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Bankrupt Steward hopes to sell Massachusetts hospitals by end of June – The Boston Globe

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Bankrupt Steward hopes to sell Massachusetts hospitals by end of June – The Boston Globe


At a virtual hearing in federal bankruptcy court Tuesday, Judge Christopher Lopez in Houston said he was focused on ensuring patient safety as the chain reckons with its crushing debts: ”Real people receiving real care in real time . . . are at the forefront of my mind today.”

The hearing was the start of a months-long process to get the hospitals on a sound financial footing. The court must sort through all of Steward’s financial transactions over the past few years and determine which creditors will be paid back, all while the hospitals continue serving thousands of patients.

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During the hearing, Steward also disclosed that it is conducting an internal investigation into “any claims or causes of action of the company against insiders of the company,” according to a presentation from its lawyers. “This investigation is ongoing.”

The investigation is being overseen by a three-person committee that includes independent Steward board members Alan Carr and William Transier plus John Castellano, an investment banker from AlixPartners working on the company’s restructuring.

The group, called the transformation committee, also has “full and exclusive authority” to oversee financing, sales, and restructuring transactions, according to the presentation.

The aggressive timeline for sale of the hospitals was a condition of a $75 million loan Steward needs while it reorganizes its debts. The company owes more than $1 billion to “secured” lenders, who received collateral to protect their loans, and more than $7 billion on long-term leases and loans from its main landlord, Medical Properties Trust, according to the company’s presentation at the hearing. Steward also owes an additional $1 billion in unsecured debts to other service providers and contractors.

The latest loan obligates the company to conduct a rapid sale process, Ray Schrock, Steward’s lawyer, told Judge Lopez during the hearing.

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Under the loan terms, Steward would have to take bids on all its hospitals except nine in Florida by June 25, with an auction to be held on June 28. Bids would be due on the nine Florida hospitals by July 26, with an auction on July 30. The company has already begun seeking potential buyers for all of its hospitals, Schrock said.

“I’m not going to say we are happy with the timeline,” Schrock said regarding the June deadline for the first group of sales. “It’s not feasible.” The later Florida deadline was “more realistic,” he said.

Steward had already received letters of interest from potential buyers offering to buy some of the hospitals, Schrock said. But he added that hospital sales typically require approval from state, local, and sometimes federal authorities.

Bankruptcy attorney Adam Ruttenberg, a partner at Beacon Law Group in Boston who is not working on the Steward case, said it was unlikely the hospitals could be sold by the end of the June because of the required regulatory approvals.

“It depends on what you mean by sell,” Ruttenberg said. “Are we talking about having a buyer identified? Seven weeks to get bidders and identify who your best bidders are, that’s not unrealistic. Or are we talking about having a sale approved and closed? That strikes me as wishful thinking.”

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Boards often appoint special committees, such as the Steward transformation committee, with the power to authorize transactions and investigate insiders in bankruptcy cases, Ruttenberg said.

“It’s standard in any case where there are hints of wrongdoing,” he said.

While no allegations of wrongdoing have publicly been aired as part of the days-old bankruptcy case, the company has faced dozens of lawsuits, including allegations it has not met contractual obligations to various business partners and has failed to pay its bills.

In addition, Steward has been subjected to increasing criticism from public officials. Governor Maura Healey, for instance, has raised the possibility that Steward may have broken the law in its business dealings. “We don’t have enough to know what they’ve done, whether it’s criminal or illegal, but to me it really smells,” she told the Globe in February.

The sales timeline could be altered, particularly if Steward found a different lender. Steward is also seeking to sell its doctor network, Stewardship Health, but a deal with insurance giant UnitedHealth has been slowed by regulatory concerns. “We’re still working through that,” Schrock said.

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In the end, the company may retain some of the hospitals, Schrock said. Healey wants Steward to sell all of its facilities in the state.

“We are going to look at reorganizing around a smaller footprint of hospitals,” Schrock said. The Florida hospitals are the “most profitable portion,” he said.

Andrew Troop, a lawyer at Pillsbury Winthrop Shaw Pittman who is representing Massachusetts, urged the judge to approve an order allowing doctors and other Steward employees to continue receiving their pay. “This is not a typical case,” Troop said. “Patients are waiting for the outcome of this hearing.”

Lopez said he planned to approve the order because he wanted doctors treating patients to “have nothing in the back of their minds.”

Steward did not assent to everything its lenders requested, Schrock said. Some lenders wanted Steward to issue notices under the US Worker Adjustment and Retraining Notification Act that it could conduct mass layoffs at hospitals within 60 days. But Steward pushed back, Shrock said, because “we don’t think there’s going to be any closures.”

