The state of Massachusetts will provide $30 million to support Steward Health Care hospitals that are transitioning to new owners, according to court documents, as well as keeping Carney Hospital and Nashoba Valley Medical Center operating for the next month.
This was detailed in an emergency motion filed in Steward Health Care’s bankruptcy case.
It still needs to be approved but with the “commitment” outlined in the filing, it appears the first payment of just over $11 million would be made Thursday, with the second payment of nearly $19 million to be made in mid-August.
State House News Service reports that Gov. Maura Healey’s office described the payments as “advances” on Medicaid funds that the state owes Steward and they said they’re contingent upon an orderly movement toward new ownership, and cannot be used for rental payments, debt service or management fees.
As announced Friday, Nashoba Valley and Carney hospitals are slated to close by Aug. 31, while Stewards remaining six hospitals have “reputable bidders.”
“Steward is not going to be able to walk away from this without, at a minimum, a plan in place that describes what patients can expect once the closure is complete,” said Massachusetts Congresswoman Lori Trahan.
“It’s awful and it’s too bad that Steward and Ralph de la Torre have put us in this position, where these are hospitals that unfortunately may not make it and we continue to press to do everything we can to ensure patient safety, to protect jobs, to ensure the stability of the healthcare system,” said Lt. Gov. Kim Driscoll.
Sen. Ed Markey, Congressman Stephen Lynch and Mayor Michelle Wu will hold a press conference at 10:30 a.m. Monday at Carney Hospital to discuss the closures there and at Nashoba Valley.
