Brockton, Massachusetts Hospitals Up for SaleBrockton, Massachusetts Hospitals Up for Sale Senator Elizabeth Warren and Senator Edward Markey have urged Medical Properties Trust (MPT) and Macquarie Infrastructure Partners (MIP), the owners of the real estate for eight Massachusetts hospitals, to make the facilities more attractive to potential buyers. The hospitals in question include Good Samaritan in Brockton, Morton in Taunton, and Saint Anne’s in Fall River. Steward Health Care, the current owner of the hospitals, declared bankruptcy and defaulted on its rent payments, leading to the sale process. Warren and Markey expressed concerns that the high lease payments to MPT and MIP pose a significant threat to the hospitals’ operations and could deter potential buyers. They urged the real estate owners to offer concessions such as long-term reductions in lease payments or early termination options. In 2016, Steward sold the hospital buildings and land to MPT and MIP for $1.25 billion. Steward has since faced financial difficulties, resulting in the bankruptcy filing and the current sale process. Lifespan Health of Rhode Island is reportedly considering a bid for Good Samaritan and Saint Anne’s hospitals. However, the deadline for submitting bids has been pushed back to July 15. The senators emphasized the importance of keeping the hospitals open and accessible to the communities they serve. They urged MPT and MIP to prioritize the provision of quality healthcare and the stability of the hospitals’ operations. The state has also established a helpline for patients or employees with complaints about Steward facilities. The number is 617-468-2189 or toll-free 833-305-2070.
BROCKTON — As a new deadline approaches for bids for Steward Health Care to sell its eight Massachusetts hospitals — including Good Samaritan in Brockton, Morton in Taunton and Saint Anne’s in Fall River — state senators urged the companies that own the facilities’ real estate to make the deal more attractive to potential buyers.
Senators Elizabeth Warren and Edward Markey, both Democrats, asked executives from Medical Properties Trust (MPT) and Macquarie Infrastructure Partners (MIP) to offer “long-term reductions in lease payments, early termination of leases or other concessions to ensure new operators can be found to keep Steward’s Massachusetts hospitals “open and viable.”
The senators’ concerns stem from worries that buyers won’t come forward, leaving residents who rely on the hospitals and the people who work there in limbo. Last month, Steward pushed back the deadline for submitting bids for Steward’s nine Massachusetts hospitals to July 15, according to court documents filed by the Boston-born, now Dallas-based company.
“The ability of these hospitals to emerge from bankruptcy under new ownership with stable finances will represent a major public health victory for these communities, allowing their dedicated employees to continue to provide needed health care.”
Steward sold hospital buildings and land in 2016
The hospitals are for sale, but Steward sold the buildings themselves and the land they sit on in 2016. The Massachusetts properties brought in $1.25 billion. Until recently, Steward paid rent to the new owners, before the struggling for-profit company defaulted on its rent payments and filed for bankruptcy months later.
“MPT and MIP played a significant role in Steward’s precipitous financial decline, in addition to years of mismanagement, private equity schemes and management profiteering,” the senators said in the written statement.
The senators said Steward’s lease agreements with MPT and MIP account for the vast majority of Stewards’ liabilities and pose an ongoing threat to the hospitals’ operations.
“MPT initially paid $1.2 billion for the Steward hospitals and appears to have already received a substantial return on its investment — well over $1 billion — by selling half of its interest in the hospitals to MIP, in addition to rent and interest payments from Steward. Bankruptcy documents reveal that Steward pays approximately $341 million in annual lease payments to MPT and MIP combined,” the senators said.
Rhode Island company may bid for Good Sam, St. Anne’s
Lifespan Health of Rhode Island is considering a bid for Good Sam and St. Anne’s, WBUR reported. Lifespan plans to change its name to Brown University Health, the network announced in June.
State Helpline for Steward Patients and Employees
State regulators oversee Steward facilities. The state also has a special hotline for patients or employees with complaints. The number is 617-468-2189 or call toll-free 833-305-2070.
The state also brokered a deal to relieve pressure on overcrowded emergency rooms by making it cheaper for residents with health insurance to go to urgent care centers. From July 3 through Oct. 1, health insurers will reimburse urgent care centers in eastern Massachusetts for treating patients, even if the facility is not in the network. The deal includes Plymouth and Bristol counties.
This letter explains the details.
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