Massachusetts' governor has announced that deals in principle have been reached for Steward Health Care's remaining hospitals in Massachusetts.
Should the deals be finalized, Lawrence General Hospital will operate both campuses of Holy Family in Haverhill and Methuen. Lifespan would take over operations of Morton Hospital and Saint Anne's Hospital. Boston Medical Center will take over operations of Good Samaritan Medical Center.
Boston Medical Center also intends to operate Saint Elizabeth’s down the line. The state is first taking control of the hospital through eminent domain, according to an announcement from the governor's office.
“Today, we are taking steps to save and keep operating the five remaining Steward Hospitals, protecting access to care in those communities and preserving the jobs of the hard-working women and men who work at those hospitals,” said Gov. Maura Healey in a statement. “Our team under Secretary Kate Walsh worked day in and day out to secure new, responsible, qualified operators who will protect and improve care for their communities."
To support the transition, the governor's office teamed up with the state legislature to "develop a fiscally responsible financing plan that includes cash advances, capital support and maximizing federal matches."
The steps do not impact Carney or Nashoba Valley hospitals, Healey's office said. These facilities will close after they did not receive any bids.
While a hearing Friday centered on the status of Steward Health Care's sale of its physician group, the embattled health system's legal counsel offered an update on planned sales of its hospitals in Massachusetts.
Ray Schrock, one of Steward's attorneys, told Texas bankruptcy Judge Christopher Lopez that the legal team is aiming to address some of the concerns from potential buyers over the weekend and sign asset purchase agreements on Monday. He did ask to schedule a status conference on Tuesday to provide updates should this not come to fruition.
Details on the potential buyer or buyers or the status of individual sales were not disclosed further.
"We're doing everything possible to avoid a bad outcome, to get to a good outcome over the weekend," Schrock said.
The bulk of the hearing centered on Steward's sale of its physician group, Stewardship Health, to Rural Healthcare Group, which is backed by a private equity firm. The deal was first revealed earlier this week.
UnitedHealth Group's Optum was initially slated to pick up Stewardship, but that deal fell through following pressure from lawmakers and other prominent critics.
Orlando Health has made a bid to acquire Steward's "Space Coast" properties in Florida, bidding $439 million.
Steward is working to sell off its assets as part of its Chapter 11 bankruptcy proceedings. The sale of Stewardship as well as any notable hospital sales will require approval from the bankruptcy court and regulators.