Steward Health Care, which is currently undergoing bankruptcy proceedings, has filed a motion with a Texas court seeking to limit its liability related to the closure and sale of its Massachusetts hospitals. The company argues that it should not be held responsible for any damages arising from the closure of Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer.Steward Health Care, which is currently undergoing bankruptcy proceedings, has filed a motion with a Texas court seeking to limit its liability related to the closure and sale of its Massachusetts hospitals. The company argues that it should not be held responsible for any damages arising from the closure of Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer. Steward also requests that the state of Massachusetts approve the closure of these hospitals and assist with the process. The company’s attorneys argue that regulators need to collaborate with Steward to ensure the smooth closure of the facilities. Furthermore, Steward’s attorneys emphasize that the company should not be held liable for any governmental entities for carrying out the hospital closures authorized by the court order. A hearing on the sale and closure of Steward’s Bay State properties is scheduled for July 31st in the U.S. Bankruptcy Court for the Southern District of Texas Houston Division.
Steward CEO Ralph de la Torre (File)
Steward Health Care, through its attorneys, has informed a Texas court that it believes it should be released from any liability to the Bay State arising from its bankruptcy proceedings and the sale of its Massachusetts hospitals.
Under a proposed court order filed on behalf of the now-bankrupt Steward, the company says Massachusetts must approve the closure of Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, as well as any other hospitals they may close, and that the state must assist with the process.
“Local, state and federal regulators will work with the Debtors in good faith to effectuate the closure of the closing hospitals in Massachusetts and any subsequent closure of the facility,” the health care company’s attorneys wrote.
In addition, the Dallas-based firm’s attorneys argue that the government should not hold them liable for closing their hospitals.
“The Debtors will not be liable to any governmental entity for carrying out the closure of the Massachusetts hospitals or any facility closures in accordance with the proposed closure plans authorized by this Order,” they wrote.
A hearing on the sale and closure of Steward’s Bay State properties is scheduled for July 31 in the U.S. Bankruptcy Court for the Southern District of Texas Houston Division. The company filed for Chapter 11 bankruptcy protection in May, when it announced it would sell all of its hospital properties at auction.
Steward did not respond to a request for comment.
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