Steward Health Care, a US-based integrated healthcare system currently involved in bankruptcy proceedings, has reached definitive agreements to divest its certain hospitals in Massachusetts.
The sale includes Morton Hospital and Saint Anne’s Hospital, which will be acquired by not-for-profit health system Lifespan.
Lawrence General Hospital, a private community hospital founded in 1875, will take over Steward’s Holy Family Hospital - Methuen and Holy Family Hospital - Haverhill.
The asset purchase agreements (APAs) filed by Lifespan and Lawrence General Hospital for the acquisition and operation of these healthcare facilities have also been acknowledged by Massachusetts Governor Maura Healey.
These agreements are now subject to the receipt of necessary approvals from the regulatory bodies and bankruptcy court, with a hearing scheduled for 4 September.
In a media statement, Healey said: “This agreement accomplishes our goal of maintaining and protecting access to care and jobs in Southeastern Massachusetts and the Merrimack Valley while removing Steward Health Care from Massachusetts once and for all.”
Massachusetts has pledged to support the new operators for a limited period by advancing MassHealth funding and other pre-allocated funds.
The financial details of these arrangements are currently being finalised between the state and the buyers, Lifespan and Lawrence.
Apart from these agreements, Boston Medical Center is in the process of acquiring Steward’s Good Samaritan Medical Center and St Elizabeth’s Medical Center.
The latest announcement comes shortly after Healey confirmed that tentative deals were in place for the transition of four Steward hospitals, including Good Samaritan Medical Center.
In addition, the Healey-Driscoll administration is considering taking control of Saint Elizabeth’s through eminent domain to ensure a smooth transition to Boston Medical Center and to keep the hospital operational.
Steward's advisors for these transactions include Weil, Gotshal & Manges as the restructuring counsel, McDermott Will & Emery as the regulatory counsel, AlixPartners as the financial adviser, and KeyBanc Capital Markets’ division Cain Brothers as the healthcare investment bankers, along with Leerink Partners.
Steward chief restructuring officer John Castellano said: “As Steward continues to progress through the ongoing Chapter 11 proceedings, we are thrilled to have identified such qualified acquirers for hospitals in the Commonwealth that are critical to the health of underserved populations.”
