Steward Health Care has announced it will be shutting down Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, with closures expected to take place on or around August 31, 2024. The health care company, which filed for bankruptcy earlier this year, cited a lack of "qualified bids" for both hospitals as the reason for their impending closure, according to CBS News Boston.
Massachusetts Governor Maura Healey has been vocal in her dissatisfaction with this development. "It is time for Steward and their real estate partners to finally put the communities they serve over their own selfish greed," she was quoted saying in a statement covered by CBS News Boston. Despite the setbacks, Steward claims to be actively working to sell six other Massachusetts hospitals. However, the governor's office informed us that in June, Carney Hospital was running significantly under capacity, with only 13 of its 83 medical beds filled.
Additionally, the Massachusetts Nurses Association has highlighted that closing the hospitals with less than 120 days' notice could potentially violate state law. "The loss of these hospitals will not only impact these patients and communities, but will also compromise the care for patients served by other hospitals in the region," the union stated, as reported by the same news source.
Amid these closures, federal authorities in Boston have opened a criminal investigation into Steward Health Care, as per CBS News Boston. Allegations include fraud and possible violations of laws prohibiting corrupt activities abroad. Senators have also voted to subpoena Steward CEO Ralph de la Torre, who is accused of profiting at the expense of patients. In 2021, Steward's owners paid themselves millions in dividends, and de la Torre acquired a costly yacht worth an estimated $40 million, raising questions about the health system’s financial practices under his leadership.
Governor Healey's office has indicated that Carney Hospital and Nashoba Valley Medical Center remain open as of now, and will proceed through an orderly and regulated closure. For the communities affected, the implications are profound, with vital health services and jobs hanging in balance. Meanwhile, a bipartisan group of senators is looking to turn up the heat on de la Torre, demanding answers and accountability for the healthcare system's failures in the state.
