Reorganization, potential closures of Steward hospitals still ‘likely,' state says

Massachusetts Public Health Commissioner Robbie Goldstein said on Wednesday that there will "likely" be some "reorganization, reconfiguration, transition and potential closures" among Steward Health Care System's nine Massachusetts hospitals.

While no one knows the future of the troubled for-profit hospital chain, Goldstein said at a meeting of the state's Public Health Council, "Steward itself must address its significant financial challenges."

"It must develop a reasonable plan, and relay that plan and a timeline to us, and then work with us to move the process forward," she said. "Right now, we don't know what Steward will do, or what the pathway to a resolution looks like.”

Steward has been embroiled in a financial crisis. Its landlord, Medical Properties Trust, claimed it is owed $50 million. Several vendors have filed lawsuits against Steward alleging unpaid bills. However the state has made it clear that for-profit health system will not see a bailout. 

Steward told the Business Journal two weeks ago that it obtained financing to keep its Massachusetts hospitals open in the short term, as it considers transferring ownership of one or more of its nine Massachusetts hospitals. But it is still unclear where the financing came from, how long it will last, and if any hospitals will be sold.

'Urgent priority'

Gov. Maura Healey said at the Wednesday meeting that the issues at Steward are an “urgent priority” for her administration. Healey said she's focused on the health and safety of patients who rely on Steward for their healthcare, who she said are “among the most vulnerable in our state.” 

Healey said she is focused on the healthcare professionals at Steward, the communities where Steward serves and the impacts of Steward’s issues on other hospital providers, which the governor said are “already under considerable stress.” 

The Department of Public Health has so far deployed monitors into St. Elizabeth's Medical Center, Good Samaritan Medical Center, Holy Family Hospital - Methuen, Holy Family Hospital - Haverhill, Carney Hospital and Morton Hospital. By next week, DPH will have representatives in all of Steward’s hospitals, Goldstein said.

These monitors are on the ground in the hospitals, checking if they have adequate staffing, services and equipment. The monitors are also speaking with staff, to address any concerns, comments and questions they have, and will investigate any specific quality or safety concerns that arise, Goldstein said.

Healey also pointed to Steward's ongoing refusal to comply with state rules to turn over financial information, which every other hospital in the state does.

“I am frustrated with where we are right now as a state and what Steward has done,” Healey said. “That said, our job is to work together to make sure that patients are protected, that our health are providers are protected and able to continue to do the important work that they do throughout the state, and that the stability of our healthcare system is protected. All of these things we have top of mind.”

Goldstein promised that the state would be open and transparent about the ongoing situation with Steward with patients and healthcare leaders.

“This is a situation that is enormously challenging and unsustainable," he said. "This will take a multifaceted, long term approach that involves collaboration with all segments of the healthcare, infrastructure, all of government, and all of our community partners to move us through this increasingly challenging time.”

Wednesday's meeting was notable: According to council member Dr. Edward Bernstein, Wednesday was the first time his 10 years on the board that a governor has addressed the body.

More on this story from Boston Business Journal