Gov. Healey, AG, Health Officials Say Bankruptcy of Holy Family Parent Brings Order to Company Chaos

Holy Family Hospital, Haverhill campus. (WHAV News photograph.)

Gov. Maura T. Healey, the attorney general and health officials yesterday said Monday’s bankruptcy filing by the owner of Holy Family Hospitals in Haverhill and Methuen is a positive step that will bring order to the company’s disruptive chaos.

The governor, accompanied by Health and Human Services Secretary Kate Walsh, Attorney General Andrea Campbell, Public Health Commissioner Robbie Goldstein, labor leaders and others, emphasized all Steward Health Care hospitals remain open and patients should keep their appointments. Healey also noted state public health officials remain on-site at each hospital to “ensure the highest standard of care.” Healey’s press conference was carried live by WHAV.

“The purpose of a Chapter 11 bankruptcy filing is to provide an orderly way to deal with debts and liabilities and to potentially transfer ownership while continuing to operate and serve patients. Ultimately, this is a step towards our goal of getting Steward out of Massachusetts,” she said.

Walsh spelled out the state’s priorities. “We’ve coordinated our response on DPH’s Incident Command structure to move forward with coordinated, cross-government response that prioritizes patient safety, jobs and access to care.”

While she noted that Steward’s bankruptcy is a national matter, she acknowledged it will be “especially disruptive” in eastern Massachusetts.

Goldstein called the bankruptcy petition an “important transition” and a “pathway to resolution.”

“It’s hard to hear for the many people in the Commonwealth who count on the care, services and providers at Steward hospitals. It’s hard to hear for the staff at these hospitals who deliver care to patients and families. And, it’s hard to hear for the communities where Steward hospitals have been major employers, safety nets and trusted pillars,” he said.

Campbell, as the state’s top law enforcement official, took a tougher tone on the bankruptcy. “It does not allow Steward to immediately shut its doors and to leave town. It does not allow Steward to avoid complying with basic public health and safety laws. It is important to underscore and to remind folks, frankly, that DPH has monitored Steward’s facilities and found them to be safe for patients to receive care,” she said.

Campbell said the bankruptcy filing will bring added transparency.

“It will allow Steward’s hospitals to continue operations with court oversight, ensuring that Steward does not engage in irresponsible financial behavior that threatens the hospitals’ safe operations.”

The attorney general, however, warned there are “a lot of unknowns and a lot of variables that we do not have control of in the bankruptcy process.” She noted some of Steward’s activities could still “wind down in time which be challenging for all of us.”

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