A federal bankruptcy filing by Steward Health Care Systems on Tuesday in Houston was approved, effectively extending the deadline for the court-approved bid and sale process for several Steward hospitals, including Carney Hospital in Dorchester.

Bids are now due on July 15 on the various hospitals, and were previously due on Friday, June 21, but the agreed upon sales process indicates, “Debtors may, after consultation with the Consultation Parties, extend one or more of the Bid Deadlines for any reason whatsoever, in their reasonable business judgment, for all or certain Potential Bidders, without further order of the Bankruptcy Court, subject to providing notice to all Potential Bidders and the Consultation Parties,” according to the filing.
The news was first reported by the Boston Globe.

There was no reason given for the extension, and the filing noted that “the deadlines set forth in this notice may be further extended.”

The extension of bids now pushes an auction to July 18 at 10 a.m., and a sale review hearing before the bankruptcy judge to July 31.

The Massachusetts hospitals that are up for sale in the court-approved process include St. Anne’s Hospital (Fall River), Good Samaritan (Brockton), St. Elizabeth’s Medical Center (Brighton), Carney Hospital (Dorchester), Morton Hospital (Taunton), Holy Family (Methuen/Haverhill), and Nashoba Valley (Ayer). However, many have postulated that there may not be interest for all of the properties, and Carney Hospital is one that seems to fall in that category.
Some time ago, Mass General Brigham and Beth Israel hospital networks said publicly they would not be bidding. The Globe reported that Boston Medical Center, while not speaking publicly yet, might be preparing a bid for the Steward hospitals in Boston and Brockton.

According to filings also entered in Houston this week, the picture for ongoing operations and vendors that still serve hospitals like Carney is getting murkier. With hospital operations like transportation still in place, vendors are concerned about getting full payment under the bankruptcy proceedings for services already rendered, and those that continue through the sale process.

One of those objections came from Compass-Crothall MSA that provides transportation and environmental services to several hospitals, including Carney, on a contract inked back in 2017.

The filing, made by Compass and Morrison MSA on June 19, wrote that the contract payment in the bankruptcy agreement lists only one hospital where they are continuing to provide service – that being Morton Hospital – even though they continue to provide services at 19 hospitals, including Carney. It also does not have the correct amount owed to Compass under the contract.

“The Cure Notice does not accurately state the amount that must be paid…to cure the Debtors’ payment defaults under the Compass-Crothall MSA, which is not less than $14,263,265 as of (May 6), plus any additional amounts that accrue under the Compass-Crothall MSA through the closing of any sale transaction in which the (contract) is assumed and assigned to a successful bidder,” read the filing.

Compass said it would be willing to work with the Debtors and any potential buyer to address and “hopefully reach a consensual resolution of the issues raised in this objection.”