MNA: permission to close Carney, Nashoba isn’t a mandate, still time to save hospitals

The state’s largest nursing organization is not ready to give up the fight just yet when it comes to the pair of Steward Health Care hospitals which a Texas-based bankruptcy judge ruled may close at the end of August, and they’re calling on state leaders to act.

Despite the decision by U.S. Bankruptcy Judge Christopher Lopez that Steward’s business interests would dictate whether Carney Hospital in Boston and Nashoba Valley Medical Center in Ayer should close or remain open, the Massachusetts Nursing Association says that the way has been cleared for another buyer to step in and save the pair of medical facilities.

“Coming out of last week’s bankruptcy court hearing, we were relieved that the court appropriately rejected the master lease covering the Massachusetts hospitals. We fully support this decision as necessary to allowing new operators to negotiate new lease terms with the landlord (Medical Properties Trust and Macquarie Infrastructure Partners) for these hospitals,” the association said in a Monday release.

Dallas-based Steward filed for Chapter 11 bankruptcy protections in May, after it became clear the company could not keep up with mounting debts. In detailing their $9 billion in unpaid obligations, lawyers for the company told Judge Lopez they would have to sell all 31 of their hospital properties at auction to make ends meet.

Eight of those properties are found in Massachusetts, and most of them received “qualified bids” at an auction held last month. However, Carney and Nashoba did not receive a “qualified bid” and Steward announced it would close the pair of hospitals on or about August 31.

That closing date would violate state law, according to the Healey administration, as it falls inside a 120-day notification window ahead of any hospital closure. MNA hopes the state upholds its own law.

“We are pleased to learn that the Governor has stated that her administration supports Steward’s adherence to the state law requiring 120 days’ notice before the closure of Carney and Nashoba to allow for a transition to a new operator, and we call on the Attorney General to exercise her authority to enforce that law,” the nursing association said.

Despite this rule Lopez said last week that the pair of hospitals were hemorrhaging money, and that even if a state law requires notification, that doesn’t pay the bills to keep the lights on. What he didn’t say, according to MNA, is that Steward must close those hospitals, only that they could.

“It is important to note that while the Bankruptcy Court’s ruling authorized the closure of Nashoba Valley and Carney, it did not mandate closure. As such, there is still an avenue to save those facilities as the court’s relief from the previous onerous lease arrangement provides a renewed opportunity to revisit and engage with potential bidders for those two hospitals,” the nursing association wrote.

At least one company, Michigan-based Insight, has expressed interest in both Carney and Nashoba Valley. Atif Bawahab, Chief Strategy Officer at Insight Health System, told the Herald on Monday the company is still interested.

“As a clinician-led organization, Insight Health System believes in providing equitable access to healthcare services for all, and we deeply understand how damaging the closure of healthcare facilities can be to local communities. We have proven experience in transforming distressed healthcare facilities into financially stable pillars of community health services with patient care that is second to none – something we have done in Southside, Chicago; Flint, Michigan; and stand ready and able to do here in Massachusetts,”

Keeping the pair of hospitals in operation, according to the nurses association, will require the “willingness of all stakeholders to act.”

“And none more so than our leaders throughout State Government who are ultimately responsible for protecting and ensuring the public health for all our residents,” they wrote.

In addition to Carney and Nashoba Valley, Steward owns and operates Good Samaritan Medical Center in Brockton, Holy Family Hospitals in Haverhill and Methuen, Morton Hospital in Taunton, Saint Anne’s Hospital in Fall River, and St. Elizabeth’s Medical Center in Brighton. Their Norwood Hospital has been closed since 2020 due to flooding, and closed New England Sinai Hospital permanently in April.

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