'Shotgun marriage' could solve financial crisis endangering Good Sam, Morton, Saint Anne's

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BROCKTON — Steward Health Care plans to leave the Massachusetts market, according to U.S. Rep. Stephen Lynch and confirmed by the company.

Who might take over the for-profit company's hospitals in Brockton, Taunton and Fall River remains a mystery.

Lynch, a Democrat representing the 8th District, toured overburdened Good Samaritan Medical Center in Brockton and shuttered Norwood Hospital on Wednesday. He said he wanted to visit stable facilities like Tufts Medical Center, Boston Medical Center and Massachusetts General Hospital to gauge how they differ from Steward's operations.

"Before we have any shotgun marriage between hospitals, I'd like to figure out in private exactly where those other hospitals stand in terms of their ability to step in, in some capacity," Lynch said at a press conference.

U.S. Rep. Stephen Lynch, a Democrat representing the 8th District, including Brockton, speaks to the media after touring Good Samaritan Medical Center in Brockton on Wednesday, Feb. 21, 2024. On the right is State Sen. Mike Brady, D-Brockton. The hospital's owner, Steward Health Care, which owns eight other hospitals in Massachusetts, including Morton in Taunton and Saint Anne's in Fall River, is in an ongoing financial crisis.

Not paying its bills Owner of Good Sam, Morton and St. Anne's hospitals can't make rent payments. What we know

Citing a "widening investigation," Lynch said that on Jan. 24 a Steward senior vice president told politicos that they intended to "cease operations or exit the Massachusetts market." The company's plan was previously reported by WBUR. A Wednesday letter from Steward confirms that the company plans to leave the state. Responding to Gov. Maura Healey's recent demands, the letter says, "We would welcome the opportunity to meet with you personally concerning the orderly departure of Steward from Massachusetts."

Brockton Mayor Robert F. Sullivan joined Lynch and the city's Beacon Hill delegation in touring Good Sam.

"We need to make sure that this hospital stays intact on the West Side," said Sullivan, who noted that his three children were born at the Pearl Street medical center.

The politicians contrasted the openness they say they've received from Good Sam's president, Matthew Hesketh, with stonewalling about key financial information from the company as a whole.

"I can't speak to the system-level financials. We're focused on taking care of patients at the frontline here," Hesketh said.

'Exorbitant profits' Governor blasts Steward's handling of financial crisis, wants them to hand over hospitals

Good Samaritan Medical Center President Matthew Hesketh answers a question at the press conference at the hospital on Wednesday, Feb. 21, 2024. The hospital's owner, Steward Health Care, which owns eight other hospitals in Massachusetts, including Morton in Taunton and Saint Anne's in Fall River, is in an ongoing financial crisis.
Good Samaritan Medical Center President Matthew Hesketh answers a question at the press conference at the hospital on Wednesday, Feb. 21, 2024. The hospital's owner, Steward Health Care, which owns eight other hospitals in Massachusetts, including Morton in Taunton and Saint Anne's in Fall River, is in an ongoing financial crisis.

Amid reports of supply and labor shortages, state monitors have been in place at Good Sam for a month, he said. State regulators are now in all Steward hospitals in Massachusetts, with plans by Healey to expand that oversight.

Many of the key players in any resolution to the crisis gathered Wednesday at Good Sam. Kate Walsh, the state's secretary of health and human services, said her office needs details on Steward's nationwide financial structure to do its job of protecting patients and access to quality care.

"There's a complex financial structure we need to understand," said Walsh.

Massachusetts Secretary of Health and Human Services Kate Walsh answers a question at a press conference at Good Samaritan Medical Center in Brockton on Wednesday, Feb. 21, 2024. On the left is State Rep. Rita Mendes, D-Brockton, and U.S. Rep Stephen Lynch, whose district includes Brockton. The hospital's owner, Steward Health Care, which owns eight other hospitals in Massachusetts, including Morton in Taunton and Saint Anne's in Fall River, is in an ongoing financial crisis.

Steward claims to have given the state the information it has been seeking since at least 2015, when then-Attorney General Healey sued the Dallas-based company for failing to provide financial information required by state law. A Steward spokesperson previously said the company had shared audited financial information in late 2023 and last month. The officials gathered at Good Sam Wednesday, both elected and appointed, disputed that characterization.

Healey imposed a Friday deadline for Steward to come clean with the documentation the state wants. Asked what happens if the company fails to comply, Walsh said she didn't know.

Brockton's only other hospital closed in wake of fire

Contributing to the uncertainty is the closure of Brockton Hospital. A February 2023 fire has kept the East Side facility shut. Current estimates are it will reopen fully in June.

The bottom line for Brockton Neighborhood Health Center CEO Susan G. Joss?

"Brockton Hospital's closure has proven to us that we can't survive with one hospital," said the longtime leader of the downtown facility.

Send your news tips to reporter Chris Helms by email at CHelms@enterprisenews.com or connect on X at @HelmsNews.

This article originally appeared on The Enterprise: Lynch: Steward Health Care to exit Massachusetts hospital market