Judge says Mass. should come up with another $5M as Steward deals close
Massachusetts needs to come up with another $5 million to help the Steward Health Care deals go through, a bankruptcy judge said in a signed order, a suggestion Bay State officials did not respond to directly.
According to Judge Christopher Lopez, the Bay State should compromise with the interested parties to facilitate the transfer of six Steward properties to a trio of new owners. Lopez said the state should come up with the extras cash to make the process go more smoothly.
“The Commonwealth of Massachusetts will work with other parties on the proposed $5,000,000 of additional adequate protection for the FILO Secured Parties consistent with its representations on the record at the Sale Order Hearing,” Lopez wrote.
Steward filed for bankruptcy in May, and as part of those proceedings has auctioned off its hospital properties.
The company doesn’t have the money to stay in the hospital business and the Commonwealth has been picking up the tab to keep the lights on while the sales process plays out. So far, according to court filings, Massachusetts has placed more than $74 million on the line. The state also confirmed earlier in September that it has committed to provide at least $417 million to help keep the Steward-sold hospitals open as they transition to their new owners.
The sales process was meant to conclude on Monday. In the same order asking for money, Lopez indicated those plans can move forward, even as some parties object.
The judge’s order comes after the lawyers for the company, its lenders, and other affected groups, met for a rare weekend bankruptcy hearing and told the court they weren’t yet on the same page despite just 36 hours to get the job done. During the hearing, Lopez ordered them to do just that.
According to the Executive Office of Health and Human Services, despite the judge’s assertion, there is no agreement in place for the state to hand over an extra $5 million or any change to the state’s financial commitment.
“Bankruptcy is always a long and complicated process. The Healey-Driscoll administration remains confident that these sales will be finalized soon and the five Steward hospitals will transition to new operators,” Secretary Kate Walsh said in a statement shared by her staff (the same statement her staff shared the day prior).
As of this writing, court filings show Steward and Boston Medical Center had reached an agreement on the sale stipulations regarding St. Elizabeth’s Medical Center and Good Samaritan Medical Center and which Lopez has signed, and the new owners of Holy Family Methuen and Holy Family Haverhill, Lawrence General Hospital, have scheduled a ribbon cutting ceremony for those properties on Tuesday.
Rhode Island-based Lifespan, which bid on Saint Anne’s Hospital in Fall River and Morton Hospital in Taunton, had not filed a sales order as of press time.