Massachusetts hospital plagued by financial struggles shutting down tomorrow
A Massachusetts hospital plagued by financial struggles will close its doors on Tuesday.
Steward Health Care will permanently shutter New England Sinai Hospital in Stoughton on Tuesday, April 2.
In late January, Steward said the hospital’s financial performance had decreased by 1,600 percent over the last five years. The healthcare company blamed “skyrocketing expenses” related to labor, material costs due to inflation, and lingering effects of the COVID-19 pandemic on its decision to close the hospital. Steward also said that it owed about $50 million in unpaid rent.
“Chronic under-reimbursement rates through public programs like Medicaid have put an unstainable strain on resources at NESH,” a Steward attorney told the Dept. of Public Health in December.
The hospital’s closure means the loss of 39 rehabilitation service beds, 119 chronic care beds, and all ambulance services.
Steward Health Care, which owns nine hospitals in Massachusetts, is grappling with a financial crisis and considering pulling out of the state.
Gov. Maura Healey had said that her team is committed to finding “more responsible” ownership for Steward’s hospitals.
Steward last week said it had reached a deal to sell its existing physician network to insurance company Optum.
While the proposal between Steward Health Care and Optum is in the works, it still needs all kinds of approval.
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