More than 1,000 employees are set to be laid off when Steward Health Care closes two of its Massachusetts hospitals at the end of the month, the bankrupt Dallas-based company told the state.
When Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer close on or around Aug. 31, roughly 1,243 employees at the two healthcare facilities will be out of work, according to a notice Steward filed with the state on Friday.
Some 753 employees at Carney are anticipated to lose their jobs, while 490 at Nashoba Valley will also be impacted, according to the notice mandated by the federal Worker Adjustment and Retraining Act.
With the closures in sight, after a Texas-based federal bankruptcy judge decided last week to allow the debt-ridden Steward to proceed, current and former patients are being notified to file proofs of claim.
The deadline to file proofs of claims against the debtors is Aug. 23 at 6 p.m.
“Although you are receiving this notice it does not mean you have a claim or need to file a proof of claim,” the document from bankruptcy court states. “You do not need to file a proof of claim for any refund arising in the ordinary course of business that the debtors have been previously authorized to pay by order of the court.”
“The debtors and their advisors are unable to provide you with any legal advice,” it adds. “To the extent you seek legal or other professional advice, please consult with your own lawyer or advisor.”
Bankruptcy Judge Christopher Lopez said federal bankruptcy laws left him little choice but to allow the hospitals to close.
“Closing one hospital is real — it’s affecting the lives of people who are in there right now,” he said. “The importance of every individual weighs on me, when I’m told there could be life decisions… but from a legal standpoint, the debtors have the authority to close.”
Inside Ayer Town Hall last Tuesday, officials called on Gov. Maura Healey to require Steward to follow state law that forces healthcare entities planning to shutter services to notify the Department of Public Health at least 120 days in advance.
Healey had told reporters earlier last week there was nothing she could do to prevent Steward from shuttering Nashoba Valley, Carney, or any other facility. But, on Thursday, the governor said she is pressing Steward to adhere to the state Department of Public Health regulation.
“I’ve been clear with Steward, they need to stay open for 120 days. We need to have a smooth transition. Steward made the call to close those two hospitals,” Healey told reporters. “We have been hard at work looking to secure a deal that will ensure a smooth transition of ownership away from Steward to a responsible operator.”
Nashoba Valley and Carney did not receive qualified bids for purchase during an auction held on July 15, while Steward’s five other operational hospitals did.
Those facilities include 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.
Boston Mayor Michelle Wu wrote a letter to the owners of Dorchester’s Carney Hospital on Thursday, demanding that the property must be used only for healthcare purposes in the future. If not, the owners could face retribution from Wu’s office, the mayor warned.
“Our community is rightly concerned that your companies, not satisfied with the hundreds of millions in value already extracted from Steward hospitals, hope to capitalize on the closure of Carney Hospital by redeveloping the property,” Wu wrote. “I would like to be absolutely clear that my Administration will oppose any effort by ownership to rezone the property for uses other than the provision of health care. “
