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Governor says state lacks legal power to stop Steward hospital closures; urges lenders and company to act
Summary
Asked about Steward Health Care's announced closures, the governor said the administration cannot legally stop two hospital closures, called the company's actions "despicable" in the transcript, and urged Steward and its investors to work on a deal to save hospitals while state agencies monitor compliance with requirements.
A reporter asked whether the state could prevent Steward Health Care from closing two hospitals amid announced shutdowns; the governor said the administration lacks the legal authority to stop private hospital closures but called the company's actions ‘‘despicable’’ in the remarks recorded in the transcript.
The governor said state law requires notice but does not give the executive the power to block a private hospital’s decision to close. ‘‘Unfortunately, there is nothing that I can do to stop the closure of the 2 hospitals in particular that Steward has announced its closing,’’ the governor said in the transcript. The governor added that Department of Public Health and the Health and Human Services branch ‘‘will continue to work on that and hold people accountable that way.’’
The governor urged Steward and its investment bankers to ‘‘step up and act’’ to pursue a deal to save the hospitals and said the administration is focused on protecting jobs, patients and market stability. The transcript records the governor saying the state is pursuing options to ‘‘save 5 other Steward hospitals’’ and asking lenders and investors to participate in any solution.
No formal action or legal intervention was announced at the event. The governor did not outline statutory authorities that could be used to prevent closures, and the administration characterized further work as agency-level oversight and efforts to encourage private solutions.
