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BOSTON (WBZ NewsRadio) — Steward Health Care said Friday it has secured enough financing to keep its Massachusetts hospitals open.
The Boston Globe first reported last month that the for-profit health network is in such financial distress, it may be unable to operate some of the nine facilities it owns in the state. As of Dec. 31, 2023, Steward reportedly owes its landlord, Medical Properties Trust, approximately $50 million in unpaid rent.
Last Friday, Mass General Brigham pulled all of its doctors from Holy Family Hospital in Haverhill and Methuen. Congressman Stephen Lynch told WBZ NewsRadio last week Steward plans to "urgently" sell Holy Family and three other hospitals: St. Elizabeth's Medical Center in Brighton, Nashoba Valley Medical Center in Ayer, and Norwood Hospital.
In a letter to Massachusetts employees Friday, Executive Vice President Dr. Michael Callum said Steward has agreed to a "significant financial transaction" to help stabilize the company as it undergoes a mergers and acquisitions process, with the first tranche of funding "imminent."
"This funding will help stabilize operations, including the resumption of virtually all elective cases, and more importantly allows us to continue operations at all of our Massachusetts hospitals," Callum said in the letter. "To be clear, we have no current plans to close any of our hospitals in Massachusetts.
"Moreover, the Company is advanced in an M&A process that would bring in a significant equity partner to our physician organization, and the Company has already received very significant bids as part of this process. The bridge financing will get the Company to the closing of the M&A process, and will provide the necessary capital for a robust national physician group and the time needed for Steward to consider transferring one or more of our hospitals to other operators.
"We are confident that both transactions will provide us with the necessary funds to get us through this challenging time. In the meantime, we remain dedicated to serving the Commonwealth and the patients in our communities."
In December, Steward announced plans to close New England Sinai Hospital in Stoughton in April, saying it had lost $22 million on its operations. A representative from Steward Health Care confirmed to WBZ Friday it is moving forward with those plans.
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