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Steward Health Care to close two hospitals in Massachusetts

Company’s facilities in Warren, Sharon also had no qualified bids

BOSTON — Steward Health Care announced Friday it is closing two hospitals in Massachusetts because it received no qualified bids for the facilities after declaring bankruptcy earlier this year.

In a statement announcing the closures, Steward said it has been working to sell or transition all of its Massachusetts hospitals and is in active final negotiations to sell six of them.

“Despite the extensive sale process, which involved close coordination with lenders and regulators, there were no qualified bids for two hospitals, Carney Hospital and Nashoba Valley Medical Center, and, unfortunately, they will be closing on or around August 31,” the company said.

Carney Hospital is located in the Dorchester neighborhood of Boston and Nashoba Valley Medical Center is in Ayer, a town about 45 miles west of Boston.

In May, Steward said it planned to sell off all its hospitals after announcing that it had filed for bankruptcy protection. The company operates about 30 hospitals across eight states.

Those hospitals include Trumbull Regional Medical Center in downtown Warren, Hillside Rehabilitation Hospital in Howland and Sharon Regional Medical Center in downtown Sharon, Pa.

Steward on Sunday announced in a court filing it canceled the auctions for those three hospitals, stating it did not receive qualified bids for the facilities.

The company is working with consultants “to evaluate alternatives with respect” to the local hospitals, the filing states.

“No decision has been made with respect” to the Trumbull Regional, Hillside and Sharon Regional, and Steward “will make a further announcement … at a later date,” the filing states.

Steward called the situation in Massachusetts “challenging and unfortunate” and said the effect it will have on patients, employees and the communities is regrettable. The company said it is working with appropriate state and federal agencies during the closure process.

“We will work closely with our Carney and Nashoba patients to help them find the best possible care alternative and with our valued employees and health care professionals to assist with this very difficult transition,” the company said.

Massachusetts Gov. Maura Healey blamed the closures on what she called the greed and mismanagement of Steward Health Care and company CEO Ralph de la Torre.

“These hospitals have long served their communities — their closures are about more than the loss of beds, doctors, and nurses,” Healey said in a written statement. “We want to assure the people of Massachusetts that we have prepared diligently for this moment and will take all available steps to help facilitate a smooth transition for impacted patients and employees.”

Healey said for the company’s remaining hospitals in Massachusetts, Steward has received bids to not only maintain but to improve the hospitals.

Carney and Nashoba remain open for now and will proceed through an orderly and regulated closure, according to Healey.

The next step in the process for the two hospitals is for a bankruptcy judge to approve Steward’s motion to close. Steward is required to send a notice of closure to the state Department of Public Health, which will then work out a transition for patients and workers.

The state has created an online interactive dashboard allowing patients to map nearby hospitals, understand the services available at each location, and view monthly updates on patient volumes and available beds to help residents connect to nearby services.

On Thursday, a Senate committee voted to authorize an investigation into the bankruptcy of Steward Health Care and to subpoena de la Torre.

The subpoena would compel de la Torre to testify before the Senate Health, Education, Labor, and Pensions Committee at a hearing on Sept. 12.

A group of Democratic members of Congress has also sought reassurances that workers at hospitals owned by Steward will have their health care and retirement benefits protected.

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