Governor announces deals to preserve five former Steward hospitals, to seize Saint Elizabeth by eminent domain

The governor announced that Massachusetts has reached agreements to preserve operations at five hospitals that were part of the Steward Health Care system and to transfer operations of four campuses to other hospital systems, while the state will pursue an eminent domain proceeding to transfer Saint Elizabeth to Boston Medical Center.

The deals name Boston Medical Center as the buyer of Good Samaritan in Brockton; Lifespan as buyer of Morton Hospital in Taunton and Saint Ann's Hospital in Fall River; and Lawrence General as buyer of both Holy Family campuses in Haverhill and Methuen. "Today, I am happy to announce that Massachusetts is taking steps to save and keep operating the 5 remaining Steward Hospitals in Massachusetts," the governor said, framing the agreements as steps to protect patient access and thousands of hospital jobs.

The governor said Saint Elizabeth received a qualified bid from an operator but that the landlord, Apollo, "refused to move," prompting the state to send an offer letter and launch an eminent domain process. "As governor, I am taking action today to seize control of Saint Elizabeth through an imminent domain proceeding," the governor said, adding that the state will send an offer to Apollo for $5,000,000 and then file the necessary legal order to take the property so Boston Medical Center can operate the hospital.

The administration also committed $30,000,000 in short-term support to keep hospitals operating while transitions proceed. "That's why our administration has committed $30,000,000 to keep these hospitals operating and offering care for an additional time," the governor said, and the governor said state workforce teams have met with roughly 450 workers at affected sites to help them find new positions.

Kate Walsh, the secretary of health and human services, said the financing plan relies on three elements—cash advances, capital support and maximizing federal dollars—and that part of the effort (the hospital assessment included in the governor's budget) has been approved by the legislature. "Those are the 3 sources, and we're working with the acquirers to make sure that they have the funds available," Walsh said. She added that some advances do not require further legislative approval and that the administration will continue to work with lenders and acquirers during a multiyear transition.

Department of Public Health Commissioner Robbie Goldstein said state teams have been on-site monitoring care and will remain through the handovers to ensure continuity. "We've been there daily monitoring the quality of care, the access to supplies, the staffing that are in each of the hospitals," Goldstein said. He said many physicians are expected to remain in their practices or stay affiliated with area medical office buildings even if a particular campus closes.

The governor framed the statewide effort as a response to what he called mismanagement by Steward Health Care leadership, naming Ralph Dela Torre and calling for accountability: "He deserves to be investigated, prosecuted, held accountable, as do any other actors who perpetrated this terrible harm on Massachusetts," the governor said.

Officials said the agreements are "in principle" and that paperwork and any court filings to effect transfers and the eminent domain action will be completed in the coming days to a few weeks. The governor said some details, including the full financing totals beyond the announced $30 million, were still being worked out and would be shared as agreements are finalized.

Next steps: the state will send an offer letter to Apollo for the Saint Elizabeth real estate and file the eminent domain order if necessary; final acquisition agreements with the named hospital systems will be completed and filed with the appropriate courts in the coming days to weeks.