Steward announces new funding it says will stabilize operations
Local News
The financing will buy some time for Steward Health Care as it works to transfer ownership of some of its Massachusetts hospitals.
St. Elizabeth’s Medical Center in Brighton is one of nine Steward hospitals.
Steward Health Care announced it has secured bridge financing to keep nine of its Massachusetts hospitals open while the company works to transfer ownership of some of its centers to other operators.
Steward has suffered financial difficulties stemming from the COVID-19 pandemic that have threatened operations at their healthcare facilities. The company has also pointed to a widening insurance reimbursement gap as a driver behind its money troubles.
In a memo to employees Friday, Executive Vice President Dr. Michael Callum said a “significant financial transaction” will stabilize operations and money will be coming in imminently.
“To be clear, we have no current plans to close any of our hospitals in Massachusetts,” Callum told employees.
The funding will allow virtually all elective cases to resume and will give Steward time to work on transferring “one or more of our hospitals” to other operators, Callum said.
Steward has also gotten “significant bids” to advance the process of bringing “a significant equity partner” to its physician network.
“The bridge financing will get the company to the closing of the [mergers and acquisitions] process and will provide the necessary capital for a robust national physician group,” Callum said in the memo.
Steward employs about 16,000 Massachusetts workers and operates a network of healthcare centers that include Carney Hospital in Dorchester, St. Elizabeth’s Medical Center in Brighton, New England Sinai Hospital in Stoughton, Nashoba Valley Medical Center in Ayer, Morton Hospital in Taunton, Good Samaritan Medical Center in Brockton, Norwood Hospital, Holy Family Hospital in Haverhill and Methuen, and Saint Anne’s Hospital in Fall River.
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