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Since Steward’s cash crunch started last year, Medical Property Trust has deferred $166 million in rent and injected $141 million of cash into the hospital operator, Thomas Patterson, a lawyer for the real estate company said.

In Massachusetts, Steward’s hospitals include St. Elizabeth’s Medical Center in Brighton, Carney Hospital in Dorchester, Good Samaritan in Brockton, Holy Family in Methuen and Haverhill, Morton Hospital in Taunton, Nashoba Valley in Ayer, and Saint Anne’s in Fall River. It also runs Norwood Hospital, which has been closed since 2020 due to flooding.


Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him @ampressman. Robert Weisman can be reached at robert.weisman@globe.com.





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New Bedford MS-13 Member, Illegal Alien Pleads Guilty to Role in Brutal Murders In Massachusetts, Virginia

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New Bedford MS-13 Member, Illegal Alien Pleads Guilty to Role in Brutal Murders In Massachusetts, Virginia


A 28-year-old Salvadoran national and admitted member of the MS-13 gang, who was living unlawfully in New Bedford, Massachusetts, pleaded guilty in federal court in Boston to his role in three brutal murders committed to advance the gang’s violent agenda across Massachusetts and Virginia.

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Police shoot and kill man armed with knife in Lexington, DA says

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Police shoot and kill man armed with knife in Lexington, DA says


Police shot and killed a man who officials say rushed officers with a knife during a call in Lexington, Massachusetts, on Saturday.

Middlesex County District Attorney Marian Ryan said the situation started around 1:40 p.m. when Lexington police received a 911 call from a resident of Mason Street reporting that his son had injured himself with a knife.

Officers from the Lexington Police Department and officers from the Northeastern Massachusetts Law Enforcement Council (NEMLEC), who were already in town for Patriots’ Day events, responded to the call.

Police were able to escort two other residents out of the home, initially leaving a 26-year-old man inside. According to Ryan, while officers were setting up outside, the man ran out of the home and approached officers with a large kitchen knife.  

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She added that police tried twice to use non-lethal force, but it was not effective in stopping him. The man was shot by a Wilmington police officer who is a member of NEMLEC. The man was pronounced dead on scene and the officer who fired that shot was taken to a local hospital as a precaution.

The man’s name has not been released.

Ryan said typically in a call like this where someone was described as harming themselves, officers would first try to separate anyone else to keep them out of danger, which was done, and then standard practice would be to try to wait outside.

“It would be their practice to just wait for the person to come out. In the terrible circumstances of today, he suddenly rushed the officers, still clutching the knife,” Ryan said.

The investigation is still in the preliminary stages and more information is expected in time. Ryan said her office will request a formal inquest from the court to review whether any criminal conduct has occurred, which is the standard process.

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This happened around the same time as the annual Patriots’ Day Parade, and just hours after a reenactment of the Battle of Lexington, which drew large crowds to town.

This is a developing story. Check back for updates.



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‘An impossible choice’: With little federal help to combat rising costs, Head Start looks to Massachusetts for more help – The Boston Globe

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‘An impossible choice’: With little federal help to combat rising costs, Head Start looks to Massachusetts for more help – The Boston Globe


In Massachusetts, roughly 1,300 slots for children across Head Start’s 28 agencies have been eliminated in the last three years because federal funding has plateaued over that time, while the cost of running the program continues to rise, according to the Massachusetts Head Start Association. Nationally, Head Start enrollment dropped from 1.1 million kids in 2013 to around 785,000 in 2022, according to research by the Annie E. Casey Foundation.

“If they didn’t get into a Head Start program, they would be sitting at home,” said Brittany Acosta, a Head Start parent in Dorchester.

It’s teachers are drastically underpaid, and there’s a serious need for a rainy day-type fund should the federal government shut down again, the association says. As they’ve done in years past, state lawmakers have offered to provide financial relief, but the Massachusetts Head Start Association’s request for 3 percent above the amount it received last year, an additional $4.6 million to help its staff keep up with the state’s rising cost of living, so far has not been allocated.

Violeta, Tyler, and Dimitrius (all 4 years old) play together at the ABCD Dorchester Head Start.Andrew Burke-Stevenson/for The Boston Globe
While looking in a mirror, Kadijah, 3, puts on a toy mail carrier hat.Andrew Burke-Stevenson/for The Boston Globe

Last year, President Trump’s leaked budget proposal revealed he considered eliminating Head Start entirely. Then, in the summer, he cut off Head Start enrollment for immigrants without legal status. And during the fall’s government shutdown, four Head Start centers in Massachusetts closed because they couldn’t access their funding.

