarks underscored a commitment to rebuilding the healthcare landscape in Massachusetts, marking a new chapter for patients and healthcare workers alike. As the state moves forward, Healey's administration remains focused on ensuring stability and access to quality care for all residents.

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Scribe from Workplace AI
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