Steward says it has financing to keep Mass. hospitals afloat

Michael Roknick, The Herald, Sharon, Pa.
·2 min read

Feb. 5—Steward Health Care System, which owns Sharon Regional Medical Center, has arranged financing to stabilize its Massachusetts hospitals, a company officer said.

In an email letter to Steward's Massachusetts employees, Dr. Michael Callum, the company's executive vice president, said Steward agreed to terms for the financing where "funding is imminent" but didn't name the entity that is providing the money or the terms.

"This funding will help stabilize operations, including the resumption of virtually all elective cases, and more importantly allows us to continue operations at all of our Massachusetts hospitals," Callum said. "To be clear, we have no current plans to close any of our hospitals in Massachusetts."

Fears had mounted in recent weeks that Steward was looking at closing some of its nine Massachusetts hospitals.

Steward previously said it was closing its New England Sinai Hospital in Stoughton, Mass. That hospital, which racked up $22 million in losses, is expected to close in the spring, CNHI News Service has reported.

Callum also wrote that the company is working to bring in a partner to boost its finances and that it already received "very significant bids." He also said in the email the company was looking at "transferring one or more of our hospitals to other operators."

Dallas-based Steward has been dealing with grim finances.

The for-profit healthcare provider has accumulated $50 million in unpaid rent to the real estate investment trust that owns many of its buildings. The Wall Street Journal has reported the company has lost more than $800 million between 2017 and 2020.

Robert Rogalski, Sharon Regional's president, told The Herald Jan. 17 that he knew of no plans to sell the local hospital. And while the 2023 financial results weren't in yet, Rogalski said it appeared the local hospital was around the break-even point.