Gov. Maura Healey's plan to rescue five bankrupt Steward Health Care hospitals could cost Massachusetts taxpayers $700 million by 2027, the Boston Globe reported Saturday, citing "people with direct knowledge of the bailout plan."
Eight days ago, Healey held a press conference where she announced a financing plan that was vetted with legislative leaders would help "save" the hospitals as they transition to potential new buyers. The governor's office that day said the plan involved cash advances, capital supports and maximizing federal matches, but didn't offer many additional details.
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"Those are the three sources and we're working with the acquirers to make sure they have the funds available so they can meet their bids," Health and Human Services Secretary Kate Walsh said on Aug. 16, adding that the state funds involved would continue for three years to help with staffing and capital investments.
While Healey publicly disclosed the plan and said it was a "win for Massachusetts" and "closed the book on Steward," her team since then has declined to elaborate on taxpayer costs.
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Healey was asked Aug. 16 about where the money was coming from for the hospital deals and she said she was "working that out" with her finance team. Walsh also said the administration was working on "sources of funds" and neither Walsh nor Healey estimated a total.
None of the hospital deals have been approved in federal bankruptcy court, with the next court hearing date coming up on Tuesday.
"At this time, we cannot comment on financial terms or discussions due to ongoing negotiations," Olivia James, spokeswoman for Health and Human Services Secretary Kate Walsh, told the News Service Aug. 23, a statement that suggests financial terms may be evolving.
Healey's office and Walsh's office did not respond Saturday to a request to confirm or deny the reported $700 million cost of the plan, and it's unclear how hospital rescue plan costs will impact other health care spending in Massachusetts.
"The details here are really going to matter," Massachusetts Taxpayers Foundation President Dough Howgate said Saturday afternoon.
Howgate said he could imagine that some of the funding could be secured within the MassHealth system but also that some might require "statutory action" from the Legislature. Understanding the components of the plan "sooner rather than later," he said, will be helpful and enable people to understand state versus federal funding splits, for instance, and short-term versus long-term costs.
"Until we see more of that, it's hard to really assess what the plan really is," said Howgate.
