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Boston Herald
Boston Herald
29 Jul 2024
Matthew Medsger


NextImg:Steward asks judge to limit liability, calls on Bay State to ‘cooperate’ with hospital closures

Steward Health Care, through its attorneys, has told a Texas court they think they should be exempted from any liability to the Bay State arising from their bankruptcy proceedings and the sale of their Massachusetts hospitals.

According to a proposed court order offered on behalf of the now-bankrupt Steward, the company says Massachusetts should approve the closing of Carney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer, and any other hospitals they might close, and that the state should help with this process.

“Local, state, and federal regulators shall cooperate with the Debtors in good faith to effectuate the closure of the Closing Massachusetts Hospitals and each subsequent Facility Closure,” lawyers for the healthcare company wrote.

Beyond that, the Dallas-based company’s lawyers say the government shouldn’t hold them liable for closing any of their hospitals.

“The Debtors shall have no liability to any governmental entity for effectuating the closure of the Closing Massachusetts Hospitals or any Facility Closure in accordance with the proposed closure plans approved by this Order,” they wrote.

A hearing over the sale and closure of Steward’s Bay State properties is scheduled for July 31 in the U.S. Bankruptcy Court of the Southern District of Texas Houston Division. The company sought Chapter 11 bankruptcy protections in May, when they announced they would sell all of their hospital properties at auction.

Steward did not return a request for comment.