Steward Healthcare announced Thursday that it has signed definitive agreements to sell four Massachusetts-based hospitals. Under the terms of the asset purchase agreement, Lifespan will purchase Morton Hospital and St. Ann's Hospital, while Lawrence General Hospital will purchase Holy Family Hospital Methuen and Holy Family Hospital Haverhill. The parties are finalizing an agreement to sell Steward's Good Samaritan Medical Center and St. Elizabeth Medical Center operations to Boston Medical Center. “As Steward navigates its ongoing Chapter 11 bankruptcy proceedings, we are excited to have identified a qualified company to acquire our state's hospitals that are critical to the health of underserved populations,” Steward Chief Restructuring Officer John Castellano said. “This agreement achieves our goal of fully exiting Massachusetts from Steward Healthcare while preserving and protecting access to health care and jobs in southeastern Massachusetts and the Merrimack Valley,” said Gov. Maura Healey. The for-profit, private equity-backed hospital group's troubles came to a head this year when it uncovered about $50 million in unpaid rent liabilities. The Dallas-based group announced plans in July to sell the hospitals and close Kearney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer. The Healy-Driscoll administration said it would take St. Elizabeths Hospital under eminent domain to ease the transition to new ownership and keep the hospital open. “We will continue to work to finalize an agreement with another qualified operator to take over Good Samaritan Hospital as soon as possible, move forward with our plan to take over St. Elizabeths Hospital under eminent domain, and support the communities affected by the upcoming closures of Nashoba Valley Hospital and Kearney Hospital,” Healy said. The future of Norwood Hospital, which was under construction, remains uncertain.
Boston —
Steward Healthcare announced Thursday that it has signed definitive agreements to sell four Massachusetts-based hospitals.
Under the terms of the asset purchase agreement, Lifespan will purchase Morton Hospital and St. Ann's Hospital, while Lawrence General Hospital will purchase Holy Family Hospital Methuen and Holy Family Hospital Haverhill.
The parties are finalizing an agreement to sell Steward's Good Samaritan Medical Center and St. Elizabeth Medical Center businesses to Boston Medical Center.
“As Steward navigates its Chapter 11 bankruptcy proceedings, we are pleased to have found a qualified company to acquire our state's hospitals, which are so critical to the health of underserved populations,” said John Castellano, Steward's chief restructuring officer.
“This agreement preserves and protects access to health care and jobs in southeastern Massachusetts and the Merrimack Valley while achieving our goal of removing Steward Healthcare from Massachusetts entirely,” said Gov. Maura Healey.
The for-profit, private-equity-backed hospital group's troubles came to a head this year when it was discovered it owed about $50 million in unpaid rent.
The Dallas-based group announced plans in July to sell hospitals and close Kearney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer.
The Healy-Driscoll administration announced it would take control of St. Elizabeths Hospital through eminent domain to ease the transition to new ownership and ensure the hospital's survival.
“We will continue to work to complete an agreement as quickly as possible with another qualified operator to take over Good Samaritan Hospital, move forward with our plan to manage St. Elizabeths Hospital through eminent domain, and support the communities affected by the upcoming closures of Nashoba Valley Hospital and Kearney Hospital,” Healy said.
The future of Norwood Hospital, which was under construction, remains unclear.
