The healthcare landscape in Massachusetts is facing a significant upheaval as Steward Health Care, a Texas-based for-profit healthcare chain, plans to lay off nearly 1,250 workers amidst its hospital closures. Boston 25 News reported the upcoming job losses will affect employees at Carney Hospital in Dorchester, with 753 workers being laid off, and at Nashoba Valley Medical Center in Ayer, where another 490 workers will lose their jobs.
Despite a requirement to give a 120-day notice before closing a medical facility under state law, Steward Health Care received permission from a bankruptcy judge in Houston to expedite the closures by the end of the month. This move was met with sharp criticism from Boston Mayor Michelle Wu and Governor Maura Healey's office. A statement obtained by Boston 25 News from Mayor Wu expressed her disapproval, asserting that "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 demanded the original healthcare-related use of the property be maintained.
According to a statement provided by GetPocket, Karissa Hand, a spokesperson for Governor Healey, criticized Steward Health Care for its "irresponsible business tactics," noting that healthcare workers have been serving their patients amidst this uncertainty selflessly. Echoing this sentiment, Governor Healey pointed out the business practices of Steward CEO Ralph de la Torre as "irresponsible" and pressed the company to adhere to the state's regulatory notice period before closure.
Furthermore, Steward's financial challenges were underscored by the company's bankruptcy filing on May 6 and the subsequent reports of operational losses at the respective hospitals. With Carney Hospital posting a $14.7 million loss and Nashoba Valley a $2.3 million deficit, excluding certain charges, as per Steward's bankruptcy court filing cited by GetPocket. Both institutions have also reportedly seen a rapid drop in patient numbers.
In response to the looming layoffs, Steward has stated it's actively seeking to facilitate employee transfers to over 1,000 open positions within its other Massachusetts hospitals. Job fairs are being held to aid in this process. The company has also made it clear that it deeply regrets the necessity of these closures, as per a Boston 25 News report. Meanwhile, state officials and rapid response teams are working to support the impacted workers through educational programs about unemployment insurance and job search workshops.
In the midst of these events, officials are pushing Steward to finalize the sales of their remaining hospitals to prevent further losses and shutdowns. The state is also anticipating a ruling on the advancement of $30 million in Medicaid funding to Steward by MassHealth, which aims to keep other hospitals open until new ownership can take over.
