In a significant development on Friday, the Healey Administration revealed its plan to seize St. Elizabeth's Medical Center in Brighton through eminent domain. This decision comes after months of negotiations with Steward Health Care and outside investment firms that owned properties of Steward's Massachusetts hospitals.

Under the breakthrough deals reached, six of Steward's hospitals will remain open under new operators. Boston Medical Center, the state's largest safety net hospital, will take over the operations of St. Elizabeth's Medical Center, while also acquiring Good Samaritan Medical Center in Brockton. Lawrence General Hospital will assume control of Holy Family Hospital with campuses in Methuen and Haverhill. Additionally, Providence-based Lifespan Health System will make its first entry into Massachusetts by acquiring St. Anne's Hospital in Fall River and Morton Hospital in Taunton.

The financial terms of these hospital purchases have not been disclosed but are expected to be revealed in bankruptcy court filings the following week. Steward Health Care filed for bankruptcy on May 6 and has been working on selling its assets in Massachusetts and five other states to repay its creditors.

During a press conference, Governor Maura Healey, alongside state Health and Human Services Kate Walsh and Public Health Commissioner Robbie Goldstein, criticized Steward Health Care for its alleged mismanagement, greed, and chronic underinvestment in its hospitals. Governor Healey proclaimed, "Today, I'm pleased to say we're closing the book on Steward once and for all in Massachusetts. Good riddance and goodbye." She further emphasized that the state's move to seize St. Elizabeth's property was due to the inability to reach an agreement with the hospitals' property owners on the leases.

The governor called for an investigation into Steward's chief executive, Ralph de la Torre, accusing him of misconduct and the need for accountability. Steward's spokesperson refrained from commenting on the state's announcement.

The real estate of St. Elizabeth's Medical Center, originally owned by investment firms Medical Properties Trust and Macquarie Infrastructure Partners, was later handed over to their mortgage lender, Apollo Global Management. Negotiations for long-term leases had been deadlocked due to property owners demanding higher sums than potential buyers were willing to pay.

Governor Healey expressed frustration with these investment firms, stating that they prioritized their own interests above the well-being of Massachusetts residents. As a result, the governor proclaimed that her administration would invoke eminent domain and take control of St. Elizabeth's property, offering fair market value of $4.5 million to Apollo.

To facilitate the transition to new owners, the Healey Administration is providing $30 million in bridge financing, enabling the hospitals to remain operational until the end of the month. Additionally, the hospitals' new operators will receive over $80 million a year in state and federal funding.

While Boston Medical Center, Lawrence General Hospital, and Lifespan have not yet commented on the deals, Lifespan spokesperson Jessica Wharton confirmed their ongoing work to finalize terms with Steward and Apollo.

On the other hand, Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer are set to close by August 31, as no qualified bids were received to take over their operations. Governor Healey held Steward accountable for the mismanagement of these hospitals, acknowledging the losses faced by their respective communities.

The decision by the Massachusetts Administration to seize St. Elizabeth's Medical Center through eminent domain is being praised by a major healthcare union, 1199SEIU, as an aggressive and necessary action. However, the union hopes that similar measures will be undertaken to prevent the closure of Carney Hospital and Nashoba Valley Medical Center.

The Massachusetts Hospital Association welcomed the deal, expressing hope that it would stabilize the state's hospital system and alleviate pressures on other healthcare facilities.

The bankruptcy hearing, scheduled for next week, will determine the approval of the hospital sales. Meanwhile, a separate agreement has been reached to sell Steward's physicians' network, Stewardship Health, to Rural HealthCare Group for $245 million in cash.

As this story continues to unfold, further updates will be shared.