Holy Family Hospital campuses in Methuen and Haverhill will share in $30 million in “advances” on state Medicaid payments to help ensure they are successfully transferred to new owners.
The state lifeline to all but two of Steward Health Care’s Massachusetts hospitals was revealed Friday in documents from the U.S. Bankruptcy Court for the Southern District of Texas. Court documents said Holy Family Hospital would survive along with St. Elizabeth’s Medical Center, St. Anne’s Hospital, Good Samaritan Medical Center and Morton Hospital. Two hospitals—Carney and Nashoba Valley hospitals—did not receive any buyer interest and are expected to close. Documents also revealed there has been no breakthrough with the hospital’s landlord “to facilitate the sale or lease of the real property underlying such hospitals.”
Massachusetts Nurse Association Statewide Director Dana Simon warned Haverhill city councilors in May that Nashoba Valley Hospital and Holy Family Hospital were in imminent danger of closing. “It is not either politically, morally or ethically acceptable that any of these hospitals close. No community is less important than any other community.”
He called on councilors at the time to write a letter to the governor and attorney general’s offices.
“Within the highest level of the administration, there is a resignation, that maybe it’s just not so important to worry about Haverhill surviving,” Simon said.
WHAV broke the news of Holy Family Hospital’s gaining interest from buyers July 22 when Sen. Pavel M. Payano said he “heard of a few companies that have put a bid in.” The next day Gov. Maura T. Healey confirmed the report. It was revealed only on Friday, however, that Carney Hospital in Dorchester and Nashoba Valley Hospital in Ayer would be shuttered.
Court papers note the state will advance $11.3 million this Thursday and another $18.7 million or around Aug. 15. A table shows $2.8 million is reserved for Holy Family in the first payout and $2.2 million in the second. Altogether, the money is geared to “save thousands of jobs and allow these hospitals to continue providing quality health care in the communities they serve.”
Steward reported more than 200 prospective hospital buyers were contacted and 100 signed non-disclosure agreements, including 34 related to the Massachusetts hospitals.
“This is not over,” Healey said in a statement, “It’s regrettable that Ralph de la Torre and Steward’s greed and mismanagement are resulting in the closures of Carney and Nashoba Valley hospitals. These hospitals have long served their communities—their closures are about more than the loss of beds, doctors and nurses. We want to assure the people of Massachusetts that we have prepared diligently for this moment and will take all available steps to help facilitate a smooth transition for impacted patients and employees.”