Trump’s latest budget proposal shows a fourth year without increasing funding for the program, which was established in the mid-1960s.

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Michelle Haimowitz, executive director of the Massachusetts Head Start Association, said the program doesn’t want to eliminate more child slots than it already has, but paying teachers a competitive salary is equally important in order to keep them from leaving for higher paying jobs. Head Start teachers make under $50,000 annually compared to over $85,000 for the average Massachusetts kindergarten teacher.

“It’s an impossible choice,” Haimowitz said. “When we reduce the size of our programs, we’re not reducing the size of the need.”

Michelle Haimowitz, MHSA, moderator of panel with Massachusetts State Representative Chris Worrell, 5th Suffolk District.David L. Ryan/Globe Staff

Massachusetts is one of few states that supplements federal funding for Head Start, and last year it increased the program’s state grant from $5 million to $20 million, adding to the $189 million in federal aid it receives in this state.

“We can’t run a program without giving staff a raise for three years,” Haimowitz said. “Our next fight now is not just for survival, but it’s for thriving and growth.”

The Massachusetts House Ways and Means Committee on Wednesday released its budget, which doesn’t grant Head Start’s request of a 3 percent boost. But state Representative Christopher Worrell filed an amendment for additional funding. Worrell, whose district covers parts of Dorchester and Roxbury, said he loves Head Start’s embrace of culture, recalling one visit to a center where he could smell staff cooking stew chicken, a traditional Caribbean dish.

“I’ve been to dozens of schools throughout the district, and you don’t get that home-cooked meal,” Worrell said. “[The state is] stepping up and doing the best we can with what we have.”

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Nylah, 3, holds a hula hoop as pre-school teacher Leolina Rasundar Chinnappa (right) and Hasiet, 4, play catch.Andrew Burke-Stevenson/for The Boston Globe
Assistant teacher Paola Polanco (center) helps Annecataleeya (left) pour milk into a glass while Violeta (right) scoops cereal during breakfast.Andrew Burke-Stevenson/for The Boston Globe

At the Action for Boston Community Development’s Head Start and Early Head Start center in Dorchester, the children of Classroom 7 arrived one Monday morning and dove into bins of magnetic tiles before their teachers, Paola Polanco and Leolina Rasundar Chinnappa, served breakfast. Acosta dropped off her 4-year-old daughter, Violeta, before reporting to her teaching position at the center, where several other Head Start parents also work.

“It’s important for all Head Start parents to have the opportunity to give their child an experience in a learning environment before they actually start kindergarten,” Acosta said.

Beyond providing early education and care to children of low-income families, from birth to age 5, the program helps them access other resources, including mental health services, SNAP benefits, homelessness assistance, and employment opportunities.

It also serves as daycare for parents who might not be able to afford it, while they’re at work.

Research has shown the importance of preschool in a child’s development with one 2023 study, focused on Boston public preschools, finding that it improves student behavior and increases the likelihood of high school graduation and college enrollment.

Massachusetts State Representative Chris Worrell (center), 5th Suffolk District, notes during a meeting on the panel at ABCD Dorchester Head Start and Early Head Start.David L. Ryan/Globe Staff

For Rickencia Clerveaux and Christopher Mclean, the Dorchester Head Start center is the only place they feel comfortable sending their 3-year-old son, Shontz, who is on the autism spectrum. Shontz’s stimming — repetitive movements that stimulate the senses — has reduced, and his speech has improved since he joined the center in 2024, Clerveaux said.

Rickencia Clerveaux, ABCD Head Start parent, talks about her children during the meeting held at ABCD’s Dorchester Head Start and Early Head Start in Boston.David L. Ryan/Globe Staff

His parents say he’s also come out of his shell. Mclean now drops his son off and gets a simple “bye” as Shontz joins his classmates, he said.

He and Clerveaux said they appreciate the specialized attention Shontz can receive from teachers, such as when staff identified that Shontz might have hearing issues. His parents were able to follow up with their doctor and get Shontz to have surgery to improve his hearing.

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“It’s a safe net for parents,” Clerveaux said. “There’s so many ways that him being here helps him grow better.”

Without Head Start, Clerveaux said a lot of pressure would be put on parents to find care for their children, “knowing that they’re already struggling or not getting the ends to meet.”

“That’s a burden for everybody in the community,” she said. “If there’s no funding, there’s no daycare and parents cannot work.”

Students sit together after breakfast at the ABCD Dorchester Head Start.Andrew Burke-Stevenson/for The Boston Globe

Lauren Albano can be reached at lauren.albano@globe.com. Follow her on X @LaurenAlbano_.





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