Surgeries postponed, president steps down at Steward hospital amid financial crisis

METHUEN, Mass — Surgeries and procedures performed by Mass General Brigham doctors at Holy Family Hospital have been postponed days after the president of the hospital stepped down amid Steward Health Care’s financial crisis.

“After hearing that certain surgical equipment may not be available, we made the decision to reschedule upcoming orthopedic and GI procedures at Holy Family Hospital,” said Tom Sequist, Chief Medical Officer for Mass General Brigham. “We have contacted impacted patients, and we are working to reschedule their procedures as soon as possible at a nearby Mass General Brigham or community hospital location.”

Steward said in a statement it serves a “vulnerable patient population” and Mass General Brigham’s decision will only “exacerbate the serious health equity issues already existing within the local community.”

“The fact that one of the largest health care providers in Massachusetts rescinded their care underscores the fact that Steward hospitals do not receive the support they need, nor the recognition of the quality care they provide,” Steward said.

Craig Jesiolowski, president of Holy Family, is leaving to take a position as Administrator/VP for Southern Illinois Healthcare, which is closer to family, Steward said.

Steward Health Care, which runs Holy Family’s Methuen and Haverhill campuses, also operates Carney Hospital in Dorchester, Good Samaritan Medical Center in Brockton, Morton Hospital in Brockton, Nashoba Valley Medical Center in Ayer, New England Sinai Hospital in Stoughton, St. Anne’s Hospital in Fall River, St. Elizabeth’s Medical Center in Brighton and Norwood Hospital, which flooded in 2020. Last month, Steward announced its intention to close New England Sinai, a rehab, in April of 2024.

The hospital chain is $50 million behind on rent, according to Rep. Stephen Lynch, and looking to sell all nine remaining Massachusetts hospitals, but most urgently Holy Family, Nashoba Valley, St. Elizabeth’s and Norwood Hospital.

The Massachusetts Congressional delegation has been discussing Steward’s financial troubles this week and trying to figure out a plan to keep the community hospitals open. Closing even one could overwhelm other hospitals already over capacity during a COVID and flu surge, Lynch said.

“We’ve got a perfect storm here. This is a very difficult situation,” Lynch said. “We’re all scrambling to find out if there are existing hospitals, healthy hospitals that are able to either take over in receivership of some fashion or simply take on responsibilities of these patients who are now left with very few options with their health care.”

Steward told Boston 25 News this week in a statement its struggles are in part due to pandemic challenges and unfair Medicare and Medicaid reimbursement rates.

“Steward has been challenged by a payor-mix system-wide that is over 70% Medicare and Medicaid, where reimbursement meaningfully trails commercial reimbursement,” the Texas-based hospital chain said. “Over the past decade plus, there has been a widening gap in reimbursement for all the state’s community hospitals compared to larger, academic medical centers. This gap has only continued to increase and most community hospitals - including Steward hospitals in Massachusetts - are suffering losses that jeopardize their ability to continue to offer services.”

But Lynch said by Zoom Friday the extent of Steward’s financial troubles and its intention to get out of the Massachusetts health care business came as a shock this week.

“We directed over $100 million into these hospitals – just the ones in my district. One hundred million into Steward Health Care hospitals to keep them open because of COVID and other challenges that they had,” Lynch said. “So, to not receive advance notice that they’re $50 million behind on their rent or they’re thinking about closing is a real violation of trust.”

Norwood Hospital, which was damaged by the unprecedented flood in the summer of 2020, is under reconstruction. Nearly four years later, the property is far from complete, with residents anxious to see progress.

“Norwood is in the heart of my district. So, I’m very concerned. We’ve been involved there since the flood several years ago. We’ve had reassurances time and time again,” Lynch said of his and other elected officials’ involvement. “We went down there, met with Steward and we went over a whole plan. They were going to rebuild that hospital, and we were greatly encouraged by that news. This is an about-face on that commitment to the community.”

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