Steward Health Care’s sale of 5 Massachusetts hospitals approved by judge

HOUSTON – A judge approved the sale of five Massachusetts hospitals owned by Steward Health Care on Wednesday during a long-awaited bankruptcy hearing in Texas.

Wednesday’s hearing had previously been postponed several times, which forced the state to spend millions of dollars to keep the medical centers open.

The hospitals that were sold are St. Anne’s Hospital in Fall River, St. Elizabeth’s Medical Center in Brighton, Good Samaritan Medical Center in Brockton, Morton Hospital in Taunton and Holy Family Hospital’s locations in Methuen and Haverhill.

Steward closed Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer on Saturday.

The Archdiocese of Boston had concerns about the sale, asking for the new owners to remove symbols of Catholic identity if they don’t plan to operate as Catholic health care facilities.

Wednesday’s hearing was held in Houston, Texas.

Steward filed for bankruptcy reorganization in May and began exploring plans to sell dozens of hospitals it owned across the country.

CBS News reported earlier this year that federal prosecutors at the U.S. Attorney’s office in Boston are investigating Steward Health Care based on allegations that include fraud and violations of the Foreign Corrupt Practices Act.

“A bright new day for healthcare workers”

The Massachusetts Nurses Association, which represents more than 2,800 registered nurses working in hospitals impacted by the Steward crisis, said it has already had conversations with the new operators.

“This is a long-awaited and very positive development for the communities and dedicated workforce at these facilities and we look forward to working with all parties to ensure a smooth transition for these facilities to new operators in the coming days and weeks,” the MNA said in a statement.

Tim Foley, Executive Vice President at 1199SEIU United Healthcare Workers East, said “It’s a bright new day for healthcare workers and our patients.”

“With Steward finally on its way out of Massachusetts, the critical work of transitioning the hospitals to their new owners can begin,” Foley said in a statement. “Throughout this complicated process, patient safety and workers’ rights need to be protected, and new investments will be needed to help stabilize our fragile hospitals and their vital workforces.” 

Steward CEO will not testify

Ralph de la Torre, the CEO of Steward, was ordered to testify at a hearing in Washington next week led by a bipartisan group of senators looking into his bankrupt company. Instead, on Wednesday de la Torre responded to the subpoena with a scathing letter from his attorney, saying the senators appeared “determined to turn the hearing into a pseudo-criminal proceeding in which they use the time, not to gather facts, but to convict Dr. de la Torre in the eyes of public opinion.”