Dorchester’s Carney Hospital could close as soon as Aug. 31 if a proposal by the bankrupt Steward Health Care system is approved by a judge in Texas – and if Gov. Healey and other state leaders approve the company’s attempt to flout state regulations and shutter the Carney and Nashoba Valley Medical Center in Ayer prematurely without a state-mandated 120-day closure notice.

Healey said Monday that she lacks the authority to keep the two hospitals open. "Unfortunately, there is nothing that I can do to stop the closure of the two hospitals in particular that Steward has announced it’s closing," she told reporters Monday afternoon at the State House. "Look, I've been in this space for a long time, including as attorney general, and I can tell you that what Steward has done, what [CEO] Ralph de la Torre has done, is despicable. And, you know, we are paying a price for it right now."

In a statement last Friday reacting to Steward's closure news, Healey had vowed, "This is not over."

Elected officials and health care leaders decried Steward's abrupt decision and failure to comply with state regulations, which require providers intending to close an essential service to give the Department of Public Health at least 120 days' notice, followed by a formal notice 90 days before the closure.

In a bankruptcy court order, Steward said it needs cooperation from its landlords, including Medical Properties Trust (MPT), which owns the land beneath the hospitals, to move forward in the sale and transfer process.

"It's terribly distressing, I understand that, when a hospital in your community closes," the governor said. "Unfortunately, I don't have the power or the lever to stop that. That's a decision that Steward makes. Certainly, though, we'll do everything we can to smooth a transition there. And I'll say this: We call on Steward right now, who has within its power the ability to work with us on a deal that would save those [other] hospitals, to step up and act. And I call on their investment bankers to do what is right and step up and act because there's a way to save this right now."

State Sen. Nick Collins, whose district includes the Carney, said this week that the state "should not allow an expedited closure of Carney Hospital. That would play into the hands of MPT and their strategy to sell the assets at an inflated value and fly away with a windfall. We need to do everything we can to keep Carney Hospital open so that a qualified bidder can come in after bringing the inflated value down to earth.”

Steward says it intends to close the two hospitals on Aug. 31. Healey, asked how state officials plan to handle the compressed closure timeline, said there are "rules and regulations that need to be followed. Our Department of Public Health and our Health and Human Services branch will continue to work on that and hold people accountable that way.

"But I also know that there is something on the table right now that would help us to save five hospitals. That's what I want to do. That is what I want to see happen, and I demand that the lenders step up and do that."

The governor said her administration is focused on protecting jobs and patients, as well as saving the Steward hospitals in Massachusetts that received qualified bids as the company looks to offload its facilities during ongoing bankruptcy proceedings. They include Saint Elizabeth’s Medical Center, Saint Anne’s Hospital, Good Samaritan Medical Center, Holy Family Hospital-Haverhill, Holy Family Hospital-Methuen, and Morton Hospital in Taunton.

The governor did not answer questions about the possibility of the state appointing receivers to run the Carney and Nashoba facilities.
A spokesperson for the Executive Office of Health and Human Services, asked whether receivership was an option, did not directly answer the question while referencing a "clear pattern" of patients choosing to seek care at non-Steward hospitals. In June, only 13 of the Carney's 83 medical beds were filled on average, and only 11 of Nashoba's 46 beds were occupied, the spokesperson said.

Healey defended the state’s $30 million commitment to support Steward hospitals during their transition to new ownership. A portion of the funding, which does not require legislative appropriation, will be directed toward the hospitals that Steward plans to close, according to court filings.

"Let me be clear, as well: That money is not going to Steward," Healey said. "We have said all along that not a dime goes to Steward. … but we all believe in our health care workforce, in our providers here, and most importantly, in making sure that people in the community have access to healthcare."

Though the funding apparently won't go to pad de la Torre's pockets, it is going to help keep Steward facilities afloat. On Sunday, the governor's office described the payments as "advances" on Medicaid funds that Massachusetts owes Steward. They are being provided contingent on an orderly movement toward new ownership, conditioned on hitting transition-related milestones, and cannot be used for rental payments to MPT, debt service or management fees.

"This is just an interim measure to provide relief in terms of operating expenses," Healey said. She added that a "lot of people" are coming after Steward and de la Torre for "whatever they've squirreled away."

Healey deputies have said the funding is designed to keep Steward hospitals operational through the end of August. For weeks, onlookers expected a judge to preside over a sale hearing for Steward hospitals on July 31, but parties have pushed that event until Aug. 13.

News of the plan to close the Carney came in the form of a statement from Steward executives last Friday. It said: "Over the past several months, Steward Health Care has been actively working to sell or transition all its Massachusetts hospitals and we are in active final negotiations to sell six of them.

Despite the extensive sale process, which involved close coordination with lenders and regulators, there were no qualified bids for two hospitals, Carney Hospital and Nashoba Valley Medical Center, and, unfortunately, they will be closing on or around August 31, 2024. This is a challenging and unfortunate situation, and the effect it will have on our patients, our employees, and the communities we serve is regrettable. We will do all we can to ensure a smooth transition for those affected while continuing to provide quality care to the patients we will continue to serve."

Health and Human Services Secretary Kate Walsh told the News Service on Friday that the administration is "very sorry that Steward announced that two hospitals are closed today, but not surprised."

Healey had said earlier in the week that all of Steward's Massachusetts hospitals up for sale received at least one bid, but Walsh clarified on Friday that the bids for Nashoba and Carney were not "deemed acceptable to Steward or their creditors" in bankruptcy proceedings.

The attorney general's office said on Friday that the Department of Public Health has oversight responsibility for hospital closures. State law and regulations require any provider planning to close an essential service to notify DPH at least 120 days in advance and then provide a formal notice 90 days before the planned closure.

There is a litany of checkpoints along the way. DPH must publish a notice of a public hearing on the closure at least 81 days out and hold the hearing at least 60 days before the closure would take effect.

Within 15 days of that public hearing, DPH is to provide the hospital with a determination as to whether the service provided by the hospital is necessary for preserving access and health status within the hospital’s service area. If DPH deems the service necessary, the hospital is required to submit a plan to DPH for assuring access within 15 days, and the two sides can go back and forth a bit until there are 10 days remaining until the closure, according to the Division of Health Care Facility Licensure and Certification at DPH.

However, even if regulators find the service is crucial to maintaining care, they cannot legally require a hospital to keep a service open to the public. DPH can only call for a provider to submit a plan outlining what patients will do after a closure and conduct post-closure monitoring, not block any service from shutting down.

Acknowledging the ripple effects Steward's closures could have on the health care landscape, Healey also announced on Friday a new online dashboard that allows people in need of care to find nearby hospitals, understand the services available at each location, and view monthly updates on patient volumes and bed availability.

"The loss of these hospitals will not only impact these patients and communities, but it will also compromise the care for patients served by other hospitals in the region, hospitals that are already overwhelmed and will now be forced to absorb those patients abandoned as a result of these closures," the Mass. Nurses Association said in a statement on Friday.

"In the interim, we call on the state to enforce its law forbidding hospital closures with less than 120 days’ notice to allow the state time to find a means of preserving these hospitals for the care of these vulnerable communities," the MNA said.

Sam Doran and Reporter staff contributed to this report.