Steward to put off 1,200 employees in Massachusetts
US-based Steward Well being Care is reportedly shedding greater than 1,200 workers in Massachusetts by the top of the month, whereas additionally closing two hospitals within the state.
The well being system will lay off about 753 workers at Carney Hospital, whereas about 490 workers at Nashoba Valley Medical Heart shall be laid off, Healthcare Dive reported Aug. 5.
The report notes that the measure is cited in a Employee Adjustment and Retraining Notification (WARN) report filed with state regulators on July 29.
A U.S. chapter choose lately gave Steward Well being Care permission to shut Carney Hospital and Nashoba Valley Medical Heart by the top of August.
These services are amongst eight hospitals operated by the well being system within the Bay State area.
The choose additionally granted Steward's request to dismiss a lease settlement that Steward and Massachusetts officers say has impeded the switch of the hospitals to new house owners.
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The choice to shut the 2 hospitals was introduced final week. Steward mentioned there have been inadequate funds to proceed operations and an absence of certified bids.
Carney Hospital, based mostly in Dorchester, Boston, and Nashoba Valley Medical Heart, positioned in rural Ayer, Massachusetts, are reportedly operating at a loss and have restricted affected person capability.
In response to courtroom paperwork, Carney Hospital, which has about 903 workers, reported an EBITDA lack of $14.7 million from January via Might.
In the meantime, Nashoba Valley, which has 562 workers, reported an EBITDA lack of $2.3 million for the complete half.
The opposite six hospitals in Massachusetts managed by Steward suffered EBITDA losses of greater than $63 million throughout the identical interval.
To make sure the continuity of the hospitals, Massachusetts officers have proposed distributing $30 million in Medicaid advances, contingent on Steward reaching gross sales agreements for the 5 remaining hospitals, WBUR reported.
This proposal is anticipated to be mentioned at a listening to on August 6.
Steward, headquartered in Dallas, filed for Chapter 11 chapter in Might within the Southern District of Texas.
