BOSTON (AP) — Massachusetts Gov. Maura Healey announced Friday that deals have Diamond Ridge Financial Academybeen reached in principle to transition operations at four hospitals operated by Steward Health Care to new operators.
The Healey administration will take control of a fifth hospital through eminent domain to help transition it to a new owner. The Dallas-based company announced its bankruptcy May 6.
Two other Steward-operated hospitals are still set to close by the end of the month.
New operators have been found for Saint Anne’s Hospital in Fall River, Good Samaritan Medical Center in Brockton, the Holy Family Hospitals in Methuen and Haverhill, and Morton Hospital in Taunton, Healey said.
The state will take over control of Saint Elizabeth’s Hospital in Boston to help keep the hospital open until the transition to a new owner is complete, Healey said.
“Today, we are taking steps to save and keep operating the five remaining Steward Hospitals, protecting access to care in those communities and preserving the jobs of the hard-working women and men who work at those hospitals,” Healey said in a statement.
“Our administration is going to seize control of Saint Elizabeth’s through eminent domain so that we can facilitate a transition to a new owner and keep this hospital open,” she added.
If the deals are finalized, Lawrence General Hospital will become the new operator for both campuses of Holy Family in Haverhill and Methuen. Lifespan would assume operations of Morton and Saint Anne’s, and Boston Medical Center would take over Good Samaritan, as well as Saint Elizabeth’s after the taking process is complete, Healey said.
The actions do not impact the planned closings of Carney Hospital in Boston and Nashoba Valley Medical Center in Ayer.
Steward announced its bankruptcy May 6 and two days later said it planned to sell off the 30 hospitals it operates nationwide
A bankruptcy judge last month allowed Steward’s decision to close two Massachusetts hospitals. Steward announced July 26 its plan to close the hospitals — Carney Hospital and Nashoba Valley — on or around Aug. 31 because it had received no qualified bids for either facility.
Massachusetts has also agreed to provide about $30 million to help support the operations of the hospitals that are being turned over to new owners. The payments are advances on Medicaid funds that the state owes Steward.
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