Massachusetts Allocates $30 Million for Steward Hospitals

Massachusetts has agreed to provide approximately $30 million to support Steward Health Care System's hospitals during their transition to new ownership, following Steward's bankruptcy declaration earlier this year. The funding is intended for operational costs and will be released in two tranches, contingent on Steward meeting certain sale milestones for its hospitals. However, creditors have objected to the agreement, arguing it could lead to a liquidity crisis for Steward and grant the state excessive control without court oversight. The state plans to ensure that patients can still access care as two hospitals, Carney Hospital and Nashoba Valley Medical Center, are set to close due to a lack of qualified bids. The funding is characterized as advances on Medicaid funds owed to Steward and cannot be used for management fees or debt service. Massachusetts officials are stressing the importance of a plan to protect patient safety and job stability amid the ongoing closures.