Steward Health Care announced Thursday that it has reached definitive agreements to sell four hospitals located in Massachusetts. Under the terms of the asset purchase agreements, Lifespan will acquire Morton Hospital and Saint Anne’s Hospital, and Lawrence General Hospital will acquire Holy Family Hospital – Methuen and Holy Family Hospital – Haverhill. The parties are finalizing an agreement to sell Steward’s Good Samaritan Medical Center and St. Elizabeth’s Medical Center businesses to Boston Medical Center. “As Steward continues to navigate its ongoing Chapter 11 process, we are pleased to have found such a qualified acquirer for the Commonwealth’s hospitals, which are critical to the health of underserved populations,” said John Castellano, Steward’s chief restructuring officer. “This agreement achieves our goal of preserving and protecting healthcare and jobs in southeastern Massachusetts and the Merrimack Valley, while removing Steward Health Care from Massachusetts once and for all,” said Gov. Maura Healey. Troubles for the private equity-backed, for-profit hospital group erupted this year with the revelation that it owed about $50 million in rent. The Dallas-based group announced plans in July to sell the hospital and close Kearney Hospital in Dorchester and Nashua Valley Medical Center in Ayer. The Healey-Driscoll administration said it would take over St. Elizabeth Hospital through eminent domain to facilitate the transition to a new owner and keep the hospital open. “We will continue to work to complete an agreement as quickly as possible for another qualified operator to take over Good Samaritan, move forward with plans to take over St. Elizabeth Hospital through eminent domain, and support the communities where Nashua Valley and Kearney hospitals are closing,” Healey said. The future of Norwood Hospital, which is under construction, remains unclear.
Steward Health Care announced Thursday that it has signed a definitive agreement to sell four hospitals in Massachusetts.
Under the terms of the asset purchase agreement, Lifespan will acquire Morton Hospital and Saint Anne Hospital, and Lawrence General Hospital will acquire Holy Family Hospital – Methuen and Holy Family Hospital – Haverhill.
The two sides are finalizing a deal to sell Steward’s Good Samaritan Medical Center and St. Elizabeth Medical Center operations to Boston Medical Center.
“As Steward continues to move forward with the Chapter 11 process, we are pleased to have found such a qualified acquirer for the Commonwealth’s hospitals, which are critical to the health of the medically underserved population,” said John Castellano, Steward’s chief restructuring officer.
“This agreement achieves our goal of preserving and protecting health care and jobs in southeastern Massachusetts and the Merrimack Valley while removing Steward Health Care from Massachusetts once and for all,” Massachusetts Governor Maura Healey said.
The private equity-backed, for-profit hospital group’s troubles erupted this year when it was revealed that it owed about $50 million in rent.
The Dallas-based group announced in July that it planned to sell the hospital and close Kearney Hospital in Dorchester and Nashua Valley Medical Center in Ayer.
The Healey-Driscoll administration said it would take over St. Elizabeth Hospital through eminent domain to allow for the transition of the hospital to new ownership and keep it open.
“We will continue to work as quickly as possible to finalize an agreement for another qualified operator to take over Good Samaritan Hospital, advance plans to take control of St. Elizabeth Hospital through eminent domain, and support the communities impacted by the upcoming closings of Nashua Valley Hospital and Kearney Hospital,” Healey said.
The future of the Norwood Hospital, which is currently under construction, remains unclear.