By Paige Minemyer, Dave Muoio August 29, 2024 –
Steward Health Care said it has locked in definitive agreements for four of its Massachusetts hospitals and is “finalizing an agreement” for two others.
The bankrupt system said it now has definitive asset purchase agreements for Lifespan to purchase its Morton Hospital and Saint Anne’s Hospital, while Lawrence General Hospital will be buying Holy Family Hospital – Methuen and Holy Family Hospital – Haverhill. Still in the works is a deal for Boston Medical Center to purchase Good Samaritan Medical Center and St. Elizabeth’s Medical Center.
“In Lifespan, Lawrence General Hospital and Boston Medical Center, we have found partners with established track records of treating communities in the northeast United States,” John Castellano, chief restructuring officer at Steward, said in the announcement. “Through these transactions, the people of the Commonwealth will continue to receive critically needed care while Steward continues to focus on its ongoing Chapter 11 process.”
The deals are contingent on customary closing conditions including approvals from regulators and Bankruptcy Court.
Of note, the pending agreement for St. Elizabeth’s requires that the state of Massachusetts seize the building and grounds through eminent domain. The landlord, a subsidiary of Apollo Global Management, has so far rejected the state’s $4.5 million price tag and said it is unafraid to turn to litigation should a fair offer not be reached.
