Local

‘Rooted in greed’: Healey blasts Steward leadership as healthcare company files for bankruptcy

By Boston25News.com Staff
By Boston25News.com Staff

BOSTON — Gov. Maura Healey blasted leadership at Steward Health Care on Monday, hours after the financially-troubled operator of eight Massachusetts hospitals announced that it has filed for bankruptcy.

Dallas-based Steward Health Care says it’s finalizing the terms of debtor-in-possession financing from Medical Properties Trust for an initial funding of $75 million and up to an additional $225 million upon satisfying certain conditions acceptable to Medical Properties Trust.

Healey on Monday morning said the bankruptcy filing is something that state officials have been anticipating, and a situation for which they have been preparing.

“This situation stems from and is rooted in greed, mismanagement and lack of transparency on the part of Steward leadership in Dallas,” Healey said during a press conference Monday morning, adding that, “It’s a situation that should have never happened.”

Steward employs 16,000 people in Massachusetts and serves 200,000 patients annually in the Bay State, Healey said.

Gov. Maura Healey (Boston 25)

Steward hospitals are “operating as usual,” Healey said, and the Department of Public Health monitors remain on site at Steward facilities to ensure quality of care.

“Of course we cannot guarantee that there won’t be disruptions,” Healey added.

Patients should keep their appointments, and continue to seek care at Steward facilities as needed, Healey said.

All local hospitals under Steward’s ownership will remain open, according to Dr. Ralph de la Torre, chief executive officer of Steward. They are as follows:

  • St. Elizabeth’s in Brighton
  • Carney Hospital in Dorchester
  • Good Samaritan Medical Center in Brockton
  • Holy Family Hospital in Methuen
  • Haverhill Hospital in Haverhill
  • Morton Hospital in Taunton
  • Nashoba Valley Medical Center in Ayer
  • St. Anne’s in Fall River

Norwood Hospital in Norwood remains temporarily closed after flooding. Steward Health Care permanently closed New England Sinai Hospital in Stoughton last month.

Moving forward, Healey said the purpose of a company filing for Ch. 11 bankruptcy is to “provide an orderly way to deal with debts,” among other things.

“Ultimately, this is a goal of getting Steward out of Massachusetts,” the governor said.

State officials said a main goal is to protect healthcare, workers and patients as the Steward bankruptcy situation unfolds.

“This has been and remains an urgent priority,” Healey said.

Steward Health

Secretary of Health and Human Services Kate Walsh said the bankruptcy filing did not come as a surprise.

“We developed very thorough contingency plans,” Walsh told reporters on Monday, after announcing last week that a Boston doctor will lead the state’s emergency operations plan to ensure clinical quality and healthcare access in eastern Massachusetts amid Steward’s challenges.

Walsh added that she expects the situation may be “especially disruptive in eastern Massachusetts.”

The state has established a website for patients to access, and also a call center hotline at 617-468-2189.

“Transparency is really important here,” Healey said.

This is a developing story. Check back for updates as more information becomes available.

Download the FREE Boston 25 News app for breaking news alerts.

Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW

©2024 Cox Media Group

Most Read