BOSTON — Bankrupt Steward Health Care plans to close two hospitals in Massachusetts in a move that Gov. Maura Healey said is fueled by “greed and mismanagement.”
The private for-profit health system is shuttering Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer after no qualified bids emerged for the healthcare facilities during ongoing bankruptcy proceedings, the company said in a statement.
“Over the past several months, Steward Health Care has been actively working to sell or transition all its Massachusetts hospitals and we are in active final negotiations to sell six of them. Despite the extensive sale process, which involved close coordination with lenders and regulators, there were no qualified bids for two hospitals, Carney Hospital and Nashoba Valley Medical Center, and, unfortunately, they will be closing,” the statement read.
Steward said the two hospitals will close on or around August 31.
“This is a challenging and unfortunate situation, and the effect it will have on our patients, our employees, and the communities we serve is regrettable,” the company added. “We will do all we can to ensure a smooth transition for those affected while continuing to provide quality care to the patients we will continue to serve.”
Employees and patients learned of the closures as they reported for work Friday morning.
“I’m really sad about this,” said Medical Secretary Petagaye Gabbidoa. ”I was hoping that it didn’t close and to hear that it is closing, it’s very depressing.”
“They were in the process of trying to figure things out for us,” said another medical secretary at Carney. “I think they kind of led us to believe we weren’t going to close. Just hearing the news today was very shocking. And then to know it’s going to be 30 to 60 days? It’s a big shock.”
The closure time frame likely came as a shock to others, as well. The Massachusetts Department of Public Health requires 120 days notice of a plan to shut down an essential service -- and a 90-day formal notice of actual closure.
DPH did not respond to a Boston 25 inquiry on whether the 120 day notice is applicable in this case, given Steward is in bankruptcy, but two unions representing hospital workers, the Massachusetts Nurses Association and 1199SEIU plan to push the issue with the state.
“They just need to meet the DPH standards of 120 days,” said Filaine Deronnette, Vice-President at large for 1199SEIU. “There’s never a great time for a closure, but these are the rules and procedures in place in our state and we would expect that Steward and anybody else would follow those standards.”
Deronnette said both closures are a blow -- but in different ways. Carney serves many patients with psychological needs -- and serves a community often lacking the resources to travel far for health care. With Nashoba, the issue is its ruralness -- and what that could mean for patient care.
“Ayer itself has only two ambulances and the surrounding communities may have one,” said Deronnette. “So when you think about the next facility being over half an hour away, it really does cause a lot of concern.”
For the moment, Carney employees are concerned about their immediate future and the welfare of patients.
Alyssa Bartholomew, an 18-year Steward employee, said hospital administrators never projected that Carney was imperiled.
“You have nothing to worry about,” Bartholomew recalls them saying. “Carney is strong. It’s needed in the community.”
“So what happened to the need now,” she said. “Where are those patients going to go? Where are all these patients going to go?”
And, she said, what are employees to do?
“We have kids, we have to buy groceries,” Bartholomew said. “We’re in shock because we totally never thought that Carney would close.”
Steward says it did receive bids to run its other Bay State hospitals, which include Morton Hospital in Taunton, Good Samaritan Medical Center in Brockton, Holy Family in Methuen and Haverhill, St. Elizabeth’s Medical Center in Brighton, and St. Anne’s Hospital in Fall River.
Norwood Hospital, which has been closed since 2020, is not included in the sale process.
Ralph de la Torre, the company’s CEO, has been asked to testify before the Senate Health, Education, Labor, and Pensions Committee in September.
Gov. Maura Healey called de la Torre’s move to close the hospitals “regrettable.”
“This is not over. 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,” Healey said in a statement. “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.”
Steward vowed to “work closely” with patients at both hospitals to find alternate care options as the closure date approaches.
“We will work closely with our Carney and Nashoba patients to help them find the best possible care alternative and with our valued employees and health care professionals to assist with this very difficult transition,” the company said. “Further, we have notified and are closely coordinating with the appropriate state and federal agencies on the closure process.”
Healey also demanded that Steward finalize deals for their remaining hospitals.
“It is time for Steward and their real estate partners to finally put the communities they serve over their own selfish greed,” Healey added. “They need to finalize these deals that are in their best interest and the best interest of patients and workers.”
A sales hearing for Steward’s other hospitals is scheduled in U.S. Bankruptcy Court on July 31.
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